Operations Management Strategies for TESCO: A Comprehensive Report

This report examines the role of operations management in achieving business aims and objectives, specifically within the context of TESCO PLC. It explores how operations management contributes to operational efficiency, employee productivity, optimum resource utilization, inventory management, enhanced customer satisfaction, and capacity management. The report also investigates two key management approaches: Total Quality Management (TQM) and Lean Production Systems, recommending their implementation to foster business growth and development. TQM emphasizes continuous improvement, customer satisfaction, and employee motivation, while Lean Production focuses on eliminating waste and optimizing resource use. The report concludes by highlighting the significance of effective communication, teamwork, and motivation in supporting overall business performance. The report provides a detailed analysis of how TESCO can leverage these strategies to thrive in a competitive market, covering crucial aspects like inventory management, customer satisfaction, and resource optimization. This report also covers the importance of employee productivity and capacity management in achieving business objectives.

Management Thought and
Practices

Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Importance of operations management in achieving business aims and objectives................1
2. Approaches of management which can help in contributing to business growth and
development.................................................................................................................................3
3. Importance of motivation in an organisation...........................................................................6
4. Importance and role of effective communication and teamwork in supporting the business
performance.................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
TESCO PLC Ltd. is one of the largest British grocery retail supermarket which was founded
in the year 1919 by Jack Cohen. The company in operates in many countries all over the world
and is the leading firm in the industry of supermarkets in UK. In the following project report, an
attempt has been made to understand the contribution of operations manager and operations
management in achieving the business aims and objectives with a context of TESCO Ltd. The
report also deals with evaluation and recommendation of management approaches which can be
followed for business growth and development. At last, the report aims to evaluate the
importance of motivation and effective teamwork and communication with respect to the
performance of a business organisation.
TASK
1. Importance of operations management in achieving business aims and objectives.
Operations management can be defined as a process which involves monitoring and
administering the day-to-day operations and activities of a business organisation with a primary
objective of achieveing the highest level of efficiency and effectiveness (Krajewski, Ritzman and
Malhotra, 2013). In the context of TESCO Ltd., operations management is of substantial
importance and significance in helping the organisation to realise its goals and objectives with
the help of resource utilisation and operational efficiency. The importance of operations
management in achieving business aims and objectives can be better understood and
comprehended with the help of considering the following points:
Improves operational efficiency:
Every business organisation aims to achieve the highest level of efficiency and
productivity in the company operations. In the context of TESCO Ltd., the operations manager
of the company helps in improving and enhancing the current level of operational efficiency with
the help of using tools such as total quality management and lean production. Improving the
efficiency has a direct impact on the organisational costs and production levels and as a result of
improved efficiency, operational as well as financial performance of the company improves
which is one of the most important objective of any business organisation.
Improves employee productivity:
1

It is not the financial resources or the technological resources that can help an
organisation to achieve competitive edge in the industry unless the human resources or the
employees of the company are performing with their best level of productivity. Operations
management aims to improve the productivity of each and every member of the organisation
which further helps in execution of business activities much effectively and contributes to
increasing revenues and profits. Hence, operations management helps in improving employee
productivity for the management of TESCO Ltd. which is also another important business aim
and objective.
Optimum utilisation of resources:
Resources of every organisation are limited which can be put to alternative uses which
makes it imperative for an organisation to use its resources in an optimum manner to sustain in
the competitive industrial and business environment. Operations management is primarily
concerned with seeking out alternatives and processes which can help the company in utilising
the resources in the best possible manner (Reid and Sanders, 2015). Approaches such as lean
production aims to increase the final value for the customers with the minimisation of wastage of
resources. In the context of TESCO Ltd., operations management helps in reduction of costs as a
result of optimum resource utilisation and the profit margins of the company gets improved
which allows the manager to use additional tools of sales promotion for attracting more
customers. Hence, the benefits associated with optimum resource utilisation as a result of
effective operations management can’t be overlooked.
Inventory management:
Inventory management is a vital aspect of operations management which helps in
improving the bottom line of the organisation and successfully execute business activities in light
of achieveing goals and objectives. The management of TESCO Ltd. understands the importance
and significance of managing the stock and inventory for the company and the various costs
associated with it (Zhao, 2014). Determination of an economic order quantity helps in reduction
of the costs associated with inventory such as storage costs, carrying costs, ordering costs and
also helps in avoiding any understock and overstock situation which can possibly hinder the
production and manufacturing process. Reduction in overall operational costs boosts profitability
and profit margins for the company which is the primary objective of any business organisation.
Enhances customer satisfaction & goodwill:
2

Approaches of operations management such as total quality management aims to
constantly improve the quality of the products and services which are being offered to the
consumers and meeting the desired level of expectation. It helps the management of TESCO Ltd.
to improve the customer satisfaction levels by offering high quality products which also
improves and enhances the goodwill and reputation of the company. A strong brand image and
market goodwill is always desirable by the management as it helps in increasing revenues and
attracting more customers. Hence, operations management helps in achieving business objectives
of maintaining and improving the goodwill of an organisation.
Capacity management:
Capacity management is one of the most important dimension of operations management
for any organisation which ensures that the production and manufacturing activities in the
organisation are being done at the maximum level of capacity at which the quality of products is
as per the desired level of customer expectation and quality standards (Panneerselvam, 2012).
The operations manager of TESCO Ltd. is responsible for capacity management of the company
and ensure that no resources of the organisation are kept idle and at the same time,
overutilization of resources is not happening which can impact the quality of output. Capacity
management helps in meeting the demand of a product or any service in a very effective manner
which is an important business objective.
On the basis of the above mentioned points, it can be concluded that the role of
operations manager and operations management in supporting the business aims and objectives
is highly significant and remarkable. Every aspect of operations management adds to the
operational efficiency of the organisation and is connected with achievement of various targets
and goals of the company.
2. Approaches of management which can help in contributing to business growth and
development.
In today’s dynamic business environment, it is not difficult to argue that the role of a
manager of the organisation has increased significantly with respect to development and growth
of the organisation. The decade has witnessed one of the biggest waves in entrepreneurial
activities which has increased the level and extent of competition in every industry. In context of
such an emerging and rapidly changing business environment, the effectiveness in executing the
management functions and responsibilities largely determine the performance and growth
3

prospects for an organisation. Following approaches of operations management can be followed
by the managers of TESCO Ltd. to ensure that the functions of management of organisation are
contributing towards the development and growth of the company in a highly competitive and
dynamic business environment:
Total Quality Management:
Total Quality Management can be defined as the approach of management which
involves seeking long-term business success with the help of improving customer satisfaction. It
refers to the constant evaluation and examination of the organisational processes and functions
with a motive of error detection and mitigating the error in the manufacturing process, supply-
chain management, quality of service being rendered to customers etcetera. TQM is one of the
most important approaches of operational management which can be followed by the operational
managers of TESCO Ltd. to enhance the quality of products and services which the company is
offering to its customers. An organisation-wide effort is required for the ensuring the
effectiveness and success of the total quality management approach where each and every
member and employee of the organisation contributes willingly in improving the customers
satisfaction level by meeting the expectations of the customers (Yunis, Jung and Chen, 2013).
TQM approach identifies long-term relationship management with the customers as a source of
business success and growth. The managers of TESCO Ltd. need to adopt a democratic approach
of management for ensuring employee motivation and morale which is essential for TQM.
Principles of Kaizen which refers to a process of continuous improvement and enhancement of
operations of an organisation with respect to quality of products and services being offered need
to be implemented by the managers of TESCO Ltd. to ensure effectiveness of TQM approach.
Total Quality Management is a customer-focused approach which has high potential for helping
an organisation in development and business growth in the long-term. Long term success of a
business organisation in a changing and emerging business environment is largely influenced by
the level of satisfaction which is being provided to the customers and hence, the management
approach of improving the quality of products to improve satisfaction is in complete harmony
with future growth and development of business objective. TQM requires a democratic
management style and approach where the manager of an organisation has a very important role
to play in development of a work culture and atmosphere where employees feel motivated and
passionate to improve the quality of work which is being performed by them and contribute to
4

achievement of organisational objective of long-term success as a result of customer satisfaction
(Green, 2012). Hence, the management of TESCO Ltd. needs to ensure proper communication
and structure in the organisation is being followed which can motivate the employees in
practicing the TQM approach without any difficulty. Absence of effective communication and
authority to employees can hinder the overall effectiveness of the Total Quality Management
approach.
Lean Production Systems:
Lean production is another approach of operations management which is highly effective
in ensuring optimum utilisation of resources in an organisation. It is based on the primary motive
of elimination of waste in the production and manufacturing process of an organisation.
Elimination and mitigation of waste generation stages or steps in the process of production helps
in maximisation of value for the customer which can lead to growth and success of a business
organisation (Dennis, 2016). In this process of ensuring lean production systems in the
organisation, the management of TESCO Ltd. needs to examine the complete process for
identification of steps or stages which are not adding value of any sort for the customer and such
stages or steps in the process are considered to be waste and should be eliminated or replaced by
better alternatives. For an organisation to achieve success and expand in the competitive business
environment, lean production system is imperative as it helps in ensuring optimum resource
utilisation and more importantly, maximises the value proposition for the customers. Managers
of TESCO Ltd. need to adopt a transformational management approach for ensuring smooth
implementation of lean production systems. Every employee and member of the organisation
should be made aware of the benefits associated with lean production systems and his role and
responsibilities should be made clear to him with the help of effective communication.
Moreover, employees should have liberty and authority by the management to take decisions
related to their work for maximising the value and mitigating the wastage and the managers of
TESCO Ltd. should motivate employees to seek innovative and creative solutions or alternatives
for the operations of company. A work culture needs to be created and developed where
employees are aware about the performance expected out of them and also seek innovation and
creativity as an important source of business growth and success (Marodin and Saurin, 2013). It
can be concluded that the companies which stem the process and aspect of innovation and
growth in their operations are basically creating a restriction on the growth prospects for the
5

business in future. Hence, managers of TESCO Ltd. should follow lean production approach for
executing their functions and contributing to long-term success and growth of the corporation.
On the basis of above discussion, it can be concluded that management approaches of
operations management such as TQM and Lean production systems helps in designing and
developing an organisation which can effectively deal with the challenges related to emerging
and competitive business environment and continue to grow and expand in the future.
3. Importance of motivation in an organisation.
Motive can be defined as the inner state of mind which is responsible for initiating and
controlling the behaviour of an individual towards achievement of goals. Motivation refers to the
process of stimulation or influencing the employees of an organisation to act or conduct in a
desired manner in order to achieve the organisation goals and objectives. Motivating the
employees of an organisation is a very important task and responsibility of the management.
Various tools or measures may be used by the management for motivating the employees and it
is very subjective as one element of motivation which might work for an employee doesn’t
necessarily work for all the employees in the organisation. In the context of TESCO Ltd., the
desired benefits and importance of motivating the workforce can be understood with the help of
following points:
Improves employee productivity: Motivating the employees or the workforce has a direct
and tangible impact on improving the productivity of the employees in an organisation. In the
context of TESCO Ltd., motivating employees helps in performance management and getting the
desired level of productivity by the employees up to their best potential. Increased employee
productivity helps in better execution of business activities and optimum utilisation of resources.
Improving the employee productivity is directly linked with the operational efficiency and
financial performance of the organisation (Ganta, 2014). With the help of improved employee
productivity as a result of employee motivation, the resources of the company are utilised in an
optimum manner which improves profitability of the business operations and promotes
operational efficiency which is a huge advantage for any company.
Improves employee attitude & engagement: The management of TESCO Ltd. desired to
build and develop a motivated and committed workforce as it also helps the company in
improving the employee attitude and engagement. Motivating works as a force which helps in
improving the job satisfaction for the employees and as a result, the attitude of employee is
6

shifted to a positive side which encourages the employees to engage and participate in the
business operations of the company actively (Bhuvanaiah and Raya, 2015). Positive employee
attitude and increased employee engagement is desirable by the mangers of TESCO Ltd. in
achieveing the business objectives and goals.
Reduced employee turnover: Employees are likely to stay for longer durations in an
organisation which focuses on improving the motivation and boosting the morale of the
employees. Reduced employee turnover and high retention of employees is a very beneficial
situation for the organisation as a huge amount of expenditure is incurred on the recruitment,
selection, training and development of employees and high employee turnover results into
repetitive expenditure on such programs which affects the profitability and operational costs of
the company (Bhoje, 2015). Also, high rate of employee turnover also adversely impacts the
goodwill of an organisation. It is crucial for an organisation to motivate the employees and
reduce the employee turnover to improve and enhance the public image of the company.
Better employee relations: Employee motivation works like a charm in improving the
relations between the employees and the employer in any organisation. The management of
TESCO Ltd. ensures that enough spaces and avenues are provided in the organisation which
fosters and cultivates a better relationship between the employees and the employer. Improved
employee relations as a result of high motivation also helps in development of a work culture
where employees can perform with their best potential and levels of productivity.
Reduces resistance to change: In today’s era of rapid and dynamic changes in the business
organisations and industrial environment, it is imperative for a company to keep up with the
changing atmosphere and environment by implementing those changes in the company processes
and operations to maintain its industrial position and competitive edge. Every change is expected
to witness a lot of resistance from the employee particularly if it has a direct implication on the
job description and tasks which are to be performed by them for example technological changes
and innovation in any organisation are likely to face employee resistance (Bateh, Castaneda and
Farah, 2013). In the context of TESCO Ltd., motivating the employees and having a highly
committed workforce helps a lot in reducing the resistance for any change which the managers
wish to implement and employees usually are more interested in adopting new methods with
improved efficiency and technology. Hence, motivating helps in the process of change
implementation in the organisation.
7

It can be observed on the basis of above discussion that motivating the employees helps a
business organisation in many ways such as reducing the employee turnover, improving the
productivity, reducing the resistance to change and many more.
4. Importance and role of effective communication and teamwork in supporting the business
performance.
Communication can be described as the process of exchanging information between two or
more than two people. It is important for the management of TESCO Ltd. to realise that effective
communication and teamwork are two inseparable and interconnected elements of a business
organisation which have a very important and crucial role to play in supporting and enhancing
the performance and productivity of a business organisation. Effective communication is
required in an organisation to communicate the goals and objectives of the business organisation
to all the employees and members of the company (Clancy-Feliciano, 2016). In the absence of an
effective communication network, team goals and organisational goals are likely to be
misunderstood and misinterpreted by the members of the teams and organisation. Effective
communication forms the base of a good team which allows its members to work in a productive
and efficient work environment. With the help of effective communication, team members can
develop a shared and common understanding about the vision and goals of the organisation as
well as the team which helps in creating awareness and clarity of though in the minds of each
member about the performance results expected out of him (Warrick, 2014). Hence,
effectiveness in communication has a direct impact on the productivity and performance of the
employees and workforce of the company on which depends the entire business performance.
Effective communication in an organisation also helps in development of a better relationship
between the employees and the employer of an organisation (Keyton, 2017). The management of
TESCO Ltd. should ensure motivating the employees with the help of effective communication
to develop better work relationships which ultimately improves the performance of the
employees. Effective communication is the key to employee motivation for any organisation.
Effective communication is also very helpful in establishing clear organisational structures and
work-relationships in the company and providing information to the employees about the goals,
policies and procedures laid down by the company guidelines. Without effective communication,
a chaos is likely to be created within the organisation in terms of reporting relationships and
accountability. Conflicts can be managed easily and more comfortably with the help of an
8

effective communication network in the company. The management of TESCO Ltd. needs to
adopt a provision of effective communication in the company which assists in quick-decision
making and extracting useful information which is also very vital for managerial decision-
making. Teamwork in an organisation determines the level of performance in the business. Every
single business activity and operation of any company is largely a function of the efforts of a
group of people or a team. Without effectiveness in the teamwork, integration and coordination
of various business activities is not possible which leads to a poor operational as well as financial
performance of the company (Driskell, Salas and Driskell, 2018). Hence, it can be concluded that
effective communication and teamwork in a company are two pillars on which the business
performance and productivity depends.
CONCLUSION
It can be concluded from the above project report that operations management for any
organisation is a key managerial function which helps in achievement of business objectives and
goals such as optimum utilisation of resources. Approaches of operations management such as
total quality management and lean production systems are imperative for designing an
organisation with respect to emerging and changing business environment. It has also been
observed that motivating the workforce is a very significant process or task for the management
of any organisation which direct impacts the performance and productivity levels. At last, it can
be concluded that effective communication and teamwork helps the management of any
company to improve the operational as well as financial performance of the company.
9

REFERENCES
Books and Journals
Bateh, J., Castaneda, M.E. and Farah, J.E., 2013. Employee resistance to organizational
change. International Journal of Management & Information Systems (IJMIS). 17(2).
pp.113-116.
Bhoje, G., 2015. The importance of motivation in an educational environment. Lulu. com.
Bhuvanaiah, T. and Raya, R.P., 2015. Mechanism of improved performance: Intrinsic motivation
and employee engagement. SCMS Journal of Indian Management. 12(4). pp.92-97.
Clancy-Feliciano, J.K., 2016. Upward communication in organizations: The connection to
company culture and employee engagement. Gonzaga University.
Dennis, P., 2016. Lean Production simplified: A plain-language guide to the world's most
powerful production system. Crc press.
Driskell, J.E., Salas, E. and Driskell, T., 2018. Foundations of teamwork and
collaboration. American Psychologist. 73(4). p.334.
Ganta, V.C., 2014. Motivation in the workplace to improve the employee
performance. International Journal of Engineering Technology, Management and
Applied Sciences. 2(6). pp.221-230.
Green, T.J., 2012. TQM and organisational culture: how do they link?. Total Quality
Management & Business Excellence. 23(2). pp.141-157.
Keyton, J., 2017. Communication in organizations. Annual Review of Organizational Psychology
and Organizational Behavior. 4. pp.501-526.
Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management. Pearson
Education UK.
Marodin, G.A. and Saurin, T.A., 2013. Implementing lean production systems: research areas
and opportunities for future studies. International Journal of Production
Research. 51(22). pp.6663-6680.
Panneerselvam, R., 2012. Production and operations management. PHI Learning Pvt. Ltd..
Reid, R.D. and Sanders, N.R., 2015. Operations management: an integrated approach. John
Wiley & Sons.
Warrick, D.D., 2014. What leaders can learn about teamwork and developing high performance
teams from organization development practitioners. Od Practitioner. 46(3). pp.68-75.
Yunis, M., Jung, J. and Chen, S., 2013. TQM, strategy, and performance: a firm‐level
analysis. International Journal of Quality & Reliability Management.
Zhao, S., 2014. Analyzing and Evaluating Critically Tesco's Current Operations Management. J.
Mgmt. & Sustainability. 4. p.184.
10

11