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MGT2012 Business And Management

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MGT2012 Business And Management

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Course Code: MGT2012
University: University Of Glasgow

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Country: United Kingdom


Identify key candidate order winners and qualifiers for an organisation of your choice and examine how that organisation might deliver and improve on the order winners/qualifiers. Discuss the potential implications of delivering improved level of the order winners/qualifiers (or lack of improvement) on the organisations’ supply chains. Support your discussion with relevant literature.
Choose an organisation of your choice and describe the business activities, analyse the service delivery process or the manufacturing process, identify what should be done to improve the processes and discuss why the organisation is successful (or not successful). Support your discussion with relevant literature.


The report will bring about the discussion on the assignment Operations management and the related aspects. The concept of operation management discusses about the administration of business practices, which aim to create highest level of efficiency within any organisation. Thus, for discussing the aspects of operations management Tesco has chosen as the company in this report. The main objective behind the idea of operations management is that it includes the processes of conversion of the raw materials to the products and services to maximize the profits. The report will describe the business, and their activities leading to the assessment of service delivery process of the company. In the later part of the report, recommendations provided as how company can focus on improving their services or processes. Readers will gain an understanding of whether the organisation has been successful or not and the factors behind the success.
Company Overview 
Tesco Plc. trading as Tesco has founded by Jack Cohen in the year 1919 and appeared first in 1924. The company is a British multinational groceries and a general merchandise retailer located in Hertfordshire, England, United Kingdom. The main operations or products of the company consist of the hypermarkets, supermarket, superstore, and convenience shop. Tesco has expanded their operations in diverse field at the global level, such as it has started retailing of books, clothing, electronics, furniture, and several other products.  The company has some of the subsidiaries such as booker group, Tesco bank, telecoms, and others. The values or goals through which the company operates are to enhance the shopping experience of their customers a little every day. Therefore, Tesco being a retailing leader with 4, 40,000 colleague aims to serve millions of customers and enhance their level of satisfaction within market (Tesco PLC, 2018).
Business activities of Tesco 
To discuss about the business activities of Tesco it is stated that the company has the business of retailing into different range of products around the world.  The products or retailing of Tesco ranges into varied products such as clothing, internet services, financial services, electronics, petrol and others.
Discussing about UK, Tesco has been operating six different types of stores, each one of them is differentiated in terms of size, and the products sold to the customers.  
Tesco superstores are the store that sells large number of groceries along with a wide range of non-food products, and they deal in offering in-store pharmacy (Ramanathan et al., 2017).
Tesco extra markets are those, which contain almost every kind of products manufactured in the organisation. These rank at second in terms of the size after the size of superstores of Tesco (Jenkins and Williamson, 2015).  
Tesco Metro, are the medium-sized stores which ranks between the above two Tesco superstores and Tesco extra, has been established to provide number of food lines.
Tesco Express – These stores contain food that mainly puts emphasis on the high-margin products along with the daily products demanded by the customers.
Tesco Home plus – These are the stores, which offer all the product ranges except the food, in the style of warehouse units, and here customers can buy their desired items without any delay. The mechanism in these stores has been supported by the order and collect desk (Hood, Clarke and Clarke, 2016).
One stop – These are the stores smallest in size, and work on a different pricing system from the other stores, and they differ in their opening hours.
As the company has made investments in the diversifying their activities into a different range of products, it has been found that growth of online groceries, home ware, electrical, and clothing.
Service delivery process of Tesco 
The concept of service process is to create the service experience, and it is defined as how customers, information, and materials are processed. In addition, it defines the way that these aspects of the process linked together to generate that experience.
Service delivery is an important component of any business organisation, and ensures survival and development in a competitive market. The process acts as the base to provide customers value and satisfy their needs and demands. Manufacturing or service delivery process of any organisation may differ but they have four common elements, which include input, output, resources, and activities. The service delivery process aims to define the interaction between the service providers and client, where the provider offer the service to the client. An organisation, which is found efficient to provide effective service delivery process, is considered to provide enhanced customer value. Thus, the aspects of service delivery process consist of two activities, primary and support activities. The service process plays an important role in attracting and retaining the customers for the retailing. Thus, it has been a known concept that service delivery process acts as the major strategic imperative for the organisation. Excellent service delivery means that the customers are satisfied, and effectively meets the strategic intentions of the company. This kind of service is usually considered the result of careful design and delivery of completely set of interrelated processes. (De Marchi, Di Maria and Gereffi, 2017).
The service delivery process of Tesco observed through another perspective also, which mentions the aspect of two activities. Primary activities in the process consist of the elements such as inbound logistics, operations, outbound logistics, marketing & sales and service. The main objective of these five activities is to create value to appreciate the costs of conducting the activity, which will further lead to higher profit margin (Jones and Comfort, 2018).
Inbound Logistics
Inbound logistics is the first step taken by the company in the service delivery process as it aims to create value for the customers. This is the reason the components of this stage are termed as upstream activities. The activities or tasks under inbound logistics undertaken in a logical manner, by the company Tesco includes, the receipt of goods from different suppliers, storage, handling of goods and transportation of the goods internally and then placing them on shelves. Thus, in consideration to the aspect of inbound logistics Tesco has been efficient in meeting the increasing demand and level of consumer choices and focuses on improving the efficiency of the distribution system. In order to maintain efficient quality control procedure concerning the damaged products it prevents the unfair costs incurred in the company. Tesco assures customers need not to bear any such costs (Tidy, Wang and Hall, 2016).
This is another activity included in the mainstream, and the production element at Tesco is service-oriented. Thus, operations ensure that products and services are provided to the customers. These tasks include opening up as per the trading hours, maintaining the shelves and stock. However, Tesco has been facing certain issues as Tesco has to make certain changes as opening new metro stores or express stores, to acquire competitive advantage, but this restricted by the law (Sousa and Amorim, 2018).
Outbound logistics
Under this aspect or activity, after the procedure of operations, Tesco is concerned regarding delivering the product to the customer. In addition to the present system of making the product available to the customer, the company is focused towards improving their home-delivery services, by making advancements into number of things such as parking facilities, trolley collectors, and gaining an edge over competitors. Thus, it describes about delivering the products to their customers (Potter et al., 2016).
Marketing and sales
The elements of marketing and sales put under the downstream activities of the service delivery process. Thus, Tesco can attract a large number of customers by some promotional activities such as advertising, radio, television, and newspapers. In addition, the company can increase customer’s awareness regarding the ethical business practices; the company can gain advantage in terms of selling eco-friendly products, leading to increases sales.
Support activities – This aspect discusses about those activities, which are auxiliary to the primary activities.
Infrastructure – This aspect involves the planning and control activities of the company which facilitates in determining the costs and cash control of the company’s operations. To maintain efficient infrastructure, the company has assured availability of competent staff to handle and upgrade the anti-fraud security software. This was done to enhance the quality of infrastructure, and technology and to reduce the problem of internal theft within the system (Wood,  Coe and Wrigley, 2016).
Human resource management- The aspect of human resource management considered both upstream and downstream process, and includes all the relevant aspect from recruitment to the management development. It has understood that training and effective recruitment programmes to motivate their employees or staff. In this fashion, they are encouraged to improve their approach towards customers and service provision quality (Davies and Garrett, 2018).
Technological development – The aspect of technology development is an important support activity to facilitate primary activities that take place. It acts as a competitive advantage for the company and provides new innovative product ranges/solutions which estimates the consumer needs. The company implements capital investing and instalment as long-term strategy process, which requires high commitment of the staff. Therefore, efficient and smart technological development in the company leads to effective service delivery to the customers (Wood, Wrigley and Coe, 2016).
Success factors of Tesco 
To identify the vital success factors of the company within the food retail sector it has been stated that internal operational effectiveness of Tesco must be given due importance.  These factors include:

Branding and reputation of the company: To state the success of the company, it stated that Tesco is a well-known brand and sets a core advantage over other firms. The company has been also working towards enhanced brand packaging and promoting the environment of ‘every penny counts’ since a long time. Thus, Tesco has a well-established brand image, and operates ensuring good quality and trustworthy products to their customers (Dubowitz et al., 2015).
IT Integration –The strong IT system at Tesco has been another factor which determines the success of Tesco. The company has implemented extranet system, enabling the company to provide proprietary and customised information to their respective users.
Supplier Management – Tesco being a major retailer has been in collaboration with many suppliers around the world, with diversified workforce. Thus, company believes in sourcing their good from the manufacturers overseas; thereby maintaining healthy relationships with their suppliers. The company has conducted several supplier management programmes, which are the success factors of Tesco (Jaafar et al., 2016).
Customer loyalty and trust – Tesco has been successful over years in terms of customer respect and loyalty towards their products and services. This has been a significant rise in consumer attraction due to the company ‘loyalty card system’, which has been the factor for the fast growth in ‘online sales’ and higher revenues (Hingley, Lindgreen and Grant, 2015).

Moreover, Tesco has adapted itself to the rapid changing business environment, which acts as the major competitive advantage to the company in the retail sector. There are some of the critical factors that define how the company has been unsuccessful in the recent years. As the recent information from the statistical data for the company, it has found that Tesco has failed in the market of China, i.e. it captures only a small portion of china groceries market. Even the attempt of increasing sales in the China by opening up local stores has been unsuccessful, thus these are some of the recent examples, which define Tesco’s failure. Therefore, they must aim at improving their strategy and boost their sales in every market around the world (Son et al., 2018).
To recommend about the company’s operations or service delivery process it can be recommended that Tesco must improve their home-delivery services.  They must implement the trolley deposit system, and keep them tidy and making the facilities available readily and quicker to the customers. In addition, the managers at the organisation should focus on improvising their promotional activities, and attracting consumers by offering discounts and sell environmental friendly products.  The key points which if the company can work such as low prices, and providing staff training in the organisation.
In addition, they must focus on the geographical diversification, as it will help in improving the economy of scale, at the same time reducing the exposure to risk. Moreover, Tesco must also emphasize on the technological advancements and capital investment will improve the customer satisfaction and shopping experience through effective service delivery. It will further bring opportunities and success to the organisation in the future. Thus, these above-mentioned changes in the service or operation management concepts will facilitate the company to improve their processes and excel in their operations in the market in UK.
In the light of above analysis, it is concluded that Tesco continues to hold effective leadership position in the retail market in UK. Tesco has been the third larger retailer around the globe in terms of gross revenues, and enjoys a sustainable competitive advantage in the industry. The report above has represented well all the relevant aspects highlighting the business activities, and effective service delivery process of Tesco. Moreover, after reviewing the success factors of the company, it has found that Tesco has picked at the top amongst other supermarkets and continues to attain strong growth. The company has been successful over a long time due to a strong relationship with their customers, and focusing on meeting their needs and expectations.  
Davies, F.T. and Garrett, B. (2018) Technology for Sustainable Urban Food Ecosystems in the Developing World: Strengthening the Nexus of Food-Water-Energy-Nutrition. Frontiers in Sustainable Food Systems, 2, p. 84.
De Marchi, V., Di Maria, E. and Gereffi, G. (2017) Industrial districts, clusters and global value chains: toward an integrated framework. In Local Clusters in Global Value Chains (pp. 15-32). United Kingdom: Routledge.
Dubowitz, T., Zenk, S.N., Ghosh-Dastidar, B., Cohen, D.A., Beckman, R., Hunter, G., Steiner, E.D. and Collins, R.L. (2015) Healthy food access for urban food desert residents: examination of the food environment, food purchasing practices, diet and BMI. Public health nutrition, 18(12), pp. 2220-2230.
Hingley, M., Lindgreen, A. and Grant, D.B. (2015) Intermediaries in power-laden retail supply chains: An opportunity to improve buyer–supplier relationships and collaboration. Industrial Marketing Management, 50, pp. 78-84.
Hood, N., Clarke, G. and Clarke, M. (2016) Segmenting the growing UK convenience store market for retail location planning. The International Review of Retail, Distribution and Consumer Research, 26(2), pp. 113-136.
Jaafar, J., Kamarul Zaman, N.T., Adtrudin, K.F., Hasan, S. and Salleh, M.M. (2016) Critical success factors of retail and wholesale industry: a case study. International Journal of Supply Chain Management, 5(2), pp. 94-100.
Jenkins, W. and Williamson, D. (2015) Strategic management and business analysis. United Kingdom: Routledge.
Jones, P. and Comfort, D. (2018) Storytelling and Corporate Social Responsibility Reporting: A Case Study of Leading UK Retailers. European Journal of Sustainable Development Research, 2(4), pp.1-11.
Potter, A., Lalwani, C., Disney, S. and Velho, H. (2016) Modelling the impact of factory gate pricing on transport and logistics. In Developments in Logistics and Supply Chain Management (pp. 231-239). London: Palgrave Macmillan.
Ramanathan, U., Subramanian, N., Yu, W. and Vijaygopal, R. (2017) Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from UK retail sector. Production Planning & Control, 28(6-8), pp. 478-488.
Son, J., Baek, J., Park, H. and Kim, C. (2018) The localized merchandising for international retailers: A study of Tesco’s failure in Japan. The Ritsumeikan Business Review, 56(5), pp. 1-20.
Sousa, R. and Amorim, M.  (2018) Architectures for multichannel front-office service delivery models. International Journal of Operations & Production Management, 38(3), pp. 828-851.
Tesco PLC. (2018) Our Businesses. [online] Available from: https://www.tescoplc.com/about-us/our-businesses [Accessed 20/12/18].
Tidy, M., Wang, X. and Hall, M. (2016) The role of Supplier Relationship Management in reducing Greenhouse Gas emissions from food supply chains: supplier engagement in the UK supermarket sector. Journal of Cleaner Production, 112, pp. 3294-3305.
Wood, S., Coe, N.M. and Wrigley, N. (2016) Multi-scalar localization and capability transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional Studies, 50(3), pp. 475-495.
Wood, S., Wrigley, N. and Coe, N.M. (2016) Capital discipline, and financial market relations in retail globalization: insights from the case of Tesco plc. Journal of Economic Geography, 17(1), pp. 31-57.

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