Strategic Analysis of Tesco: Operations, Management, and Development

This report provides a detailed analysis of Tesco's operations and strategic management. It begins by examining the quality of systems and operations within Tesco and Sainsbury's, identifying areas for improvement such as staff consultation, customer satisfaction, and continuous improvement. The report then delves into Tesco's organizational values, including its mission, vision, goals, and objectives, along with the factors considered in strategic planning, such as competitive advantage, Ansoff's growth vector matrix, and portfolio analysis. Furthermore, it includes an environmental audit of Tesco, utilizing PESTLE and Porter's Five Forces analyses to determine its strategic position. Finally, the report implements stakeholder analysis to identify stakeholder needs and their impact on Tesco's strategic position, covering key stakeholders like suppliers, community, creditors, shareholders, directors, employees, and the government. The analysis covers various aspects of Tesco's business, offering insights into its operations, strategic decisions, and stakeholder relationships.

Operations, Strategic Management
and Personal Development
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Contents
TASK 2............................................................................................................................................3
Discuss about the quality of system and operations in two selected organization and identify
possible improvement..................................................................................................................3
Identify the organizational values and different factors to consider when declining the strategic
planning and monitoring..............................................................................................................4
Describe about the environmental audit of TESCO and understand the strategic position
through pestle and five force analyses.........................................................................................6
Implement the use of stakeholder analysis to identify stakeholder need and impact on strategic
position for TESCO.....................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
It has summarized about the quality of system and operations in two different organization
and determine possible improvement that applied within business. There are different factors that
must be considered when deciding strategic planning and monitoring of effective plan.
Furthermore, it will discuss about the strategic position by using pestle and five forces analysis.
At last, it will analyse the stakeholder needs and impact on strategic position within organization.
TASK 2
To determine quality of system and operations in two selected organization and possible
improvement.
The necessity for quality and operation improvement are required for organization to
improve business product and services. These are major aspects of business development that are
directly interrelated with the performance as well as efficiency. There are different types of
quality measurement aspects in business operations.
TESCO Sainsbury’s
System Documentation TESCO is based on the
collection of data or information
that can be recorded in the
system. It mainly includes
design, maintenance,
capabilities, and limitation of
system. TESCO always maintain
the proper system documentation
where it has maintained an
accurate. It is important quality
measurement that consists of
large information or data into
organization database while
providing a facility to access
information within few minutes.
Sainsbury’s can be used the
ERP system that always
record data or information.
It also used the software for
protecting and maintaining
personal information of
customer, employee and
stakeholder within
organizational system in
proper manner.
It is helping for
organization to maintain
proper documentation in
proper manner.
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Maintain quality of policy
and procedures
It is mainly defined the
documenting a quality of policy
and objective that ensure Tesco
understood and implemented by
employee levels.
It must ensure that assume
the process by
implementation of fully
satisfy customer
expectation through
organization objectives.
Operations management Tesco must be used the Total
Quality Management process
which help for reducing and
detecting any type of errors in
product manufacturing and
manage supply chain. TESCO
has used the total quality
management process to maintain
best quality of services and
improve customer experience.
By using TQM, Sainsbury’s
has improved overall
process of supply chain
distribution. In this way, it
maintains the entire
business operations and
functions.
Increase productivity and
profitability
TESCO is used the Six sigma
method as a organization tool to
improve overall capabilities of
business activities. It can used to
indicate overall control process
and reduce variation in process
and improve the better services
Sainsbury’s is mainly used
the six-sigma approach to
increase the business
capabilities by adopting
new variation in product
development.
.
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These are quality of system that can be identified through different measurement criteria
which may applicable in both organizations TESCO and Sainsbury’s. After consideration of
measurement criteria that applicable different approach in terms of organizational process
improvement.
Improvement
 Staff consultation and engagement: It is important part of business improvement
process where manager needs to build a good relationship with their staff members and
provide the better facilities. It can be possible when manager provide chances of staff
members to share their innovative idea which may be useful for organizational growth
and development. In Tesco and Sainsbury’s, it can be determined the gap of staff
engagement due to lack of communication.
 Customer satisfaction: It is very important for organization to focus on the customer
satisfaction level because it directly effects on the overall business reputation and image.
In this way, it is necessary for organization to use customer service strategy for providing
the better services and resolve their queries in proper manner. The retail business mainly
used online tool to interact with the customer and identify their specific demand. In
Tesco and Sainsbury’s, Sometimes, it doesn’t meet the high expectation level due to
change of latest trends in global marketplace.
 Continuous improvement: Organizations will require to do change in their entire
policies and procedures as per market trends because customers demand has rapidly
changed which may directly effects on production and sales. In this way, it is an essential
to continuously improve their business operations and functions. In Tesco and
Sainsbury’s, it has found the actual performance of company against the desired
performance. It doesn’t meet the level of business.
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Identify the organizational values and different factors to consider when declining the strategic
planning and monitoring.
Mission:
The mission of Tesco is to create value for potential consumer and build a loyalty so that
it automatically expands market share.
The role of strategy formulation provides right direction to the organization which seeks
to set long term goals and objectives in marketplace.
Vision:
 To increase the growth rate of business by implementing innovative idea and concepts
within organization.
The role of strategy formulation is vision to implement new idea for product
development while improving overall quality and services.
Goal and Objectives:
The primary goal and objective of Tesco is to grow core business and develop the
retailing services in global world.
The role of strategy formulation is to focused on the retailing services for increasing the
production and sales.
Formulation of competencies strategy:
TESCO is mainly focused on the formulation of core competencies which require
specific qualities and skill that easily handle the entire business competitors. In this way, it will
create the good image of organization in market and more consumers attracts towards product
and services (Li, 2019).
The role of strategy formulation is mainly providing the direction of business to increase
their productivity and profitability in marketplace. The mission, vision and goal are representing
the growth and development of organization in global world (Bilińska-Reformat and et.al.,
2019).
The different factors to be considered when Tesco deciding to make strategy plan and
monitor overall activities of business operations. It can be identified the factors that monitor
internal business processes.
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 Gaining and Maintaining competitive advantage: competitive advantage is achieved
when TESCO gas an edge over its competitors when more customer attracted towards
product and services. it is simply advantage of business to develop strong position in
global marketplace. on the other hand, TESCO is mainly used the information resources
to coordinate with the people and share information about particular product.
 Ansoff’s growth vector matrix: it is based on the product market expansion grid that
used by TESCO to analyse plan of business growth. It has used as factors to analyse risk
that associated with strategy. In order to grow business in global marketplace. It can be
divided into different strategies:
Market Penetration: In this way, TESCO mainly focused on the increasing sales
of existing products in marketplace.
Product development: it helps for business to introduce the new item into
existing marketplace.
Market development: TESCO has made plan to enter in the new market by
using existing items.
Diversification: It help for TESCO to enter in the new market with introduce new
item and services in global marketplace.
 Portfolio analysis: it is based on the examination of different components that mainly
including in the product mix within TESCO. The primary purpose of organization is to
improve overall return through decision making. It is important factor that needed to
applicable within organization and allows to recognise the allocated resources with
increasing profitability and productivity.
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Evaluate the environmental audit of TESCO and identify the strategic position by using pestle
and five force analyses.
In order to have significant level of carrying out the environmental audit of Tesco, the
company the conduction of pestle and porter five force analysis will be carried out.
PESTLE
Political factor- Tesco is having operation all over world as the restaurant of global
implication which is having impact on business development. Political factor influences the
performance of TESCO through legislation act, tax rates and stability of country. It is ongoing
financial instability in entire world.
Economic factor- There is major level of impact of economic factor such as the demand
and profit in Tesco. The downwards effect in market have negative level of influences over
business operation s which considered to be large amount of risk for Tesco.
Social factor is considered to be very crucial as the current trends of market have direct
effects on sales and profit margin of company. The company is trying to have accommodation of
social changes along with having concentrating operation so that better level of improvement can
take place in acceptability of business operation. Due to change in social environment, TESCO
has increased the number of production and sales. The organization always influenced by social
conditioning and aware about health safety.
Technological factor- the company is always had major level of concern over various
level of technological changes as the advance level of technology used to bring success to
business (Hopkin, 2018). The advanced technology has increased new opportunities for Tesco
where it has developed online shopping experience with providing facilities of home delivery. It
has invested a large amount of money in digital technology.
Legal factor: The legal policies always impact on the entire performance of Tesco. For
example- Food retailing commission introduced the code of practices while changing the price
without demanding payment from suppliers.
Environmental factor. The company is having better ways to ethical business which is
considered as important consideration of business. With increased the pressure on Tesco to
address environmental issues and adopting in business operations. On the other hand, Tesco has
minimized the waste products by increasing social consciences in clients.
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Porters Five Force Analysis
Bargaining power of buyers
Tesco has served the product and services million of customer every week. In this way, the
bargaining power of power is low.
Bargaining power of suppliers
There is existence of little threat as the company is tends to be supermarket which have the
dictate of the prices in order to pay to suppliers. The reason when suppliers don't agree to price
of company, then the supplier will be left with no retailers. The bargaining power of supplier is
high.
Threat of substitutes
Tesco have the level of composition with existence of another supermarket which have
better level of Providence substitutes productions (Arshed and Pancholi, 2016.). So the company
tends to have high level of risk associated.
Competitive rivalry
The Tesco has a large number of powerful competitors and spend a lot of time on
advertising and marketing process. In this way, the pressure from the near by rivals is become
intense. On the other hand, it has been increased the problem of competition level in
marketplace.
Threat of entry
In Tesco, the threat of new entrants coming in the marketplace so that it is low particularly
due to the needs of high capital. Tesco doesn’t require the tension about new entrants as they
always enjoy their economic scale.
Implement the use of stakeholder analysis to identify stakeholder need and impact on strategic
position for TESCO.
The stakeholder mainly refers to the group of people and organization that has involvement
in various activities of tesco. It may include supplier, community, creditors, shareholders,
directors, employee and governments.
The stakeholder analysis is based on the technique that mainly used in the organization to
support people in business operations. In tesco, they are performed different task for increasing
business productivity and profitability in marketplace.
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Stakeholder analysis
Stakeholder analysis can be used to determine and identify the key actors and asses their
position. Interest, knowledge and position in business policies. It is helping for mitigating
confliction among stakeholder and resistance in process of implementation.
There are different steps of stakeholder analysis for Tesco.
 Stakeholder analysis is initially figure out the people and involvement that how it would
maintain business operations (Sparks, 2019).
 It can be determined the power and interest which influence stakeholder for performing
different operations. High level of stakeholders is putting extra efforts to satisfy customer demand and
promote better product in marketplace.
Impact this has on the strategic position for the organization
Stakeholder analysis is review and consideration of significant impact on the business.
TESCO need to understand about the interest of stakeholder and strategies on how to address
within business.
The strategic position impact on the business where stakeholder interest might change over
time. thus, management team has to be strategic and clear as engage with different stakeholder.
Sometimes, it depends on the communities and stakeholder that actually impacted by change
initiative. where it will create value and focus on the customer satisfaction. Tesco adopt the new
strategy for product development and enable to meet customer expectation level. The strategic
position would help for business to create more revenue and increase opportunities for further
expansion.
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TASK 3
Contribution of information system to procurement and supply chain efficiency
Information system plays significant role in improving supply chain activities of
business. It works as performance driver which enhance opportunities for companies. In order to
improve SC activities there is need to have to close control over supply of goods and
management of funds. This can be done by using information system in the workplace. IS aids in
minimizing the issue related to warehouse or shortage of raw material. By this way companies
can manage their funds in effective manner which supports in improving efficiency of
procurement operations. In the recent time companies are using advance technologies that aid in
availing necessary information and coordinate with other departments in effective manner so that
issues supply chain system can be managed in business significantly.
Tesco being a leading retail firm can get economic benefit by implementing advance
information system because it supports in utilizing resources well and minimizing resource
wastage. By this way time and money both can be saved which improves the quality of
operations to great extent. Apart from this, implementation of IS can makes the administrative
work less time-consuming (Apiyo and Kiarie, 2018. ). IS plays the role of tracker in business, by
implementing this system Tesco can easily track the transportation and can get to know the
delivery time of raw material. By this way it would be able to make balance between demand
and supply and would be able to meet expectation of consumers accordingly. Information system
is helpful in developing relationship with vendors because sharing of information can be done
easily which develops trust between both. This strong supplier relationship helps company in
meeting demand on time and deliver the final goods to the right person on time. It also helps in
developing long term commitment which assists in meeting the long term goal of business unit.
By this way suppliers will be connected with business strongly and has been provide them raw
material on time. Tesco can also get benefit of getting quality material in reasonable prices which
would reduce the procurement cost of business unit.
Information system is beneficial for improving supply chain efficiency of Tesco because order
process can be done so easily. Company will not have spent too much time in purchasing of raw
material. It can share the requirements with the trusted supplier and can get the raw material on
time. By this way cost of operations get minimized which enhances efficiency of supply chain
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system (Mandal and et.al, 2016). Information system plays role of monitor because by using this
kind of technologies Tesco can get to know about the waiting time for raw material delivery and
its capacity as well. That helps in making proper production schedule so that customers demand
can be meet on time. It is also beneficial in reducing the problem of shortage of raw material or
excess raw material. Hence inventory can be managed effectively in the organization which
improves procurement efficiency of Tesco to great extent.
The advantages of e procurement and IT systems for supply chain efficiency
A wide variety of industries are having the significant level of implementation of adapting a
variety of technology which is bringing more level of productivity along with visibility and cost
efficiency. There is high level of procurement which is providing significant level of
opportunities by having proper level of increasing the business transaction in business and
maintain the leverage of negotiations for firm (Ruel, Shaaban and Ducros, 2019.) It is a kind of
proceeding of opportunities in order to have bench marking to have better level of maturity
measurements in procurement of company. Tesco can also get benefit of getting quality material
in reasonable prices which would reduce the procurement cost of business unit.
Mention below some benefits
Better level of spending over visibility along with lowing the cost – as the e-procurement
structure have the spending across nation for suppliers to have centralizes the level of tracking
which is helping the volume leverage and lowering the cost of buyer in more significant way. By
this way suppliers will be connected with business strongly and will provide them raw material
on time (Busse, Meinlschmidt and Foerstl, 2017). This allows Tesco to have cost reduction of
tracking on continuous basis and identification of gap at significant level. There is more level of
allowing to have implementation of scorecards which is having major leading to savings and
increased the level of productivity through suppliers.
Operational level of performances as the E-procurement helps in automating process of
procurement at internal level in such as order of purchasing and proper evaluation of suppliers
which is having leading level of proficiency at operational level.For example, as KPMG have the
application of simplistic approach of transferring the set of cost in order to have from one
department to another one. This making the company to have reduction in operation activity
along with proper level of cost management.
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E-catalogues and increased standardization have make the supplier more level of
availability n offering of products which is being available more electronically in order to have
providence for buyers to have proper level of visibility in terms of product information and
pricing. It also helps in developing long term commitment which assists in meeting the long
term goal of business unit (Teixeira and et.al, 2018). The supplier has taken advantage of
offering of more standard products as they are having significant level of companies by
providing the different offers across the suppliers in more respective manner. For example, the
pharmaceutical company AstraZeneca expects to save at least $600m by following years in more
way having used of web based purchasing an implementation the software for having proper
level of developmental of E-catalogues. This is considered as the simpler level of solution along
the internal side of business and formation which is offering more level of better chance to have
implementation of longer success and ministration of risk.
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REFERENCES
Book and Journals
Apiyo, R. and Kiarie, D., 2018. Role of ICT tools in supply chain performance. International
Journal of Supply Chain Management, 3(1).pp.17-26.
Arshed, N. and Pancholi, J., 2016. 9 Porter’s Five Forces. Enterprise and its Business
Environment.
Bilińska-Reformat, K and et.al., 2019. Sustainable development concept and creation of
innovative business models by retail chains. International Journal of Retail &
Distribution Management.
Busse, C., Meinlschmidt, J. and Foerstl, K., 2017. Managing information processing needs in
global supply chains: A prerequisite to sustainable supply chain management. Journal of
Supply Chain Management, 53(1). pp.87-113.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Li, P.H.W., 2019. Mining customer pattern across multiple time-series-segments of traditional
and e-Business market channels in China.
Mandal, S. and et.al, 2016. Achieving supply chain resilience: The contribution of logistics and
supply chain capabilities. International Journal of Disaster Resilience in the Built
Environment, 7(5). pp.544-562.
Ruel, S., Shaaban, S. and Ducros, M., 2019. Supply chain vulnerability: contributions from an
edifying case study. Journal of Enterprise Information Management, 32(2).pp.214-232.
Sparks, L., 2019. Tesco: how supply chain strategy supports retail success. The Business &
Management Collection.
Teixeira, C.R.B., and et.al., 2018. The contribution of green logistics and sustainable purchasing
for green supply chain management. Independent Journal of Management &
Production, 9(3). pp.1002-1026.
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