Operations Management Analysis of Tesco: BM563 Research CW1

This report provides an analysis of operation functions and management within Tesco, a UK-based retailer, focusing on how these practices contribute to achieving organizational goals. It examines the implementation of operation management practices, the role of supporting functions in enhancing quality, cost-effectiveness, speed, and flexibility, and the implications of leveraging technological advancements for competitive advantage. The report identifies Tesco's core functions, including finance, administration, human resources, marketing, and research and development, and discusses their impact on organizational efficiency. It also evaluates Tesco's quality management practices, emphasizing the importance of innovation and technology in optimizing resource utilization, reducing costs, and improving customer satisfaction through online platforms and automation in production processes.

Title example: Operations management on XYZ
Company
MODULE: BM563 Operations and Service Management
PROJECT: CW1 - Individual Research Portfolio
LECTURER:
STUDENT:
Group:
BNU ID:

Executive summary
This particular report include an analyses of operation functions and management that
lead an organisation to achieve their set goals and objectives. The report is based on a UK
abased retailer Tesco. It discusses the operation management practices and functions that are
being implemented in the operations. It also determines the role of operation management
practices with supported functions that are being used by organisation to bring efficiency in
their quality, cost , speed , flexibility and more. Further it discusses the implication to using
technological advantage in the system in order to accomplishment competitive advantage.

Contents
Introduction...................................................................................................................4
1. Identify one operation management practice within a chosen organisation ...........5
2. Critically analyse how this operation management practice impacts the
organisation in regards to efficiency.............................................................................5
3. Evaluate how technology could be embedded in this process or evaluate how this
has already been achieved. .........................................................................................6
4. What supporting functions are linked to this operation management practice and
evaluate how can they assist with ensuring organisational success?.........................6
Conclusion....................................................................................................................8
References....................................................................................................................9
Appendix ....................................................................................................................10

Introduction
Operation management refers tro a process that convert raw material and resources
into finished products and deliver them to their ultimate customers. Operation management
require proper utilisation of resources and taking corrective measures if there are any
deviations in the performance and tasks to accomplish the goals .The process of operation
management involves designing of plans regarding production system, total quality
management, proper resource allocation, planning capacity, layout and many more (Santoso
and Wijaya, 2020). The report is based on Tesco, which is a British multinational
corporation in providing groceries and general merchandise goods . It has its headquarter in
Welwyn Garden City, England. It was the third largest retailer as per their gross revenue.
This report will discuss the different operation management practices taht are being used by
the given organisation and determine how it effect the organisation to improve their overall
efficiency and productivity. Further it also discusses the role of technology in the operations
and its positive imapct in organisation growth and success. It also analyze the different
functions and departments that are interelated with operation management practices that will
help an organisation to gain a competitive edge in the marketplace.
1. Identify one operation management practice within a
chosen organisation
About Tesco:
Tesco is a leading multinational retailer for groceries and general merchandise. The
organisation is the third largest retailer in the world in their gross revenue. It was founded in
1919 by Jack Cohen with a group of market stalls in Hackney, London. The organisation has
listed itself with London stock exchange. It core business is retailing, which provides 60% of
all sales and profits. It has two main food brands which are Finest and Everyday values which
helps the organisation to gain an edge in sales (Li, Hao and Fang, 2019) . The company
have its operations all around the globe. Tesco have diversified its range of products into
different areas like books, clothing, electronics, furniture, toys, petrol, software, financial
services and more. The main focus of organisation is to provide quality goods and services
at low cost.

Core functions of Tesco:
Business function refers set of activities that is being carried by any business with a
object to earn income, growth and success. The functioning of an organisation are divided
into several departments and functions that act as a medium to achieve the target goals and
objectives (Zhang and et.al , 2020) .
In context to Tesco, the core functions of organisation includes finance function,
administration function, human resource function, Marketing function and research and
development function which are discussed as below: Finance function: The objective of finance department within an organisation is to
procure the potential sources of funds and manage the required resources to generate
profits. Its function is to make investment decision, financial decision, liquidity
decision and more. Tesco, uses its finance department to provide them with the
required funds that are essential to meet their requirements and help in expansion of
business operations. Administration function: This function are related to daily operations and manages
the resources requirement of day to day operations. It include purchasing,
warehousing,repairs and more. In Tesco, this department helps the organisation to
maintain their supply chain management and operation to meet the demands of the
external suppliers and customers. Human resource function: This function is related to recruiting, training and
selecting the individual as per the needs of the organisation to accomplish their targets
and objectives. In Tesco, this department helps the organisation to hire and recruit
employees which will increase thee overall productivity of an organisation. Marketing function: This involves promotion, selling, product management,
marketing information management, pricing, financing and distribution. It enables the
organisation to makes strategies and put their efforts towards achievement of
organisation goals and success (Silvestre and et.al , 2020). In context to Tesco, finest
and Everyday values, help an organisation to achieve their sales target and earn more
and more revenues. This department help to promote and advertise about the brand
value to attract more customers.
 Research and development function: It is an important function and valuable tool of
any organisation for growth and development of an business. Its function is to analyse

about the needs and expectation of the customers that are existing in the marketplace.
Evaluation of the ways that would lead in satisfying their needs and desires to attain a
competitive advantage (Mahabir and Pun, 2022). In context to Tesco, this
department help them to bring innovations and technological upgradation in their
operations by investing into new and redesigning new products that will help them to
attain growth and success.
Quality management practice of Tesco:
The objective of Tesco is to provide its customer with high quality and standard of
products and services as a company and legal requirement. The company runs a Tesco Food
Manufacturing Standard( TFMS) that help to regularise the requirement of company. The
organisation uses total quality management techniques, it is used by a company to maintain
their standards of food as per the needs and expectation of their customers. The organisation
matches their actual outputs with the desired outputs and then taking corrective measures.
The organisation used to file customer complaints to satisfy them as per their expectations.
2. Critically analyse how this operation management
practice impacts the organisation in regards to
efficiency
In order to remain competent in the marketplace, the organisation need to control
different elements and components of its managerial functions which includes quality, cost,
dependability, speed and flexibility that will contribute in increasing the overall efficiency
and effectiveness of an organisation. In context to Tesco the role of different components are
discussed as follows: Quality: It helps an organisation to attain and achieve greater efficiency in their tasks
and proficiency (Ray, Mishra and Dash, 2022). In context to Tesco, it will help to
increase efficiency in their production process, reduces the wastage of resources and
time of production. It helps the organisation to contribute in their long term
profitability and by satisfying the needs and expectations of their customers by
designing the products and services as per their expectations. Cost: Tesco main focus is reduction of overall cost of production. Tesco uses
economics of scale in order to reduce the overall cost of production and help the

organisation to offer their goods and services at lower prices to their customers
(Chinmulgund and Tapas, 2020). Dependency: It is the capability and ability of an organisation to full its requirements
of resources either by using their efficiency and taking undue advantage from external
parties. A dependent performance of organisation reduces productivity of employees,
reduces talent development within an organisation, but leaders and managers can take
initiatives by implementing new challenges and changes in daily work of employees
that will boost them to improve their overall efficiency and performance.
 Speed and Flexibility: Tesco offers its employees flexible working hours opportunity,
it also includes the efficiency of organisation to change their operations quickly. It
help the employees to focus on their operations and improve their overall performance
and efficiency. Tesco maintain its speed by keeping a check on the movement of its
employees and reducing the unproductive activities.
From the above discussion it is been seen that internal and external factors plays a crucial role
in organisation success and growth. With the adoption of innovation practices and good
operational management company efficiency can be increased which are discussed below:
 Tesco have bring innovation in their production practices which have help the
organisation to optimistically use their resources and reduce time and wastage of
resources.
 Tesco brings various innovation in their product and services by introducing new
design and producing the products and services as per customer expectation and
demand.
 Tesco uses its planning and control management to measure and control the quality of
its products and services it involves optimum use of man, material and other
resources and produce high quality of product and services (Thomas and et.al, 2021).
 In order to bring efficiency in their operations Tesco control the flow of supply chain
and material in order to fulfil the needs and expectation of customers. It also helps the
organisation to reduce their overall cost of production.

3. Evaluate how technology could be embedded in this
process or evaluate how this has already been
achieved.
Technology is rising at the higher pace in today's business world. Tesco is an
organisation which is continuously bringing technological innovation and
advancement in their operation in order to keep with the changes that are taking place
in the marketplace (Johne, 2018). Tesco has stores with have uses computer vision
technology, it also uses big data analytics and algorithms to adapt the supply chain
management and predict their customer expectation and also offer personalised
discounts and offerings. There are variolous benefits that a company can drive in their
operations by using different technologies which are discussed as follows- Automation in Production process: Automatic machinery and production equipments
adds a great contribution to increase the productivity . The use of technology helps an
organisation to gather relevant information and data. It helps to reduce the overall cost
of production and help the achieve their objectives and goals. Use of technology in manufacturing and designing of products: Technology makes
the operations more feasible and reliable. Technology helps the organisation in
reduction of overall time of operations and increase the overall productivity in less
time by enhancing the overall accuracy of operations.
 Adoption of technology in operation management: Technological upgradation and
advancement helps in operations helps in reducing the overall cost of production and
provide goods to its customers at lower cost. It will help the organisation to focus on
its quality of product and services, improves the quality of product and services and
improve the overall operation of management and its process.
The use and implementation of technology within operation of Tesco are discussed as below: Websites:Tesco have initiated and generate their own websites through which it
makes their customer know about the product and services their offer (Farag and et.al,
2020). It will help an organisation to get customer feedbacks and queries and help
them to make different strategies and plans in accordance with the needs and
preferences of the customers. It also enables the organisation to have full access to
market trend and information.

 Establishing online platforms: Tesco have come up with their online stores which
help the customer to purchase different goods and services at their own convenience.
It has increase the number of customer of the organisation globally and attain a good
market share (Choi and et.al , 2019). Tesco have the great ability to respond and
adapt the changes quickly which helps the organisation in getting more growth and
success. Along with online platforms it also provides its customer opportunity to
invest in grocery dot-com centre, establishment of Waterhouses for online order and
More.
 Use of technology in stores: Tesco have started the system of in-store online facilities
like scanning o products, self check out stations and many others to provide ease and
comfort to their customers. It makes the organisation more technological driven and
helps them to hold competitive advantage from the other existing organisations.
4. What supporting functions are linked to this
operation management practice and evaluate how
can they assist with ensuring organisational success?
Operation management practices helps the organisation in functioning of their
operations. It helps the organisation to make analysis regarding different aspects of a
business like production, capacity and more. It helps an organisation to improve their overall
productivity and efficiency that help them to hold a competitive advantage. It discusses the
link of operation management practice with supporting function and their contribution in
organisation success. Strategy making: This function involves making different strategies and planning as
per the requirement of the organisation operation. It is one of the main function of
Tesco, Which involves planning of strategies that will lead an organisation to achieve
their objectives and goals (Tang and Veelenturf, 2019). The process of decision
making and strategy planning depends on customer demand, and the changes that are
taking place in the marketplace. It helps the organisation in reducing their cost of
production and making optimum utilisation of resources.

 Product designing: This function is done based on the data and information gathered
by the research team (De Matos, 2021). Tesco, determines the needs and expectation
and design the product as per their demands that would help an organisation to gain
growth and success. It leads an organisation to hold a good reputation in the
marketplace. Control the quality of products: The quality of the product and services depends on
the efficiency and effectiveness of an operation management. This department ensures
the high quality and standards of goods and services by inspecting and evaluating
different product, that help an organisation to achieve growth and success.
 Finance: This department of Tesco, insures low cost of operations. It focuses on
managing the utilisation of resources in an optimistically manner that leads in
maximising their profits and productivity. This department is responsible to set
budgets of different department and ensure effective investment of their funds that can
give maximum return to an organisation.
Conclusion
From the above report it is being concluded that managing the operations efficiently
can help the organisation to attain long term growth and success. Operation and service
department of an organisation helps in planning and organising the tasks and different
operations of an organisation that will increase the overall productivity and performance of
workforce and organisation and help them to attain effectiveness and efficiency in their
operations. This particular covers the importance of operation management practices within
an organisation and its significance in increasing the efficiency and productivity of an
organisation that will improve the performance of an organisation. This report also analyses
the role of technology in operation process and lastly it discusses supporting functions that
are linked to operation management practices and its contribution in organisation growth and
success.

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Appendix