Business Operations and Management: A Tesco Case Study Report

This report provides a comprehensive analysis of Tesco's business operations and management strategies. It begins with an introduction to business operations, followed by a description of Tesco and an evaluation of its operations management decisions. The report then delves into the key el...Read More

Introduction to
Business Operations
and Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Business Operations ...................................................................................................................3
Company Description..................................................................................................................5
Evaluation of company's operations management decision........................................................5
Elements of Business .................................................................................................................6
Conclusion ..................................................................................................................................8
Assessment 2 ..............................................................................................................................8
Functions of Business operations................................................................................................8
Role of managers in effective operations ...................................................................................9
Difference between leadership and management .....................................................................10
What makes a good manager ...................................................................................................10
How managers can influence organisational culture ...............................................................11
Employee management; recruitment and retention...................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business may be referred as an entity which engaged in various commercial, industrial and
professional activities for the purpose of generation of profit (Carbone, Rouquet and Roussat,
2017). It contributes a large part in economic development and elevates standard of living of
people. Operation management facilitates in creating highest level of efficiency within a
company. In order to achieve organisational objectives, it is imperative to streamline all
resources in such a manner that yields higher profit. This project report is based on Tesco, a
British multinational retailer headquartered in Welwyn Garden City, UK. This case study report
will cover main functions of business operations along with a brief description of Tesco. In
addition to that, it will cover an evaluation of company's operations management decision. At
last, it will cover key elements of business such as supply chain, production, logistics, quality
control, HR and location strategies.
TASK
Business Operations
It may be referred to those activities which engages on a daily basis so as to enhance
value of organisation and to generate profit (Charalampous, Kostavelis and Tzovaras, 2020). The
activities may be optimised to earn sufficient revenue so that company can cover its expenses.
There are various functions performed by employees so as to accomplish business goals such as
accounting, marketing and manufacturing. It is highly dependent on business as business
operations evolves as business grows. In order to promote smooth functioning of business, it is
needed to formulate effective management strategies so as to prevent glitches. For example, a
small business should be ready to face new challenges such as marketing issue, capacity issue
and legal issues. In industry, there are various types of business operations and are discussed
below.
 Retail industry -The core aim for this type of business is to stock products which
customers are looking for and are willing to pay price too. This means that company have
to maintain adequate supply and inventory level so that it would not face shortage, in case
of high demand.
 Service industry -This type of business operation is classified into front end and back end
side of business. It is needed to ensure that both the divisions rae running efficiently and

to prevent laxity on one side or it may affect on company's objectives. On the front end,
business should focus on streamlining the services in order to make customer satisfied.
While on the other hand, back end should focus on employing right people so that they
can bring efficiency in business operations (Cokins, 2017).

 Manufacturing Industry – This type of business are involved in turning raw material into
finished goods, which are then sold to customers. In order to elevate efficiency of
business, companies can source raw material from credible suppliers who provide quality
material at minimum price (Al-Sada, Al-Esmael and Faisal, 2017).
Company Description
Tesco is a British multinational general merchandise and grocery retailer headquartered
in Welwyn Garden City, UK. In terms of gross revenue, it is the third largest retailer in 2011. It
have various shops in different parts of Europe. It was founded by Jack Cohen in 1919. Company
have started to expand range of products which include clothing band household goods. The
superstores of Tesco are standard large supermarket which offers a wider range of clothes and
operates a number of in shop cafes. It made a commitment to corporate social responsibility in
form of contribution made from its profits to community organisations and charities. It have
opted solar panels by which it can save electricity and can minimise its negative impact on
environment. In order to promote its products, it opts digital marketing as it cheaper and cost
effective tool by which company can engage with its customers. By using social media
marketing, Tesco can communicate and can take feedback so as to improve services.
Evaluation of company's operations management decision
It is imperative for company to evaluate operations management decision in order to
assess its effectiveness and to take corrective measures for further development. The operation
strategy must meet company's goals and all resources should be aligned in such a manner that it
contributes in accomplishment of objectives (Abbasi and et.al., 2022). The operations function
for a business is a key to successful as it produces what it sells. In case of Tesco, operations
consumes a larger part of company's resources as well as generate more revenue. So it is
important to evaluate operations management decision as it will help company in identification
of those areas in which company is lacking and in which area, it is consuming higher cost with
minimum revenue generation. It is imperative to identify as it facilitates in elimination of
wasteful activities which consumes higher cost but does not generate profit. In addition to that,
company can save time, cost and effort and can contribute n other activity so as to make
company more profitable. The operation strategy must support organisational goals, supply
operational target along with a proposed detailed plan which contributes in accomplishing

organisational goals. If strategy does not contribute in meeting performance, it is needed to alter
strategy so as to put it back on track. By evaluation, Tesco can assess its weakness and can take
corrective action in order to make company more productive and to boost sales too.
Elements of Business Production – The production process of Tesco is highly successful as as it produces own
branded products along with selling other selling products so as to meet expectation and
needs of customers. For Tesco, the production process is important as it changes inputs
into outputs so as to meet demands of their customer. Production process takes place
when components and raw materials are ready to changed into finished goods and
products (Copacino, 2019). In order to introduce new product in market, Tesco conducts
an extensive research so as to understand needs and wants of customers and to produce
product which can meet expectation of customer. In production process, Tesco opts more
than one supplier which provides quality raw material but at lowest price. This will help
company in generating more profit and it can offer bets prices to customers. In the
production process of Tesco, quality assurance occurs both during and after the process
so as to ensure quality of product. In addition to that, it opts random sampling method so
as to check whether quality of product meets standards or not. This process is concerned
with to makes sure that products are produces according to satisfactory standards or not
(Büyüközkan and Göçer, 2018). Tesco opts an ongoing approach in production process
so as to make process smoother , error free and waste free. Supply Chain – Supply chain is one of the most crucial elements of business and Tesco
manages its global supply chain through vertical integration, lean thinking and
complexity management. Company have close relationship with its citrus, banana, fruits
and livestock producer in order to ensure quality and to minimise supply chain risk.
Tesco have deployed various technologies so as to support shelf management, to manage
inventory, improve delivery process and to enhance shopping experience. Company have
opted an innovative supply chain management strategy which requires to consolidate
global supply chain. It helps company in capitalising B2B relationship with its suppliers
so as to acquire product at low cost and to maximise economics of scale. Tesco adopts a
collaborative approach to SCM which is characterised by relationship initiatives which

supports its grocery logistics. The supply chain of Tesco have evolved since 1980s in
efficient grocery logistics. The head office of Tesco is aligned with store operations so as
to match store requirements along with re organising middle level management. Logistics – Logistics management may be considered driver for long time and businesses
are investing on it over last decades. Due to high competition, consumers are highly
aware about quality of products and to buy those product which are highly standard but
with low prices. Tesco's logistics process involves planning, implementation along with
effective and efficient flow of goods from the point of origin till meeting of customer's
requirements. Th basic elements of logistics are storage, warehousing, packaging,
transport and control of information. Company have high tech software by which it keeps
eye on whole process and ensures that all activities are performing according to pre
defined planning or not. Location strategies – The approach to Tesco's location strategy is completely based on
market research. It conducts market research and based on that, it expand its business
internationally. In the analysis report, it include competition's strengths and weakness,
PESTEL along with laws and legislations. It target those areas in which there is
unavailability of shops and by commencing business in those area, can offer customers to
buy products under one roof. It targets people who wish to buy quality products but by
paying minimum price. This strategy is beneficial for company and is time consuming
too. One single mistake can collapse business and needs to be chosen wisely. It is
imperative for business to opt that location in which there is less competition and heavy
demand of quality products. Quality control – Company focus on rendering quality products and for that it ensures
that each product should meet quality standard. The quality assurance keeps an eye on
whole process and do not entertain manipulation in product quality (Van Weele, 2018). A
quality team is being appointed in Tesco so that it can monitor on each process and to
take corrective measure, in case of negative outcome. It is imperative for company to
provide quality products by assuring its quality. The core aim for this process is to meet
customer expectation and to prevent defects. This will benefit company in elevating rand
image and can attract potential customers too. It ensures that all the quality standards are
to be maintained and must comply with all procedures to make an effective product. It

may be a threat for company if it does not focus on quality which can diminish brand
image and can disappoint customers too.
 Human Resource - Tesco have a structured and multi level process for hiring
employees. All the candidates have to pass those levels in order to employ job in Tesco.
It offers high salaries along with yearly bonus which keeps employees retain and attract
new candidates too. It takes applications from various candidates and based on filtration,
it eliminates unfit candidates. One of the core function of HR is to conduct training
sessions in order to keep workforce updated about latest trends. It is imperative for HR
department to ensure that there should be complete harmony among employees by
creating foster working environment.
Conclusion
From the above case study, it has been analysed that all the elements of business are to be
interlinked so as to make it easier to accomplish organisational goal. The production process of
Tesco is highly successful as it produces product of own brand so as to meet customer
expectation. In addition to that, it also focus on quality assurance in which it ensures that all the
products should be met with quality standards. This will help company in attracting potential
customers towards company's products and can elevate brand image too. The logistics and
supply chain of company is streamlined with head office so that effective decisions can be made
for same. The location strategy helps company in finding a perfect location in which it can
capture new market along by offering quality product. The HR strategy of Tesco focus on
making employees more productive by conducting training and development sessions so as to
make them aware about market trends.
Assessment 2
Functions of Business operations
Production
In this process, the core aim of this function is to convert raw material into finished
goods. It also shows relationship with between quantity of output and quantity of input used in
production process. The core aim in this process is to utilise minimum input and to obtain

maximum output. It is imperative for business to keep an eye on production process as it
involves huge cost which needs to be monitored. By keep track on activities, company can save
time, cost and efforts.
Supply chain
It encompasses with various functions to be considered such as marketing, product
development, finance, distribution and customer service. All these functions are dependent on
supply chain and needed to have a balance so as to provide smoother functioning of business.
Effective supply chain facilitates in lower cost and higher profit. If the supply chain of a
company is effective then it will not face any obstacles regarding shortage of product (Hindess
and Hirst, 2017).
Logistics
The core aim of logistics is to transport goods and products from its origin to end
customers. It is a complex process which needs to be taken care wisely. It is imperative to
formulate effective strategy regarding logistics so that it minimise negative impact on
environment. Company can opt that way of transportation in which there is less carbon effluents.
Location strategies
This business function plays an important role in defining success of every business as it
is needed to opt a location in which there are numerous customers who are ready t buy
company's product. In order to assess demand, it is needed to conduct market research so as to
know which location would be beneficial for company.
HR Strategies
The Human resources strategies should be framed up in such a manner that it creates a
positive work environment in which employees feel comfortable and motivated while working. It
is needed to take effective decision which supports and contributes in accomplishment of
objectives (Schermerhorn, Bachrach and Wright, 2020).
Role of managers in effective operations
Manager contributes a valuable part in implementing right practices and processes across
company. The core aim of operations manager is to formulate effective strategy which will help
company bin accomplishment of goals within time frame period. It focuses on improving quality
of products and ensures that all products meet quality standards. It is the responsibility of
manager to look after all processes in operation and to ensure that all activities are performing

according to pre set criteria or not (Pettinger, 2020). In addition to that, it manager also ensures
that processes which are undertaken to produce production are complying all rules and
regulations or not in order to prevent penalties. It also identifies need of staff required to perform
job and based on that, it communicates with HR department to opt right candidate for filling
vacant job position in operations. Moreover, manager is also liable to improve internal functions
with an aim to maximise profitability. Manager performs various functions in operations such as
to plan, organise, direct and coordinate all operations of organisation.
Difference between leadership and management
Basis Leadership Management
Vision Leaders are considered as
visionaries and they set
pathways to boost
organisation's growth.
Management focus on aligning
all resources in a well
structured manner and to
formulate effective business
plan.
Organising v/s Aligning It focus on aligning and
focusing people by assigning
work to them.
It focuses in accomplishing
goals by using tactical process
and coordinated activities.
Differences in queries In leadership, it asks why and
what along with can challenge
decision to authority for
reverse decision.
In management, it do not
assess and analyse failures.
Position v/s Quality In leadership, it focus on
directing and instructing
employees to obtain better
outcome.
Management is concerned with
job statues and can decision on
behalf of company.

What makes a good manager
Finding, keeping and developing a manager is not easy but finding and keeping a manager is
complex. It is important to retain a manager as it plays an important role in managing operations
of business. There are various traits which makes an individual, a good manager. It is important
for an individual to be caring for team and to support team members whenever they faces any
difficulty. In addition to that, a manager should focus on developing individual they work along
with getting job done. It is imperative for manager to communicate with its team mates. A good
manager listens and address queries. They allows other o speak as they provide an open platform
where team members can share their thoughts and opinions. A good manager always pushes
employees to work with peak potential by filling them with motivation. It is imperative for a
manager to look for development of each employee by assess weaknesses and by taking
corrective actions, it can be eliminated. Some managers are born with these traits and some
acquire by taking training and development sessions. A good manager is that who treats every
employee with equality. By fostering environment and encouraging team to take decision can
inspire them and makes an individual, a good manager (Boone, Kurtz and Berston, 2019). An
individual who treats employees as their family member rather than a hourly workers makes him
a good manager. Having a good manager at workplace facilitates in motivating and in providing
a foster environment in which all employees feels valued part of organisation. An individual who
is having certain traits such as technical ability, vision and goal setting ability and focus on goal
oriented makes good manager.
How managers can influence organisational culture
Managers have capability to influence organisational culture by communication,
leadership and delegation. They can strengthen the business by performing actions along with
their vision. Employees can affect culture by the way of observation. As they observe, they tend
to take decision to improve performance which indirectly affects culture. Managers are highly
active in community and civic involvement is something that a leader should aspire by
maintaining a pro-social place in society. As per their knowledge and skill, they can influence
culture of organisation in a positive manner. In addition to that, managers also helps employees
in understanding their roles and makes them more productive at workplace. It is imperative for

managers to create a positive work culture in which employees feels valued part of organisation
and can work with peak potential.
Employee management; recruitment and retention
Recruitment and retention is one of the most important task of Human Resource
Department. It is important to manage workforce in such a manner that it positively contributes
in accomplishment of employees. Employees should be employed on the basis of skills and
knowledge and have to clear recruitment process so as to get hired for vacant job position in
company. The work of HR department does not ends here but retaining of employees is also
important. It can be done by providing growth opportunities , financial rewards, fringe benefits
so as to keep them within organisation. Company have to conduct training and development
sessions so as to enhance existing skills and to learn new skills which can be used in further
development. By retaining employees, it can save time, cost and efforts of company as it have to
start from initial point again. So it is important for company to keep employees motivated and to
meet their expectation so as to make them retain in company. By reducing employee turnover, it
can benefit company in various aspects. Employees should be hired based on experience and
what level of efficiency they can bring in company.

CONCLUSION
From the above project report it was concluded that there are various traits that an individual
needs to be a good manager. It is imperative for an individual to care, guide, instruct and
motivates for accomplishment of goals. Managers perform various roles in operations
management such as to ensure quality of products and to align other resources in management
process. It keeps an eye on process and ensures that quality of product is meeting standards or
not. Leadership and management are two different approaches opted by companies so as to
organise activities in a well structured manner for fulfilment of objectives. Managers have the
ability to influence organisational culture as they observe they try to make same as their
observation. The managers are visionaries and moulds culture that fits in organisational structure.
It is important for company to employ right candidates for right job position and must be hired
by opting a structured process. In addition to that, organisation should focus on retaining
employees by framing effective retaining strategies.

REFERENCES
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