Business Performance Analysis and Project Plan for Tesco Retail Stores

This report provides a comprehensive analysis of Tesco's business performance, evaluating its current strategies and identifying areas for improvement. It begins with an introduction to Tesco, its products, and services, followed by an analysis of its business performance using the Hayes and Wheelwright model. The report then delves into project evaluation, specifically focusing on the implementation of a self-payment machine, comparing it with other potential projects. It also explores the concepts of continuous improvement versus radical change, with a literature review and application of the 5S methodology. A project plan draft for Tesco is presented, outlining the stages of implementation. Finally, the report includes a project risk evaluation and a final project plan, concluding with a summary of findings and recommendations. The report aims to provide insights into Tesco's operations and suggest strategies for enhancing its business performance and customer satisfaction.

Improving Business
Performance

Table of Contents
1.0 Brief introduction of organisation, its products or services.......................................................3
2.0Business performance analysis...................................................................................................4
3.0 Project evaluation.......................................................................................................................5
4. CONTINUOUS IMPROVEMENT VS RADICAL CHANGE...................................................7
5S for continuous improvement..................................................................................................8
5.0 Project Plan Draft for Tesco......................................................................................................9
6.0. PROJECT RISK EVALUATION...........................................................................................10
7.0 Final Project Plan for Tesco.....................................................................................................13
8.0. Conclusion. ............................................................................................................................18
REFERENCES..............................................................................................................................19

1.0 Brief introduction of organisation, its products or services.
Tesco is a retail store in UK which was founded in 1919. Tesco is the biggest retailer, has
their stores across the world. It has its stores in about 12 countries. They have more then 3300
stores in UK only. In 2014, they introduced about 400 new products.
Mission and vision of Tesco :As we know, in dynamic world if any company want to
stay for long term then they must have clear vision and mission, without it company can't
survive. Tesco want to build customer loyalty and provide them satisfaction (Yang, Hong and
Modi, 2011). They want to create value of their products among customers. They want
continuous growth of the company, also want to be innovative and creative. Goals, vision and
mission statement are related with each other and explains that what company or organisation
desire to achieve. Company makes some strategies and plans to achieve them. Vision and
mission statement of company inspire company's shareholders and also motivate employees of
company towards achievement the objectives (Ben Brik, Rettab and Mellahi, 2011).
Tesco's ambitions are to construct more opportunities for large number of people, they also cut
down their effect on environment. Values of every company make them different from other
company. Tesco offers Baby products, food products, groceries, financial services, petrol
stations, Tesco club cards etc.
Objectives of Tesco:
 They want to sell their products more and more and want to connect with more peoples.
 They want to increase their market share price.
They also want to reduce their cost, maximise their sales and earn more profits.

2.0Business performance analysis
Business performance analysis is the process, measurement, system, function and
methodology use to organization performance and working capabilities for achieve the target or
objectives (Schiuma, 2012). Business performance analysis gives proper information related to
the TESCO company.
Hayes and wheelwright model
This model related to improve operational capabilities and this makes impact on
operations and production of the business . This model has four stages those are follows.
Stages Task Description
Stage 1 Correct worst problems In this stage should solve the worst
problem related to organization and
try to clarify situation with all the
employees , its help to improve
communication with all the employees
(Real, Roldán and Leal, 2014).
Stage 2 Adopt best practice After clarify and evaluation of the
problems have to adopt best practice
and plan in the organization. Its help
to reduce long line to customers does
not have to wait long for their number
Stage 3 Link strategy with
operations
In this stage have to mange all the
operations and decide to to provide
services to customers .further,
delivery of products, feedback,
reviews, payments etc.
Stage 4 Give operational
advantages
In this stage try to give proper
satisfaction to the customer and full
fill their needs and wants . And also

mange their product quality , so
TESCO will be stablish a effective
image in the market and also
customers mind (Schläfke, Silvi, and
Möller,2012).
2.1 Problems identification
By the TESCO has to identify problems in the organization and always has to try solve
all these problems and give to proper satisfaction to customers and also employee. So company
has to decide how to identify problems and issues and how to communicate all employees. When
problems or issues are not resolve by the company after that its create big issues and conflicts
those affect on the companies image and also productivity (Kim and Gao, 2013). Many
organization set up a formal system to communicate with anyone, sometimes its not possible to
understand by persons because different situation has to understand not by the all person so
should be sometimes informal to communicate with employees. For problem identification has to
communicate and try to understand properly then give proper satisfaction about the goods and
services. Proving services and goods to customer after that have to fill up a review and feedback
by the customers, through this process easy to identify customers feedback and problems related
to company and services. Chain diagram are powerful ideas to resolve the problems by using the
diagrams and words (Cheng Yang and Sheu, 2014). Chain diagram is the simplest type where all
the problems are listed in the diagrams as a systematic way so its help to easily resolve problems
and also help to improve productivity and efficiency or working.
3.0 Project evaluation
Project evaluation refers to the systematic and investigating process of objectives merits
for the TESCO. This methodology applied in delivery of services , product manufacturing
process, designing, branding, payments as so on . In the other hand it is a systematic process to
identifying, evaluating, designing, and packing of products and goods for the customers and
customer satisfaction.
Investment appraisal method:Investment appraisal techniques are very useful for decide the
business plan which one we has to choose . By using various methods and ideas after that we can

easy to decide and apply in the business development .Management may be not relay on the
feedback of one appraisal method should use financial and non financial methods techniques for
the company investment appraisal (.Laukkanen,and et. al.,2013.).
Application of project appraisal and techniques:
For decide project appraisal techniques and method , first we should identify the
problems after that select a effective appraisal method and idea that help to improve productivity
and image in the market. And we should decide that particular method that should be applicable
on the TESCO department (Yarbrough, Morgan, and Vorhies, 2011).
TESCO Project Appraisal Summary Table
TESCO Payback period SAFe Criteria Importance
performance
matrix
Final outcome
Improvement 1
Self payment
machine
Yes Yes Yes Yes
Improvement 2
New warehouse
No No No No
Improvement 3
Home delivery
Yes No No No
3.3 Result analysis
According to this table only one project will be select just because there has payback
period, SAFe criteria, importance performance matrix all are high compression to other 2
projects. This project help to improve self payment system in the TESCO by this system easy to
pay money of the products and goods, their will be not develop any risk to default payment and
lack of payment because machine recode all the payments and transactions recode in the machine
(Chung, 2011).
In this stage we can easy to evaluate feedback of this project is it useful or not for the
organization so its help to define requirements. First project full fill the demand and requirement
in the organization. Self payment machine through we can save the time of collection of payment

by the customers and customers are easy to pay money of goods. In the department not create
any bad environment and rush of the customers for the payments. So its help to improve
efficiency of working and improve ability of TESCO'S employees. This factory may have strong
impact on the TESCO that improve the working efficiency and business performance. In the
other hand this project will be help full for TESCO company its help to save time of customers
and improve productivity (Paniagua and Sapena, 2014).

4. CONTINUOUS IMPROVEMENT VS RADICAL CHANGE.
4.1. Literature review: Definition of Radical change and Continuous
improvement.
According to the Leonidou and et.al., (2007) continuous improvement is refers to the
improve products and services and its operational process. It is also viewed as a less risky that
radical change management method for reengineering business procedures so that a firm can
attain their organisational goals and objectives. For this Kaizen concept is one of the most useful
method in the continuous improvement in the project implementation. On the basis of Kaizen
improvement tool, project implementation is a systematic process which can help to small and
significant change can be made which can leads to increase product and service quality.

It can be stated that continuous improvement is a time consuming and competitive
procedure which can help to attain of radical change. Additional, a slow and time consuming
process can be outdated after a period of time.
An opposite of of continuous improvement is a radical change approach. According to the
Schiuma, Carlucci and Sole (2012)it is a change which came from the traditional form and
techniques. Therefore, his type of change are more risky and dramatic in nature. These methods
can be used by the company on the urgent projects.
5S for continuous improvement
Hallin, Holm and Sharma (2011) stated that operation excellence can be achieved with
the help of 5S technique where the cited business unit can organize the workplace which can
increase efficiency and productivity of the business.
Sort It means sorting of all unnecessary part form the system.
Simply Setting all aspects in a appropriate order for effective improvement.
Shine This is related with the shining of all area which required improvement.
Standardise Apply government and firm's standards in a appropriate manner.
Sustain This is the final stage which is related with the new standard.
Illustration 1: Kaizen Approach of continue
improvement

4.2. Project implication method at Tesco.
Once analysing all advantages and disadvantages of each method, radical change will be
most appropriate for selected project at Tesco. If the cited business unit can note use a suitable
tools it can create various issues and it can leads to decrease customer satisfaction level.
Customer prefer less waiting time for the payment system specially in the festive season and rush
hour. It can also decrease customer dissatisfaction and productivity of the company. Therefore,
the new self payment machine must be installed as soon as possible in order to prevent financial
and other losses (Willebrands, Lammers, and Hartog, 2012).
5.0 Project Plan Draft for Tesco
Stage Description
STAGE 1
Understanding
project environment
This is the first stage which is related with the research for the self
payment machine its cost, feasibility and types. In the stage the project
manager of Tesco limited required to visited other retail store which are
using such system.
STAGE 2
Definition of project
This is next stage which is focused on the cost projection, construction
unit resource and resource availability has been done for the selected
option.
STAGE 3
Planning of project
In this stage the suggestions and consultation has been done for the
payment machine installation.
STAGE 4
Technical execution
This is another significant stage where the project manager required to
make changes according to the requirements of self payment machine.
For example, CCTV installation is done for a particular area.
STAGE 5
Project Control
In the final stage pilot test run has been done by the project manager of
Tecso and then eluate in a appropriate manner (Najib and Kiminami,
2011).
This plan helps in the operational efficiency and profitability which can leads to increase brand
image of the company.
Task Name Resource Names Cost

Self payment machine/market research Jimmy £120.00
Rival firms onside visit Merry £25.00
Taking advice from professionals Merry £124.00
developing front Area Merry £56.00
Resources determination Jimmy £32.00
Cost estimation David £5.00
Finance evaluation Merry £60.00
Wandsworth Borough council notification Jimmy £117.00
building team inspection Merry £35.00
Professional consultation David £116.00
Price and cost negotiation Merry £22.00
Fund arrangement Jimmy £16.00
Improvement team selection Merry £63.00
Mechanic consultation David £110.00
Self payment machine purchase Jimmy £15600.00
Client notification Merry £520.00
Front Shop improvement Messy £4200.00
Improvement the place David £1200.00
Final installation David £2300.00
IT experts consultation Robby £152.00
Data integration system Robby £563.00
Employee training David £45.00
Other rearrangement Merry £2560.00
Working policy change Jimmy £23.00
Designing employee’s to roles/responsibilities Jimmy,David £12.00
Testing David £200.00
Review new system Merry £12.00
System correction David,Messy £23.00
Other activities David £230.00
1 month trial Merry £92.00
Project review/ feedback David £21.00
6.0. PROJECT RISK EVALUATION.
6.1. Risk management literature review.
Risk is one of the key factor which can influenced the proposed investment. There are various
types of risks which associated with the different aspects such as fund, business activities,
operations, supplier base, innovation and time. However, sooner the risk are determined and
evaluated the less chances of proposed plan failure (Yang Hong and Modi, 2011). It required an

appropriate risk management which can help to overcome their project risk effectively. For an
effective risk management process required to identify the risk at the initial stage which can
provide a set of action for the upcoming potential problem. Additional, the main aim of the risk
management is to overcome potential risk and provide a smooth and consistency to the business
operations. There are different types of tools which can involved qualitative and quantitative
methods. These methods helps to overcome barriers and implement project. In the quantitative
method there are various methods which can involved FEMA, PERT, MCA etc.
6.2. Project Risk evaluation at Tesco.
Based on the above definitions, FEMA and Profitability Impact matrix will be taken in to
consideration at the time of risk assessing in the Tesco PLC. The proposed project will be
evaluated and analysed through both qualitative and quantitative approaches and provide
important information for the management. Moreover, FEMA can be identify the various risk in
a appropriate manner (Ben Rettab, and Mellahi). It can help to reduced uncertainties on the
qualitative data and information for the business. In these tools the possible threat can be
determined and its impact on the business operations.
6.3. Risk appraisal summary
Project risk are mostly created by the technological and human aspects . Its very essential for the
TESCO to the manage risk of the organisation because risk is uncertain in the future so its
require to identify and have to mange for the improvement performance. Risk occur by the
market stability, market related fake news related to company. Firstly, company always has a
backup solution of the any type of risk and secondly, detailed project planning and designing for
a specialist project advice can help in cost management and resources overestimation. In the
addition to that customers should be educated related to all news and has knowledge so they can
easy to identify risk and profit. After review of risk then how to mange this so we should
something for the organization these are follows:
Use CCTV camera outside of the company, that will help to see and store all the customers in the
camera if has any many issues and problems so company can easy to identify .Virus protection,
this system provide virus protection services to customers and its help to provide maximum
satisfaction related to the goods and products . Extra backup system, TESCO has to cover risk
and try to hedge risk in the future so company always had a back option for cover the uncertain
risk .