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The Ranking Of The Tesco Supermarket Business Essay

Paper Type: Free Essay Subject: Business
Wordcount: 1529 words Published: 1st Jan 2015

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Tesco is the world leading retailer supermarket. It is ranked as a top three retailer supermarket in the world. It has around 3800 stores in all over the world and has around 360000 employees. Outside of the UK, Tesco provides services in 13 countries- Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland in Europe and Asia as well.

Tesco is one of the biggest private sectors in the world. In the beginning time it started from small Tesco express, now Tesco is the biggest supermarket in United Kingdom.

Tesco has been not limited in one sector. They are working in different sectors, for example; Tesco finance, Tesco mobile, Tesco Clubcard etc. This multinational retailer supermarket classified into the clothing, groceries, home, health and electronics areas.

Tesco is not only seller of others product. It has own production as well and they sells their product cheaper than others. Tesco operating different formats; Tesco express, Tesco metro, Tesco superstores, Tesco extra, Tesco homeplus and one stop. It has a lot of stores in United Kingdom. It is providing better facilities than other supermarkets.

Company overview

Tesco has lot of stores and it has more than 300000 employees in all over the world. Tesco founded in 1919, Tesco started from small supermarkets now it is biggest supermarket in the world.

In 1994 the company took over the maximum number of supermarkets. It is most profitable retailer supermarkets. Tesco expand his supermarket all over the world but it not famous in all in the world.

In 1996 Tesco announced the 24 hours open stores while it also expanded overseas opening shops. After few years make own website it is WWW. Tesco.com. In 2000 Tesco retailer supermarket to expand its range of products, which now includes clothes, electricals and professional finance products.

In 2008 the Tesco supermarket is top profitable retailer supermarkets. In 2008 Tesco retailer supermarket sales were £51.8 billion in a year and Tesco pre-tax profit rose to £ 2.8 billion. Now its main competitor is Sainsbury, Asda, Iceland etc.

Mission and vision of Tesco

Mission: To create value for customers to earn their lifetime loyalty.

Vision: The world’s best and biggest multichannel retailer

Role of operations management and operations manager

Tesco is biggest retailer supermarket, it operations management play vital role to operate supermarket. Operations management play a key role in achieving main goal of Tesco. Tesco has a lot of employers and so many employees working for them, so operations manager has so many responsibilities for them. Now Tesco is one of the biggest supermarkets leading in the world. Its main competitor is Sainsbury, the operation manager has make sure everything is under control and nothing wrong. Sometimes our competitor creates some problem for the supermarket. The operation manager has to know about health and safety and make sure if anything happens to an employee the operation manager has to know what to do.

The operations manager has to know our customer service improving their performance or not, and it going to increase profitability or not. It is a main responsibility of operations management.

Now Tesco is a successful example of operations management, even though through my investigation they also have some demerit in their operations management need to improve.

Operation manager main role is using new strategy and to overtake our main competitors, the main role of operations manager is planning, organizing, controlling, directing and staffing.

Operations Strategies of Tesco


Tesco identifies speed as one of the major performance objectives in operation. Speed in this case is the time spent between a request for particular item by a customer and delivery time. The Company values this because customers can get what they require when they need it. This establishes a good record and makes them come back for more business


This performance objective takes precedence over all other objectives in production. Quality actually means that the products or services offered by any given Company conform to international or local standards. This aspect is important to a company for two main reasons.

The first is that if products or services fall within customer’s expectation, then they will be satisfied with it and will therefore be able to come back to the business for the same. This signifies that the Company will make more profits or generate more revenue. The second reason why quality is an important performance objective is that is helps the given Company to achieve effectiveness through reduction of costs, increasing dependability and speed. This will occur if the goods are of good quality, then the organisation will not be spending time on correction of mistakes but will be spending time on other aspects of production.


This is another performance objective that is essential in ensuring operation processes are effective. Flexibility means that a company has the ability to adjust to external changes that may require different aspects of the product. In relation to this, flexibility may come in a variety of ways. Flexibility may involve changes amount of products dispensed by the Company this may normally occur after an external reason has prompted a reduction or increase in amount of product. Flexibility also applies to the way services or products are delivered. This may come in various forms like changes in payments or delivery/ courier systems used. These adjustments are normally influenced by competitors or technological advancements. Flexibility may also mean types of products or services offered. This applies to creation of new types of products in line with changing customer preferences.

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This performance objective is also essential in determining how other internal factors flow. If an operation system is flexible, then responses within the organization will be fast and the overall process will be more efficient. Flexibility also enhances dependability within the organization because speed will have been improved. Lastly, flexibility also affects the way time is spent within the organization and consequently the amount of revenue generated within the Company at any one time.


Cost is a performance objective that is largely dependent on the other performance objectives described in this section. This is because if an operation process is dependable, flexible, fast and full of quality then less resources will be spent trying to nullify mistakes. This then affects the amount of finances needed and overall cost of the process. Therefore cost as a performance objective falls under the four other types of performance objectives. It is best not to consider it in isolation.


There is a need for an organisation to establish themselves as a dependable system. Dependability may be defined as the ability of organisations to deliver goods or services on time. However, measures of dependability are quite tricky because they vary depending on the party concerned. Some of the parties that apply in this case include customers who may define dependability as the delivery of products when they need them or delivering products when the supplier said that he/she would deliver. Some may describe it as prompt delivery of products the second time after a warning has been issued. However, all these definitions of dependability incorporate the aspect of being prompt.

Dependability as a performance objective is essential because it dictates what kind of image the organisation presents to customers and consequently whether the organisation can be counted on the next time a customer comes back. This image will therefore increase or decrease revenues depending on the degree of dependability. The performance objective is also important in the internal environment of the organisation. This can be attributed to the fact that there will be less time and resources spent on mistakes and more will be spent on enhancing efficiency within the organisation. Dependability means that the organisation will become stable and can therefore spend most of its resources on self improvement



Tesco is an extremely successful retailer that has succeeded through use of technology and finances. Tesco is dynamic and offered varied services and products in the UK and Europe, the chain store will expand as the market is large. Tesco has a highly structured way of choosing its suppliers who ought to have ability to deliver. (Tesco, 2007) The operation management of the chain store is effective and Tesco has a highly structured distribution chain for its products and services. All the above goes to show that the Company’s production process is efficient although improvements like performance measurements and encouraging creativity can be able to improve the process further


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