Operations Management in Tesco

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OPERATIONS MANAGEMENT AT TESCO PLC: MANAGING FINANCE, PEOPLE AND INFORMATION TECHNOLOGY AT THE ORGANISATION

Abstract
In this assignment, we will take the case of Tesco to understand the strategies it used to manage finance at the company. The second part of the assignment will concentrate of the human resource management practices adopted by Tesco and the finance part of the assignment will be concerning the information system strategy at Tesco.

Table of Contents

Introduction…………………………………………………………………………..4 PART A: Managing Finance………………………………………………………..4 PART B: Managing People………………………………………………………….8 PART C: Managing Information…………………………………………………..13 References……………………………………………………………………………16

Introduction
In this assignment we will look at three aspects of operations management, which are Finance, human resource and information technology at an organisation. To understand the concepts better we have selected the case of Tesco Plc., UK. PART A: Managing Finance

Financial management is a very important component of the operation management at a company. The role of the financial management at the company is to purposefully management the financial resources; present the performance of the organisation in financial terms. (Brigham E.F. and Ehrhardt M.C., 2010) The financial management has to acquire the required capital required for achievement of strategic and tactical objectives at a low cost. The financial management has to anticipate the financial result and maintain the financial balance as per the company’s needs. Information received by the Financial Management at Tesco

The information that is of importance to the financial management of Tesco is * The investment cost of the funds on the capital market. * The current rates of exchange that are prevalent in the market and short term interest’s rates that s prevalent in the monetary markets. * The financial management synthesises information that provides new investment opportunities available to the company. The financial management tries to make innovation in the financial field with the help of new financial instruments that are available in the market. Decisions taken by Financial Management of Tesco Plc.

Based on the information, the financial management has to make critical decisions regarding finance of the company: * The financial management has to take decagons on the interest rates at which the company is willing to take loans. * It has to predict the future cash flow needs of the company. * The company has to make decision on the long term debt and short term loans while also making decision on the issue of shares and the option of self-financing. * The management has to make decision on the risk management technique to be adopted along with the financial impacts of the project that the company has undertaken on the financial health of the company.

Role of Financial Institutions in Financial Decision Making
Financial institutions are responsible for distributing financial resources to the users in planned manner. (Mondy R.W., 2009) There are different financial institutions in the market that specialise in collecting funds as well as lending it to different organisation to carry out their projects. The examples of financial institutions include banks, credit unions, asset management firms, building societies and stock brokerages. The financial institution can be categorised as * Deposit Taking Institutions

* Finance and Insurance Institutions
* Investment Institutions
* Pensions providing institutions
* Risk management institutions
While there are government financial agencies who assigned to carry out the regulatory and supervisory function of different other institutions. The financial institutions have been integral in satisfying the financial and management needs of different industries and this has also shaped the national economic scene. Deposit taking institution are mainly concerned...
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