Lakhasly

Q1.Omnichannel Integration: They meet the needs of contemporary customers who require adaptability with their smooth online-offline method, which includes quick delivery through "Whoosh" (1-hour service). Critical Angle: While Tesco's SCM is robust, JIT systems can backfire during global disruptions (e.g., Brexit border delays). Over-reliance on efficiency may sacrifice resilience. Q2. COVID-19 Response & Financial Goals: Tesco's pandemic strategy balanced public health and profitability: . Safety First: Store sanitisation and PPE for staff built consumer trust, preventing lockdown revenue drops. . Online Surge: Doubling delivery slots to 1.5 million/week (Tesco, 2021) captured home-bound shoppers, boosting online sales by 48% in 2020. . Employee Support: Bonuses and free mental health apps like Headspace reduced staff turnover during crises. . Supply Chain Agility: Partnering with local suppliers when global chains faltered kept shelves stocked (e.g., UK-grown veggies substituted for imports). . Financial Prudence: Returning GBP585M in business rates relief (BBC, 2020) was a PR win, offsetting criticism of pandemic profiteering. Result: Despite COVID costs, Tesco hit GBP1.7B operating profit (2021), proving adaptability drives resilience. Q3. Risk Management Actions Tesco's risk strategy is multi-layered: While working with its suppliers, Tesco has run into a number of SC issues. When it was found that Tesco's canned beef products contained horsemeat residues in 2013, the meat department suffered severe credibility problems (Hogbin & McSherry 2014). Tesco's poor quality checks and dishonest supplier Silvercrest were blamed for this SC risk. Tesco responded by putting in place a number of controls and mitigation techniques. To make sure the meat products supplied by suppliers fulfill the required quality standards, the retailer implemented routine testing. Purchasing beef products from vendors approved by the British Retail Consortium was the second tactic (Hogbin & McSherry 2014). During their visit to the Silvercrest facility, Tesco also learned that the processor purchased meat from an unidentified Polish supplier. The supplier was then placed on a blacklist. In order to determine the quality of its beef products, the retailer also conducted more than 20,000 tests. Another SC problem relates to the financial risk of international operations

1. Financial Hedging: Mitigates currency risks in global sourcing (e.g., importing from Asia). 2. Cybersecurity Upgrades: After a 2020 attempted hack (Computer Weekly, 2020), Tesco invested in encryption for its 6 million+ online customers. 3. Regulatory Compliance: Strict adherence to GDPR and food safety laws avoids fines (e.g., GBP7.56M fine for 2014 horsemeat scandal taught harsh lessons). 4. Climate Initiatives: Net-zero targets by 2035 align with UK regulations, reducing legal risks. 5. Crisis Protocols: COVID task forces and backup suppliers exemplify proactive planning. Weakness: Heavy focus on operational risks may overlook emerging threats like AI ethics in customer data usage. Q4. Balanced Scorecard (BSC) & KPIs Tesco's BSC aligns strategy across four perspectives:

2. Financial Viewpoint: Any major goal pertaining to the performance and financial health of an organization is included in this viewpoint. Businesses should consistently make money and achieve objectives like increasing profitability and creating new revenue streams. Actions taken to accomplish these objectives are monitored and assessed. . Revenue (GBP57.9B in 2021) and operating margin (3.2%) track profitability. . Critique: Margin remains thin--price wars with discounters (Aldi/Lidl) squeeze profits. 2. Customer Perspective: The Viewpoint of the Customer In BSC, the customer perspective keeps track of and evaluates how the company offers value to its clients. Additionally, it establishes the proportion of customers who are satisfied with the business's goods or services. Customer satisfaction is a key indicator of an organization's success, and a company's profitability can be impacted by how well it treats its customers. . Net Promoter Score (NPS) rose to 15, reflecting improved loyalty. . Online growth (1.5M slots/week) shows digital success. 3. Internal Processes: A company's internal operations determine how well it performs. This viewpoint is significant because it provides an answer to the question, "What are we good at?"Supplier Collaboration: Programs such as the Tesco Sustainable Dairy Group (TSDG) promote enduring alliances, guaranteeing stable supply chains and equitable prices for farmers.The purpose of this essay is to evaluate Tesco's worldwide SCs coordination return on its R&D investment, the SC risks it faced and the ways it mitigated them, and the competitive advantages of implementing cutting-edge technologies.In order to support its grocery logistics, Tesco, a major UK retailer with operations in more than 14 countries, takes a more cooperative approach to supply chain management (SCM) that is typified by relationship initiatives (Child 2002).Sustainability: Tesco's promise to get rid of one billion pounds of plastic by 2025 (Tesco, 2021) isn't just environmental marketing; it also lowers expenses by using fewer packages and draws in eco-aware customers.By concentrating on customer satisfaction, internal procedures, financial performance, and learning and growth, Tesco enhanced its services, streamlined operations, and raised profitability.Example staff understand how inventory KPIs link to customer satisfaction.SCM: Uses this financial insight to plan for inventory purchases, production schedules, and capacity management, ensuring that operations align with financial goals.A company can maximize economies of scale and obtain low-cost inputs by leveraging its business-to-business (B2B) relationships, which are intangible assets, through global consolidation.Tech-Driven Forecasting: By using AI and RFID tags to anticipate increases in demand (like during holidays), lack and unnecessary overproduction can be avoided.Cost Management: Management accounting isn't just number-crunching--it's Tesco's compass for SCM decisions: Tracks and analyzes costs related to production, inventory, and logistics.Supply chain managers can troubleshoot this challenge by implementing an SCM system to ensure proper inventory flow; this way, the high-demand items never go out of stock, improving the customer supply chain's responsiveness.In order to accomplish global consolidation, supply chain (SC) relationships are extended to accommodate various political, economic, and physical environments (Child 2002).85% supplier satisfaction ensures smooth operations.2.3.4.5...4..Q6.2.3.4.5.6.2.4.5.6.

Q1. Supply Chain Management's (SCM) contributions to Tesco:
Introduction to Tesco Supply Chain Management
To integrate global supply chains, a creative supply chain management (SCM) approach is needed. A company can maximize economies of scale and obtain low-cost inputs by leveraging its business-to-business (B2B) relationships, which are intangible assets, through global consolidation. Building a network of supplier relationships to lower costs through increased purchasing power is a typical business strategy.
In order to accomplish global consolidation, supply chain (SC) relationships are extended to accommodate various political, economic, and physical environments (Child 2002). In order to support its grocery logistics, Tesco, a major UK retailer with operations in more than 14 countries, takes a more cooperative approach to supply chain management (SCM) that is typified by relationship initiatives (Child 2002). The purpose of this essay is to evaluate Tesco's worldwide SCs coordination return on its R&D investment, the SC risks it faced and the ways it mitigated them, and the competitive advantages of implementing cutting-edge technologies.
The foundation of Tesco's retail dominance. is its supply chain management system.
Five key contributions stand out:

1. 
   

   Inventory Management: By adopting Just-in-Time (JIT) systems, Tesco slashes storage costs and avoids stockouts. This lean approach keeps shelves stocked without overburdening warehouses (Tesco, 2021).

   
   


2. 
   

   Supplier Collaboration: Programs such as the Tesco Sustainable Dairy Group (TSDG) promote enduring alliances, guaranteeing stable supply chains and equitable prices for farmers. This lowers the likelihood of supplier disputes and is not only morally right (Tesco, 2021).

   
   


3. 
   

   Tech-Driven Forecasting: By using AI and RFID tags to anticipate increases in demand (like during holidays), lack and unnecessary overproduction can be avoided. Tesco stays ahead of rivals like Sainsbury's thanks to this technological advantage.

   
   


4. 
   

   Sustainability: Tesco's promise to get rid of one billion pounds of plastic by 2025 (Tesco, 2021) isn't just environmental marketing; it also lowers expenses by using fewer packages and draws in eco-aware customers.

   
   


5. 
   

   Omnichannel Integration: They meet the needs of contemporary customers who require adaptability with their smooth online-offline method, which includes quick delivery through "Whoosh" (1-hour service).
   Critical Angle: While Tesco’s SCM is robust, JIT systems can backfire during global disruptions (e.g., Brexit border delays). Over-reliance on efficiency may sacrifice resilience.

   
   

Q2. COVID-19 Response & Financial Goals:
Tesco’s pandemic strategy balanced public health and profitability:
. Safety First: Store sanitisation and PPE for staff built consumer trust, preventing lockdown revenue drops.
. Online Surge: Doubling delivery slots to 1.5 million/week (Tesco, 2021) captured home-bound shoppers, boosting online sales by 48% in 2020.
. Employee Support: Bonuses and free mental health apps like Headspace reduced staff turnover during crises.
. Supply Chain Agility: Partnering with local suppliers when global chains faltered kept shelves stocked (e.g., UK-grown veggies substituted for imports).
. Financial Prudence: Returning £585M in business rates relief (BBC, 2020) was a PR win, offsetting criticism of pandemic profiteering.
Result: Despite COVID costs, Tesco hit £1.7B operating profit (2021), proving adaptability drives resilience.

Q3. Risk Management Actions
Tesco’s risk strategy is multi-layered:
While working with its suppliers, Tesco has run into a number of SC issues. When it was found that Tesco's canned beef products contained horsemeat residues in 2013, the meat department suffered severe credibility problems (Hogbin & McSherry 2014). Tesco's poor quality checks and dishonest supplier Silvercrest were blamed for this SC risk.

Tesco responded by putting in place a number of controls and mitigation techniques. To make sure the meat products supplied by suppliers fulfill the required quality standards, the retailer implemented routine testing. Purchasing beef products from vendors approved by the British Retail Consortium was the second tactic (Hogbin & McSherry 2014). During their visit to the Silvercrest facility, Tesco also learned that the processor purchased meat from an unidentified Polish supplier. The supplier was then placed on a blacklist. In order to determine the quality of its beef products, the retailer also conducted more than 20,000 tests. Another SC problem relates to the financial risk of international operations

1. 
   

   Financial Hedging: Mitigates currency risks in global sourcing (e.g., importing from Asia).

   
   


2. 
   

   Cybersecurity Upgrades: After a 2020 attempted hack (Computer Weekly, 2020), Tesco invested in encryption for its 6 million+ online customers.

   
   


3. 
   

   Regulatory Compliance: Strict adherence to GDPR and food safety laws avoids fines (e.g., £7.56M fine for 2014 horsemeat scandal taught harsh lessons).

   
   


4. 
   

   Climate Initiatives: Net-zero targets by 2035 align with UK regulations, reducing legal risks.

   
   


5. 
   

   Crisis Protocols: COVID task forces and backup suppliers exemplify proactive planning.

   
   

Weakness: Heavy focus on operational risks may overlook emerging threats like AI ethics in customer data usage.

Q4. Balanced Scorecard (BSC) & KPIs
Tesco’s BSC aligns strategy across four perspectives:

1. Financial Viewpoint:
   Any major goal pertaining to the performance and financial health of an organization is included in this viewpoint. Businesses should consistently make money and achieve objectives like increasing profitability and creating new revenue streams. Actions taken to accomplish these objectives are monitored and assessed.
   . Revenue (£57.9B in 2021) and operating margin (3.2%) track profitability.
   . Critique: Margin remains thin—price wars with discounters (Aldi/Lidl) squeeze profits.


2. Customer Perspective:
   The Viewpoint of the Customer
   In BSC, the customer perspective keeps track of and evaluates how the company offers value to its clients. Additionally, it establishes the proportion of customers who are satisfied with the business's goods or services. Customer satisfaction is a key indicator of an organization's success, and a company's profitability can be impacted by how well it treats its customers.
   . Net Promoter Score (NPS) rose to 15, reflecting improved loyalty.
   . Online growth (1.5M slots/week) shows digital success.


3. Internal Processes:
   A company's internal operations determine how well it performs. This viewpoint is significant because it provides an answer to the question, "What are we good at?" The response to this question aids the company in developing marketing plans and spurring inventions that lead to fresh and better approaches to satisfying client demands.
   . 85% supplier satisfaction ensures smooth operations.
   . Inventory turnover rate highlights efficiency.


4. Learning/Growth:
   Any strategy is built on the learning and growth perspective of a balanced scorecard. It focuses on an organization's intangible assets, especially the internal competencies and skills needed to support internal processes that create value. Organizational capital, information capital, and human capital are the primary concerns of the learning and growth perspective.
   . 82% employee satisfaction and £23M training spend (2021) drive innovation.

Q5.Benefits: Tesco, a well-known retail company, adopted the Balanced Scorecard to better understand and serve its customers' needs. By concentrating on customer satisfaction, internal procedures, financial performance, and learning and growth, Tesco enhanced its services, streamlined operations, and raised profitability.Example staff understand how inventory KPIs link to customer satisfaction.

Q6. Management Accounting & Supply Chain Synergy:
Since both accounting and supply chain management (SCM) are essential to a company's overall efficacy and efficiency, their relationship is complex and essential. The following are some salient features of their relationship:

1. Cost Management:
   Management accounting isn’t just number-crunching—it’s Tesco’s compass for SCM decisions: Tracks and analyzes costs related to production, inventory, and logistics. It provides data on expenses that can be used to assess profitability.
   SCM: Involves managing and optimizing the flow of goods and services. Effective SCM can reduce costs (e.g., transportation, warehousing), which is crucial for accounting to report on financial performance.


2. Reporting on finances:
   Accounting: Creates financial reports that show the performance of the business, including supply chain expenses.
   SCM: Has an impact on these reports by using metrics related to operational efficiency, procurement costs, and inventory valuation. Reliable financial reporting requires accurate supply chain data.


3. Budgeting and Forecasting Accounting: Provides historical financial data that is crucial for budgeting and forecasting future performance. SCM: Uses this financial insight to plan for inventory purchases, production schedules, and capacity management, ensuring that operations align with financial goals.


4. Management of Inventory:
   Accounting: Keeps track of carrying costs and possible obsolescence losses as well as the financial effects of inventory levels.
   SCM: Concentrates on maximizing inventory levels to satisfy demand while cutting expenses. Financial results are directly impacted by efficient inventory management.


5. Managing Risk:
   Accounting: Recognizes monetary risks, like higher expenses or revenue loss, connected to supply chain interruptions.
   SCM: Puts strategies into place to reduce these risks, like improving logistics skills or diversifying suppliers, which can result in more stable financial performance.


6. Evaluation of Performance:
   Accounting: Measures financial health using key performance indicators (KPIs), such as cost per order or supply chain efficiency metrics.
   KPIs are also used by SCM to evaluate operational performance and make sure that supply chain operations support the organization's financial goals.
   For a business to succeed, supply chain management and accounting must work together harmoniously. In order to give stakeholders a clear picture of the organization's financial health, accounting must appropriately reflect cost savings and improved cash flow that can result from effective supply chain management. Strategic planning, decision-making, and overall operational efficiency are all improved when these two functions work together.

Q6. Customer Satisfaction via Supply Chain & Accounting:
Did you know that supply chain costs are reduced by 15% in optimized supply chains? Enhancing supply chain efficiency through efficient logistics may be the key to raising customer satisfaction and, ultimately, profitability. Nonetheless, it is the duty of businesses to satisfy the constantly shifting expectations of their clientele. The majority of company executives are competing to discover novel approaches to consistently uphold the loyalty and trust of their clientele. One of the best strategies to raise customer satisfaction may be supply chain optimization. Let's take a closer look at how the supply chain and customers interact and how this impacts company profitability.
Tesco’s systems create a virtuous cycle:

1. Provide a basic website to satisfy client demands: When a website malfunctions, users become easily irritated, which detracts from their overall experience. Customers are more likely to buy your products if you give them a straightforward website so they can easily navigate your offerings.


2. Control the delivery of the supply chain to enhance customer service: Technology offers opportunities for vendors to provide quick delivery for improving customer satisfaction in supply chain management


3. Use Supply Chain Tools to Optimize Inventory Flow: It is a terrible experience to find out that the product you want to order is out of stock, disrupting your plans, and it will take another 10 days for it to be available due to poor inventory management. Supply chain managers can troubleshoot this challenge by implementing an SCM system to ensure proper inventory flow; this way, the high-demand items never go out of stock, improving the customer supply chain's responsiveness.


4. Deliver Excellent Services to Improve Relations with consumers: By making your entire supply chain as responsive and efficient as possible, you can deliver outstanding services.


5. Improve Customer Satisfaction by Using Technologies to Ensure Visibility: Professional leaders can ensure visibility throughout the customer supply chain, make well-informed decisions, and comprehend the problems that customers face with emerging technologies.


6. Dynamic Pricing: Cost data enables “Clubcard Prices” (personalised discounts), boosting loyalty.


7. Rapid Delivery: Accounting-funded dark stores (e.g., in London) cut delivery times to under 2 hours.


8. Transparency: Blockchain trials for farm-to-store tracking reassure customers about food origins.
   9.Critique: While tech enhances satisfaction, older shoppers may find app-based offers exclusionary.


9. Stock Reliability: JIT + AI forecasting means 99% in-stock rates for essentials

Conclusion
Tesco thrives by weaving SCM, risk agility, and accounting into a cohesive strategy. However, balancing efficiency with inclusivity (e.g., digital divides) and resilience remains a challenge. The BSC and management accounting aren’t just tools—they’re Tesco’s language for turning data into action.