CompanyCompanys name- Tesco
Questions- This assessment will cover the following questions:
- Tesco is a British supermarket chain of the United Kingdom. Identify the role of management and its various types that contributes in the operational activity of the company.
- Examine the scope of management in the process of decision making of the Tesco company.
Demonstrate the significance of business operation and its relevance in strategic planning of the Tesco company
INTRODUCTION
The definition of business operation can be stated as every activity that happens in a company to keep a company running along with earning money. For the functioning of the organization, the need for processes, people, equipment, and systems is understood by the owner of the company and it further dedicates the different operations in the company according to the business plan.
The significance of business operations can be described as, business operations helping in building of right foundations of the business by allocating tasks to the members of the team which should be dedicated to a common goal and will bring out a great difference in the business results (Choi, Chan and Yue, 2016). The importance of business operations is to maximize the potential of the company by working together with the team to make the processes smooth with the excellent outcome of the business. Furthermore, any arising problem will be solved by the employees if the company possesses excellence in the operations of the business. Thus, business operations help in problem-solving. Additionally, saving time is another importance of business operations, as for attaining excellence in business different business operations are applied, and implementations of effective business operations will result in saving time in the conduction of processes to reach the results.
In this report, it has been discussed the definition of business operations followed by the significance of business operations. Furthermore, the report describes the various functions of business operations that are present in the organization, which is been followed by a brief introduction of the chosen company (Korauš and et.al, 2019). For this report, the company chosen is Tesco, which is one of the world's largest retail companies. Moreover, this report is the operations management decision by the company Tesco. The current position of the company along with the recommendations to company which the company should adopt to bring future improvements as well as for the sustainable development of the organization.
a) Functions of Business Operations
PerformancThe performance of the business is in the hands of stakeholders and founders of the company, and these functions are subject to change. The adaption as well as overseeing of business operations is been changed by the leaders depending on the level of effectiveness and streaming, departmental responsibilities, and human capital inventory. Therefore, the main functions of business operations are as follows reviewing performance contracts by ensuring compliance, guiding and monitoring the third party do as to cooperate with them with due diligence, managing process for budget and planning, at the department or strategic level, performance maximizing by the establishment of balances within various group & department, processes of businesses regarding auditing and re-engineering as well as maintaining of effective communications are the various functions of business operations.
For the organization Tesco, the various business operations are global, developments in technology, managing human resources, organization infrastructure, supporting activities as well as out-bonding logistics are its various functions of business operations. ( Akhtar and et.al, 2018)
The Key Business Operations of the Company are as follows
Finance
Management of operations key concern is finance for an organization. Production of services as goods must be carried out in so optimized way to make sure that the resources are been used to the full extent. Satisfying the needs of the customers through, the development of products and services by appropriate finance utilizations.
Strategy
For the development of competitive advantages over the company's competitors, the company uses various tactics of strategies by making use of resources. Optimum utilization of human resources, capacity to hold money, sales, as well as supply chain configurations, are the strategies used by the business.
Operations
Controlling, directing, organizing, and planning are the various activities that are been concerned with the operation management functions in the organization. The development of utilizable services and goods by conversion of raw materials is the prime function of the company's operations management.
Product design
selling of products had become simpler with the implementation of the latest technologies. According to the customer needs and trends of the market, proper catering and designing of products is been ensured by the management of operations which shows their main duties. Top-notch quality product with high durability is needed by modern customers as nowadays customers are more concerned with quality instead of quantity. (Scott-Jackson and Michie, 2017)
Forecasting
For the estimation of future occurrences of events, the company uses software that shows forecasting. Estimation of demand by customers in correlation with the time required for production is done by forecasting in the management of operations. Therefore, production process one of the key concerns is the role of forecasting.
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b) Introductions to the Chosen Company Tesco
Tesco is an international retail company. Initially, ly it was a market stall in London. But today is it one of the largest as well as a leading companies in the retail sector in the world. The company's 60% profits and sales are been attained by its core retailing business. An additional 1 billion year of revenue is been generated by two food brands of the company i.e. Everyday Value and Finest.
Poland, Hungary, Ireland, Malaysia, India, China, and a total of 12 countries in which the operations of the company Tesco are been expanded which makes it a leading global brand. The Best service, clear goals along high standards are the functionalities assured by the leaders of the company. Therefore, the company includes a workforce of more than 5,30,000 employees. Online as well as physical stores with the provision of great shopping experience is the pride of the company. Being a responsible retailer in the industry, its prime concern is to stay high on its commitments thus for that the organization has opened its supermarket with the concept of zero carbon utilization. Therefore, the company was the first one in the world to take the initiative to open through such a concept. Furthermore, for this initiative, the company was awarded the Annual Grocer Gold Award for being a Green Retailer. Moreover, along with the aim of business with zero carbon by the year 2050. (Grayson and Hodges, 2017)
The business strategies are continuously formulated and re-accessed by Tesco to maintain the company's success. Moreover, for enhancement in customers' shopping experience, the company's main aim is to enhance customer loyalty along with the development of the company's core United Kingdom businesses. Multichannel customer services, innovations, ranges, quality, and prices are the strategies used by the company to attain the company's objective and mission. A company must have a clear vision to attain long-term success. Thus, the organization Tesco has a core vision that remains constant with the changing environment. Therefore, for this, the organization has the seven core strategies for the achievement of its vision.
Also Read:- Importance of Sustainable Practices and Their Impact on Improving Business Productivity
c) Operations Management Decisions of Tesco
Production
For productions, the company's operations management decision involves its team in the production of different products based on forecasting, and trends as well as based on market research.
Supply chain management
The company's operations management decision for supply chain management is done by predicting the demand for the product and then by informing its suppliers to provide the same.
Logistics
For logistic management, the company's operations management strategy is a block blockchain method through which the company informs its suppliers of the needs of the demand.
Location strategies
The operations' management decisions are based on storehouses and the company's various warehouses. (Lun and et.al, 2016)
Quality control
In Tesco, the decisions of operations management are through innovations in the products along with the maintenance of product quality.
Human Resource.
In the company Tesco, operations management decisions for human resources are based on excellence as well as based on the smartness of the employees. Moreover, the company provides its employees with free meals as well as with highly competitive package of compensation.
d) The Ccompany'sCurrent Situation and how it can Improve.
In the current business operations management the company is focusing on product design, finance management, strategy, and operations as well as on forecasting for the future. In this era, modern customers need to get the best quality products, to fulfill their needs the company is continuously working on the design of the product by applying the strategies and operations to produce the product in front of the customer with the best value for money. For this, the company takes the financials of the product adjusted to its production to make sure it could have competitive advantages over its customers. Moreover, the company uses strategies for regular forecasting of customer demand in correlation with the time required for the production of f service or commodity, by making sure there will not be any shortage of products. (Steel, 2016)
For further improvements as well as for sustainable development the company has several opportunities regarding the same. By adding value to the goods by creating a competitive advantage for itself, the company tends to maintain its strategy to bring innovations. Furthermore, the company could invest in technology like the one it introduced earlier such as the RFID system. However, the company can't be dependent on the technology and could ignore the capabilities of humans as there are various weaknesses of high technologies. The future group plan of the organization Tesco is the majority focus on non-food products. For the effectiveness he supply chain management, employees are the leaders instead of technology. Additionally, improvements in non-food delivery services, innovations in non-food inventory systems as well as sourcing of wide ranges of non-food products are the necessary steps the company Tesco can apply in its future growth plantoo hold its dominant position in the non-food products. Currently, the company Tesco is providing an online shopping facility (Choi, Chan, and Yue, 2016). However, the revenue generated through the online platform is much less in the international market. Thus, the company Tesco can enhance its business by showing strong potential and growth in internet shopping globally. Thus, the company could improve its capabilities of online retailing as well as online grocery shopping through international expansions.
CONCLUSION
This report can be concluded as the definition of business operation can be stated as the every activity that happens in a company to keep a company running along with earning money. For the functioning of the organization, the need for processes, people, equipment, and systems is understood by the owner of the company and it further dedicates the different operations in the company according to the busi
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