Reference no: EM13364726

Requirement

This is a short discussion, and it is required to write a response to the follow up discussion. The number of words should be no less than 150, and academic citation or reference is required to be involved (Harvard style). The subject is strategic operation management. For this topic is talked about total supply network.

The original discussion

Tesco, indeed it is their astute management of their supply chain that have made them UK's leading retailer and opened up doors for them elsewhere across the globe. It is a strong brand that has managed to achieve unparalleled brand loyalty despite fierce competition from rivals such as ASDA - Wal-Mart, Sainsbury's and Safeway.

Clearly the close collaboration between the retailer and its suppliers and other stakeholders ensures that it adequately meets its customers' expectations. This I suppose is what has made it a darling to its customers. 

Having said all of these good things, I cannot resist the temptation to point out some of the problems that Tesco and indeed other UK retailers have faced that relate to this week's topics. Firstly is the case of location which reminds me of Slack et al's (2010, p. 147) quote of Lord Sieff former Marks and Spencers boss, 'There are three important things in retailing - location, location, location'. True, location is an important ingredient to successful retailing.  However, Tesco has often been criticized for opening its stores in suburban locations which have resulted in it muscling out small retailers and driving them out of business because they cannot compete due to the lower prices and higher quality products it offers. Secondly, Tesco has often been criticized for driving down supplier prices hence squeezing their profit margins due to its massive bargaining power. This especially applies to its agricultural commodity producers (Friends of the Earth, p. 1).

Question

What are your thoughts regarding the aspects that I have highlighted above?

Please write a follow up response according to this short discussion based on this question.