Executive Summary
Operations Management plays a significant role in attaining the key performance goals of Tesco. Whether the present operation goal is to develop customer service or to boost profitability, the manner in which Tesco employs its resources will have a significant effect. As a result, there have been in numerable inventive developments in Operations Management that have sought to utilise Tesco resources in a considerably new method in order to make a large step transformation in performance. Tesco is aprosperous example of operations management; nevertheless, based on this study they likewise have some disadvantages in their operations management that need to be improved.Based on the case study on Tesco, this paper will analyse as well as critically evaluate the current operations management of Tesco from three critical angles. Specifically, operations design, operations strategy as well as operations management. Comprehensively, the report will discuss its different store categories, global expansion, cut-rate policy, loyalty card strategy managing capacity, supply chain management, cost control, inventory management and delivery system management. Subsequent to this, it will make an in depthconclusionas well asdemonstrate the fortes and flaws of Tesco’ operations management. In conclusion, the report will offer particular suitable commendations to Tesco’s sustainable expansion.
Tesco was founded by Jack Cohen in London in 1919 (Tesco, 2015). Presently, Tesco is the leading retailer in the UK. It is present in 14 countries globally and serves over ten thousand customers on a daily basis (Zhao, 2014). The company largely operates varieties of store formats, that is Supermarket, Metro, Extra and Express correspondingly. It has also penetrated the online market as Tesco online grocery shopping. Tesco’s core value is to generate value for buyers to earn their lifetime loyalty. On the other hand, the company’s vision is to nurture growth (Tesco, 2015). Consistent with a study by Institute of Grocery Distribution (IGD) Keynote (2010), the global food and grocery experts, Tesco is perceived as the leading and dominant seller of best grocery. Further, the Institute for Retail Studies (2007) reported that the UK retail industry is fairly competitive, innovative and vibrant for the past couple of years. Also, grocery retailers like Tesco, Asda, and Sainsbury’s and so on all compete on price, service, product variety and quality to retain competitive edge. As a result of this intense competition in the sector it has been extremely difficult to maintain its leading position. Nonetheless, Tesco has managed to retain its position through expanding into foreign markets, shifting to higher margin non-food market as well as maintain a strong position in the UK market (Abeysinghe, 2010).
Based on the case study on Tesco, this paper will analyse as well as critically evaluate the current operations management of Tesco from three critical angles. Specifically, operations design, operations strategy as well as operations management. Comprehensively, the report will discuss its different store categories, global expansion, cut-rate policy, loyalty card strategy managing capacity, supply chain management, cost control, inventory management and delivery system management.