Analysis of Tesco's Business Operations and Management Strategies

This report provides a comprehensive analysis of Tesco's business operations and management strategies. It begins with an introduction to business operation management and then focuses on Tesco, a multinational retail organization. The main body of the report delves into the key functions of business operations, including hiring, sales and marketing, employee training, and decision-making processes. It also describes Tesco's business model, its wide range of products, and its global presence. The report evaluates Tesco's operations management decisions in areas such as production, supply chain, logistics, location strategy, quality control, and human resource management. It examines how Tesco adapts to changing market demands, maintains customer satisfaction, and utilizes technological advancements. The report highlights the importance of effective operation management for Tesco's competitive advantage and concludes with a summary of key findings. This report is designed to help students understand the practical application of business operations management within a large retail context.

INTRODUCTION TO
BUSINESS OPERATIONS
AND MANAGEMENT
BMM3003

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Main functions of business operations.........................................................................................3
Description of company...............................................................................................................4
Evaluation of the company’s operation management decisions..................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business operation management is responsible for managing organizational operations in
such a way that working capabilities of the company can be increased (M.R.ARosnizam and
et.al, 2020). Tesco is chosen for the analysis in this report, Tesco is a multinational retail
organization which provide household products to customers all across the globe. Analysis of
functions of business operation is done in this report with the analysis business operations in
terms of goal achieving capabilities is done in this report. Evaluation of company's operations
management in relation with production, logistic, location strategies and quality control is done
in this report.
MAIN BODY
Main functions of business operations
There is a lot of functioning which are present with the operation department in business
so that there can be higher functioning which is going to be present and the company will be able
to benefit from this factor. Operational Department is involved in hiring the employees which are
going to help Tesco be able to maintain their standards in the market. The sales and marketing of
Tesco is very high and reputed in the industry which needs to be maintained so that the brand
value of the organisation can be well maintained in the market. Tesco is having a strong loyal
customer base in the market which the company needs to maintain making the sales and
operations of the company remain the same or improved for the future. The employees have to
be trained and developed according to the standards of the company making the quality and
services of the organisation remain the same (Hollenstein and et.al., 2019). There has to be a
good control on the employees which needs to be present so that there is better decisions and
planning which can be done by the organisation. Hiring the right employees at the company is
also going to help the organisation be able to have a higher manufacturing matching the demands
of the customers. The trends and demands of the customers in the market are changing rapidly
therefore Tesco will have to take major steps by the operation management of the company
making the organization have higher brand reputation. There are a lot of changes which are
coming in Tesco and they need to be adapted by all the departments effectively so that there is
going to be sustainability present in the organisation.

Though the human resource and management other mean factors involved in the hiring
but in that decision-making operation management also needs to be involved effectively so that
they can evaluate the employees well and the standards of the company can be maintained in the
industry. Operation functions needs to make sure that there is a right supply chain which is
present in the company, product designs are being improved, forecasting and quality control are
present in the organisation so that the company will be able to operate effectively according to
the competition. The competition in this industry is rapidly increasing and the market share of
the organisation can fall majorly therefore it is very important for Tesco to be able to maintain
this factor. The services and products of the company will have to be well maintained so that the
company would be able to operate effectively in the market which is a very important factor
which is going to make the performance and operations of the company be improved efficiently
(LLobet Prada, 2019). There are a lot of gaps which can rise in an organization which need to be
maintained in the company so that the organization will be able to operate effectively in the
market which is a very important factor. The employees, investors, executives, etc of the
company have to be informed and comfortable with the working of Tesco which is filled in the
gap by operation management which the company is having for themselves in the market which
is a great factor.
Description of company
Tesco is one of the largest UK based multinational retailer which provide wide range of
products like groceries, general merchandise, house hold and grocery products to its customer all
across the globe at an affordable pricing (Kim, Hallsworth and Kim, 2019). Tesco is having wide
geographic reach all across the globe and because of which it is able to achieve a good
economical background and also is having large amount of well-trained employee work forces
which are able to provide high quality of services to customers. Tesco provide its products to
customer through the means of in-store and online methods by which it able to achieve high level
of brand awareness. Tesco is also having its appliance in other areas as well like fuel stations,
Tesco Express, Tesco Metro, etc. Through this company is able to increase its appearances in
other areas as well by which it is able to achieve high profit margin. However in order to achieve
high level of customer count company implement competitive pricing in its products by which
high customer count can be achieved. Tesco's strategy of competitive pricing can be seen the

different pricing strategy due to which it has managed to maintain its customer count, however
company has to face reduction in profit margin but since company makes fewer expenditures in
terms of tangible products due to which it is able reduce expenditures by which efficient
economic growth can be achieved (Heese, Srinivasan and Kelley, 2019). Tesco is showing high
interest in terms of implementing technological advancements like online payment and online
selling of products through the means of social media marketing and home delivery options
through company website. With that company has to managed to increase a high level of brand
awareness and also has reduced the chances of brand switching for its customer because through
social media marketing and company websites it has improved the communication bridge with
the customer at which they can provide their feedback regarding the experience with the
company. Through this feedback company will be able to improve its working on the weak areas
by which customer experience can be improved and thus chances of brand switching is reduced
and company can achieve its organizational targets.
Evaluation of the company’s operation management decisions
Tesco is having higher experience in the market for the operations management which
they are having which is a competitive advantage which the company is having for themselves in
the market. Tesco perform various types of operation in day to day activities so that product as
well as services can be reached to customer on time and increase efficiency, quality and
productivity of work.
 Production
Organisation production team analyse report of market related to market and according to
make changes in product quality (SPARKS,2018). It also gives autonomy to employees at work-
station which increase innovation and creativity and also involve them in decision-making
organisation. It also focuses on sustainable product development and conserving environment for
example: firm is focusing on providing rang of organic product. The demands is increasing and
so is the lifestyle of the population which is increasing therefore it is very important for the
company to be able to operate effectively in the market so that the company will be able to
operate and function effectively and efficiently in the market.

 Supply chain
Tesco make various decisions by taking help of suppliers, manufacturers etc. regarding
supply chain and it helps in delivering product & services to customers on time and hence
increase profit share of firm. Pandemic has highly effected on business operation of firm but
because of effective supply chain management it able reaches to customer on time and increase
their satisfaction level (Davidekova and Gregus, 2016). The demands of the customers is
increasing therefore it is important for the company to be able to get in the right supplies in the
company so that the company will be able to perform effectively and the productivity of the
organization is not getting affected.
 Logistics
It can be described as the way in which product is reach to customers. Firm has physical as
well as online presence from where customers can easily purchase their product. Firm is focusing
on adding value to by introducing trolley deposit system and hence able to enhance customers
experience in time of globalization. There is more technological aspect like artificial and
intelligence technology which has been added in Tesco so that there is going to be higher
functioning which is going to be present (Raghuvanshi and Ghrera, 2018). Tesco is having high
competition in the market which is why it is important for the organization to be able to operate
effectively in the market which is going to be good for the reputation of the company.
 Location strategy
Firm has invested in selecting location where crowd can easily be attracted such as in big
cities like London, Edinburg etc. It helps firm in attracting large number of consumers for
product as well as services and hence support in growth of firm in changing business. The
company is going to try to make sure that they are physically very attractive for the customers to
approach the stores and safe for them as well. Due to the crises worldwide there are a lot of
measures which the company has taken to make sure that there is effective working which is
present in the company (Okanazu, 2018). The company will have to make sure that they are in
contact with the customers so that they can have the right audience in the company making the
sales and profit margins higher so that the company will be able to have a higher competitive
advantage in the market which is a very important thing when the competition is increasing.

 Quality Control
Tesco has use various types of tool and technique to improve quality such as Total Quality
Management, Just in time etc. this tools helps firm in analysing where they are lacking in
production as well as what changes can be done in the system. There are number of staff allotted
for quality analysis and control and set separate department of it which focuses in improvement
of process by implemented new strategies (Ren, 2020). Firm take suggestion, opinion and
Feedback of customers with the help of marketing team which help in understanding their
experience related to quality of product and what can be done to enhance it. Online reviews also
checked by firm related to quality of product and hence able to increase quality of product and
increase customer satisfaction level.
 Human Resource
There are number of operation which has to perform by Human Resource management
department of Tesco. HR team provide various training and development programs to employees
according to changing business as well as technology which help firm in gaining competitive
advantage and increase profit share (Aiello and et.al., 2020). HRM use various types of tools in
analysing performance of workers such as Key performance indicator, 360 degree feedback etc.
which helps in giving opportunity, reward, recognition etc. to deserve candidate on right time. It
also recruit talented and skilled workforce from various platform and build strong employees
relation so that they remain loyal to firm.
CONCLUSION
From the above report, there is a great role and responsibility which operation
management is having for themselves in the market so that the organization will be able to
operate effectively in the market. There is a reputation which the company has developed for
themselves in the market which has to be monitored by the operation management so that there is
going to be higher functioning and brand value in the industry can be improved. Right decisions
with right knowledge is very important for the company so that there is going to be higher

reputation which the company is having for themselves in the market which is going to be very
good for the overall operations which is going to be present.

REFERENCES
Books and Journals
Ren, J., 2020. Advanced Operations Management for Complex Systems Analysis: Introduction.
In Advanced Operations Management for Complex Systems Analysis (pp. 1-6). Springer, Cham.
Hollenstein, L and et.al., 2019. Unsupervised learning and simulation for complexity
management in business operations. In Applied Data Science (pp. 313-331). Springer, Cham.
LLobet Prada, J., 2019. Cross-cultural behaviour and its impact on intercultural business
operations and relationships.
Davidekova, M. and Gregus, M., 2016. Case study of the use of means of information and
communication technology for execution of daily business operations by entrepreneurs in Slovak
republic. Economic and Social Development: Book of Proceedings. p.98.
Raghuvanshi, S. and Ghrera, S.P., 2018. Business Operations Role at Squadrun: application and
automation platform.
Okanazu, O.O., 2018. Financial management decision practices for ensuring business solvency
by small and medium scale enterprises. Acta Oeconomica Universitatis Selye. 7(2). pp.109-121.
M.R.ARosnizam,.B. and et.al, 2020. Market Opportunities and Challenges: A Case Study of
Tesco. Journal of the community development in Asia. 3(2). pp.18-27.
Kim, W., Hallsworth, A. and Kim, H., 2019. On being local and being successful in Korea:
Tesco and E‐mart. Area. 51(3). pp.461-469.
Heese, J., Srinivasan, S. and Kelley, J., 2019. Accounting Fraud at Tesco Stores (A).