OPERATIONS MANAGEMENT

Operations Management

Operations Management

Introduction

The term operation management can be defined as an area of business administration, which is dedicated, to both research and the implementation of all those actions that tend to generate greater value added products through the planning, organization, direction and control in the production of both goods and of services, all aimed at increasing quality, productivity, improve customer satisfaction for customers and reduce costs. Organizations often used information systems in operation management to increase their overall efficiency and for better management of routine activity (Hammett and McMeikan 1994, pp. 4-6). At a Strategic level, objective of the operations management involves finding a sustainable competitive advantage for the company. In this connection, this study is going to discuss one of the supply chain management functions of operation management of Tesco. The study will also discuss issues in information system of Tesco.

The critical goal of strategic thinking is to align the purposes of an organization or institution with the world around it. This fundamental statement masks a number of telling assumptions that apply to every form of social organization, from nations to corporations. First, it suggests that the aim of strategic thinking is to understand and integrate the purposes of institutions with the realities of the surrounding environment. Strategic thinking assumes that the world is filled with constant change and external challenges to which groups have to respond effectively to be true to their purposes and to flourish, (Cox 1999, pp-167- 175). This is the reason; supply chain management has gain rapid reputation and adoption throughout the world and in most of the organization. This paper initially will focus on how grocery retailers (Tesco) in United Kingdom had adopted supply chain and for what reasons. Secondly, the study will identify issues in the enterprise information system and how issues can be resolved using knowledge management. Earlier, retail stores focused on formulating cutting edge pricing strategies. Retail firms competed on the basis of prices. Other drivers were brand and category level. Promotion and other strategies of them used to influence retail stores' competition. Consumers were more sensitive to such changes and responded favourably to them. This was the time when consumers' purchasing patterns were simple.

Retailing business was not much developed, and no research to improve the firm's profitability was undertaken. Increased demand, mushrooming retail stores and growing competition in the retail industry led retail stores to improve their services in order to offer convenience to customers (Curtis & Corsi 2003, pp. 95-121). Diversified stores, expansion in business and globalization raised the need for more efficient and effective supply chain management to deliver high-quality products at a greater speed in comparison to their competitors (Accenture, 2010). This approach is gaining popularity in all sectors of business, but retailing is particularly known for its supply chain as it is considered the most important function of retailing; greater efficiency of which helps them stand out in the industry.

Supply Chain Trend in US

The basis of competition in UK retail industry has been shifting towards ...