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Logistics And Operations Management In Tesco Add in library

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Qustion:

Identify component activities for the Tesco. Then evaluate the performance objectives used by each and critically examine and suggest ways in which the performance could be improved?
 
 

Answer:

Introduction

Logistics and operations management are the two important areas in an organisation that are crucial to its overall performance levels. In order to perform the management of these two important areas of an organisation, it is essential that their methods of planning and organising such processes need to be focused. This is mainly because the effectiveness of planning and organising of organisational processes is crucial from the point of view of achieving success in the areas of operations and networking management. Operations management involves the performance of large number of processes and activities aimed at achieving operational efficiency. This in turn allows for delivering the products and services to the final consumers in an efficient way because the operational efficiency allows firms with the accessibility to competitive advantage. Apart from this, the logistics management is also known as establishing networking across different operational areas of the organisation so that the entire chain can be carried out efficiently and ultimately, timely delivery of the finished products to the final consumers can be ensured (Dlabay, Burrow and Kleindl, 2011).

This report is aimed at performing an analysis of the component activities of Tesco Plc with specific attention being placed towards the oil business of the company. As a part of this component activity analysis, the assessment of the performance objectives as utilised by each such component activity would be performed, and the actual performance assessment of the company would result into appropriate recommendations for achieving further level of improvement in its performance.

 

Analysis of Tesco Petrol Filling Station

As the organisation chosen for the purpose of analysis is Tesco Plc, this section of analysis is now aimed at evaluating Tesco Plc in brief. Tesco Plc is mainly a supermarket retailer based in UK. The company has diverse range of operations, and Tesco Petrol Filling Station is known for selling petrol. The company has initially started selling its petrol in 1974, and it performs the selling of its petrol at most of its superstores and extra locations. The fuel as sold by Tesco is mainly developed by Greenergy. Tesco has also entered into business alliance with Esso, a part of Exxon Mobil and this has resulted into several filling stations on lease from Esso by the company. Tesco operates its stores under their express format. The company has been successful in selling petrol through its wide distribution network (Tesco Petrol Filling Stations, 2015).

Identification of Component Activities in Respect to Tesco Petrol Filling

This section of analysis is now aimed at analysing the component activities in respect to Petrol Filling Station Service as offered by Tesco Plc. An analysis of the component activity concept is essential before actually carrying out the evaluation in respect to Tesco Filling Station. The component activities are mainly the component parts that must be carried out by an organisation in order to accomplish the organisational goals (Greasley, 1999). As Tesco Filling Station, the primary goal of the company has been to provide best quality service and quality oil to its customers across wide geographic areas. In ensuring the delivery of such services, there are a large range of component activities that are essential to be carried out so that best possible services can be delivered to the final consumers. The component activities need to achieve operational efficiency so that the final consumers are provided with higher value for the money as spent by them. An analysis of the case of Tesco Petrol Filling station leads to the identification of key component activities such as providing values to the customers, providing oil filling opportunities to its customers, and assisting them with additional services (Tesco, 2015).

 

Key Performance Objective in Relation to the Component Activity

There are various important component activities that have been identified in respect to the Tesco Petrol Filling Stations. These activities are briefly summarised below and followed by this is the explanation of the objectives that the organisation seeks to accomplish from each such component activities. The important component activities along with their objectives are indicated below:

Providing Values to Customers- This is an important component activity that has been noted in relation to Tesco Petrol Filling Station. As per this component activity, Tesco Petrol filling station seeks to provide higher values to its consumers for the money spent by them across different filling stations of the company. In relation to this, the important objectives are indicated as follows:

  • To provide quality fuels to its customers that enhances their vehicle performance.

  • To ensure the positive compliance with the British specifications for oil.

  • To make sure that quality fuels are being availed from its suppliers that best comply with its requirements (Tesco Petrol Filling Stations, 2015).

Providing Oil Filling Opportunities- The particular component activity is concerned with meeting out the needs and requirements for fuels within its customers. The important objectives as noted in relation to this particular filling opportunity are identified as follows:

  • To ensure the availability of wide range of fuels across different destinations in UK so as to offer consumer value.

  • To provide different grades of fuel aimed at meeting out the needs and expectations of its customers for diverse quality (Tesco Petrol Filling Stations, 2015).

Providing Additional Services: At Tesco Petrol Filling Stations, the company not only aims at providing best quality fuels to its customers, but its aim also include delivering additional services to its customers. The objective in relation to this component activity is indicated as follows:

  • To provide additional services in its petrol filling stations from its different range of products across other stores.

  • To promote its petrol filling station service by offering wide range of food items from its Tesco departmental stores (Tesco Petrol Filling Stations, 2015).

These are the important component activities that have been noted in respect to Tesco Petrol Filling Station, and there are different important objectives that are also noted. The next section analyses the actual performance of Tesco Filling Station with respect to the above identified objectives. These are indicated as follows:

 

Tesco Petrol Filling Performance against the Objectives

The analysis above has indicated about various such component activities in relation to Tesco Plc, and the objectives are also identified in this respect. However, the actual performance assessment is essential so that based on its current performance in relation to such performance objectives, appropriate recommendations would be provided. In respect to the company’s component activity of providing values to its customers, an analysis of Tesco Petrol Filling Station in particular indicates that there are a range of activities that are considered by the company in providing values to its customers. As for example, within the oil segment, there has been categorisation being done by Tesco Plc in terms of Tesco Unleaded, Tesco Diesel, and Tesco Momentum. This categorisation is aimed at meeting different kinds of need of its customers. The company looks towards charging prices based on the quality, as best quality fuel is charged higher and vice versa. This particular strategy allows Tesco in servicing its customers with higher value. In addition to this, additional values are aimed to provide to their customers by Tesco Filling Station by way of ensuring that its fuels are refined in its behalf which is aimed at cleaning and protecting the engine of vehicles. There are wide range of British Standards being used in order to maintain the quality levels of its different fuels such as :

Tesco Unleaded:  (BS EN228)

Tesco Diesel: (BS EN590)

Tesco Momentum (BS EN7800).

These are some of the ways in which value is being sought to provide to the final consumers by the company.

Apart from the component activity of providing value to customers, the analysis of Tesco’s Petrol Filling Station’s component activity also shows that it aims at providing large range of opportunities to its customers. The organisation focuses on providing its customers with petrol filling opportunities across wide range of areas. In relation to this, the performance of analysis of Tesco’s Petrol Filling Stations indicated that there has been alliance being formed by the company with Esso and this allowed it in providing its fuel across wide range of areas catering to the needs and requirements of its customers. This alliance has allowed Tesco in increasing the number of Tesco Filling Stations which in turn has facilitated wider geographic distribution to the company. The sale of petrol can be increased by providing its accessibility to large geographic areas, and this kind of strategy in the form of alliances allows Tesco Petrol filling station in serving more and more of its customers (Nair, 2002).

Finally, with respect to the component of providing additional services, the objective of the company is to assist its customers with other products and services. The performance of Tesco Petrol in this respect is mainly efficient because there are a large range of activities and initiatives that are considered by the company in order to provide additional assistance to its customers. As for example, there are petrol filling station kiosks which offer customers on-the-go convenience for their journey without charging any premium. There are tailored ranges of products that are offered across the kiosks of the company and with such additional services, the company do not charges any extra prices from its customers. Overall, the analysis of the performance of Tesco indicated that there is significant level of efforts by the company in order to achieve the desired level of objectives in its business performance. This has allowed it in achieving higher level of effectiveness with respect to meeting out its objectives (Tesco, 2015).

 

Recommendations for Improving Performance

A critical analysis has been carried out with respect to the performance of Tesco Petrol filling station in respect to its key component activities and the performance of the company has been analysed in this respect. Based on the analysis of performance, there are certain major recommendations that are considered essential and these are indicated as follows:

  • Tesco Petrol Filling Retail should consider for additional ways of delivering its wide range of fuel to its customers. Although there are various such filling stations that are operational at the moment, yet it can achieve further level of expansion by way of focusing more on increasing the number of such stations (Meredith and Shafer, 2009).

  • It is also recommended that the strategy of offering Kiosks is a good strategy, and it should be expanded to all the filling stations (Bakliwal, 2011).

  • The value to the customers can be provided by way of providing them good quality of foods and services and also the good quality fuel. In this respect, the company should focus more on the refining process so that the fuel as offered would positively support the engines of customers.

  • There should be additional value added services that should be considered by Tesco Petrol Filling Stations such as providing large range of options in selling its fuel. It can be in the form of discounts on huge purchases of oil by its customers, or it can also be in terms of supporting through accepting wide payment options from its customers (Lewis and Slack, 2003).

These are some of the major recommendations that are considered essential and by focusing on them, improvement in the performance of Tesco can be achieved.

Conclusion

In this report, a critical assessment of the component activities of Tesco Petrol Filling Station has been performed, and there are important performance objectives of the company that have been noted in this regard. On the basis of analysis of performance, it has been evaluated that there are specific component activities in the operation of Tesco Petrol Filling Station such as providing values to customers, ensuring them larger opportunities and also making it sure that there are additional options being provided to them. The analysis of the performance of Tesco Petrol Filling has indicated that the company has been largely successful in providing these services and there has been improved overall performance objectives being achieved by it. However, in order to accomplish further level of improvements in its performance, it has been recommended that the company should look for expanding its reach by opening more such petrol filling stations.

 

References

Bakliwal, V.K. (2011), ‘Production and Operation Management’, Pinnacle Technology, pp. 1-

Dlabay, L.R., Burrow, J.L. and Kleindl, B.A.(2011), ‘Principles of Business’, Cengage Learning, pp. 228-230

Greasley, A. (1999), ‘Operations Management in Business’, Nelson Thornes, pp. 176-190.

Lewis, M. and Slack, N. (2003), ‘Operations Management: Critical Perspectives on Business and Management’, Routledge, pp. 45-54.

Meredith, J.R. and Shafer, S.M. (2009), ‘Operations Management For Mbas, 3Rd Ed’, John Wiley & Sons, pp. 123-143.

Nair, (2002), ‘Production and Operations Management’, Tata McGraw-Hill Education, pp. 154-172.

Tesco Petrol Filling Stations, (2015) [Online]. Available at: https://www.tescopfs.com/about-us/range Accessed: 03 April 2015].

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