Management and Operations at Tesco: A Comprehensive Analysis

This report offers a comprehensive analysis of Tesco's management and operations. It begins with an introduction to Tesco, highlighting its position as a global retailer and the use of operational strategies like TQM, Just-in-Time, and Kaizen. The report then delves into the roles of managers and leaders, comparing their functions in planning, organizing, and controlling. It further explores different leadership styles like participative, situational, and system leadership, and the impact of hard and soft skills. The report also analyzes the strengths and weaknesses of managers. Key operational functions are detailed, and the impact of the external business environment on decision-making is discussed. Finally, it examines approaches to operational management, their value, and how Tesco can improve operational efficiency to meet business goals. The report concludes by summarizing the key findings and insights.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
1 Introduction.........................................................................................................................3
2 Managers and Leaders.........................................................................................................4
3 Different Roles Of The Management And The Leaders Of The Company........................5
4 Strengths And Weaknesses..................................................................................................6
5 Conclusion...........................................................................................................................8
1 Introduction to key operation of the organization-..............................................................8
ACTIVITY 2 ...................................................................................................................................9
2 Detail of each key operational functions. Identification of roles and responsibilities of
manager in key operational functions.....................................................................................9
3 Key approaches to operation management and their value...............................................10
4 Impact of external business environment which also affects the decision making...........12
How operational efficiency can be improved for successfully meeting business operation-13
5 CONCLUSION.................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Tesco is a British multinational groceries and general merchandise retailer with
headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third-
largest retailer in the world measured by gross revenues and the ninth-largest retailer in the world
measured by revenues. Key operations such as TQM, Just in time, Kaizen are used by Tesco in
their structure so that they can eliminate the waste, improve continuously and reduce the time at
the stage of manufacturing. It helps the company to meet the demand in the market and match up
with the standards that are required. This helps the company to improve and develop their
process so that they can satisfy more customers and be able to make their environment more
convenient for the customers.
ACTIVITY 1
1 Introduction
Tesco is a British multinational company which is dealing with products which as
clothing, petrol, furniture, financial services, books, etc. The company's headquarters is in
England and the company is the third largest grocery store in the world and that is a very good
factor for the company because the company has been in this field from a long time and the
company is doing very well. The company has 450,000 employees working in the company and
the net income the company has had according to 2019 is £1,320 million.
In the history of the company has faced a lot of lose in the past because of the lack of
experience but due to the experience the company has gained is making the company take the
right measure at the right time which is making the company benefit a lot from the decisions.
Over time the company has expanded itself on a large scale and that is a very good advantage the
company has in the market and the company is doing its best so that it can continue to grow in
the market. The company is taking care of the trends of the customers so that there is a growth of
the company because satisfying the customers is a very important factor for the company. The
company is having a strong management structure in the company so that the company can have
one direction in the market and that will be very beneficial for the company to function.
2 Managers and Leaders
The manager is the person who makes the planning, organization, staffing, directing and
controlling of the employees who are working in the company and that is a very important factor

for the employees. All the companies in the market does need someone to manage them so that
they can function better and efficiently and that is making Tesco have a great advantage ion the
market and that is a very good factor for the company (Akalin, Huang and Willems, 2016).
The leader's role in an organization is to make sure that the planning or the decisions
which are being taken in the company are being followed so that the company will be able to
function in one direction which is a very important factor for the company. Tesco has good set of
leaders in the company which have control on the employees and is making the employees get
the best out of them and that is benefiting the company in a lot of ways possible (Karlsson,
2016).
Functions Managers Leaders
Planning The managers of the company have a
great role to play in the planning of
the changes or any measures of the
company which will benefit the
company in some way or any other
(Connolly, James and Fertig, 2019).
The customers who are having
problem with Tesco they can also go
to the manager to making complain
but Tesco is improving every day for
the benefit and satisfaction of the
customers and that is a very important
factor for the company.
When the managers are not
present or even if they are the
leaders can also attend to the
customers, and they also have a
say in the planning or decision-
making of the company but the
managers have a greater role to
play in the planning and the
leaders have to make sure that the
plans are being executed properly
in the company.
Organizing The organizing the decision or
planning is done by the manager of
the company, but they have to make
the leaders have a say in that because
they will not be able to make
decisions for the employees since
they will not be able to understand
The leaders have to prepare the
employees for the change in the
company which is going to take
place and organize the work in
such a way that there is not too
much pressure on the employees
of the company.

them better.
Controlling The control on the company is way
more than there is on the employees
because the managers are not in direct
contact with the employees which is
why the relationship they share with
the employees is lower than leaders.
The leaders have a better control
on the employees of the company
which is why they can make the
employees listen to the leaders
more than the managers of the
company (Hitt, Xu and Carnes,
2016).
Hard Skills
Hard skills are not followed in Tesco but in hard skills there is no flexibility in the
company which is making the company have a lot of lose because there is no communication and
the decisions are just made and implied on the employees of the company which will make the
company have a high turn over of employees in the company.
Soft Skills
Soft skills are the skills which are being used by Tesco so that the decisions which are
being made or the planning which is taking place in the company is being accepted by all before
they are implied. There is motivation, flexibility, time management, teamwork, communication
and etc for the benefit of the employees and if the employees are having a good environment to
work in then the company will make profit automatically.
3 Different Roles Of The Management And The Leaders Of The Company
The roles of a leader and a manager in a same issue will be different. For example the
when there is a conflict which has occurred in the company's employees then the leaders have to
make sure that they are solved and not the managers of the company and that is a very important
factor because the environment of the company should remain healthy for the smooth working of
the company (David and David, 2019). Participative leadership theory can be used here the
leaders have to participate in this situation and make sure that the result of the company is good
for the benefit of the company. There has to be full attention which has to be put in by the
leaders because it is the work of the leaders to make sure that the team under them is working as
a team and are having a healthy environment. The working of the company should be good so

that the change sin the company can be made properly and the working of the company can
function smoothly and that is a very important factor for the company. The leaders not just have
to make sure that the employees are being able to settle down in the company so that the
company can make more profit in the market and the company will be able to function better as
well (Higgs and Dulewicz, 2016). Though the company already has a competitive advantage in
the market but the company will be able to make to the best retailer store in the world and right
now it is the third. Situational leadership is when the leaders of the company have to make
decisions for the company and for that the leaders have to have experience and knowledge. It is
very important that the leaders have the right experience in the past and their skills of dealing
with the situations should be beneficial for the organization so that the company can have their
objectives achieved. System leadership is having a set of vision for the organization which has to
be achieved in a particular manner. The leader has to monitor and control the employees of the
company so that the system leadership style can be followed. The decisions are made by the
leaders which have to be achieved by the employees so that the organization can increase the
profit margins and reach their goals faster. Contingency leadership is when the powers of the
leaders are used for the right decision for the company. There are a lot of changes which take
palce in organization which have to be implemented by the leaders of the company so that the
organization can have a better functioning for them. The demand of situation is such that the
leaders have to listen to the management of the company and make the employees follow what
the management has to say. The leaders understand the employees but they have to follow what
is best for the company.
Other situation for the company can be that there is a high turnover of employees then the
leaders will not be able to do anything about it but the decision-making will be completely in the
hands of the management of the company (Gibson and Parkman, 2018). It is the work of the
management to make sure that the employees and the customers are having satisfaction with the
work they are doing so that the functioning of the company can take place better and the
company will be able to profit from that factor. The classical management theory can be used in
this situation because in this theory the management takes care of the internal factors of the
company like the labor, job satisfaction, decision-making, etc. It is the duty of the management
to make sure that the employees of the company are getting what they need so that the

production of the products can take place faster which will meet the demand of the customers
faster and that is a very important factor for the company (Slack and Brandon-Jones, 2018).
4 Strengths And Weaknesses
There are a lot of strengths and weaknesses of a manager and the leader of the company
are also different.
Managers Strengths
Reliability
The manager of the company is responsible for the company's lot of changes which is a
very important factor for the company because when there is something which does not take
place according to the plan then there is someone who will be responsible for mislead (Lubbe
and Potgieter, 2018). The manager of the company will be blamed and appreciated in all the
situations which are taking place in the company.
Organization
The managers have to make decisions for the company so that the company can function
an efficient manner and the company will be able to meet the demands of the customers. There
are a lot of targets which are given to the manager and making sure that the organization fulfills
them is the task of the manager is a great strength for the manager.
Managers Weaknesses
Nearsightedness
The manager does not have a near sight for the planning or decision-making of the
company. Examples, the manager will see the forest but not the trees of the forest which is
making the forest.
Resistance to change
The managers are not willing to change but the market is changing every day according
to the customers who are taking the products of Tesco and it is very important for Tesco that the
changes come in easily. The managers and the management of the company is changing and are
accepting the changes which are taking place so that the company can benefit, and they will find
it easier to make decisions for the company.
Leadership Strengths
Inspiration

The leaders of Tesco are very inspirational to the other employees of the company which
is a great profit for the company because all the employees are willing to give there personal best
in the company and that is a very profitable factor for Tesco. If the leaders are not inspirational
then the other employees will also take the work for granted which is not a good vision of the
company because then they will not be able to meet the demands of the customers therefore there
is a need for inspirational leaders (Heizer, Render and Munson, 2017).
Brainstormer
There are a lot of situations which can rise and the managers will not be dealing with
them but the leaders will therefore the leaders of the company should be brainstormers so that the
best of solutions can come out for a situation. The leaders of Tesco are doing there best for the
benefit of the company.
Leadership Weaknesses
Underestimation
The leaders must make sure that there is no underestimation in the company because that
will demotivate the employees to a great level (Reid and Sanders, 2019). The leaders should not
just be focused on themselves but all the employees as well and get to know them individually
because that is a work of the leader since that will create an understanding of the internal factor
of the company.
Attachment
Too much attachment will lead to an unfair situation in the company and the will not be
very motivating for the other employees of the company (Bush, Bell and Middlewood, 2019).
There is a standard Tesco has created for themselves in this market they have created from years
now and the leaders must respect that and follow that so that there is a better functioning of the
company.
5 Conclusion
The leaders and managers of Tesco are having different roles and functions in the
company, and they both are changing with the change ion trends and are very responsible for the
responsibilities which have been allotted to them. The leaders and managers of Tesco have
distributed there work so that there is lesser pressure on one and the functioning of the company
can take place in a smoother and efficient manner. Tesco is having a lot of experience in the
market now therefore the leaders and the managers of the company are also aware of the

decisions and planning which have to be done for the company so that the working of the
company can take place better and the company is making a lot of profit in the market.
ACTIVITY 2
1 Introduction to key operation of the organization-
The TESCO key operation are retailing, where aim and objective of company is to render
products to as many consumers as they can. TESCO embrace uses of common platform for
building innovation along with the branded categories that are Fresh & Easy branded and
concept stores, single format is utilized by company which is applicable to the constant range of
goods. For groceries and food the Fresh and Easy format is used by company. The consumer
expects for getting all their food and grocery offering at any of the Fresh & Easy stores. The
similar operation strategy is used at their big stores where each of the category fall under mini-
departments among stores (Choi, Chan and Yue, 2016). Different categories of the products
which are fitted into the stores allow organization to use various promotion activities
concurrently. The other operation of company also includes automated ordering, innovative
displays, transport planning and club cards in the stores.
2 Detail of each key operational functions. Identification of roles and responsibilities of manager
in key operational functions
There are many key operational functions of company which is helpful for company to perform
their operational and functional activity and gain the company's objectives. The company's
manager plays a major role in optimizing operation by effectively and efficiently using capital
and resource for the betterment of company. The all operations are managed and controlled by
manager in their business activities. As part of their roles and responsibilities all operational
functions are performed by manager which are described below-
 Finance- Finance plays major role in the operation management of company. The
finance in company must be done appropriately so that budgets are divided into each
department as per the requirements and needs so that it is equally divided among all. If
there is any dis balance in organization's finance then company can have to face major
loss. The main role and responsibility of manager is to ensure that finance in company is

being utilized in proper manner so that main function has been carried out which can be
production of products and services (Thomé, Scavarda and Scavarda, 2016). This is
helpful for company to satisfy their customers and gain huge revenue and profits for
company. The flow of money is to be managed by the manager in business. For
forecasting financial performance of company by manager which is contributed for
strategic decision making of organization. It also enables operation for having equipment,
raw materials and people for carrying out the processes.
 Human Resource- It includes forecasting and planning of requirement of staff and
managing the recruitment and selection. The manager applies HR procedures and policies
consistently in their business so that goal and objectives can be effectively achieved. The
staff development is key priority in the TESCO as the talented and skilled staff will be
helpful for company in gaining the competitive advantage. The talented employees are
productive resource for company and thus Manager heir and recruit the appropriate talent
for company so that goal and objective of company is to be achieved. Because the
organizational goal can not be achieved if there are no right individuals in company.
Human resource manager also coordinated among the employees and motivate and
encourage them for keeping their good work ahead and working for the betterment of
company. So the employees work in the positive attitude for the growth and development
of company.
 Marketing- Marketing is must essential element for company to gain the competitive
advantage and for attracting the wide range of consumers to company. The consumer
need can be optimized and thus the overall brand strategy can be implemented according
to that. The manager develops the marketing strategy according to consumer needs and
demand in market so that the wide range of consumer can be attracted towards the
TESCO stores. Thus, the sales and revenues of company can be raised and can gain huge
profits as well. The TESCO brand reputation among the marketplace can be enhanced by
appropriate marketing strategy which is being developed by the manager. The company
with huge repo in market among its rivals had huge consumer attraction towards
company. It is major things by which customers had gain their interest over TESCO
stores and encouraged to purchase their products from stores.

 Production- The production department include various proceeding of product
development from raw material to the finish goods. It can only be well execute if there is
proper management and controlling done by manager. The manager assures about the
quality of products which are being produced by company so that they can render high
quality products to their consumers. The production is the major functioning in company
on which overall operation of company is depended (Haksever and Render, 2017). The
manager also ensures that the proper functioning of the production is to be done there is
no breakage in the process and it is smoothly done and each and every individual who is
performing function in the production process should complete the task. They should also
avail with availability of raw materials to the production department so that functioning
can be properly done.
3 Key approaches to operation management and their value
TQM-
Total quality management helps the company to maintain the level of work across all
operations with reduced mistakes and errors so that the company can satisfy their consumers.
Tesco uses the strategy of providing them with quality products so that they can target and
satisfy more customers. Tesco is (SA and Rica, 2016) considered as the leading chain of
supermarkets in UK all because of their service and quality of products. To maintain the level of
quality they give credit to their department of human resource as they discuss every task with
their associates and subordinates so that there is no miscommunication and every employee is
clear with the role that they have to play. Apart from this they have also kept a team to maintain
the level of quality and deals with the improvement in this sector. They also helps in monitoring
the whole process so that they can assure the quality to the consumers. This is the reason why the
company has made some guidelines and principles which are needed to be followed. Products of
Tesco match up with the requirements and the level of standards. Total quality management also
involves the management of supply chain as they have to keep a check on the products that are
delivered by the suppliers as they have to assure that there are no defects in the product.
Just in Time-
This strategy helps Tesco to reduce the time at the manufacturing stage and with that it
also helps them to reduce the time of complaints or response from customers or suppliers. This
method was created by Toyota and after its success many companies such as Tesco used it in

their structure. This method helps (White, 2016) the company to work at a smaller location, with
low resources of cash and with low level of employment. At the times of recession or downfall in
the economy the company will shift on to lower space where they will use less amount of
resources and less manpower to make their products available into the market. This strategy has
helped the company to deliver their products to the consumers and meet with the needs of the
market so that at a very rapid rate. This also helps the company to maintain the level of inventory
according to the demand of products in the market.
Kaizen-
The word Kaizen refers to continuously improve in the market. This aspect involves all
the levels from CEO to employee to the basic workers so that they can focus on improving their
working. It helps Tesco in dealing with the aspects of purchase and logistics as well as the
department of supply chain. This method helps companies operating in different sectors such as
government, healthcare and banking. Tesco has improved the level of standard with the help of
this method. Above that the company has also taken steps so that they can take out the
unnecessary steps and materials out of the stage of manufacturing so that they can eliminate the
waste. This helps the company to reduce the prices of the products as they have to buy only those
materials and resources which are necessary in the process above that it also helps in saving the
time of the company. There are several elements to this method which are used according to the
line of the company or the nature of the situation.
4 Impact of external business environment which also affects the decision making
Pestle Analysis of Tesco-
Political Factors-
Tesco operates in more than 12 countries which includes Europe and Asia which states
that they have to keep in mind so that they can maintain the level of interference between their
operations. These factors are (Kapadia and et.al., 2018) concerned with the rate of taxes, rate of
unemployment, instability of political issues and the condition of the economy wherever the
country is spreading their operations. Company works under the guidelines of the government so
that they can satisfy the stakeholders of the company. If the relations between the two countries
are not good then it will affect the business of the company.
Economic Factors-

These factors are concerned with the cost of the materials used in the product, prices
offered to the customers and the level of profit that the company earns. After the issue of Brexit
UK has observed a slow rate of growth in the economy which ha affected the business of many
companies including Tesco. Profits of the company are decreasing as they are facing a lot of
competition from companies such as Aldi and Lidl as they are the only companies who have
benefited from the effect of Brexit.
Social Factors-
These factors are concerned with the changes in the attitude, behaviour of people.
Company has to observe the taste of the consumers on a constant basis as they deal in the line of
food products and consumables. Tastes of people has changed, the demand of healthy food is
rising as people are more concerned towards health. Company has understood their taste and
preferences of people. Apart from this they also respect the culture of people in every country
they serve in so that they can gain the reputation in the eyes of people. By this they also value the
culture of the people they serve.
Technological Factors-
These factors helps the company to enhance the level of work and reduce the time of task
by simplifying it in every manner possible. These factors help the company to improve the level
of satisfaction they give to their consumers as they use technologies which are advanced and up
to date. For instance labelling of shelf electronically, electronic point of sale, frequency of radio
identification, facility of electronic fund transfer, machines for self check out. These factors help
the company to improve their process of maintaining the inventory and process of distribution. It
will also help them to create more convenience in their environment.
Legal factors-
Tesco is an international company which states that they have to follow every laws and
rules of different countries (Scriba, Jette and PTOE, 2017.) so that they are allowed to serve in
that country. Apart from that company follows the code of conduct and ethics in their structure.
They provide their services with fair trade practises and provide them with quality products so
that they don't have to face any act of consumer behaviour.
Environmental Factors-
Tesco has taken up the the steps which are necessary to cut the waste so that they can
preserve the environment. They have taken effective measures such as CSR to help the

environment and maintain (Corbett and et.al., 2017) the reputation of the company. They take the
help of those resources which are sustainable in nature so that they can reduce the damage they
made to the environment.
How operational efficiency can be improved for successfully meeting business operation-
The operational efficiencies can be improved by successfully implementing the
situational leadership so that business operations can be achieved by company effectively. The
situational leadership is leadership style which is introduced by Paul Hersey and Kenneth
Blanchard. It refers to the situation when manager or leader of company adjust their style so that
development stages of follow can be easily influenced by them. The style can change continue
for meeting needs of other in company. This is helpful for company to render better shopping
experience for consumer, reducing cost for company, management task and simple storage for
the staff members and fast delivering and ordering which is helpful for company as well as
consumers. The cross docking operation is also run by company (Grant, Trautrims and Wong,
2017). As it rely on the collaborative forecasting, planning and replenishment to claw their
inventory management. Operation in TESCO also needs the people empowerment, coordination
and management. Company has wide range of front desk employees who can easily interact
directly to the consumers in their stores. For ensuring quality in the service they have regular and
strict recruitment for attracting most competence individual to the company. Thus, company can
successfully meet the business operation with the help of the effective operational efficiencies.
5 CONCLUSION
To preserve the environment the company can take up the measures and tools which are
sustainable and renewable for the environment so that they can preserve it. Apart from that it is
necessary that they take steps so that they can cut down or eliminate the waste from the stage of
manufacturing so that they can save the resources and cut down prices so that they can target
more customers. They must follow ethical code of conduct in the future so that they can serve the
customers without facing any legal trouble and save their reputation in the market. Company has
to take some steps and respect the culture of people of different countries so that they can gain
respect in the eyes of the people. Tesco has shifted their dealings into food products in the line of
healthy food products as people are concerned for their health.

CONCLUSION
From the above studies it has been concluded that Tesco needs to take some correct measures so
that they can reduce the level of threat that they are facing from their competitors such as Aldi
and Sainsbury. Apart from that they need to make changes in their process of working and use
renewable resources so that they can help in preserving the environment by reducing the waste.
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