Operation Management Assessment of Tesco Malaysia

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Topics: Tesco
EXECUTIVE SUMMARY

This report is to analyze the processes and strategies such as design, planning and control of operations systems of Tesco Stores (M) Sdn Bhd (Tesco Malaysia). Theoretical framework and concepts learned from this course are applied to evaluate the company’s operational strategies.

The study evaluates how Tesco Malaysia positions itself in the market segment and analyzes the strength and weakness in its existing strategy.

Based on the findings, we will able to identified and provide recommendation to compliment or improve Tesco Malaysia existing processes. Recommendations to incorporate these changes are meant to improve operational efficiency and market share. In return, maximizing profits and increasing its value proposition.

Table of Contents
1.0 Introduction 4
1.1 Company Background 4
1.2 Vision and Strategy 4
1.2.1 Vision 4
1.2.2 Strategy 5
1.3 Core Purpose and Values 5
1.3.1 Core Purpose 5
1.3.2 Core Values 5
2.0 Competitive Priorities of the Organization and Business Level Strategy 7
2.1 Competitive Priorities of Tesco 7
2.2 Business Level Strategy 8
3.0 Five Objectives of Operations Management 9
3.1 Quality 9
3.2 Speed 9
3.3 Dependability 10
3.4 Flexibility 11
3.5 Cost 11
4.0 Key Performance Indicator 12
4.1 Tesco Malaysia KPIs based on the Five Performance Objectives 12
4.2 Comparison with other competitors 13
5.0 Conclusion 14
References 15
Appendix 17

1.0 Introduction

1.1 Company Background

Tesco Stores (M) Sdn Bhd (Tesco Malaysia) is a joint-venture between Tesco plc. and Sime Darby Berhad in 2001. Sime Darby still holds a 30% stake in this joint-venture. In February 2002, Tesco Malaysia opens its maiden hypermarket in Puchong, Selangor. It currently operates 46 Tesco and Tesco Extra stores format following the acquisition of Makro Cash and Carry in 2006 and employs over 15,000 staff nationwide (Tesco Stores, 2013). They plan to open three new



References: Julien, A. (2013). How do we measure availability in Tesco? Retrieved from http://www.fmm.org.my/images/articles/events/Julien%20-%20How%20do%20we%20measure%20availability%20to%20project.pdf Porter, M Tesco eShop, 2013, Retrieved from http://www.tesco.com.my/eshop/html/help.aspx?ID=2&PID=5&rel=help#1 Tesco Homebrands, (2012) Tesco Press Release, (2012). Retrieved from http://www.tesco.com.my/html/press_release_details.aspx?ID=107&PID=172&NID=5 Tesco Stores, 2013

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