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Tesco's operations stategy

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Executive Summary

Operations Management plays a key role in achieving the main performance objectives of Tesco. Whether the current operation objective is to improve customer service or to increase profitability, the way in which Tesco utilises its resources will have a significant impact. As a consequence, there have been a number of innovative developments in Operations Management that have sought to make use of Tesco resources in a significantly new manner in order to make a big step change in performance. Tesco is an successful example of operations management, however, through our investagation they also have some demerit in their opertions management need to be improved.

1. Introduction

The Institute for Retail Studies's research …show more content…

(2004) points out that quality is a particular important objective to all operations, as quality is an important aspect of customer satisfaction or dissatisfaction and quality operations could both reduce costs and increase dependability. For a grocery retailer, quality could mean goods are in good condition, the store is clean and tidy, decor is appropriate and attractive and staffs are courteous, friendly and helpful etc., so according to our research with Tesco store manager, he stated that Tesco has put more staff into stores and distribution centers in order to improve its availability and service. Moreover, Tesco also launched Clubcard that the information provided by it enables Tesco to better understands their customers.

In addition, Tesco delivered new system of hand-held computers for their staff in all of UK stores, which is to provide key information on the sales floor, simplifying their stock and order operation for customers. And they also have tested self-service checkouts in order to help reduce queuing and congestion. All These system has helped to improve speed, quality and flexibility of their staff response to customers' queries.

In general, according to above analysis, the five operations performance objectives are interacted with each other, Tesco need to take account of all of them when they deliver their operation strategies. More importantly, each of these performance objectives is also influenced by the competitive factors, so according to

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