The paper 'Hierarchy of Operation Management Objectives Strategies ' is a great example of a Management Case Study. Tesco commenced its existence in the year 1919 in London by Jack Cohen. Additionally, in modern times, TESCO has grown as one of the biggest retailers in the United Kingdom. It conducts its activities in fourteen different countries globally and serves over tens of thousands of clients every day (Shuang, 2014, web). Furthermore, TESCO mainly deals with four distinctive store forms that include; Metro, Superstore, Express, and Extra. Moreover, TESCO has expanded its business format into an online grocery shopping.
TESCO is driven by its vision that mainly revolves around its growth as a company. In addition to their vision, the core values that define TESCO are the creation of appropriate customer value in an effort to reward customer lifetime loyalty (Chidnma, 2014, web). Tesco’ s market share alongside other companies can be illustrated as below (Companies versus market share) 1.0 Introduction I lived in the UK all my life up until I was twenty-one. I have known Tesco Company very well, besides its historical background and large scale production, the growing success of TESCO heavily revolves around the design of its distinctive operations, effective operations management and innovative operations strategy.
However, Maintaining customer value and loyalty coupled with the cost that is accompanied by the new inventions in terms of technology such as the RFID and lean management, has been a recent bother to TESCO’ s operation. Therefore, it would, therefore, be wise to analyze and evaluate critically the operation management of Tesco based on three primary perspectives that include its operation design, operation strategy, and its overall operation management (Shuang, 2014, web).
By so saying, it means that this essay will explore Tesco’ s formats, low price policy, loyalty card strategy, cost control, international expansion, and delivery system management, supply chain management, managing capacity, and inventory management (Slack et al. , 2012, 13). Therefore, Tesco’ s operation management assessment and evaluation basically aim to objectively analyze the strengths and weaknesses that exist in its daily operation management and recommend ways to deal with the problems that exist as a result of poor operation management and, maintaining customer loyalty. 2.0 Operation management 2.1 Operation strategic issue With the rising number of global competitors, it is advisable for the retail industry to continue improving its operational capability so as to meet the shifting needs of consumers so as to have a competitive edge.
Tesco has enhanced its reputation by responding successfully to the risks, complexity, and competition under its ambitious and effective operation strategy (Aamir, 2014, web). In other words, the operation strategy in detail can be evaluated and analyzed in three distinctive aspects that include; corporate strategy, functional strategy, and business unit strategy.
In simple terms, redesigning of the existing operation management processes so as to fit the changing needs of customers and the international market standards has become a challenge to Tesco. In recent times, Tesco has had problems in initiating its operational strategies due to varying habits and values in different countries. In other words, the main operational issue revolves around its core objective which is creating appropriate customer value so as to maintain and gain their loyalty. Moreover, this is interrelated with other business objectives as shown below.
(Tesco Plc. , 2015, web)
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