Effective Operations Management: Case Study Of Tesco

introduction

Operation management is an extremely important part to any company and organisation. It refers to the administration of business practices to create the highest level of efficiency possible within an organisation. It is concerned with converting materials and labour into goods and services as efficiently as possible to maximise the profit of an organization or firm (http://www.investopedia.com/). The reasons I choose Tesco as the subject of the case study are, Tesco is one of the most successful retailers in UK, the third largest retailer in the world measured by profit. Tesco is well-known as its effective operations management that helps it to maintain the stock to an optimum level. Its operation management has made a suitable

It has set the highest priority to speed of delivery, thus, Tesco can meet the needs and expectations of its customers. For example, online shopping service of Tesco is a good case. It shows that Tesco has made its effort to consumers for saving their time and money for other usage. 24-hour online delivery service helps Tesco to have a good impression in aspect of speed to its consumers. On the other hand, speed is a direct way to win more customers and increasing the growth of business.

Quality is about doing things in the right way. It is the most obvious part of what customers can see easily from the operation management of an organisation. Quality is an effective way to measure and judge about the operation. The important point is that quality has both an external impact which influences customer satisfaction and an internal impact which leads to stable and efficient processes (O’Brien, 2004).

Tesco manifest strong guarantee towards the quality of the products. Besides, Tesco places extra attention on preserve freshness of its food items. Tesco has a strict inspection with the expiry date by the dealer system in place for supervising the quality. Cost is required to be maintained at low

Frankly, as a customer in low and middle classes, usually will look at the price first before they make decisions to buy things. Tesco has higher cost products if we compared it to other grocery retailer stores, but Tesco always has smart strategy to attract consumers, such as specific product offers, special discounts or price cutting. “The lower the cost of producing your goods and services, the lower can be the price to your customers. The operation will spend its money on staff costs, facilities, technology, equipment costs and material costs”. (O’Brien, p45, 2004).

Dependability is about doing things punctually for customers. For example, customers can receive their items on time or receive their service exactly when they’re in need, or unless when are promised. The fact is, no matter what kind of situation is or maybe there are some difficulties on the way to customers, they might only measure and judge the dependability of an operation after the product or service has been