Management and Operations of TESCO


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Organization Selected : TESCO


Management is the function of any organization. It is function to dealing with the people. It is the process to manage and control of organizational policies, procedures and activities. It is to plan, organize, control and coordinate. Operations is the process of practical work in organization. It is the process of transforming the resources or data into the goods and services.

Tesco is a British multinational retailer headquartered in England. It is the third largest retailer in the world measured by profits. In this report, it will evaluate differences between leaders and managers, considering their roles and characteristics, explaining functions of managers. It will explaining the different approaches, roles, importance of the stores managers. It will assessing the outside factors affecting the operations management and decision-making. It will explain the roles and characteristics of the store manager of


(A) Differences and similarities between the leaders and managers





A leader is the person who is influencing on achieving the goals.

A manager is the person who is responsible for planning, organizing and controlling of an organization.


A leader is leading and motivating to the subordinates.

A manager is to managing whole organization.


They are focusing on leading to peoples.

They are focusing on managing the process and procedures.


The aim of leader is to growth and development of subordinates.

The aim of manager is to measuring the results (Roche, Haar and Luthans, 2014).

Risk factors

Leaders are minimizing risk.

Managers are taking risk.

Respond changes

They are promoting to changes in policies.

They are reacting on the changes in policies.


They are setting up the direction for achieving the goals (Bolden, 2016).

They are planning of policies of organization.


They are measuring of conflicts as an assets.

They are measuring the conflicts are avoiding .



Leaders are leading to the aligns the peoples with other.

Managers are organizing and controlling people in the company.


Leaders are representative of the company (Church and Waclawski, 2017).

Managers are managing and controlling entire company.


Followers are the subordinates to leaders.

Employees are subordinates to managers.


They are helping for the decisions making.

They are managing the decision making.


They are transforming information in the organization.

They are transactional in the company.


They are responsible for leading their subordinates.

They are responsible for planning, controlling of policies and procedures.

Leaders and Managers are playing the most important role in an organization. Some qualities are same of leaders and managers. Both are working for achieving goals of an organization. Leaders and managers are having confidences, inspiring, competencies, discipline, good communication skills, positive attitudes and open minded. Leaders and managers are inspiring their subordinates and employees. Both are focusing on the goals. Both are working for employees’ satisfaction. Leaders are working to the managerial activities such as improving performances, satisfaction and commitment. Leaders should be become manager but managers should not become leader (Mone and London,2018).

Therefore some similarities in leaders and managers. Leadership and management are the function of the organization. Leaders and managers are both leading and motivating to their employees. In the management, leadership style and management styles are there. Both are working is systematic and proper manner and ways in the company. Both are the motivating to the employees performances. Both are ensuring that all the employees working in the team. Leaders and managers are inspiring of their employees in company.

(B) Function of the Managers

Managers are playing various roles and functions in an organization such as planning, controlling, organizing and coordinating.

Planning: It is the main function of the manager. Planning of process and procedures of a company. Tesco is the retailers company who has to selling the groceries and general merchandised products and services. So that the managers of Tesco, is to planning of the terms and conditions, policies and procedures of the buying and selling goods and services. Therefore, the planning of selling and buying goods and services are difficult decision making. Managers are facing many situations and problems for planning of the procedures and policies (Turner, 2018).

Controlling: It is the second function of managers. Controlling of policies and procedures are also difficult decision taking by the manager of the Tesco. As well as controlling of the standards, objectives, decision making and goals are more important activities performing by the managers in company. For controlling of all the activities, mangers are also facing many problems. They are measuring the actual performance, comparing the standards and performance with results. In the controlling function, needs are taking the correct measures.

Organizing: Managers are dealing and controlling on people. It means that the organizing of utilization of resources, staff and capital requirement in the company. Managers are all the managed and controlled of all the activities performing in the company. It is main function of the managers. In the organizing function, build the goods working structures, increasing the function will expanding the organization (Amanchukwu, Stanley and Ololube, 2015).

Coordinating: It is function of managers that coordinating employees in all the activities. Coordinating means working in team or group. For working in team, managers are motivating of employees in company. Tesco is a retail supermarket, so that many employees are working in company and manager is ensuring that all employees are properly working together. They are motivating for the good communicating with all employees.

Commanding: Managers are giving the instruction, command and order for better performing of work. Employee's responsibility to accept the orders and instruction and working on it. But the managers are ensuring that all the instruction are clearly defining and explaining, so that employees are working better in organization (Bush and, 2017). They are regularly checking of all the activities performing by the employees. They are making decision for the policies and procedures in the company. They are promoting the employees for performing better in the company.

(C) Explaining the situational, system and contingency leadership

Leader is the person who is to leading and motivating to their subordinates. They are influencing subordinates for achieving specified goals of an organization. Leaders are playing various roles in the company and they are representative of company. There are different theories of leadership in the company. Such as situational and contingency theories of leadership (Giust, Cominardi and Bernardos, 2015).

Situational Theory: It is the theory of leadership which is helping facing of different situations and variables. This theory is helping in types of decision making in company. In this, both authoritarian and democratic style of leadership is included. In the company, leaders are facing the different situations and problems, so that they are ensuring that solving all the problems on their knowledge and experiences. It is the best theory for situations. In authoritarian, leader is the person who is taking decision by an individual's, so that there are many problems facing by the individual's. Therefore, this theory is helpful for autocratic leaders. In this theory, another style considering as democratic leaders. This leader are taking the decision and sharing the problems in the group. So that solving the problems by the team members. Therefore, this theory is helping some difficult situation of democratic leaders (Kendra, 2018).

Contingency Theory: This theory focus on particular situation that is environment of the company. So that there is no leadership styles in this theory. This theory helps in improving behaviour, needs and abilities of leaders. This theory includes qualities of leaders, assess needs and behaviour. It also includes qualities, leadership style and feature of situations. This theory is focusing on task requirement, group expectations, behaviour and policies, cultures and natures of organization (Djahel and, 2015).

System Theory: This theory includes purpose and structures of the organization. This theory is to clarifying the complexity of the environment and providing the framework for developing ideas. It is also known as the system approach of leadership. It is to determine the external and internal environment. This theory is helping in decision making and evaluating the impact on external and internal environment of the business. It is to helping for evaluating the leadership system using in the company. This theory is to understand purpose and structures of company. It is to helping in improving positive impact on the business and reducing negative impact on the company. This theory is to create purpose, vision, connection, decision and relationship with leaders and employees in a company. This theory is helping of setting direction for achieving goals . It is the system of leaders working in company (Govindan, and, 2015.).


(1.) Explaining different approaches to operation management

Operation management is the process of transforming resources or data into goods and services. It refers to planning, controlling and supervising production and manufacturing of raw materials. For operation management, there are different approaches used by a company such as quantitative, system, transformation and six sigma approaches.

Quantitative Approaches: In this approach, store managers are measuring the quantity of operations. Through this approach, it is easy for decision making for the quantity in production. In this approach, there are two methods PERT and CPM for projects used by Tesco. Both methods are used in production and manufacturing process. It is also known as forecasting techniques. This approach is beneficial for operation management. It includes performance metrics, analysis of trade off. Another technique for using scheduling the decision making process (Bush and, 2017).

System Approaches: In this approach, includes procedures of subsystems and decision making related to operations management. It is also beneficial for decision making of operations and production. This approach related to subsystems relation in different departments. System approaches is necessary for redesign, implemented, improved and changed. This approach includes changing inventory procedures, changing the quality standards and informed new features in system. It is a set of interrelated parts work together.

Six Sigma Approaches: This approach is used in quality management of operations. It includes improving quality, reducing costs and reducing time in the production process adopted by Tesco. This approach used for customers’ satisfaction, better quality products, managed the production process. Through this approach, reducing the wastage and defects in operation and production (Maylor and, 2018 ).

Transformation Approaches: In this, approach used in operations and production process for sending the information related to operations. It is also known as transformation process. This approach is used not only operations but also used in all the departments for transferring the information. It is used in transforming information for labour, capital, and raw materials. Without transferring correct information, there is no process of production and operations in company.

Design Approaches: This approach used to designing and implementing the operations. It is main part of operations management. This approach improving the design of operations. Designing the system is also helping in system operating. Design approach is using managers and designers of Tesco. It is also known as design process. It is used in operation management and production process of a company (Govindan, and, 2015.).

(2.) Explaining the roles of store manager

Store manger plays many roles in the operations such as training, hiring, team leadership, inventories management and sales increasing. Store manager is to checking the day to day inventories.

Inventory Management: Store manager is responsible for maintaining inventories in storage. They are ensuring that availability of inventory in their store and there is no wastage of inventories. The controlling of inventory is important activity performed by the store managers. They are maintaining the records for the entire inventory. Store manager should be managed and controlled on the inventories.

Training and hiring: Store manager can be hired the people for management of store. If the manager is hiring the people, so that manger is to giving the training for store management. They can provide training of all team members time to time for managing the stores. For training and hiring the people, they are adopting various methods for maintaining and managing the store.

Team leadership: Store manager is leading and motivating of all the employees for working in team. Because of working in team, it is easy to managed and maintain of stores. By working in team, there is no wastage of inventories. Team leadership is to developing and improving for working in team and growth of all members.

Sales Increasing: If the store manager is to managing and maintaining the inventories, it is helping for increasing the sales. They are leading and motivating of employees for working in team, so that there is also increasing the sales. Tesco is the best super market in UK, they are providing products and services to the customers for increasing the sales.

Marketing Plan: The store manager adopting various marketing strategies for increasing the sales. They are implementing marketing plans and strategies such as promotional activities, sales distribution programmes and other marketing policies. They are adopting the marketing plans and policies for customers’ satisfaction, increased sales and earn profits (Birou, Lutz and Zsidisin, 2016).

Safety and Security: The store manager is ensuring that providing better quality products and services with safety and security. They should be ensured that there is no problem by using their products. The store manger should be ensured that the environment of stores is too cleaned. They are securing that the sales environment is to implementing and maintaining by the employees. Through providing better safety and security of products and services, it is helping to increasing sales and customers’ satisfaction.

(3.) importance of operations management

Operation management is the process of transferring raw materials into goods and services. The importance of operation management in every department in company. Operation management is the important in the projects and manufacturing process.

  • Operation management is the important for manufacturing and production process.
  • It is to important for planning and controlling on process of production.
  • It is helping for utilization of resources, labour, raw material, funds and capital in production process.
  • It is the process to transferring the raw materials into finish goods and services.
  • It is necessary activity performing by the operations managers of Tesco (Amanchukwu, Stanley and Ololube, 2015).
  • For operation management, there are different approaches using in the company.
  • Not only manufacturing process but also finance department, includes requirement of funds, investments and capital in important part of operations management.
  • For managing quality of raw materials, quantity, requirement of labour and finish goods by the operations managers. In these causes, it is the important in the company.
  • In marketing, it is also important for providing better quality of products and services, managing marketing strategies such as promotional activity and distribution programmes of sales for customers’ satisfaction.
  • It is also important in the IT department for operating the technology includes system.
  • Operations management is important in supply chain management for supplying of goods and services to customers.
  • It is important for using practical and strategic operations in company.
  • It is important for increasing productivity because of proper utilization of resources, materials and labour in process of production.
  • It is important for projects management and quality management in the production process (Djahel and, 2015).
  • Operation management is to helping for managing and handling the process of production and projects in company.
  • It is important for controlling of goods and services for customers’ needs and wants.
  • It is important for utilization of resources, planning of process, requirement of labour and funds in production process.
  • Operation management is important of operating, designing and implementing for subsystem of all the departments.
  • It is important for utilization of resources, planning of process, requirement of labour and funds in production process.
  • Operation management is important for operating, designing and implementing for subsystem of all the departments.

(4.) Identify and assess the factors that can effects on the operation management

In every department of company, various operations are there such as production process, technology operations, finance operations and other operations. The operation managers is to managing and operating in the company. On the operations management, many outside factors are influencing of Tesco. Outside factors means effects by the macro environment elements on operation management (Birou, Lutz and Zsidisin, 2016).

Political Factors: In this elements includes government rules and regulations effects on the operations management of the company. It also includes tax rates, economic condition, current legislation. Tesco is imports the goods outside the UK, so that tax rate effects on the company profits and revenues. This factors effects the operations for selling the goods and services. Tax rates are deciding by the governments, so that the rates of imports for goods, it is the effects on the operations.

Economic Factors: In this elements includes inflation rates, cost and profits. These elements are effecting on the operations of the company. The cost of raw materials, labour and other resources are high, it is effecting on the process of manufacturing of goods. They are providing goods and services for earning the profits. Therefore the profits are effecting the operations of the company.

Social Factors: In this factors includes customers needs and wants, taste and preferences and changing trends. So that the operations managers should be ensured that all the goods are selling according to the customers needs and wants. The changing the trends and customers taste and preferences is to also effecting the operations. It also includes cultures and values of society effecting on the company (Djahel and, 2015).

Technological Factors: It includes recent technologies and machines are using in the operations. It includes shopping apps are updated and operated. The company is providing services on online for customers requirement and their expectations. These elements are effecting on the management of the operations. Technology is the main part of production process of goods and services, therefore these factors are effecting on the operations.

Environmental Factors: It includes environment issues are effecting on the operations management. Tesco is not using the plastic bags for ensuring environment. They are liable to respond for benefits of society. Environmental involvement effecting the operations of company.

Legal Factors: It includes some legal aspects which are effecting the operations management. Such as changing prices, health and safety, consumer rights and laws, etc. These elements are effecting the operations of the company. The prices of products is more effecting on the process of manufacturing in the company.

(5.)Effects of outside factors on the operation management in decision making in TESCO supermarket.

Operation management: For a supermarket retail store, operations management is an important activity for flexible management of the operations. Staff plays a very important role in these operations. A good team of staff by good operational individuals can keep customers satisfied. Operational management is a management that transform resources into finished goods and services.

Tesco operations management: Tesco is the Britain's biggest and most profitable retail supermarket chain throughout the world. Operation management in Tesco is concerned with overseeing, designing and redesigning business operations. Tesco ensures and check goods expiry date regularly. Tesco are the market leader within the super market industry.

Political factors: These include, tax rates, political instability, economic condition etc. Since Tesco is a retailing company which operates worldwide, political factors greatly effect the performance of it. Due to financial instability in the world, many governments encourage retailers to create jobs for the domestic population. As Tesco plays its part in creating employment opportunities, it also, increases the demand for its products. Import duty on goods can affect Tesco as it imports some inventory from outside UK like China (Maylor and, 2018 ).

Economic factors: These factors are the main concern for UK supermarkets, as they are most likely to leverage costs, demand, profits and prices. The company should be aware of any changes in policies, such as changes in tax rates and any other factor. The company should focus on the increasing borrowing cost in UK.

Social factors: People shopping trends are changing daily. They want fast and same day delivery with a flexible return policy. Tesco must understand these issues and provide the services accordingly. The demand for goods and services is related to the consumers attitude. Tesco is adapting to these changes by accommodating demand for organic products.

Technological factors: Before Tesco was facing various problems regarding customers experience. New and advance technology brought new opportunities to Tesco. Tesco has made hi own online mobile payment system called Pay Quid, now customers can pay as the want. The new technologies benefits the company and raise customer satisfaction.

Environmental factors: Cultural, economical, physical, demographical, etc. are the factors which affect the growth and operations of the business. Now Tesco encourages its consumer to shop at Tesco. com. Tesco will not only use fuel-saving routes but also collect unwanted plastic bags from customers and recycle them. Developing marketing strategies should include considering environmental factors. Ignoring these factors may lead to unsuccessful business (Giust, Cominardi and Bernardos, 2015).

Legal factors: The performance of Tesco is directly impact by the government policies and regulations. Tesco workers took a legal action against an employer on the basis of gender and age discrimination. It also faced legal action for accounting frauds to its investors. Tesco must conduct its operations according to Food Retailing Commission. Tesco provides its customers price reduction on the fuel the purchase. Also there are many promotional offers where prices are lowered.


In this report, it can be concluded that difference between leaders and managers and similarities between the leaders and mangers considering their roles and characteristics. It explain that various function of managers such as planning, controlling, coordinating and commanding using for the decision making in the company. It also explaining the various theories of leadership situational, system and contingency (Govindan, and, 2015.). It can be concluded that different approaches to operation management such as system, transformation, quantitative and six sigma by the company and also explaining the roles of stores managers. It can be concluded importance of operation management and identifying the outside factors which are effecting the operation management. In the outside factors which is include macro environment. It can be analysing the elements are impact on the decision making in the Tesco. By adopting the leadership theories, company has to developing management programme for earning the company objectives and goals.

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