Tesco Business Operations Management Case Study

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Introduction To Business Operations Management – Case Study Of Tesco

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Business is considered to be the organization or the entity that is engaged in the activities that are related to commercial, industrial along professional aspects. Apart from being for-profit entities, these can also be the non-profitable organizations that are focused on fulfilling charitable operations for the betterment of society. Businesses can be of different types and can range from a sole proprietorship to global organizations along with various sizes from large to small.

Businesses are intended to exist for a reason. Either it can sell goods or it can come up with the services in order to make a profit. This also helps the organization by attracting the maximum number of customers. Setting up the priorities along with the objectives helps the organization to achieve the long-term and the short-term goals that are required to maintain competitiveness in the market. This setting up of the priorities and the objectives also help the employees to understand their roles along with visualizing what they can do to support the organization.

As per the case study, TESCO has intended to support the localized communities through the responsible execution of their business which includes buying and selling of their products. Moreover, Tesco also focused on supporting society through offering a healthy range of products to their customers along with creating good career opportunities for the localized people as well.

Business Operations

The supply chain of a business includes various steps in order to maintain the proper production of the goods and services along with maintaining the range of accessibility of the products to the customer (Tee et al. 2018). These steps include the extraction of raw materials and transforming them into finished products and manufacturing them in the market in order to make the maximum profit. This process of manufacturing the products in the emerging market includes several members such as producers, vendors, warehouses, transport companies, distribution centers, along with retailers as well.

The management of the supply chain is an essential aspect of maintaining an effective process of the business (Kühnert and König, 2019). Several links are there in this management process that requires various kinds of skills along with their expertise as well. An effective supply chain management can help the organization in lowering the overall cost of production along with boosting the rate of profitability of the organization as well. These can also be considered as an interrelated process because if any of the links become ineffective then it can hamper the whole process of production as well (Wang et al. 2022). These can also result in being more expensive for the organization to bring back the effective process of production in its proper place.

Logistics or the management of the business logistics is considered as an essential aspect for the proper execution of the business. Logistics refers to the part of the supply chain management that is connected with effective planning along with controlling the movement of the goods and services from the place of the origination to the desired destination (Gupta et al. 2020). Tesco's effective management of the logistics process starts with the movement of the raw materials to the manufacturing unit and later on moving them to the places where these processed goods are stored for segregated delivery. Moreover, the segregation of these finished products and services to the desired location also comes under the responsibilities of the logistical department of a business. Effective management of Tesco’s logistics includes the efficient and on-time delivery of the products to the next point of the chain of supply (Slade and Alkhalaf, 2021). This also includes proper monitoring of products throughout the journey to deliver them in good condition. Effective management of the logistics also tends to help the organization in making the process of production cost-effective.

At the time of manufacturing of the products, the workers of Tesco prioritize the quality of the products as per the expectations of its customers. In order to achieve this, Tesco has managed to involve the teams that are best in performing these skilled techniques in an efficient way. These experts of the manufacturing unit are instructed to remain focused on the aspects that include the needs of the customers, emerging trends of the market, efficient innovation in order to provide value for money to the customers, and so on. Moreover, Tesco has objectified the proper verification of the manufacturing sites along with the quality of the raw materials before starting the process of manufacturing in order to maintain the safety, legal aspects, and quality of the processed products as well (Hashim et al. 2021). Technical teams with skilled professionals were included in order to maintain the requisite verification of the site and the materials.

While talking about the service of Tesco, it is important to discuss the efficiency that the organization tends to maintain while fulfilling the needs of the customer. Tesco prioritizes the needs of the customer and maintains the availability of the stocks according to the requirement of the customer. A wide range of the portfolio of the products is maintained by Tesco in order to provide the customer the maximum number of varieties according to their needs (Guo and Wang, 2019). Various kinds of facilities such as credit and cash discounts were also provided in the store of Tesco in order to attract the customers which helps in maintaining the customer base.

Tesco’s project management can be described through the effective evaluation of the business management and the strategic thinking of the inter-connected strategies that are used for the effective execution of the business. According to Tesco, the effective usage of the strategies through adequate planning can be efficient for enhancing the performance of the business. The top-line management of Tesco contributes efficiently through aligning the effective strategies in order to develop a method for achieving success with the proper utilization of resources. Effective management of the strategies supports Tesco in setting up the business goals along with arranging the resources in order to provide better opportunities for the growth of the organization. Tesco is considered to be successful because of capturing the leadership of the emerging retail market (Awadari and Kanwal, 2019). This also portrays that the designs that are implemented through the management of Tesco have resulted in an effective system of supply along with an efficient interface for the customers. Tesco has implemented the strategic options that are primarily focused on the expansion of their business through partnership and diversification of the advancements of their yet-to-launch products. International alliances with the localized retailer in the market of Asia have proved to be an effective strategy for the organization for expanding their business. This can also be considered as a procedure of development for the exploitation of the present resources and competence.


Organizing a business includes assigning of the tasks, segregation of the task between the departments of the organization, delegation of the authorized person along with the allocation of the resources according to the requirement across the organization. During the process of organizing the business, managers are required to coordinate with the workers, resources, policies along with the required procedures as well for facilitating the goals that are identified through the plan of business (Krummel, 2022). The organizing process of a business is considered to be complex and also includes a thorough review of the human resources, priorities of the business along the financial aspects of the business as well. Prior to the implementation of the plan, managers need to go through the collective process for the assets in order to execute the plan in an effective and efficient manner.

Tesco is considered to follow a hierarchical structure for the organization where the structure, positions with the obligations are divided into several parts in order to ensure the effective and efficient executions of the work (Shin et al. 2020). In this kind of organizational structure, the top positions of the pyramid are considered to be mostly responsible with the maximum number of authorities.

Tesco is known to follow a tall structure for the organization. This is because of having multiple layers in the structure in the hierarchy of the management. Tesco is also known for the maintenance of effective corporate governance within the organization. This basically includes the implementation of the effective systems along with their structures for effective decision-making for the business.

Effective managerial skills include the taking of responsibilities while handling the teams where every member is liable to report the same person. This also includes the completion of the tasks within the estimated period of time along with motivating the other employees to work more efficiently (Leone et al. 2022). Tesco is known for the regular monitoring of the managerial skills of the manager in order to maintain an adequate work culture within the organization.

The Human Resource that is currently practiced in Tesco revolves around the training and development of the employees along with effective communication and consultation with the employees. These are mostly known to be linked with rewards and benefits for achieving the given targets. This approach of Tesco has helped the organization in the expansion of their business and is considered to be successful for a long time. Moreover, this approach has also helped the organization in recruiting motivated staff who are committed to their work as well as the organization also (Pérez-Mesa et al. 2021). The training and Development strategy of Tesco has resulted as an effective strategy for the organization in terms of both money and time.

Personal Experience based on the Case Study

Throughout the discussion about my experience Tesco, it can be easily justified that Tesco is leading the retail market in the United Kingdom. According to me, the organization basically operates in several countries across the globe and maintains a wide range of portfolios of its products. This helps the organization to offer a variety of products to its customers which leads to the maintenance of the emerging base of the customer along with attracting the new ones at a good rate. To my knowledge, the organization has highly prioritized the requirements of the customers along with maintaining the best quality of the products to support a healthy environment. The triple-headed approach of the organization also helps to motivate the employees to work in an effective and efficient manner which leads to the adequate expansion of the business. As per my assumption, Tesco strategized to manipulate the elements of the marketing mix in order to create competitive advantages along with making a positive effect on the rate of its sales. The organization tends to achieve the maximum amount of profit along with campaigning for marketing through reflecting the seasons of shopping. This also includes the rebranding of the products that are present in the market in order to enhance the rate of sales. In my knowledge that organization also invests huge amounts for the traditional techniques of marketing and advertisements also.


Throughout this paper, the researcher has discussed the different aspects of establishing a business organization in order to create opportunities for oneself as well as the society also. The researcher has discussed the strategies of Tesco that are used to maintain competitiveness in the emerging market. Apart from that, different stages of the business that includes the Supply chain management, operations, and management of the organization are also reflected by the researcher in this paper. While going through the case study the outcomes of the analysis of the human resource management of Tesco is also highlighted in this research paper. This includes the principles of human resource management that are followed in Tesco in order to maintain a positive environment for the workers within the organization. The researcher has also highlighted the expansion of the business through the proper implementation of the strategies in the Supply chain management of Tesco which helped the organization to lead the retail market of the UK.


Awadari, A.C. and Kanwal, S., 2019. Employee participation in organizational change: A case of Tesco PLC. International Journal of Financial, Accounting, and Management1(2), pp.91-99.

Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance between 2015 and 2018 in comparison with Tesco and Morrisons. American Journal of Industrial and Business Management9(2), pp.325-341.

Gupta, A., Srivastava, A., Anand, R. and Tomaži?, T., 2020. Business application analytics and the internet of things: The connecting link. New Age Analytics: Transforming the Internet through Machine Learning, IoT, and Trust Modeling, pp.249-273.

Hashim, M., Nazam, M., Abrar, M., Hussain, Z., Nazim, M. and Shabbir, R., 2021. Unlocking the sustainable production indicators: a novel tesco based fuzzy AHP approach. Cogent Business & Management8(1), p.1870807.

Krummel, D., 2022. Expansion in the Retail Sector—Market Entry Strategies in Consideration of Formal and Informal Institutions: A Tesco Case Study. Open Access Library Journal9(2), pp.1-19.

Kühnert, H. and König, E., 2019. Austria? REWE/Lekkerland Merger Approved Subject to Carve-Out of Austrian Business. CoRe3(4), pp.392-395.

Leone, D., Pietronudo, M.C. and Dezi, L., 2022. Improving business models through augmented reality applications: evidence from history, theory, and practice. International Journal of Quality and Innovation6(1), pp.28-42.

Pérez-Mesa, J.C., Piedra-Muñoz, L., Galdeano-Gómez, E. and Giagnocavo, C., 2021. Management strategies and collaborative relationships for sustainability in the agrifood supply chain. Sustainability13(2), p.749.

Shin, S., Kim, H. and Kim, W., 2020. Transnational corporations’ localization strategies via retail attributes: Focus on Chinese Market. Journal of Retailing and Consumer Services55, p.102088.

Slade, K.E. and Alkhalaf, G.N., 2021. Bending the Line: Strategies to Take Your Business Model from Linear to CircularIn this paper adapted from Kerry Slade’s presentation at the IRI Virtual 2021 Annual Conference, Slade and Ghena N. Alkhalaf argue that organizations should adopt circular business practices to be more environmentally sustainable and discuss the types of innovation that are easiest to adopt for sustainability. Research-Technology Management64(6), pp.24-32.

Tee, C.W., Ng, L.P., Kuek, T.Y., Choong, Y.O., Fong, C.Y. and Tan, C.E., 2018. The Journey to the Mini Mart Empire. Global Business and Management Research10(3), p.708.

Wang, C., Fang, Y. and Zhang, C., 2022. Mechanism and countermeasures of “The Innovator's Dilemma” in business model. Journal of Innovation & Knowledge7(2), p.100169.


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