Operations Management in Tesco

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Why is Operations Management so important in this organisation?

In order to define why Operations Management is needed in an organisation knowledge of operations management is required. Operations management is an area of management concerned with overseeing, designing, and redesigning business operations in the production of goods and/or services. It includes the responsibility of ensuring that business operations are efficient by using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs in the forms of materials, labour, and energy into outputs in the form of goods and/or services.
‘Operations management is about how organizations produce goods and services. Everything you wear, eat, sit on, use, read or knock about on the sports field comes to you courtesy of the operations managers who organized its production’ (Slack, N., et al., 2010) We have chosen Tesco PLC as it is not only one of the largest food retailers in the world it is also successful in selling its many other products including insurance and financial services. Tesco sets its performance objectives with the following categories of people in mind; the first are the customers because these are the main people that bring in revenue to the organisation. Then there are the suppliers; the operations section depends on these people to perform adequately. (Tesco, 2007) There are also the employees; these are the people who carry out the operations and working conditions in the operations section must put this category in mind. The community is also affected by operation processes especially if the goods disseminated by the process affect the environment. Lastly, there are the shareholders who expect that the operations section is effective stock that they can be able to earn a higher return on their investments. All of the above groups have been included in the performance objectives of Tesco to



References: : 1) Slack, N., Chambers, S., Johnston, R. (2010). Operations Management. 6th ed. UK: Pearson Education Limited. p1-10. 2) Hogan, K (1998): Tesco Tycoon, Interview with Tesco 's fortunes Chairman Ian MacLaurin, Marketing; Haymarket Publishing Services. 3) Weiss, H. J., & Mark E. G (1989): Production and Operations Management; Allyn and Bacon. 4) Tesco (2007): Our History. www.tescocorporate.co Tesco plc. Accessed on; 23/03/12. 5) Tesco (2007): Business Case 2000; http://www.business2000.ie/cases/cases/case423.htm#intr Accessed on; 23/03/12. 6) Tesco (2007): Tesco 's achievement s since 1997, http://w.tesco.ie/corporate_info/firstfouryears.ht Accessed on; 23/03/12.

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