Operation Management Analysis: Tesco's Strategies, Challenges, and SCM

This report provides a detailed analysis of Tesco's operation management, covering core and support functions, the input-transformation-output process, and the roles and challenges of operation management within the organization. It examines how Tesco measures its operational performance and recommends emerging technologies for improvement. The report also evaluates different approaches to quality management, comparing their benefits and limitations, and explores the role and scope of supply chain management in supporting Tesco. Furthermore, it assesses Tesco's supply chain performance objectives, considers the use of lean vs. agile supply networks, and provides recommendations for effective supply chain management. The analysis includes comparisons with competitors like Sainsbury's and Mark & Spencer, highlighting strategies for competitive advantage and customer satisfaction.

OPERATION MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
PART 1............................................................................................................................................2
introduction for Tesco..................................................................................................................2
Function of operation management and its impact......................................................................2
input-transformation-output process of Tesco.............................................................................3
Roles and importance of the operations management and their challenges................................3
Role of operation management....................................................................................................4
challenges faced by the organisation in operations management................................................5
How different organisations are measuring their operations performance and evaluate the
effectiveness of each measure.....................................................................................................5
Recommendations of new and emerging technologies...............................................................6
PART 2............................................................................................................................................6
Different approaches to quality management adopted and comparing the benefits and
limitation......................................................................................................................................6
Different approaches of quality management and continuous improvement on the basis of
philosophy....................................................................................................................................7
Role and scope of supply chain management in supporting different organizations and
difference between supply chains and supply networks..............................................................7
Organisation’s supply chain performance objectives, and consider their use of lean vs agile
supply networks...........................................................................................................................8
Critically evaluate effective supply chain management options and recommendations.............9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
1

INTRODUCTION
Operation management refers to the practice which is related to business administration in
order to create the highest level of efficiency possible within an organization. This is also
related to converting raw material and labor into goods and services in an efficient manner in
order to maximize profit for the company (Dankeieva, Solomyanyuk and Koval, 2021). Present
report based on Tesco that is a multinational company which operates more than 8000 stores in
the world. The study is also based on two parts in which part 1 includes the core and support
function of the organisation and its impact in the competition market. Also review and critic
input transfer National output process and analyzing role and importance of operational
management for choice and organization. Further explain various challenges that are faced by
the company regarding operation and recommending for the same. Moreover part 2 is to
evaluate the different approaches regarding quality management in respect to comparing with
benefit and limitation also considering different approaches of quality management and role of
supply chain management in order to meet customer needs. In addition, this report will explain
organization supplies in performance in order to consider clean versus agile supplier networks
and lastly critically evaluate the effective supply chain management among competitors and
recommendation for the same.
PART 1
Introduction for Tesco
Tesco is known for British multinational groceries and general merchandise retailer
headquartered in England. This is one of the third largest retailers in the world that measured
growth revenue and 9th largest in the world measured by revenues (Evans and Mason, 2018).
The production of Tesco is related to service oriented activities in which operation can be
second upstream opportunity which help the service and product to be provided for opening
everyday in accordance with trading hours maintaining the stock and selves.
Function of operation management and its impact
The functions of operation management are interrelated with each other regarding core and
support functions such as Tesco using the functional structure in order to separate all the
departments such as marketing production operation information technology and research and
development (Nunes, Causer and Ciolkosz, 2020). The main head of the department are
responsible for managing all the sub departments and their function. Marketing is responsible for
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assessing the needs of consumers and selling and promoting the goods and services of the
company and then operation is responsible for producing goods and according to the needs of
consumers in support of the marketing function. In addition to this the finance department is
responsible for securing financial resources for the favourable prices and allocating it according
to the budget and analysing the providing fund of operation. In Addition to this operation the
supply chain is interestingly linked according to all the activities and functions performed by the
company (Zhao, 2021.) . This also includes all the facilities which include warehouse processing
centre factories offices retail outlet distribution centre etc.
The impact of operation and process with other functions in Tesco are to help the operation
manager in order to ensure about all the departments and how it can be managed in the one
direction also it helps to ensure about the planning and management professionally in all the
directions. For example, the financial department works with the operational function of the
company in order to make budgetary considerations including all the planning and oversight
regarding actual manufacturing and process related to distribution of the product and services
and help to identify the competitors of the company such as Sainsbury and how it operates all the
functions (Son, Park and Kim, 2018.).
input-transformation-output process of Tesco
Roles and importance of the operations management and their challenges.
In order to review the input transformation output process of Tesco is related to that operation
management transform input such as capital labour equipment material land building information
etc are held to provide value to customer in order to summarise the transformation process also it
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has been analyzed that this is the critical processing order to meet the customer need. Applicable
for the entire organisation in regards to maximizing the quality of the transformation process and
made the need of the customer. In this process Tesco has transferred all the activities by
considering local and international regulation because it is typical to operate more than 10000
stores and supply the products accordingly (Yusof, 2019). The local and international regulation
affect the company increasing the taxes and other duties that impact on revenue generated by the
organisation. In addition to this the process of input and output are also dependent on
performance management and control in order to understand the position of the company and
how it can provide competitive advantage in the marketplace.
Role of operation management
Operation management plays an important role for Tesco in order to press producing
professional managers that are capable of achieving organization strategic coal in the defined
period. This is also responsible for managing issues regarding operation design and maintenance
and improvement of the system that is used for managing the clear responsibilities regarding all
the departments. Operation management is important for the company in order to manage all the
activities and help to provide the information for resources like human labor and input as
acquired. The main goal of operation management is to help to achieve and make profit by
maximizing the stack holder through this activity. This is also responsible for reducing the cost
of production by tangible and intangible asset.
The challenges which are faced during the operation management such as
 Cost based competition two pricing strategy in which Tesco set price of the product after
observing the Sainsbury however this strategy not covered at initial course refers to
selling price of the rivalry product (Hashim, Nazim and Shabbir, 2021).
 To adopt new technology is not easy because it is typical to handle all the operation
activities with new technology because it takes time as well as it needs training to
monitor the data.
 Globalization affects the Tesco market by changing the view of all the social
responsibility and environmental responsibility of the business in order to influence
technology development in the operational process.
 Reputation of the company Tesco cannot reduce product at very low price because it
affects reputation as well as competitive advantage in the market.
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challenges faced by the organisation in operations management
There are different faced by company in order to managing the operation management.
Cost based competition two pricing strategy in which Tesco set price of the product after
observing the Sainsbury however this strategy not covered at initial course refers to selling price
of the rivalry product. Further, Globalization affects the Tesco market by changing the view of
all the social responsibility and environmental responsibility of the business in order to influence
technology development in the operational process (SPARKS, 2018). Then, Reputation of the
company Tesco cannot reduce product at very low price because it affects reputation as well as
competitive advantage in the market. Also, to adopt new technology is not easy because it is
typical to handle all the operation activities with new technology because it takes time as well as
it needs training to monitor the data.
How different organisations are measuring their operations performance and evaluate the
effectiveness of each measure.
There are different techniques that are help to identify the performance management of operation
and every organisation has their own aspect regarding this Tesco is using strategy with the help
of strategic plan regarding product differentiation in which how it can be ad innovation in order
to attract customer also the performance measured by operation department regarding how many
number of new product is launched. In addition to this, Sainsbury is using product differentiation
strategy in regards to improving the operation plan which is related to customer complaints per
10000 products sold in this situation (Lin and Peng, 2018). The organisation gets the idea about
how it can improve customer service with the help of hiring and training programs regarding
customer service associates. Moreover, Mark & Spencer identify the performance with the help
of liquidity measures regarding current asset and current liability in the operation department.
This measure cannot work properly for the organisation. Also, profitability measures are helpful
for understanding how much profit the company can make according to last year's net income
and firm's profit. By analysing all the measures it has been identified that the school is using
effective measurement strategy because it helps to understand the focus of the customer and how
a company can make a competitive advantage in the market by learning about growth and
success.
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Recommendations of new and emerging technologies
 It has been recommended that company should adopt automatic tools in the stores of
Tesco that can help for providing the benefit of automatic everything about paying bill in
the response and contact update lists.
 Top manage the password effectively in the factories and production department so that
only responsible person can uses it with the help of using biometric and intuitive UX
selfie for logging the particular machine.
PART 2
Different approaches to quality management adopted and comparing the benefits and limitation
Quality management refers to the continuous process which helps for detecting and
reducing the errors which are considered in manufacturing supply chain management and
improving the customer experience in order to ensure that employees are up to speed with
training. Different approaches used for quality management by Tesco with respect to customer
satisfaction, loyalty and retention. the 6 sigma approach used by Tesco in order to increase the
performance and decrease the process variation by leading improvement in profit and defect
reduction also helps to improve the capability of organization process (Fernie and Sparks, 2018).
This approach helps Tesco in order to gain customer satisfaction and loyalty by providing them
better project management strategy and it is necessary to increase the communication between
manager and practices on the basis of project presentations that are helpful for facilitating
detailed understanding in regards to business processes. The benefit of 6 sigma approaches help
to cause reduction and customer satisfaction and it is also leading to revenue growth in order to
improve the product however the limitation of six Sigma is related to production in planning
processes which create bureaucracy and rigidity in order to create dealers for creativity (Monte,
2021). Another approach is maintaining source data in order to manage organizational standard
in configuration management requirement and change control regarding corporate or program
strategies this is also include all the rules and responsibilities which are followed by operation
management in order to customer quality expectation and loyalty the benefit of the approaches
are it help for providing customer satisfaction on the other hand the limitation of both the
approaches are related to it affect the cost of product in gross rate.
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Different approaches of quality management and continuous improvement on the basis of
philosophy
All the approaches of quality management and continue improvement help for successfully
optimize the organizational performance in order to make the business objective with the help of
focus on customer for test quit is very important to focus on customer because they have very
use customer base that believe on test course quality to the customer it help to spend more
money and focus on quality. In order to implement approaches philosophy are related to research
and understanding the need of the customer and expectation accordingly then it is also important
to align the organization's objectives by considering the needs of the customer (Krummel,
2022.). To improve communication with customers, help to find ways for managing the
challenges and enhance the productivity of the company. This is helpful customer loyalty and
possibility to satisfy customers and focus on increasing revenue and market share. The
philosophy of quality management is related to a comprehensive system which helps for
achieving continuous improvement to gain customer satisfaction. Also it is regarding total
integration that is related to business and achieving required results. It can be described for
achieving greater efficiency and effectiveness by lower operating cost and increasing the market
share. Forecast on basic philosophy approaches which help to continuous improvement such as
ethics that help to discipline and consider good and bad situations and how the company can use
it.
Role and scope of supply chain management in supporting different organizations and difference
between supply chains and supply networks.
Supply chain management refers to centralized management regarding flow goods and services
which include all the process and transformation of the final product. In regards to managing
supply chains, organizations can cut excess cost products to the customer. Scope of supply chain
management refers to managing demand in supply by sourcing room material and other parts
which are also including manufacturing and assembling the product in the warehouse and
inventory according to the entry and order management by distributing all the channels and
delivery for the customer (Ferguson, Brown and Boyd, 2019.). Supply chain management in
order to acquire an identity for managing all the resources including suppliers which are essential
for the operational management. On the other hand, Sainsbury is using supply chain management
by reducing the cost of the product and improving overall performance of the organization
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because it helps to satisfy the delivery process. Marking Spencer you supply chain management
in order to turn raw material into finished product and then transport and distribute those
products according to the needs of the customer . Also all the products are distributed in stores
on the basis of customer demand and culture of that particular area. The major difference
between supply chain and supply network is related to supply network is developed by
connecting multiple supply chains in order to consider all the operational activities within an
organization and it will supply chain and deliver value to the organization. However network
refers to a more complex structure where organization can be cross linked by two way changes
between changes that describe a simple and sequential set of links.
Organisation’s supply chain performance objectives, and consider their use of lean vs agile
supply networks
Organization supply chain performance objectives are to help create the value and build the
competitive infrastructure and synchronies supply with demand and major performance by
considering some points which are important in supply chain management blind important in
order to predict the responsibilities and satisfying that need of customer and their demand on the
basis of supplier. Tesco maximizes the customer response and their services in order to improve
communication with the help of increasing accuracy of information which is flown by the
company and increase the speed of timeless information. Then also help for increasing the level
of information sharing (Kuklinowska, 2018.). Also to help reduce the cycle time in order to make
new product development and order leading time this is also improving the coordination of
absorbs which are made accordingly but some of the key requirements of the supply chain that
are related to connectivity, integration and visibility. The lean supply chain is related to
traditional factory change that is more focused on producing high volume at low cost. The main
goal of lean supply chain is related to adding value for customers by reducing lower waste which
is not valuable for customers and also help for sorting by focusing on supplier change
predictability and adaptability for four years in order to adapt to the changing market. Ajay
supply chain is focused for receptiveness and flexibility in order to provide dress Paul quickly
according to change of customer preference and demand of customer in the industry or market
this is also handled on the basis of unpredictability in the market that can be said is
postponement. Agility is also focused on balancing up to date data in short term forecast
projection Tesco using this supply chain in order to generally use a short life cycle according to
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customizable elements which is related to fashion change that is very rapidly changing on the
basis of blogger and Instagram culture that need to emerge and shifting the trend.
Critically evaluate effective supply chain management options and recommendations
It has been critically evaluated that there are different supply chain management strategies used
by companies according to the demand of customers and the nature of business. The supply
chain for Sainsbury is related to improving quality control because when the company has
control and quality it helps to attract Direct customer and control suppliers in order to improve
quality control standard by minimum criteria. On the other hand mark in Spencer having the real
time data which are available for raw material and manufacturing dealers by a long company in
order to implement makeup plan and other source material which related to wake up supplier and
real time data resolving the issues in stock inventory shipment by and user.
It has been recommended that enhance and exist current level of customer satisfaction with the
help of following ways
 To understand customer expectation is help to improving organization performance
because it place the role between customer and organization on the basis of customer
survey and seek their feedback this is also help for boosting customer loyalty and
encourage them for providing feedback in near future (Fernie and Sparks, 2018).
 It has been suggested that to train the team on the basis of resolving customer issues and
record data accordingly that helps significantly increase the customer loyalty and
customer satisfaction.
CONCLUSION
It has been concluded that operation management help to converting raw material and labor
into goods and services in an efficient manner in order to maximize profit for the company. The
study is also discussed core and support function of the organization and its impact in the
competition market. Also reviewed and critic input transfer National output process and
analyzing role and importance of operational management for choice and organization. Further
explain various challenges that are faced by the company regarding operation and
recommending for the same. Moreover, evaluated the different approaches regarding quality
management in respect to comparing with benefit and limitation also considering different
approaches of quality management and role of supply chain management in order to meet
customer needs.
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REFERENCES
Books and journals
Dankeieva, O., Solomyanyuk, N. and Koval, V., 2021. Application of cognitive modelling for
operation improvement of retail chain management system.
Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.
Ferguson, J., Brown, B. and Boyd, D.E., 2019. A conceptualization of corporate social (ir)
responsibility and moral intensity in the supply chain. Journal of Business & Industrial
Marketing.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Hashim, M., Nazim, M. and Shabbir, R., 2021. Unlocking the sustainable production indicators:
a novel tesco based fuzzy AHP approach. Cogent Business & Management, 8(1),
p.1870807.
Krummel, D., 2022. Expansion in the Retail Sector—Market Entry Strategies in Consideration
of Formal and Informal Institutions: A Tesco Case Study. Open Access Library
Journal, 9(2), pp.1-19.
Kuklinowska, I., 2018. Logistyka dystrybucji na przykładzie sieci handlowej Tesco. Zeszyty
Naukowe. Organizacja i Zarządzanie/Politechnika Śląska.
Lin, C. and Peng, J., 2018. Analysis and Solution of the Problems in the Distribution of Suning
Tesco. Transportation Management, 1(1).
Monte, A., 2021. A study of value chain reconfiguration processes under Covid-19 pressures:
the case of Tesco PLC in the United Kingdom.
Nunes, L.J.R., Causer, T.P. and Ciolkosz, D., 2020. Biomass for energy: A review on supply
chain management models. Renewable and Sustainable Energy Reviews, 120, p.109658.
Son, J., Baek, J., Park, H. and Kim, C., 2018. The localized merchandising for international
retailers: a study of Tesco’s failure in Japan. Ritsumeikan Business Review, 56(5), pp.1-
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SPARKS, L., 2018. Tesco’s chain management supply 07. Logistics and Retail Management:
Emerging Issues and New Challenges in the Retail Supply Chain, p.183.
Yusof, A., 2019. Tesco Plc likely to exit Asia business, focus on home country, EU. New Straits
Times, pp.1-1.
Zhao, C., 2021. Research on Cost Management of E-commerce Enterprises Based on Value
Chain——Taking Suning Tesco as an Example.
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