Report on Operations and Technology Management in Tesco Business

This report provides an overview of Tesco's operations and technology management, focusing on the company's operational strategies, challenges, and techniques. It analyzes Tesco's competitive advantages, including its pricing policy and multichannel customer services. The report discusses lean production approaches and value creation, highlighting the importance of waste reduction and quality assurance. It also examines the barriers faced by Tesco, such as competition and financial errors, and suggests improvements in supplier relationships and information technology. The report concludes by emphasizing the significance of effective operation management for Tesco's success and future competitiveness, including recommendations for enhancing customer relationships, logistics, and cost management.

Operations and Management of
Technology

Executive summary
The report focused towards the operational and technology management of the Tesco company
and their barriers and challenges to operate their business. The operation function determine the
importance of their competitiveness and success.
TABLE OF CONTENTS
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................3
Company overview......................................................................................................................3
Objective and aim of Tesco.........................................................................................................3
Analysis of Tesco operation strategy...........................................................................................3
Operations management techniques............................................................................................4
Drive up business for future.........................................................................................................5
CONCLUSION & RECOMMENDATION....................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Technology and operation management indicates the responsibility for operation and
implementation to achieve the aim and objective of the organization. This report includes the
information about the Tesco and their operation, technology management to achieve success.
Report evaluates the strategic operation management in Tesco and their tangible outcomes.
Major goal of the operation management of organization is to satisfy the consumer needs and
demands.
Company overview.
Tesco British is a multinational grocery company. It is a most well-known retail company in
globe. Tesco was founded in 1919 in London. Tesco operation is they have a hypermarket shops
ans supermarkets as well. Company mainly deals in a food products, and engages in clothing
business as well. In present time approximately they operate in 12 countries across the globe and
over 53000 employees serve the company and a million of customers they attract and serve in a
week (Tesco, 2022).
Objective and aim of Tesco
Objective of Tesco determine the profitability and maximize the sales of organization. Tesco aim
to make shopping cheaper by decrease in their sales and cutting and offer more products to their
customers. Each aim of the organization have different objective achieve. They produce healthy
products in order to provide their customers a healthy eating product. Major advantage that
company gain is they attract more customers and establish their business for more success. Tesco
even provide job to their local community because either aim also to reduce unemployment from
the place where they situated and want to establish their business (Qin, and et.al 2019).
Competitive advantage to Tesco is their pricing policy because they are able to control the price
in the market because of their brand image. Many customers follow the company and consumpt
their product that's how company able to generate high profit margin in their products.
Order winners and qualifiers of Tesco determine the price, multichannel customer services by
which they are able to achieve success and promote their brand.
Analysis of Tesco operation strategy
Tesco business need to coordinate to the activities and operation function of the organization in
respect to achieve the growth and compete with their competitors. Tesco implement strategies
designed to achieve their goals and objective elements for the strategy include;

Company create their brand as a valuable brand by their own label products like, F&F cloths and
quality product at their competitive prices. Company also enhances their internation business in
retail stores as well as online store. Nowadays because of COVID-19 the online business if often
implement for the betterment and precautions for customers therefore, Tesco also implemented
their online stores for better profitability and easy access to their customer and also to make
recognition in the new market as internationally and attract new customers. Tesco also work on
their strategy to build and create more value in their team. For company their main asset is
people that includes consumer, personnel, management etc. they will help organization in
innovation, implementation of technology and committed to the effective leaders in their all
division (Zhen, and et.al 2019).
Operations management techniques
Lean production approach
Lean production approach indicates the management operation of cutting waste in organization
and ensure quality while cutting off the wastage from production. This approach applied in a
business to form design and production to distribution for the betterment and advancement of the
organization. Major use of this approach in organization is to not add extra value in production
of the product (Goh, and Goh, 2019).
Illustration 1: five process of lean production
approach
(Source: 5 lean principle, 2016)

Key principles of lean production.
Value: value always estimate the customer's needs for a product that organization produce. For
example; The product Tesco sell in their grocery items manufacturing and delivery is on time
and the price of product is on their lowest to approach to their consumer as much as they can for
the better profitability.
Value stream: When company decided and determine the value of the or production, and they
should have to start mapping value stream. Value stream is basically and experience seen by the
company to identify the actions on their product and services which they serve to their
consumers. This process is also included the designing, production, and procedure in the
organization.
Flow: In value stream the wastage and operation management is totally reduced and the next
step in the approach include is flow of value creating of the product and service provided by the
organization. Flow of the Tesco also indicates cross functional across all the division in the
organization (Tortorella, and et.al 2020).
Pull: Improvement and work flow operation in organization indicates the just in time
manufacturing or delivery. Pull refer to the need of customer that they pull from the organization
what they want or desire from the company in order to consume that product.
Perfection: after all the step accomplishment organization should need to make perfection.
These steps are one of the crucial step in order to achieve success and compete with their
competitors.
Challenges and barriers faced by the Tesco is high entry of new entrants in market through which
they have faces intense competition in low profitability to compete with their competitors. They
also face financial errors company has high debts in the market and low cost strategy. This lead
towards the low profit margin. Even though Brexit also affect Tesco because of trade barriers in
the country (Staedele, and et.al 2019).
Drive up business for future
Tesco drive up their operation management and technology in respect to compete with
their competitors and maximize profitability. Tesco improved in their relationship with
consumers and efficient their logistics assets. They reduce in their cost of manufacturing
products by which they are able to supply their products at cheap price in good quality to attract

their customers. Increase in global competition of retail industry develop the operation
management and capabilities of company in order to meet the change and needs of customers.
Competitive advantage analysable the resources and capabilities of the organization which help
the organization to create the value and lower their cost structure event make differentiate
product from the competitors of the organization. This includes the resources and capabilities of
the organization to achieve the low cost structure with differentiate product. Through the choice
of the price of the product by the company they choose their position in the market as the Tesco
lower their product price as compare to their competitors they have analysed the factor by which
they will make recognition in the market. With the help of this Tesco also created a core
competence (Rosnizam, and et.al 2020).
Value creation: this includes the performing activity of the organization and activities by which
they analyse the value of the organization and create value among the customers. Activities of
the porter's models identify the value chain by which organization create their own value by their
activity. To achieve the competitive advantage organization put their best efforts and strategic
them well (Yu, and et.al 2020).
The firm competitive advantage for drive up their future competitive advantage analyse the
sustains profits by which they exceed the profits of the industry. Industry achieves a sustainable
competitive advantage through porters models basic types which is cost advantage, differentiate
advantage. Competitive advantage which analyse the benefits for the organization and
competitors. Thus, the competitive advantage enables the value of the organization and superior
profits for themselves.
Resource capabilities: In order to sustain the achievement in the organization and development
they must have resource and capabilities in order to become superior with their competitors. The
competitors of the organization replicate the firm was and take advantage of it for instance copy
the product what organization has made for their customers.
Resources: Resources includes the cost and differentiation advantage of the organization and
which the competitors acquire quickly. Examples of resources which organization has and it
becomes the beneficial for them such as; patents and trademarks and customer base by which
they create a trust among the customer. Brand equity is also the one of example of the resources
of the organization.

Capabilities: This refers to the organization ability and utilization of resources effectively. For
instance; capabilities include the product development in the market in order to compete with the
competitors. The procedure and difficulties are not easy to regulate in the daily process by the
organization but to compete with the competitor's organization has to embedded in their routine
work (Sparks, 2019).
CONCLUSION & RECOMMENDATION
Report concludes the information of effective operation management of Tesco and their success.
Every decision of organization determine, customers, communities, supplier of the organization.
Company manage their operation and produce better product to attract their customers. Tesco
can improve their more in terms of relationship with their supplier and should conduct survey on
their providing services to collect feedback from them. Information technology of the company
should implement anti virus system to prevent operation system and intervention consequences
of being effect the virus. Company also look forwards their barriers which consist market
structure, buyer's power, supplier power and rivalry in their grocery business.

REFERENCES
Books and Journals
Goh, M. and Goh, Y.M., 2019. Lean production theory-based simulation of modular
construction processes. Automation in Construction. 101. pp.227-244.
Qin, and et.al 2019. Applying big data analytics to monitor tourist flow for the scenic area
operation management. Discrete Dynamics in Nature and Society.2019
Rosnizam, and et.al 2020. Market Opportunities and Challenges: A Case Study of Tesco. Journal
of the Community Development in Asia (JCDA).3(2). pp.18-27.
Sparks, L., 2019. Tesco: how supply chain strategy supports retail success. The Business &
Management Collection.
Staedele, and et.al 2019. Knowledge building about performance evaluation in lean production:
An investigation on international scientific research. Journal of Manufacturing
Technology Management.
Tortorella, and et.al 2020. Learning organisation and lean production: an empirical research on
their relationship. International Journal of Production Research. 58(12). pp.3650-3666.
Wolniak, R., 2020. Main functions of operation management. Production Engineering Archives.
26.
Yu, and et.al 2020. Smart Factory Production and Operation Management Methods based on
HCPS. In 2020 IEEE International Conference on Networking, Sensing and Control
(ICNSC) (pp. 1-6). IEEE.
Zhen, and et.al 2019. Operation management of green ports and shipping networks: overview
and research opportunities. Frontiers of Engineering Management. 6(2). pp.152-162.
online
Tesco, 2022.[Online]. Available through; < https://www.tesco.com/ >