Building and Marketing High Performing Coursework: Tesco's EFQM Model

This report examines Tesco's application of the EFQM Business Excellence Model, a framework for organizational management aimed at enhancing competitiveness. The report begins with an introduction to the EFQM model, highlighting its benefits and suitability for various organizations, regardless of sector or size. It then applies the model to Tesco, a British multinational retailer, focusing on two key enablers: Partnerships & Resources and Processes, Products and Services. The analysis explores Tesco's partnerships, including those with employees, external stakeholders, and suppliers, emphasizing the importance of sustainable relationships. The report also discusses Tesco's resource management, covering building, equipment, and financial resources. Furthermore, it delves into key processes such as inventory management, supply chain management (including lean management and data-driven techniques), and technology development. The report concludes by justifying Tesco's supply chain and operations strategy, emphasizing the company's effectiveness in the EFQM model's enablers and its commitment to direct-to-store delivery and centralized supply chain management.

Building and Marketing High Performing
Coursework A Organisations

Table of Contents
INTRODUCTION...........................................................................................................................4
EFQM Business Excellence model.................................................................................................4
Application of the EFQM Business Excellence model...................................................................5
Justification of supply chain/operations strategy.............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive Summary
EFQM Business Excellence model is a model that businesses can use to identify the gaps
and strategies and ways to fill the gaps that lead company towards desired results. This report
discussed about what is EFQM Business Excellence model and what is utility of the model along
with why this is beneficial to be used by the customers. The report later applied EFQM Business
Excellence model on Tesco and concerned with two of the criterion were discussed that are
Partnerships & Resources and processes, product and services. These criterions in this model
have been considered as enablers that lead organisation to achieve results. Application of this
model of Tesco outlined and suggested that company is practices effective practices and these
practices enabled Tesco to achieve success and desired results. Company is focusing on all
different aspects of the operations and this contribute in effectiveness of overall operations of the
company. Concerned with supply chain Tesco is focusing on data collection from different
techniques and employing a supply chain that is based on lean management. In relation with this
Tesco can adopt sustainable supply chain management. It is concerned with identifying and
understanding impact of supply chain on environment and ensuring positive impact of supply
chain functions on the environment.

INTRODUCTION
EFQM Business Excellence model is a framework for organisational management, this
framework help businesses in becoming more competitive. This model for business excellent is
suitable for all kind of organisation regardless of their sector, structure and size Calvo-Mora,
Domínguez-CC & Criado, (2018). This report will discuss about EFQM Business Excellence
model and how organisation can apply this model for their business excellence. Followed by this
strategy will also be discussed in order to enhance organisational excellence. The discussion will
contextualise Tesco, British Multinational groceries and general merchandise retailer. Founded
in 1919 and is headquartered at Hertfordshire, UK. Services of Tesco are available in around 9
countries and serves at around 6800 locations and along with this services and products of the
company are also available on online platform.
EFQM Business Excellence model
This is a globally recognised management framework that allows company to achieve
desired success by measuring where they are on the path towards transformation, helping them
understand the gaps that exist and understand what are the possible through which gaps can be
filled. This model empowers organisations to progress and significantly improve performance of
the organisation. This model has several benefits as this allows organisation to embrace changes,
drive performance and evolve for the future. Benefits of this model includes, defining purpose.
This benefit includes that new model places an unparalleled emphasis on the importance of
purpose in organisation, vision of the organisation and agile strategies in order to create
sustainable value Escrig-Tena & Menezes, (2016). Creation of culture, this is another benefit of
the model in which organisation can create innovative culture. This model involves five elements
that are known as enablers and four elements are there that are known as results. This model
allows organisation to understand their present quality but ultimate decision of the changes and
expected results are based on the organisation and success of the organisation depends on their
effectiveness to create effective results and based on correct identification and analysis of gaps.

Figure 1 EFQM Model
Application of the EFQM Business Excellence model
Partnership and Resources
This is one of the enablers in the EFQM Business Excellence model. This is concerned
with what partnerships of Tesco with its different partners in business and along with resources
of the Tesco. Resources are one of the most important enablers that enables organisation to
achieve its desired results.
Building sustainable relationships with their partners & suppliers
It is a well known fact that individual cannot perform all the activities and operation of
business by themselves and partnership is very important for successful completion of the
different business and organisational activities El Talla and et.al., (2019). Partnership can of
different types and this involves partnership in finance, partnership in employee and employer,
partnership in external stakeholders and partnership with suppliers. These are some of the
important partnerships that are related to Tesco. Tesco undertake several efforts to build
sustainable relationship, in this one of the best example is of employee-employer relationship

that has been built by Tesco. This relationship is with Usdaw; this partnership of Tesco with
Usdaw enables its staff to have their voice in pay, policies and business decision. This also
enables Tesco to hear from the staff. This relationship contributes in sustainability of the
business and staff and employees at all levels of the organisations also remain satisfied with the
practices of Tesco, and enables effective management of any conflict that might arise in staff and
management. Other than this Tesco has also built several relationships with external
stakeholders. This involves Tesco’s partnership with Yext to manage digital knowledge for over
4000 location. This relationship is sustainable and for sustainability of the Tesco. This enables
Tesco to effectively manage its digital knowledge and contribute in sustainable performance and
success of Tesco. In its relationship Tesco has also partnered with different health charities and
experts to promote healthy living and prevent and cure for biggest health challenges being faced.
In order to ensure sustainability it is 5 year partnership Dubey & Lakhanpal, (2019). Concerned
with relationship of Tesco with suppliers Tesco has developed a new, long term partnership
approach with suppliers. This approach of Tesco includes that they want to give their suppliers
some certainty so that they have confidence to invest in their business to innovate with Tesco.
Tesco also considers identifying best suppliers and working with them. They consider a win-win
approach of working with its suppliers and among 2500 suppliers of Tesco around 100 suppliers
are strategic partners of Tesco.
Managing their buildings, equipment and resources in a sustainable way
Tesco is a retail organisation and this one factor make it utmost important for Tesco to
manage its building. This is important for Tesco to manage their building in order to attract
customers. Building management of Tesco is based on cleanliness, safety and amenity. In
management of building it is very important that buildings are not only managed from view point
of maintaining the building itself, but it also requires providing safe and comfortable
environment for those working there and for the visitors. Strength of Tesco is diverse range of
experiences that Tesco has accumulated and in its building management not only public facilities
and stores are involved but building management of Tesco also involve office buildings.
Equipments that are used by the organisation play important role in ensuring successful
operations of the company and this is why it is important they are well maintained and managed
Kafetzopoulos & Gotzamani, (2019). Sustainable management of equipments refer to managing

equipments in such a way that company can utilise them to their utmost capacity. Important
equipments that are used for Tesco are furniture, computers, storage equipment and printers and
other tools that are required for completing operation of retail organisations. Tesco requires
maintaining all these equipments so that it can successfully manage all the operations and
properly manage its inventory.
Resources management is another important contributor and enabler of successful
completion of the operations of the business. Resources can be divided into financial resources,
physical resources, and human resources. Sustainability of resources varies on the basis of their
nature, sustainable utilisation of financial resources is concerned with investment and utilisation
that allows long term sustainable income. Tesco has undertaken several investments that are
aimed to providing long term competitive advantage. Tesco through is human resources practices
has enabled employees to retain and sustain in organisation and also perform effectively to
complete all the tasks of the organisation successfully so that they can provide long term
competitive advantage to the organisation.
Processes, Products and Services
Key processes required to deliver their strategy
Several processes are required to undertake by the organisation in order to complete all
the tasks of organisation and achieve desired results and success Akkucuk & Gencer, (2017).
Tesco also undertake several process that are operational processes, administrative process and
business processes of Tesco. Key processes that are required by Tesco to deliver its strategy-
Inventory Management
This is one of the most important process that is undertaken by the Tesco to deliver its
strategy. This process is concerned with process of ordering, storing and ensuring all stores of
Tesco have required and estimated inventory to fill all the demands of the customers. This is one
of the most important processes for Tesco because it’s a retail organisation and requires ensuring
availability of inventory. Inventory management ensures that company has required inventory in
which it is according to expected demand and ensures it is adequate avoiding surplus as well as

shortage of the inventory. Surplus of the inventory requires additional space in store and its value
can also be down.
Supply Chain Management
Supply chain management is concerned with management of the flow of goods and
services, and subsequently involves movement and storage of raw material, work-in-progress
inventory and that of finished goods Criado-García, Calvo-Mora & Martelo-Landroguez, (2019).
In relation with Tesco Supply chain it is based on lean management solutions in its supply chain
successfully. In order to enhance efficiency of supply chain Tesco adopted several techniques
and systems like point of sale data, primary distribution, continuous replenishment and RFID
(radio frequency identification) techniques.
Technology Development
This is another process that has been undertaken by Tesco. This is aimed at enhancing
quality of operation and gaining competitive advantage through development of technology. This
allows keeping data and management of knowledge and improves overall quality of the Tesco
and concern with this Tesco has also established partnerships to provide technology assistance to
Tesco.
Development of new, innovative products and services (300)
Tesco is operating in retail industry and this is one of the most important elements which
requires Tesco to develop new and innovative products and services. Innovation is highly valued
process at Tesco. As per Tesco development of new and innovative products and services in
Tesco is based on two elements that is Customer Needs and Future Force. Customer needs at
Tesco involves needs of internal departments and those of shoppers at Tesco. Future Forces
involve technical, social and demographic trends that are likely to appear in future. Insights from
this become input for innovation and new product development at Tesco. Insights from these two
areas Tesco brainstorm with diverse groups in order to generate large number of ideas. The best
ideas from these are selected and moved into concept development Kafetzopoulos, Gotzamani &
Skalkos, (2019). Concepts later are validated with the customers and followed by this next step is

prototyping and testing, this also involve customers. Innovation team of Tesco aims to go from
initial idea to a minimal viable product within six weeks.
Justification of supply chain/operations strategy
Based on above analysis it can be said that Tesco has managed to maintain effectiveness
and quality in enablers of EFQM Business Excellence model. Concerned with this two of the
criterion Partnerships & Resources and Processes, Products and Services were discussed and
performances and processes of Tesco related to both of this is really excellent that contribute in
overall business effectiveness and efficiency of the company Koberg & Longoni, (2019). In
relation with supply chain management of Tesco its supply chain is based on direct to store
delivery, this means that suppliers and manufacturers supply directly to store and that too when
they chose. Centralization, this decision on Tesco in relation with their supply chain management
is based on centralization of supply chain and store mangers were no longer allowed to decide
ranges, and price. This also enabled Tesco to enhance and improve their control on stores and
their supply chain activities. Composite distribution, this is concerned with integrated approach
to supply, this enabled temperature controlled product to be distributed through one system of
multi-temperature warehouse and vehicles. Vertical collaboration and ‘lean’ supply chains, this
is concerned with lean management in which it is ensures minimisation of wastage and
maximisation of productivity Bastas & Liyanage, (2018). Supply chain is also based on this
approach. Supply chain management of Tesco is also based on this approach and in order to
enhance this Tesco has adopted several techniques that are point of sale data, primary
distribution etc. However, supply chain management includes several aspects of data and is
effectively agile to gain competitive advantage but it lacks sustainability. This means that supply
chain of Tesco lacks environment sustainability in it. Environment sustainability has become
very important in present business environment and this is important because of social changes.
This is because sustainability in its forms both social and environment, has become important for
growth and profitability and also has become priority for the organisations.
Tesco can adopt Sustainability Supply Chain strategy for its supply chain management. Adopting
sustainability supply chain will enhance several areas concerned with supply chain, that are
reduction in carbon emission and pollution and industrial waste. Several companies are

following this strategy for supply chain and Tesco can also adopt this strategy. This strategy can
be adopted and applied by following efforts-
 Adopting and implementing long term targets that improve key measures of sustainability
 Deploying new technologies in order to understand and employ responsible
environmental practices, this means optimising truck routes, and reduction in fuel
consumption Hong, Zhang & Ding, (2018).
This strategy can also be justified with help of RADAR elements that are-
RADAR Elements Strategy
Result This strategy will enhance environment
performance of Tesco. This will make positive
impact on financial aspects of the Tesco and
will also improve its social appeal.
Approach This strategy of supply chain management is
based environment responsive approach. This
means that Tesco will be able to fulfil its
environment responsibility through this supply
chain management strategy Kot, (2018).
Deployment Steps that Tesco will take under this strategy
are-
 Developing long term sustainability
goals
 Identification of key sustainability
activities related to supply chain, that is
form of sustainable transportation,
ways of waste management and
recycling
 Identification of small routes and as
possible using environment friendly
and electric vehicles for transportation

 Undertaking regular assessment of
impact of supply chain on environment
and as well as on business
 Ensuring sustainable supply chain is as
effective for business as it was earlier
Assessment & Refinement In order to ensure this strategy remains on
track Tesco needs to undertake regular
monitoring and assessment Kot, (2018).
Tesco has effective innovation practices and
concerned with this innovation can also
enhance supply chain sustainability of Tesco
ensuring and allowing company to get effective
results in all aspects of the sustainability.
CONCLUSION
On the basis of above discussion it can be concluded that EFQM Business Excellence
model is an effective approach which can be utilised by organisation to identify gap and employ
effective strategies. In this report this model was applied on Tesco with two of its criterion
Partnerships & Resources and processes, products & services. Its application identified and
reflected that Tesco employs effective processes and all practices of Tesco are effective but
environment sustainability in its supply chain was lacking. Concerned with this one of the
strategy was offered and justified for the Tesco.

REFERENCES
Books and Journals
Akkucuk, U., & Gencer, Y. G. (2017). EFQM Model and Sustainability of
Organizations. DEStech Transactions on Computer Science and Engineering, (ameit).
Bastas, A., & Liyanage, K. (2018). Sustainable supply chain quality management: A systematic
review. Journal of cleaner production. 181. 726-744.
Calvo-Mora, A., Domínguez-CC, M., & Criado, F. (2018). Assessment and improvement of
organisational social impact through the EFQM Excellence Model. Total Quality
Management & Business Excellence. 29(11-12), 1259-1278.
Criado-García, F., Calvo-Mora, A., & Martelo-Landroguez, S. (2019). Knowledge management
issues in the EFQM excellence model framework. International Journal of Quality &
Reliability Management.
Dubey, M., & Lakhanpal, P. (2019). EFQM model for overall excellence of Indian thermal
power generating sector. The TQM Journal.
El Talla, S. A and et.al., (2019). Intermediate Role of the Criterion of Focus on the Students
Benefiting in the Relationship between Adopting the Criterion of Partnership and
Resources and Achieving Community Satisfaction in the Palestinian Universities.
Escrig-Tena, A. B., & Menezes, L. M. D. (2016). What is the effect of size on the use of the
EFQM excellence model?.
Hong, J., Zhang, Y., & Ding, M. (2018). Sustainable supply chain management practices, supply
chain dynamic capabilities, and enterprise performance. Journal of Cleaner
Production. 172. 3508-3519.
Kafetzopoulos, D., & Gotzamani, K. (2019). Investigating the role of EFQM enablers in
innovation performance. The TQM Journal.
Kafetzopoulos, D., Gotzamani, K., & Skalkos, D. (2019). The relationship between EFQM
enablers and business performance. Journal of Manufacturing Technology
Management.
Koberg, E., & Longoni, A. (2019). A systematic review of sustainable supply chain management
in global supply chains. Journal of cleaner production. 207. 1084-1098.
Kot, S. (2018). Sustainable supply chain management in small and medium
enterprises. Sustainability. 10(4). 1143.