Tesco Operations Strategy: Designing a Formula For Supermarket Business

If we have developed into a leader in a business organization, then maybe we will take one of the self-development programs by studying at a well-known business school. One of the cases discussed is Tesco operations strategy, which is a very large merchandiser from England. Of course, what is discussed in this case is how we carry out operations strategy and design how the company’s operations will be chosen using an empirical approach, not just an intuitive one. Because it uses a mathematical approach that makes the most sense in building logic to solve problems that occur.

tesco operations strategy picture
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Basically, the basic thing that retail companies have to do will eventually lead to cost leadership, because most of the goods they sell are commodities that provide very little added value, especially if we compare it to what competitors are doing. The same thing should be our concern in determining Tesco operations strategy so that the company can continue to develop better. The strategy design process is important, but first an assessment must be carried out because this will help us determine the next steps.

Tesco Operations Management

In analyzing the Tesco operations strategy, of course, we need more data. Every operational part carried out by the company certainly needs improvement, especially with the development of technology that is always changing and makes us have to have a justification for the actions to be taken, especially by taking into account the resources already owned by the company. Changing the main business target from a UK base to a second or third world country will of course require a different approach. Because in terms of culture there is also different. Don’t let us become Starbucks who fail to develop in Australia because of the wrong choice of the target market they want to serve.

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Operations Management of a Supermarket

The main added value provided by supermarkets is usually the convenience for customers to come to only one place and fulfill all their daily needs. Of course, the main profit comes from providing goods from suppliers at the lowest possible prices so that they buy in very large quantities and then sell them at reasonable retail prices. This is also done on Tesco operations strategy on the previous administrator. As far as possible a supermarket immediately opens many branches because this will allow them to get goods at the cheapest prices.

Strategic Recommendations for Tesco

Before entering a new market, of course, we must do research first, namely whether the shopping pattern in an area does buy in large quantities for a period of one month, or even buys in small quantities at the minimarket closest to the home or office location. Because this will determine the next Tesco operations strategy, whether to open a business with a supermarket pattern, or even create a minimarket like many in Indonesia. Especially if you are in a completely different country, you can enter the market by acquisition or strategic alliance on a certain side of the supermarket business to existing players.

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The recipe for success in one country may not apply universally to business expansion in another. Like KFC, which can’t force it to stick to the main menu without providing an element of local flavor. Asian countries will usually want chicken that is more seasoned and uses umami to give it a delicious taste, unlike the European market which prefers a flat taste. This also applies to Tesco operations strategy which of course management decisions will affect what employees must do at the technical level. As far as possible the main characteristics of a business are still carried even though it expands the business in a country with a completely different market share.

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