Operations Management for Creating Competitive Advantage Essay

Operations Management for Creating Competitive Advantage - Essay Example The report also evaluates the various financials behind the activities as well as the budget that may be required. PROBLEM FACED BY TESCO The problem faced by Tesco is that of sustaining its market leader position. Competition from Sainsbury and other leading retail stores is a big threat for Tesco and it does not want to lose out on market share to these competitors. Thus, improving on operations management is one of the basic things that it can do. The various issues that it primarily faces with respect to operations management are that of layout, location selection, supply chain management and inventory. METHODOLOGY The methodology that was used was that of secondary sources. Books were referred and internet resources were checked to get information on the general theories of operations management as well as the way operations management is used in Tesco. RESEARCH ON TESCO AND IDENTIFICATION OF KEY ISSUES OF OPERATIONS MANAGEMENT THAT TESCO FACES Founded in 1919, Tesco is one of United Kingdom's leading companies. It is an international chain, retail based, which initially used to sell grocery but with time, has diversified into general merchandising. In Britain, it has the prestigious title of being the top most and the largest retailer, if measured through global sales as well as the market shares that they have captured on a domestic level, within Britain. So be it be the domestic competition or the international competitors, Tesco has left them all behind. Tesco also has improved over the years and thus has secured the fourth best and largest retailer in the whole world in the top ten countdown of the year 2008. Thus, the whole alignment and setting of the top five retailers got altered because of the increase in... In this report, Britain-based company Tesco has been aimed and its operations management activities have been analyzed. Recommendations on how OM activities can be improved have also been given. The report also evaluates the various financials behind the activities as well as the budget that may be required. This paper makes a conclusion that the problem faced by Tesco is that of sustaining its market leader position. Competition from Sainsbury and other leading retail stores is a big threat for Tesco and it does not want to lose out on market share to these competitors. Thus, improving on operations management is one of the basic things that it can do. The various issues that it primarily faces with respect to operations management are that of layout, location selection, supply chain management and inventory. The methodology that was used was that of secondary sources. Books were referred and internet resources were checked to get information on the general theories of operations management as well as the way operations management is used in Tesco. Tesco is one of the largest retail stores of UK, thus it needs to constantly improve and out do its own self to maintain the leader position. For this, productivity and efficiency has to be increased with time. This can only be made possible if Tesco invests in better operations management, since it will give a sure shot competitive advantage to the company over its competitors.