...Journal of Management and Sustainability; Vol. 4, No. 4; 2014 ISSN 1925-4725 E-ISSN 1925-4733 Published by Canadian Center of Science and Education Analyzing and Evaluating Critically Tesco’s Current Operations Management Shuang Zhao1 1 Business School, University of Kent, UK Correspondence: Shuang Zhao, School of Economics and Management, Inner Mongolia University for the Nationalities, Tongliao, China. E-mail: honeyzhaoshuang@126.com Received: August 31, 2014 Accepted: September 20, 2014 Online Published: November 26, 2014 doi:10.5539/jms.v4n4p184 URL: http://dx.doi.org/10.5539/jms.v4n4p184 Abstract This essay analyses and evaluates critically Tesco’s current operations management. The essay discusses from 3 major perspectives namely, operations strategy, operations design and operations management. Firstly, it will show an introduction. The second section will analyze Tesco’s formats and international expansion at corporate strategy level. And then, based on the customer-centric conception, it will discuss the low price policy, cost control, loyalty card strategy, supply chain management, delivery system management and inventory management at the business unit strategy level and functional strategy level. Following this, it will make a comprehensive conclusion and show the strengths and weakness of Tesco’ operations management. Finally, the article will give some appropriate recommendations to Tesco’s sustainable development. Keywords: operations strategy, operations design...
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...Introduction Operations management can be described as the practice of managing the operating core of a company: the activities related to creation, production, distribution, as well as delivery of the products or service of the company. It focus on controlling and managing the process to manufacture and distribute goods or services, and concern about the responsibility of ensuring operations in business process are effective in the terms of meeting customers’ satisfaction, as well as efficient in terms of consuming as little resources as necessary. The definition of operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs to outputs (Jay Heizer & Barry Render, 2008). It is the function of managing the operating core of an organization: the activities associated with creation, production, distribution, and delivery of the organizations’ goods and service (Kashi Naresh Singh & Rajiy Kumar Srivastava, 2007). In this report, I would like to focus on three strategic decision areas of operations management: Quality, Supply chain management, as well as Inventory. 2 Problem Statement Tesco is one of the most successful retailer companies in the world, and Tesco’s operations strategy has contributed greatly to Tesco’s business processes. It is widely acknowledged Tesco’s operation management is effective and efficient in facilitating Tesco’s business strategy, however, how exactly Tesco’s operations management...
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...HOW IS A BUSINESS ORGANISED All business organisations have different areas that carry out different tasks or functions. These areas are called “Functional Areas” The Different Functional Areas in Tesco Tesco Finance Marketing Human Resource Operations/ Logistics Management All of these functional areas use ICT in order to collect, process and produce data or information. Without UPTO-DATE and ACCURATE information decisions cannot be taken by managers. Their decisions will affect the business and its customers. Having empty shelves will make customers go to other places to shop. Tesco customers can go to other supermarkets to shop. The other main supermarkets are ------------------------------------------------- WHAT OTHER SUPERMARKETS ARE THERE ------------------------------------------------- Each function cannot operate in isolation …. Whatever one functional area does will have a knock-on effect on others. What do these functional areas do …… [A] Finance ------------------------------------------------- DESCRIBE WHAT THIS DEPARTMENT DOES ….. refer to a Business Studies text book and the Tesco web site. ------------------------------------------------- This department uses ICT in various ways. Here is what they use IT for. * Review current finances and forecast future finances using spreadsheet software * Produce...
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...An Insight Report on TESCO Plc. By Aanca Georgiana Table of Contents I. II. III. Executive Summary .................................................................... Page 3 Trade Barriers ............................................................................. Page 4 Technological Advances .............................................................Page 4 a. Information Technology ......................................................... Page 4 b. Retailing Technology ............................................................. Page 5 c. Operation Systems Technology ............................................. Page 5 d. Recommendations ................................................................ Page 6 IV. Adapting to Local Markets ........................................................... Page 6 a. Retailing Services ..................................................................Page 6 b. Marketing Strategies .............................................................. Page 8 V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. Mistakes of Tesco......................................................................... Page 8 Fixed Costs ..................................................................................Page 9 International Trade & Comparative Advantage ........................... Page 10 Political Factors .......................................................................... Page 11 Operation Pressures......................................
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...decision in the strategic development and the strategic planning of Tesco. The report also analyse the different strategic tools and techniques used for the strategic decision making and which are also helping the organization in developing strategic plans of the organization. There are various issues which are described in this report like the ratio analysis, break even analysis, and the other appraising methods which are used in strategic decision making and planning of Tesco. The management of the tangible and intangible assets of Tesco are also analysed by the different analytical tools and the report reveal that the organization is taking effective steps and it is managing its resources effectively and efficiently. Contents TESCO PLC: 2 Task 1: 3 Resource Decisions and their Impact on Strategy of the Organization: 3 Task 2: 5 Role of financial Analysis and techniques in the strategic planning and strategic development: 5 Task 3: 8 International Financial perspectives of Tesco: 8 Risk Assessment and Management 9 Financial Performance 9 Task 4: 11 Task 5: 16 Contemporary management Accounting: 16 Task 6: 18 Analysis of environment of Tesco: 18 Political Factors 18 Economic Factors 18 Social/Cultural Factors 18 Technological Factors 18 Steps Taken By Tesco to respond these changes: 19 Task 7: 20 Importance of Communication: 20 References 22 TESCO PLC: Tesco plc is a global grocery and general merchandise retailer headquartered...
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...Tesco 1 Tesco in the past. Brief comany history 1919: The first market was opened by Jack Cohen in the East End of London. 1924: The first own-brand product sold by Jack was Tesco Tea – before the company was called Tesco. The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack’s surname. 1929: Jack Cohen opens his first Tesco store in North London. 1960: Tesco takes over a chain of 212 stores in the North of England. 1961: Tesco Leicester enters the Guinness Book of Records as the largest store in Europe. 1994: The first Tesco Express opens. Tesco becomes the first retailer to offer customers a service commitment at the checkouts through “One in Front”. 1995: Tesco becomes the market-leading food retailer, enters Hungary and launches Clubcard. Tesco enters Poland, Slovakia and the Czech Republic in 1996, Taiwan and Thailand in 1998, Malaysia in 2002, Turkey and Japan in 2003. 2000: tesco.com is launched. 2004: Tesco enters China and launches own-brand Fair-trade range. 2005: Tesco exits the Taiwanese market in an asset swap deal with Carrefour involving stores and operations in the Czech Republic. 2 The present: Tesco plc. Founded in 1919 in London, Tesco plc is a British-based international grocery and general merchandising retail chain. With revenues of £67 billion (2011), it is the largest British retailer by both global sales and domestic market share, with...
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...Supply Chain Management At Tesco Commerce Essay Tesco plc is a UK multinational with diversified retail operations in 14 countries in Europe, America and Asia. Tesco is the 3rd largest retailer in the world with £ 62.5 billion sales in 2009, having 4811 stores worldwide and 472000 employees. The core business is grocery items and main market is UK with c70 % of total annual sales. Tesco offers more than 70000 food and non food products and services by using different store formats as shown below in the diagram. The diagram shows different type of store formats and product and services offered by each format. The above complex structure makes supply chain operations even more complex to manage. This paper attempts to explore how the complex supply chain is managed at Tesco and looks at different supply chain practices implemented by Tesco. The paper discusses the supply integration practices adopted in the industry and looks at Tesco’s approach towards integrating the supply chain. Finally, the paper suggests some recommendation for improving Tesco supply chain. 2 Tesco Supply Chain Analysis Supply chain has been defined by many authors in different ways; in the context of Tesco’s supply chain the definition given by Stevens is most appropriate: “A system whose constituent parts include material suppliers, production facilities, distribution services and customer linked together via a feed forward of materials and the feedback of information”(Stevens, 1989). Tesco uses point...
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...retailer tesco ukessays.com /essays/business/analysis-of-the-super-retailer-tesco-business-essay.php One of the biggest and top three international retailers is Tesco. At present, Tesco operates 2000 stores with 3, 26,000 people are working across the Asia & Europe. The Tesco expanded the business from the traditional mode to new approach of business and set as UK supermarket base of retails like nonsuper market business, personal finance and internet shopping. The Tesco is incorporating the business world wide and their product, culture and taste is different from other products. Tesco operates 923 stores and employs 240,000 people, giving us access to a population of 260 million across our nine markets. Over the past five years, we have expanded from our traditional UK supermarket base into new countries, products and services, including a major non-food business, personal finance and internet shopping. The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal of becoming a truly international retailer. ( Globalsources.com,2010) MISSION STATEMENT Vision: The vision of the company is to help the people lot. The company is selling variety of goods like food, phones, cloths and banking. The main philosophy and vision of Tesco is the 'Every little helps' of the company it will remain over a years and work with all together. The Tesco is not creating...
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...many essential data could be hidden and may not be able be presented in financial statements. As a result, by applying this method it can analyse strategic planning of Tesco from previous years. Porter (1985) said that business activities could be divided into two main parts,supportive activities and primary activities. The former includes firm infrastructure, human resource management, technology development and procurement. The later includes inbound logistics, operations, marketing, sales and service. Primary activities: Operation: The operation within Tesco before 8 April 2013 was in fact only had one way that products sent to local stores and customers buy it in store, however after that day, Tesco has launched its online grocery shopping service for all customers in Bangkok (Tesco2013). “With our wide product range and great service proposition we are confident that Tesco Lotus online shopping will receive an overwhelming response from customers”, said Tesco Lotus CEO John Christie. By increasing another shopping approach, increase the supply to meet demand; what's more, Tesco can achieve economic-scale in the future, which can lower the costs. Keeping the price unchanged, lower costs can get higher profit margin, which is a competitive advantage. In order to obtain more future competitive advantage, Tesco has an attempt to grow by exploring outside Britain. For...
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...investment decisions. There are different financial tools that are accessible for establishing relevant analysis of the financial statements of organisations (Fernie & Ebooks Corporation, 2005: 9). One of the financial tools that are widely used in evaluating the financial statement is ratio analysis, which not only assists in the evaluation of the company’s performance but also gives room for effective comparison of the performance of one firm to that another (Baker, 2011:1). In this report, the main goal is to make comparison of two UK based firms; Tesco and J Sainsbury Supermarkets through the determination of ratio analysis for both of these firms over a time period of three years. Overview of Tesco Tesco is among the top food retailers in Ireland and United Kingdom with about 2715 retail stores located countrywide. Tesco was found by Jack Cohen in the year 1919 and its headquarters are located in East London. The management of the company has shifted forward by two major individuals inclusive of Sir Terry Leahy as the CEO and David Reid as the Chairman (Yahoo Finance, 2013:1). The company has a definitive product range such as Groceries, financial services, telecoms and consumer goods. The total revenue of the firm by March 2013 was about £ 43.6 billion with operating income of about £ 2.272 billion. Tesco’s net income is currently about 2.8 billion as of financial year 2013 (Yahoo Finance, 2013:1) Overview of Sainsbury Plc Sainsbury is the third biggest supermarket...
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...defined as the links between key value adding activities and their interface with the support activities. Value chain has been implied as a strategic evaluation tool used for distinguishing the strengths and weaknesses in value adding processes (Audrestsch, 1995). The value chain of Tesco has been demonstrated in the following diagram: Fig 6: Value Addition in Value Chain of Tesco Inbound Logistics The overall cost leadership strategic management of Tesco is exhibited in its lean and agile inbound logistics function. Drawing upon Abeysinghe (2010), the company uses its leading market position and economies of scope as key bargaining powers to achieve low costs from its suppliers. The analysts have also highlighted the constant upgrading of their ordering system, approved vendor lists, and in-store processes to induce effectiveness and efficiency into the company’s inbound logistics operations. Operations Management Tesco has been praised by a number of supply chain management critics for its effective use of IT systems that facilitate the company’s low cost leadership strategy. According to Tesco (2010), the company has invested over £76 million in streamlining its operations through their Tesco Digital program, which is a third generation ERP solution for the company. The company has achieved £550 million in increased profitability during 2009 alone...
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...1.0 Tesco Malaysia Tesco stores (Malaysia) Sdn Bhd was first introduced on 29 Nov 2001 in Malaysia. Malaysia was selected as the market of entry due to its developing economy with political stability, market capacity which was positive signs of establishing a business in a country. The first Tesco store was officially opened in May 2002 in Puchong. Sime Darby owns 30% of Tesco shares and the rest is own by Tesco itself, since the launch of the business. Tesco has a total of 49 hypermarkets in Malaysia. Tesco basically caters for the needs of people by the sale of fresh foods to groceries, household needs to apparels they cover almost everything. Tesco carries a total of 86,000 lines of products including more than 1,300 Tesco branded items. Tesco is one of the only retail outlets to have the online services whereby customers are allowed to order products just by clicking on their computers and the goods are directly delivered to their home’s(Studymode.com). Tesco is operated by their CEO Mr Grorg Fischer who has lots of experience in the retail industry and plans to broaden the online services. (News Straight Times Oct 2014) Tesco is one of the leading companies that aim’s to provide business strategies and practices to adapt business based on the changes of the environment. Therefore the vision of the company is “To be the most highly valued business by the customers we serve, the communities in which we operate, our loyal and committed colleagues and of course, our shareholders”...
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...Managing Business Activities to Achieve Results Yuvraj Minawala Rims International School Of Business And Technology BBA Second Year: Higher National Diploma (HND) HND - ASSIGNMENT BRIEF LEARNER NAME ASSESSOR NAME QUALIFICATION Yuvraj Minawala Shweta Singh 5 Managing Business Activities to Achieve results UNIT NUMBER AND TITLE J/601/0946 08.04.2013 10.05.2013 HAND OUT DATE HAND IN DATE RULES & REGULATION Plagiarism is presenting somebody else’s work as your own. It includes copying information directly from the Web or books without referencing the material, submitting joint coursework as an individual effort, copying another student’s coursework, stealing coursework from another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the College. ASSIGNMENT TITLE The aim of this unit is to provide learners with the understanding and skills to manage their activities in the business workplace to improve their effectiveness and efficiency. . MBAAR Yuvraj Minawala 2 Outcomes and assessment requirements Outcomes Assessment requirements To achieve each outcome a learner must demonstrate the ability to: Evidence On successful...
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...Module: Logistics & Operations Management Student: szjlcklxjvl Date: Wednesday zncxz ,n Subject: Business Management Year 2 (Advanced Course) 1. Assignment Task 1.1. Individual Report 1.1.1. To complete this assignment ● Select any organisation of your choice. ● Identify component activities - Component activities are activities related to the core activities of the organisation of your choice. How the components are used to achieve the overall objectives / goal of the organisation. So a component might be IT department, HR department and so on. ● Then evaluate the performance objectives used by each. List the performance objectives and highlight the deferent ways it interlink with each other to accomplish a goal. ● Critically examine - Examine both internal and external factors influencing the Organisation performance objectives in relation the Organisational goals. ● Suggest ways in which the performance could be improved. With the above research and evaluation you should be able to recommend a better way forward. 2. Logistic Operations of Sainsbury & Tesco 2.1. Introduction To survive in the global market you need to adopt proper strategies and theories properly and effectively to ensure success. Global market is a competitive market where you cannot strive forward if you don't have proper planning and strategies. Logistics is an important factor in business which is all about flow of goods information and...
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...ITERNATIONAL BUSINESS AND STRATEGY ANALYSIS, TESCO By Basheer Mohamad Hassan Alkhatib Student Number:@00406850 This Assignement is submitted for Professor Dr. Alistair Benson Salford University August, 3rd, 2014 Contents 1. Introduction 2 2. Analysis of the International Market 2 2.1 PEST Analysis: Tesco in Brazil 2 2.2 Market Specific Issues 4 3. Industry Analysis: Brazil 4 3.1 Competitive Rivalry in the industry 5 3.2 Bargaining Power of Suppliers 5 3.3 Bargaining Power of Customers 5 3.4 Threat of New Entrants 5 3.5 Threat of Substitutes 6 4 Company Analysis: Tesco 6 4.1 Resource Based View: Tesco 6 4.2 SWOT Analysis: Tesco 8 5. CAGE Analysis 9 6. Conclusion 11 7. References 12 1.Introduction Tesco Plc is the second largest retailer in the world and currently operates in over 6000 stores worldwide (Tesco Annual Report, 2014: n.p). This report analyses Tesco as an organisation and proposes a potential market for international expansion. The aim of this report is to analyse the international market’s environment and then indicate a potential strategy for Tesco to enter the market. The report initially works towards the analysis of the new market’s macro environment to understand key aspects linked with the proposed business market. This is followed by an internal analysis of Tesco and an overall external analysis of the retail industry in the new market. A strategic approach to enter the new international market is then presented...
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