Preview

Technology in Decision Making: The Example of Tesco

Powerful Essays
Open Document
Open Document
1271 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Technology in Decision Making: The Example of Tesco
Technology in Decision Making
BIS/318
January 16, 2012

Technology in Decision Making Tesco plc, founded in 1919 by Jack Cohen, is a global grocery and general merchandise retailer whose headquarters are in Cheshunt, United Kingdom. Measured by revenues, Tesco is the third largest retailer in the world after Wal-Mart and Carrefour. Team B will analyze the use of technology as it relates to pricing and promotional strategies of Tesco. In order to complete the analysis, Team B will research how technology has changed the pricing and promotional strategies at Tesco and if it has been beneficial. Technologies used in Tesco as well as possible alternate systems that could have been used will also be researched. Finally, Team B will research the legal and ethical issues Tesco must consider when pricing and promoting its products and if the organization has had past problems.
Technology Changing Pricing and Promotional Strategies
As the number one retailer in the UK, technology has brought about a great amount of change in its business strategies. Tesco.com groceries have been a beneficial way in developing pricing and promotional strategies. Tesco.com provides the customer the ability to shop online and have his or her groceries delivered to them. A customer who spends $50.00 the first time they place an order will receive a $10.00 discount. Ordering online is simple and convenient so that customers shop without going over their budget. Shopping items are entered onto a list that is automatically calculated. Items are added and deleted at the customer’s discretion. Shopping on Tesco.com groceries takes a few simple steps: registering with a few details, choosing a place for delivery, buying groceries, reviewing and checking out, and then receiving one’s items at their home (Tesco, 2012). After registering with Tesco.com groceries, the customer will become a club member. A club member allows customers to save money on shopping through price-off vouchers. Entering



References: King, L. (2008). Technology helps Tesco beat crunch. Retrieved from: http://www.cio.co.uk/news/3204/ Tesco (2012). Welcome to Tesco.com Groceries. Retrieved from: http://www.tesco.com/groceries/#r4 Tesco plc. (21012). Our History. Retrieved from http://www.tescoplc.com/about-tesco/our-history/ Tesco Online Profits Rocket 49%. (April 15, 2008). Retrieved from: http://www.computerworlduk.com/news/outsourcing/8542/ Tesco selects Micro Focus to ready supply chain for US launch. March 12, 2007). Retrieved from: http://www.computerworlkuk.com.news/it-business/2191/

You May Also Find These Documents Helpful

  • Powerful Essays

    Tesco Aims and Objectives

    • 1396 Words
    • 6 Pages

    Tesco is now a very successful retailer in the UK. Also, it is the second-largest retailer in the world measured by profits and third-largest retailers in the world measured by revenues. Which it is the business that I have selected to carry out my investigations.…

    • 1396 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    The U.K. grocery market is highly diverse, with a wide range of formats, from convenience stores to hypermarkets, warehouse clubs and online stores. The market is currently led by five grocers (Tesco, Sainsbury, Wal-Mart‘s Asda, Morrisons and Cooperative Group), accounting for almost 55% of grocery retail banner sales, while the remaining 45% is attributed to hundreds of outlets scattered throughout the country (Planet Retail). Over the years, large players have continued to expand, both in terms of size, product range and services, increasingly taking market share from their smaller competitors.…

    • 134 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Tesco have finest, regular and value products within their range offering choice of value and quality. This creates an ease and simplicity for their customers to choose the right price for their budget using dynamic pricing. Although this doesn’t affect Tesco’s decision it can benefit them as many of the customers may find a cheaper version of the product they want and buy more because of this. This easy access to many price ranges gives Tesco the opportunity to provide to all their customers and reach more people with their ranges to suit. [4][6]…

    • 2622 Words
    • 11 Pages
    Better Essays
  • Good Essays

    Supermarkets today use online selling methods to reach a wider market, also increasing competition which is possible due to their size as well. Selling via the internet improves the quality of service a consumer receives from a company, especially as they are competing for business with rival supermarkets. Online selling also makes shopping easier for consumers, benefiting competition. This competition means supermarkets are constantly motivated to stay innovative and provide a good service, as to ensure they do not lose customers to rival companies. The large supermarkets are consequently able to offer more efficient services to consumers in response to needs they have identified while trying to be competitive. For example offering prepared vegetables, this saves busy consumer’s time and in turn makes them become more appealing.…

    • 755 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The Guardian story takes the profound view that a consumer revolution is changing the way we shop. The recent poor Tesco results might be a sign that we are even turning our backs on supermarket queues, spelling the end for the weekly shop, with more buying food daily from convenience stores, and consumers turning to the internet. Major retailers are already adapting for example Tesco’s chief executive has admitted that the power of out-of-town hypermarkets is waning, and the internet is now dictating strategies. Online spend in the UK in 2011 grew 16% growth on 2010. “Click and collect” is up, as is “mobile shopping”, with around 15% of Google search queries now go through mobile devices. John Lewis is said to be “really going after the mobile online sale” by inviting customers to do an in-store price match. Some industry-watchers predict more “dark stores” which are supermarkets where the public are banned, as staff fill trolleys for thousands of online orders. Retailers will be forced to compete heavily on delivery prices. “The home delivery market has been growing at double digits. It’s going to continue growing for the foreseeable future,” says one analyst. “Out-of-town hypermarkets are having less impact because people are buying online, and then they are topping up in convenience stores,” says another.…

    • 716 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Nowadays, lifestyles have changed, e-shopping becoming a part of our lives. Many customers prefer to e-shopping at home rather than actually go shopping. For fitting this big change, Tesco have own website to doing e-selling. Also Tesco have selling new products and services to combine with e-selling. For example Tesco have broadband services and they sell computer and internet accessories on line or in store.…

    • 600 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Tesco Case study

    • 1197 Words
    • 5 Pages

    Tesco now has branched out from just supplying food to also providing other services such as clothes, technology devices, furniture and banking. This initiative has helped Tesco to dominate the market in multiple areas. The company can now offer for example cheap phone deals which compete with major phone providers and Tesco often has the resources to provide cheaper and more attractive deals than the specialised companies such as O2 or even Halifax. In 2007 in the UK, £1 in every £8 was spent at Tesco; this just shows their dominance over the UK market and how popular the supermarket really is. The company is currently working towards implementing and securing a major foothold in fast growing economies such as India, where they are at present working with franchise groups such as Tata group and offer IT and financial services to the country. Tesco also abides by strict rules set out by the company which focus on community service and putting something back. The shops aim to buy and sell frequently with local producers and support the local economy. The company also is aiming to be completely zero-carbon Company by 2050 and has already a carbon neutral shop in Asia. Tesco has also donated more than £75 million pounds to charities in 2011 and in 2012/2013 aims to give away £10 million to good causes and UK charities selected by the company. Tesco has also invested £30 million in training academies in Asia and is creating 20,000 new jobs for the UK over the next two years.…

    • 1197 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    Over the past few decades, hundreds of supermarkets have been built in towns and cities across the UK. They have become such a powerful force, that the four largest supermarkets, (Tesco, Sainsburys, Asda and Morrisons, ) take nearly three out of every four pounds spent on groceries, in the UK. (Bevan 2006). They have a combined market share of over 73.6% of the UK grocery market. (www.wikipedia.org “List of supermarket chains in the UK”).…

    • 1201 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    In this report I will give my analysis of Tesco. I will explain the retail business and the sector which it operates in, I shall also explain PEEST – (Political, Economic, Ecological, Social and Technological) and the impact these macro-environmental factors may have on the business. I will discuss the working hours law (Political), the horsemeat scandal (Economical), saving the rainforest (Ecological), back to school stock (Social) and also the modern systems used within the stores (Technological). I will then give examples of how the economical forces influence the businesses workforce, customers and its stores.…

    • 1312 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Tesco PLC (Public Limited Company) is a food retail company which operates in nine markets with 923 stores across the world. It employs more over 240,000 people which sell its products giving access to 260 million people (Tesco PLC., 2014). Over the past five years, Tesco has expanded from the UK’s supermarkets into new countries with new products and services including a major non-food business. More specifically, the company has started to sell electrical devices, internet shopping, toys, sports equipment, home entertainment, home shop, cook shop and furniture. Also it provides financial services in cooperation with Royal Bank of Scotland serving 3.4 million customers which reveals the company’s intentions to expand in new markets.…

    • 2657 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    Tesco Business Environment

    • 3406 Words
    • 14 Pages

    Tesco Plc is the 3th company of the global sales of grocery sector than the field is increasing: clothes, insurance, petrol stations and financial services. Tesco Plc is the largest company in Great Britain sales with stores in 14 countries (across Asia, Europa and North America). Tesco Plc is a public Limited Company how was made it by Jack Cohen in 1919 in United Kingdom and in the present has got more than 6,351 stores(national and international) with revenue than £64.539 billion and more than 519.671 employees.(www.tesco.com)…

    • 3406 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    Trader Joe's Case Analysis

    • 2675 Words
    • 11 Pages

    With the golden technology age that is occurring right now, companies are finding ways to bring technology into their businesses to enhance the customers shopping experience. The new technology has enabled companies in the supermarket industry to have price scanners in the store, self-checkout lanes, and some are beginning to use the Internet to bring the shopping experience right to the customers’ homes. These methods have shown superb results for companies with faster lines, shop-pricing products in store, but…

    • 2675 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Supermarket shopping is often categorised as a self-service retail environment. For supermarket retailers wanting to build relationships with their customers, being able to track…

    • 4188 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    The Sainsbury’s brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. Quality and fair prices go hand-in-hand with a responsible approach to business. Sainsbury’s stores emphasize fresh food and the staff strives to continuously innovate and improve products in line with customer needs. Their online groceries business continues to grow, with annual sales up over 20 per cent and weekly orders regularly over 130,000. The service reaches over 93 per cent of UK households, through its 187 stores. Non-food online sales also continue to grow, supported by the introduction of Click and Collect service, in over 160 stores. This allows customers the freedom to pick up non-food items ordered online at a store and time convenient for them, rather than waiting at home for a delivery.…

    • 5190 Words
    • 21 Pages
    Good Essays
  • Best Essays

    Tesco is the largest retailer in the UK and the third-large supermarket worldwide with total amount of sales exceeding £19.4 billion in 2010. It was originally specializing in food product, but in recent years it has provided different products and services from clothing, telecoms to financial services. Additionally, Tesco is the most extensive online grocery retailer in the world and it recognizes product images and pack information are essential for online shopping. In recent past, huge development has been made on international strategies. Its store are located in 13 countries and number would be still increasing as it has diverse strategies in order to satisfy different locations. The principle of Tesco is letting customers know they can pick what they want, when and where they want it.…

    • 2503 Words
    • 11 Pages
    Best Essays