BM563 Operations and Service Management: Tesco's Operational Practices

This report provides a comprehensive analysis of Tesco's operations and service management practices. It begins with an introduction to operational management and service management, highlighting their roles in organizational success. The main body delves into Tesco's operational management practices, focusing on total quality management (TQM), including customer focus, employee commitment, continuous improvement, fact-based decision-making, and communication. The report then examines how TQM impacts organizational efficiency, emphasizing its role in improving product and service quality, reducing costs, and enhancing customer loyalty. Furthermore, it explores the integration of technology, such as social media, artificial intelligence, and digital payment methods, to enhance productivity and customer experience. Finally, the report discusses supporting functions like human resources, marketing, and supply chain management, illustrating how they contribute to operational success and overall business performance. The report concludes with a summary of the key findings and recommendations for continuous improvement. The report uses academic theory and company research to support its arguments.

BM563 Operations and
Service Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Operational management practice within an organisation..........................................................3
Analyse how the operation management practice affect the organisation in context to
efficiency....................................................................................................................................5
How technology could be embedded in the process of an organisation.....................................6
Supporting functions linked with operational management practices and evaluation how they
aid in gaining success for establishment.....................................................................................7
CONCLUSION...............................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.....................................................................................................................9

INTRODUCTION
Operation management is responsible for managing all the activities and task in an
organisation which results in smooth operations. It manages raw material, equipment, resources
and other utilities which collectively perform operations for the achievement of success. Service
management includes all the delivery services so that organisation can effectively deliver goods
and products to their targeted customers in effective manner (Sherringham and Unhelkar, 2020).
This report is based on Tesco which is a retail company and provide groceries and merchandise
facilities. It was established in 1919 and its headquarter is in London UK. They offer various
products including a grocery, clothes, software, financial services, furniture, etc. This report will
include one operation management practises within an organisation. It also analyses the impacts
of operation management practises in an organisation in context to their efficiency. This will
include how technology could be embedded in this process or how this has already been
achieved. Various supporting functions are also discussed which are linked to the operation
management practises and evaluation how can they assist with ensuring the success of
organisation is also discussed in this report.
MAIN BODY
Operational management practice within an organisation
Operation management is the process which contributes efforts in making business
practises in highest level which are responsible for the increment of efficiencies. It helped Tesco
in transforming their raw materials into finished goods and services so that they can effectively
maximise their revenue generation (Li, Yin, Qiu and Bai, 2021). Different responsibilities which
operation management performance in an organisation includes forecasting, product designing,
maintaining supply chain management and delivery of products and goods. Operational
management practises which Tesco uses is total quality management practice which helps them
in improving their efficiency. Total quality management refers to the approach which manages
the products and services of an organisation in consistent manner. The four main components of
which total quality management involves quality assurance, quality planning, quality
improvement and quality control. It helps Tesco in achieving their long-term success in order to
provide satisfaction to their customers with the help of constant delivery of IT services. It

enhance the quality of an overall organisation outcomes which includes different products,
services and goods and maintain the continuity in their internal practises and improvements
(Stevens, 2018). Tesco enjoys various benefits of total quality management as it formulate a
different strategies and policies so that employees can effectively communicate and coordinate
with each other in order to share information. Various principles of total quality management or
discussed in the context of Tesco which are as follows:
Customer focus: This principle suggest that organisation should focus on the people who
engage themselves in buying their products and services. Tesco always tries to fulfil the
requirements of their targeted customers by providing high quality products and services in cost
efficient manner. They involves research and development so that they can understand the needs
and wants of their customers which helps them in production process. Tesco maintain a healthy
relationship with their customers so that they can engage them for longer time period.
Total employee commitment: Organisations can increase their performance, productivity
and sales with the help of engaging their employees with full commitment. In order to develop
commitment in an organisation (Daradkeh and Moh'd Al-Dwairi, 2018). Tesco provides training
and development sessions so that their employees can maintain interest in operation. They try to
reduce is stress and burden of their employees so that they can work in best possible manner.
Managers of Tesco and courage their employees for the performances and acknowledge their
services which makes them more responsible for their operations.
Continual improvement: Organisation should find various methods so that they can
continuously improve their operations so that they can attract customers on regular basis. They
Tesco improve their processes and products which affect their measurable goals so that they can
effectively achieve success by fulfilling the requirements of their employees. Managers of Tesco
introduced various innovations and their practises and develop new ideas so that they can
acquire large market area.
Decision making based on facts: Total quality management helps in data gathering and
analyses which helps an organisation in making better decisions so that they can grab
opportunities (Charles, Emrouznejad and Gherman, 2022). Tesco always prefer checking their
data and analyse them so that they can evaluate that it is accurate and reliable for making
decisions for various operation. They provide relevant information and data for their
stakeholders so that they can maintain good relationship with them which helps in more

profitability. Managers of Tesco uses a different method in order to analyse and gather data
which helps in better analysing of facts and figures of related operations. All these methods help
them in making the decisions which are most suitable for improving the experience of their
customers.
Communication: In order to maintain smooth operations in an organisation all the
managers and employees ensures that they communicate strategies, plans and methods so that
each and every one can contribute in the achievement of goals (Leimeister, 2020). Tesco should
use various communication channels which help them in stay updated regarding their changes
and introduction of any new processes and policies in an organisation. This results in continuous
improvement and increment of their revenue generation and effective manner.
All these principles of total quality management practise a help Tesco in improving their
productivity along with minimising excessive cost which affect their operations (Helo and Hao,
2019). These principles focus on the satisfaction and needs of the targeted audience so that they
can establish their brand image in all over the market. Tesco analyse their business environment
and formulate various strategies which are required in order to provide high quality products and
services.
Analyse how the operation management practice affect the organisation in context to efficiency
In order to maintain efficiency of an organisation, total quality management plays
important role as it satisfy the needs of employees as well as customer by improving the services
and products which are connected to each other (Deshpande, and Swaminathan, , 2020) . It help
Tesco in offering their products which are highly demanded by their employees. It is important
to deliver products which possess high qualities and standards so that they can attract large
number of customers. All the operations are carried out in effective manner so that employees of
Tesco can eliminate excessive cost and involves more profitability in their organisation. Total
quality management assist in improving efficiency which help organisation in establishing their
brand image in all over the market (Collier, nd Evans, 2020). Tesco can easily detects waste and
irrelevant factors in an organisation and eliminate them which helps in maintaining proper
quality of their products and services in effective manner. It also assist in managing the cost of
products which an organisation offer to their targeted audience according to the quality of the
respective product. Total quality management help an organisation in focusing on the interest
and demand of their customers so that they can maintain the inventory accordingly.

In this manner organisation can maintain the trust and loyalty in their customers which is
highly needed for the sustainability of an organisation (Santos, and Frederico, 2018) . Total
quality management help Tesco in effectively and efficiently working so that organisation can
lead in their respective segment. It ensures that organisation should commence their operations
according to prescribed policies and strategies so that they eliminates, errors, mistakes and
duplications. All the operations of Tesco are carried out in Tesco under the supervision of the
managers so that they can track the accuracy and quality of the products. Ensuring quality with
the help of total quality management can help organisation in maintaining good relationship with
shareholders, customers, suppliers, clients and stockholders who collectively assist organisation
in achievement of their goals and objectives. Improved efficiency help organisation in enhancing
the morale of their employees which is essential to generate higher revenues (Grill, Hotels, and
Kitchens, 2021) . Employees feel satisfied when an organisation earn good profitability which
results in higher efficiency of the organisation. It creates job security of the employees in an
organisation so that they work hard for the profitability and revenue generation. Competitive
power of an organisation can be increased with the help of total quality management which help
them in capturing large market area. Tesco is the leading company in retail sector which is
famous for their high quality products.
How technology could be embedded in the process of an organisation
Technology plays important role in enhancing the productivity of an organisation in cost
effective manner. Various social networking sites are used by Tesco including Twitter,
Instagram, Facebook and You tube. All these platform are attractive manner for engaging
customers for longer time period in an organisation (Smilowitz, nd Keppler, 2020) . Different
digital channels proves very useful in promoting the products of an organisation. Artificial
intelligence is used by Tesco which assist them in managing various operations. They can
manage their inventory in effective manner with the help of Technology as there are number of
software are developed which can used by managers in order to maintain their smooth
operations. Organisation can achieve various competitive advantages with the involvement of
technology as it maintain better quality of products and services and reduces cost and time.
Technology helped Tesco in reducing the waiting time of customers on the billing counter as
they have adopter bar code reader which make the billing process faster and simpler. They also
opted various digital payment methods which advances the payments in short period of time.

Various payment software can be used by an organisation such as PayQwid which is very
effective in attracting customers. With the help of advanced technology Tesco can evaluate the
current market needs so that they can produce products according to the demands of the
customers. Offering personalized products help organisation in establishing their image in
positive manner (Shneiderman, 2021). It increases customer experience by satisfying the needs
and preferences of the targeted customers in effective manner. It helps them in covering each
and every segment of the society including demographic and geographic regions. In order to
adopt total quality management in appropriate manner Tesco involves different supply chains
and robotic manufacturings. They should make alterations in their services so that they retain
employees for longer period of time.
Supporting functions linked with operational management practices and evaluation how they aid
in gaining success for establishment
In context to functions of the organisation, these are basically related to the practices of
the operational management which further helps in improving the efficiency level and boosting
up the productivity of the employees working in the company. In context to the organisation, the
managers have adopted the practices of the total quality management which results in securing
the competitive edge and also gaining efficiency in the strategic way (Smith, and.et.al 2021) . In
reference to the organisation, the company uses total quality management practices in various
departments such as distribution, marketing, supply network and human resources. In context to
the human resource function, the managers of the company try to improve their performance for
the purpose to improve and boost the level of performance. In order to improve the quality of
performance, the company uses different styles of leadership which helps in motivating the
employees and supports them in developing effective strategies for the purpose to provide
training to the employees for the purpose to improve the quality standards. In context to
operational management practices, it can be used in every function of the company and also
operates in a way for the purpose to integrate the various activities related to the marketing
(Vössing, and Kunze von Bischhoffshausen, 2018). In addition to that, another function is
basically is used in every department of the organisation in a effective way. Functions are
responsible in making the organisation more efficient so that they can achieve their goals and
targets.

CONCLUSION
From the above report it can be concluded that various startles and frameworks helps the
organisation to achieve a sustainable performance. It manages various operations in an
organisation which help them in attracting customers in effective manner. All the major
decisions can be taken in effective manner with the help of service management. It coordinates
and cooperates among employees regarding various activities which can improve the
performance of the employees s well as organisation. It ensures that organisation should provide
high quality products to their customers so that they can attract customers and generate higher
revenues. This report includes operation management practices within an organisation. It also
includes impact of operation management services on the organisation in order to improve their
efficiency. Technology is used in an organisation in order to achieve their goals. Different
supporting functions are linked to operation management practices and how they assist in
success of an organisation.

REFERENCES:
Books and Journals
Charles, V., Emrouznejad, A. and Gherman, T., 2022. Strategy formulation and service
operations in the big data age: The essentialness of technology, people, and ethics. In Big
Data and Blockchain for Service Operations Management (pp. 19-48). Springer, Cham.
Collier, D.A. and Evans, J.R., 2020. Operations and supply chain management. Cengage
Learning.
Daradkeh, M. and Moh'd Al-Dwairi, R., 2018. Self-service business intelligence adoption in
business enterprises: the effects of information quality, system quality, and analysis
quality. In Operations and Service Management: Concepts, Methodologies, Tools, and
Applications (pp. 1096-1118). IGI Global.
Deshpande, V. and Swaminathan, J.M., 2020. Introduction to the special issue on responsible
operations and supply chain management. Manufacturing & Service Operations
Management, 22(6), pp.1107-1111.
Grill, C.M., Hotels, C. and Kitchens, C., 2021. Operations Management in the Hospitality
Industry. Artificial intelligence (AI), 62, p.120.
Helo, P. and Hao, Y., 2019. Blockchains in operations and supply chains: A model and reference
implementation. Computers & Industrial Engineering, 136, pp.242-251.
Leimeister, J.M., 2020. Service Management und Service Operations.
In Dienstleistungsengineering und-management (pp. 279-342). Springer Gabler, Berlin,
Heidelberg.
Li, M., Yin, D., Qiu, H. and Bai, B., 2021. A systematic review of AI technology-based service
encounters: Implications for hospitality and tourism operations. International Journal of
Hospitality Management, 95, p.102930.
Santos, E.O.D. and Frederico, G.F., 2018. Evaluating knowledge management maturity: a case
study of a service operations company. International Journal of Business
Excellence, 16(1), pp.1-18.
Sherringham, K. and Unhelkar, B., 2020. Business Operations and Service Management within
Blockchain in the Internet of Things. In Security and Trust Issues in Internet of
Things (pp. 239-255). CRC Press.
Shneiderman, B., 2021. Commentary on “Visualization in Operations Management
Research”. INFORMS Journal on Data Science.
Smilowitz, K. and Keppler, S., 2020. On the use of operations research and management in
public education systems. Pushing the Boundaries: Frontiers in Impactful OR/OM
Research, pp.84-105.
Smith, and.et.al 2021. Operations management on the front line of COVID-19 vaccination:
building capability at scale via technology-enhanced learning. BMJ open quality, 10(3),
p.e001372.
Stevens, J., 2018. The Integration of Artificial Intelligence and Machine Learning in Field
Service Operations.
Vössing, M. and Kunze von Bischhoffshausen, J., 2018. Field Service Technician Management
4.0. In Operations Research Proceedings 2016 (pp. 63-68). Springer, Cham.