Tesco: Operational and Project Management Strategies Report

This report provides a detailed analysis of operational and project management within Tesco, a leading international retailer. It explores key concepts such as the transformational model, the 4 Vs typology (Volume, Variety, Variation, and Visibility), and operational performance objectives (Quality, Speed, Dependability, Flexibility, and Cost). The report examines how Tesco applies these concepts to its operations, including sourcing, manufacturing, and customer service. It also identifies operational challenges faced by Tesco, such as Brexit-related impacts and the need for efficient stock management, and proposes suitable solutions. The analysis highlights Tesco's strengths in speed and dependability while suggesting areas for improvement in flexibility and cost management, ultimately aiming to provide insights into enhancing Tesco's operational efficiency and competitive advantage.

Operational and Project
Management

Executive summary
Operations management is the process that is associated with the way activities are
affecting the present function of retails sector organisation. In present scenario there is expansion
and transformation that has affected the functioning of various operations activities. It is
important to have proper operations management to meet the demands and needs of the clients to
have a viable operations system that is geared towards achievement of objective with proper
timing and process. In present scenario this asserts that basic purpose is to offer right value to
customers at right time.

Table of Contents
Introduction .....................................................................................................................................1
Task 1...............................................................................................................................................1
The transformational model and 4 Vs typology.....................................................................2
4 Vs typology.........................................................................................................................2
Operational performance objectives.......................................................................................3
Process Design and layout analysis .......................................................................................5
Task 2...............................................................................................................................................5
Operations challenges.............................................................................................................5
Suitable operations solutions..................................................................................................6
Conclusion ...................................................................................................................................6
References ......................................................................................................................................8

Introduction
The operations management is defined as the process which includes dealing and
managing day to day operation of the business and also handling strategic business issues
effectively. It is also allows the business organisation to manage and control all the operation of
the organisation so that target goals and objective of the company can be achieved effectively
(Brewer and Dittman, 2018). This helps the business organisation to improve their profitability
and productivity. Whereas, the project management is defined as the process of planning,
organising , motivating and handling all the resources in order to achieve desired goals and
objectives. For this report Tesco is taken as the base company. Tesco is a well established
international groceries and merchandise retailer. T It is considered to largest retailer around the
globe in term of gross revenues and ninth largest in terms of revenue. Tesco is founded in 1919
by Jack, headquartered in England UK. It is offering quality services to their customers as per
their needs and wants. This report highlights the detailed analysis of the operations management
and its importance. In order to understand the operations management the various topics of the
operations such as transformational model and 4 Vs typology, operations performance objectives
and process design and layout analysis is highlighted in this report along with the main theories
and frameworks. In addition to this the main operations challenges and suitable operations
solutions in order to overcome those challenges is also highlighted in this report.
Task 1
Tesco is one of the well established groceries and general merchandise company founded in
1919 by Jack Cohen, it is considered to be the biggest supermarket across UK. Tesco operates
globally offering quality product and services to their target customer’s leading to satisfy their
needs and wants (Abdul-Malak and Senan, 2020). It has large number of customer base around
the globe buying various types of product each day, having high volume of output, enabling their
operations to be highly repeatable and systematised with low cost per unit. Tesco operations
involves innovating various offers and branded products, online shopping, corporate social
responsibility , healthy and safety and so on effectively. In addition to this the operations helps
the business organisation to enhance their long term efficiency and effectiveness of the
organisation (von Danwitz, 2018). In order to effectively analyse and understand the operation
management, various topics of the operations in context to company are mentioned below:
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The transformational model and 4 Vs typology
There are mainly three components of the operations such as inputs, transformational
processes and outputs. The operations management includes a systematic directions and control
of the whole process that transforms the raw material (input) into the finished products or
services for the customers (outputs). The effective transformational model applies in the
manufacturing and service business and also in the private and not for profit organisation. The
transformational process is any kind of activity taken into consideration by the business
organisation in order to take one or more inputs and than transforms through add value to them
into the output effectively. There are mainly three kinds of inputs like material, information and
customers (Martin, 2021). An effective transformation process which includes taking one or
more inputs and transforming them through adding value to them into the output for the target
customers allows the business organisation to enhance their satisfaction level and achieve desired
goals and objectives. Proper transformation involves producing the product as the requirement of
the customers, the output that leads to satisfying the needs of the customers effectively and
efficiently. In case of Tesco, the company follows systematic transformational process, under the
needs and preference of the customers is analysed before the operational process and after
analysing the preference of the customers the raw material (input) is transformed into the
finished product (output) adding value leading to satisfy the needs of the customers (Passey,
2018).
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From the above mentioned diagram it can be analysed about the transformation process in
TESCO. The first phase of transformation process is encompassing the sourcing of products,
there is presence of elementary responsibility offering manufacturing products, services,
managing of labour, it is retail supermarket where there is input process sourcing from suppliers
and further transformation taking place. The inputs also includes other subsystems that is usage
of retail products, energy human resources hired for operating the stores,. Final stage at the
transformation is involving the sales teal that ensures that customers are offered with proper
guidance in the selection process and answering of questions with respect to product and services
that are offered. The operations management in TESCO is controlling the expenses that are part
of dispersements in production expenses and suppliers. The organisation has to ensure that
clients needs are timely met (Tesco Digital Transformation, 2020).
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4 Vs typology
All the operations processes includes taking inputs as raw material, knowledge, capital,
time and then transform those inputs into outputs that is finished product with value added. This
is mainly done in various ways or methods. The main fours ways are known as four Vs, the four
Vs stand for Volume, Variety, Variation and visibility. In context to Tesco, the 4 Vs are
mentioned below:
Volume: The first and foremost element of this model is the volume, it is defined as the
how much production of a particular product is needed in order to satisfy the total demand in the
marketplace effectively. Under this as per the requirement for the product the volume for the
operation is decided by the business organisation. It also includes the physical number of units or
product is produced. For example, in case of manufacturing services, the production is done in
the bulk quality leading to high volume of the operation to be taken place. In case of Tesco, the
company is one of the top retail company offering large number of products to the customers
around the globe. The company has large base of loyal customers which are needed to be to
satisfied effectively. The large volume of the operation is involved in order to satisfy the needs to
their customers (Hillsonand Simon, 2020).
Variety: The another factor is the variety, it refers to variety of product and services
offered to the customers by the business organisation in order to retain them for long period of
time. This factor is all about the diversity offered by the company in terms of their products and
services leading to satisfy the needs and wants of the customers. Offering variety of product and
services allows the business organisation to enhance their sales and profit potential also lessen
their dependence on only one particular products, this also help the organisation to gain
competitive advantage in the marketplace. In case of Tesco, company offers wide range of
products to their customers around the globe, in order to satisfy their needs and wants and retain
them for long period of time.
Variation: This factor refers to how much the level of demand changes or demand
fluctuation due to the various external factors present in the environment. In case of Tesco, the
current change in the UK due to the Brexit, lead to directly impacting their operations. Currently
company's food items have moderate level of demand, also the garments has high demand. The
variation in sale of Tesco is analysed throughout the year (Ferri, 2021).
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Visibility: The last factor is refereed to as value chain of the company's all activities put
together. The target customer of the company needs to analyse the company's product and
services. In include making it easy for the customers to locate the product and services of the
company. In case of Tesco, company uses effective operation management which allows them to
create effective visibility in the eyes of the customers and enhance their performance in the
marketplace. Tesco uses effective Layout, flow and use of process technology is create effective
visibility in the marketplace.
Operational performance objectives
The operational performance objectives are the set quality, speed, dependability,
flexibility and cost which allows the business organisation to effectively measure the operational
performance of the organisation. The use of these measure helps the business organisation to
perform effectively and efficiently leading the business to gain competitive advantage in the
marketplace. In case of Tesco, the four operational performance measure are mentioned below:
Quality: The one of the most effective operations performance measure is the quality, the
quality is the visual sign of how effective the operations of the business are doing in the
marketplace. It is a consistent indicator which customers needs in their product and services.
Offering quality in the product and service allows the business organisation to attract large
number of customers leading to enhance their productivity and profitability (Furterer and Wood,
2021).
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Speed: The another factor is the speed, the objectives of speed helps in measuring how
fast a company can offer its product and services and enhance their profitability. This includes
the time taken by the company to manufacture and process one or more products. In case of
Tesco, the speed is related to the amount of time a customers spends within a store. Company's
wide variety of and huge amount of stock on shelves is seen negatively by the viewers who
experience confusion over effective selection, resulting in long time spent within the stores.
Dependability: It refers to customers relying on the organisation to receive quality good
and services. In order to create effective dependability among the customers the company should
deliver its services in full and on time. In case of Tesco, the company has rationalised their own
goods line in order to offer quality services to their customers. Also the operation manager of the
company follows Just in time supply chain management method, also reducing the variation and
volume of goods in stores has lead to allowing the customers to easily find goods.
Flexibility: It refers to the ability to adapt operations despite to change in the dynamic
business environment. In case of Tesco, the company is considered to be flexible showing its
quality to diversify into large number of areas including the sale of groceries. Including the
insurance, financial services, sale of electrical and other household products. Appealing to a
number of customer segments and grocery segments helps the company to enhance their
profitability or revenue as well as allow them to gain competitive advantage (Balasubramanian
and Selladurai, 2018).
Cost: It is one of the essential factor that allows the companies to directly compete on
rates. It includes the lower the production cost, the lower the company will be having the their
customers facing prices. In case of tesco, the company have analysed the benefits of focusing on
costs and has attempted to coherent it stocks, the company has determined to focus on their own
brand. The use of effective marketing strategy and as well as generic strategy of cost leadership
allowed the company to lower their cost and enhance their performance in the marketplace.
The above polar digram in TESCO suggest that business is demonstrating a high level of
performance in meeting of speed and good performance as per dependability criteria. There is a
difference between the customers and managers regarding the flexibility of customers. Both
customers and managers have rated the product cost with low number that is indicating a low
performance level. The capacity of a operation is the maximum level of the value that is added
over a time period and help in achievement of objectives in normal operating conditions. The
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inputs envisioned in the management system are associated with various grocery products &
services that are offered by the department store as part of the subsystems. In TESCO the inputs
also include subsystems that is buildings that is for retailing of products, services, human
resources, energy that is hired for operating the stores, capital for purchasing of items, market
and product information that is critical in operating of business (Tesco Company: Operations
Strategy and Management, 2020).
Process Design and layout analysis
The layout planning is referred to as effectively determining on the most suitable physical
arrangement of all the resources that take in space inside a facility. These may involve the desk, a
person, a work center and so on. Whereas the process design is the process of transforming an
organisation vision, goals, objectives into a discernible. It define as the process will be
considered by the company to achieve its financial and other objectives. In case of Tesco, the
company effectively focus on their process designing in order to smoothly carry out their activity
and achieve desired goals and objectives. There are large number of employees working at Tesco
stores ensuring effectively quality of services to their customers.
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In TESCO the process design there is analysis of the way the activities and functions are flowing.
Such as its starts with the process flow where supplier are contacting and further each activities
is taking place as per the above mentioned flow chart (Tesco consolidated their view of order
statuses, 2020).
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The company follows proper process, offering required training and development to them so that
they can perform well. In case of company's operations department, the processes systematically
and performed sequentially (Sahoo, 2021). The company follows an effective continuous
improvement plan in order to effectively carry out their operational activities and review them.
The main aspect of company's operations process and layout is that the company considers its
employees as a value adding instruments along with focusing on team work and career growth.
The Tesco's operations are divided to six types or format in order to meet the requirement of the
customers.
Task 2
Operations challenges
Operations management plays an essential role in managing and handling the process of
production and determining business operations effectively. It plays an essential role in
effectively handling the process of managing and handling all the operations of the business. But
there are number of operations challenges faced by the operations manager while managing the
operations of the business. There is increasing requirement to enhance the efficiency whilst
decreasing operating cost has become the major challenge. In context to Tesco, some of the
major operations challenges faced by the company are mentioned below:
Sustainability: As the more people are becoming aware of environment, social and
ethical issues directly leading to reflect on their choices as consumers. The increasing awareness
and demand regarding the sustainability is increasing which leads to directly impacting the
operations of any organisation. In case of Tesco, company is facing challenges regarding the use
of sustainability, the customers towards sustainable products. This directly impact the operations
of the company (Antony and Gupta, 2019).
Customisation: With increasing trend of customisation, the customers are becoming less
interested in one size fits all product and services. In case of Tesco, company has large customers
around the globe, and increasing demand of the personalised products among the customers is
creating huge challenges for the company. Satisfying the customised requirement of the
customers around the globe has become challenges for the operations manager of the company.
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