Operation Management Assessment of Tesco Malaysia Essay Example

offers a wide range of products to accommodate different customer preferences (Tesco Homebrands, 2012).

Tesco stores have defied the notion that expensive prices are associated with bright, comfortable, and well-organized environments. This has resulted in customers now expecting a pleasant shopping atmosphere. Despite being challenging, maintaining cleanliness and orderliness in the stores is a cost-effective method of attracting customers.

Speed

The need for faster response times to products and services is growing. In a well-run store like Tesco, efficient cashiers play a vital role in speeding up the flow of shoppers through checkout lines. Furthermore, increasing the number of checkout counters can help reduce long queues and prevent customer dissatisfaction.

Retailers are increasingly prioritizing the availability of products for customers. If products are not easily accessible, customers may opt to shop elsewhere. Tesco has introduced the Gaps scan, which uses a product's barcode to evaluate current stock levels and collect data for appropriate corrective measures if there is insufficient stock. Furthermore, a label will be attached to explain any discrepancies in stock (Julien, 2013).

Dependability is essential.

Tesco has always made it a priority to provide a spacious car park for shoppers since its first store in Puchong. However, there is an issue with the general public taking advantage of the free parking facility. In an attempt to address this misuse, parking fees were introduced. However, offering free parking to shoppers who spent a specific amount did not work and had to be abandoned. As a result, Tesco is still facing challenges in finding a viable solution for this problem, which is impacting its ability to achieve maximum sales

potential.

Tesco understands the importance of accurate prices for customer satisfaction. Customers expect the prices in stores to match those advertised online and in print media. In case of any discrepancies, Tesco will honor the lowest price. To prevent such situations, store staff must scan product barcodes before opening hours.

The Tesco Extra store format in Malaysia has a contemporary design and a livelier look. It caters to the needs of small businesses, families, and individuals by providing a diverse range of products and services. These include a pharmacy and support for small business owners in their purchasing decisions (Tesco Stores, 2013). The company also intends to convert their current stores into this new format.

Tesco Malaysia has introduced the Grocery Home Shopping Service, which is the first of its kind. This innovative service allows customers to conveniently shop online and have their purchases delivered right to their doorstep. Catering specifically to individuals who are unable to make time to visit the physical store (Tesco eShop, 2013).

Tesco prioritizes maintaining low operating costs, which is accomplished by building strong relationships with manufacturers and suppliers. Additionally, the use of technology in distribution and logistics contributes to this goal. A clear illustration of Tesco's cost-saving approach can be observed in its Tesco Value products, characterized by plain white packaging and a consistent design across the entire range. Therefore, these strategies enable Tesco to keep costs at a minimum while offering affordable retail prices.

Tesco's Tesco Ambient Distribution Centre (TADC) at Bukit Beruntung is a technologically advanced facility that serves as a central hub for storage and logistics. It offers significant cost and time savings

for consumers, reducing delivery costs and time by almost 50%. This enhances transparency in the supply chain, leading to lower prices for Tesco customers (Tesco Press Release, 2012).

A Key Performance Indicator (KPI) is a metric used to evaluate the performance or progress of an activity or process. KPIs are important for businesses as they gauge the success in attaining objectives, offering data to assess performance, pinpoint areas for enhancement, and guide informed decisions. Ultimately, KPIs oversee performance and guarantee that organizations are progressing towards their goals.

The tables below display the scoring of Tesco Malaysia and its competitors, based on performance objectives. A Key Performance Indicator (KPI) is a measurable metric used to assess a company's operational and strategic goals.The text below isand unified, while the and their contents remain intact:

In conclusion,

Tesco Malaysia has effectively implemented business strategies to meet customer needs for product variety, affordable prices, and convenience. They have also actively listened to customers, leading to an enhanced retail experience.

To maintain stable operation and revenue, Tesco Malaysia should implement various strategies. These strategies include proactive store openings in the East Coast, Sabah, and Sarawak regions. Additionally, they should review the utilization of different store sizes to cater to smaller communities. It is important to identify the appropriate product mix and range for each store size as well. To improve efficiency and customer service, Tesco can utilize technology available within the Tesco Group such as self-service checkout and intelligent queue management systems. Moreover, diversifying their sources of income will help mitigate risks associated with relying solely on one source.

Throughout its lifespan, the

objective is to boost market share and improve profits.