Tesco Case Study Essay
I have chose Tesco Company as an example of a company that has been using information technology to move forward. I chose Tesco as an example because I am amazed with the strategy of Tesco in using information technology as it has helped the company to be successful. 4. 1. 1HYSTORY OF TESCO On the year of 1919, Tesco was founded by Jack Cohen from a market stall in London’s East End. Tesco has operates over years now and the business has grown successfully. Now, it operates in 14 countries around the world including Malaysia, employ over 500,000 people and tens of millions of customers have been served every week.
Tesco also has always being committed in providing the best shopping experience. 4. 1. 2TESCO IN MALAYSIA Tesco opened its first store in Malaysia in May 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 45 Tesco and Tesco Extra stores. Selangor has 12 stores, Perak seven stores, Johor six stores, Kuala Lumpur and Penang five stores each, Kedah four stores, Negeri Sembilan three stores, Melaka two stores, and Kelantan one store. Tesco has partnered with local conglomerate Sime Darby Berhad. 4. 1. 3VISION
The main vision is Tesco to be most highly valued by the customers served, the communities in which operated, the company’s loyal and committed staff and shareholders. Next, Tesco has to be a growth company, a modern and innovative company and winning locally. 4. 2HOW INFORMATION TECHNOLOGY HELPS TESCO TO BE SUCCESSFUL Tesco has been an effective user of information technology in its history. As information technology has helps in improving the standard of the company. There is some of the strategies involved information technology used by the company. Firstly, there is a creation and exploitation of customer database.
A very good move had been done by Tesco in the early 90s in introducing their clubcard. The clubcard gave customers discounts at the cashier counter and this is for their loyalty. Green Shield stamps have been used by Tesco earlier as it also helps Tesco in making the first move towards loyalty card oversea (United Kingdom). Data of their customer such as name and address are collected. The clubcard can collect more data such as diet requirements, birthdays, households (optional), the frequency of purchase, customization of basket, size of purchases and many more. Databases are filled with all the data collected and processed.
The reason is to improve sales and marketing of Tesco. Clubcard had been used by 8 million users which was making 200million in store purchases per day in the year of 2001. Secondly, since today technology is one of the tools which has been used by the people of the world, information is automatically spread. Tesco has its own website, for Malaysia the url is www. tesco. com. my. Customers can access and gain many information of Tesco by only surfing the website. Some of the information is promotions promoted during the season or the year, and displays of products are displayed on the websites.
By only surfing the websites, customers can gain some ideas on which items will they want to buy in Tesco. Next, with information technology, affective and attractive commercials can be done. Tesco has made numerous commercials on various types of media. For examples, commercials on radio and televisions have been done. The reason on why the commercials are done is to attract more customers. When the numbers of customers increases, the number of regular customers will be increasing too. This is automatically will maintain and increase the revenue of the company.
The conclusion is, information technology has been used by Tesco and it helps the company to be successful in many ways. 5. 0CONCLUSION The conclusion which can be made based on overall is that the definition of information technology is the study or the use of electronic equipment especially computers, for collecting, storing and sending out information. Moreover, by using information technology, information can be spread easily and immediately. This is due to the advancement of technologies and the increasing numbers of technology users across the world.
Other than that, one of the roles or importance of information technology is it is the enabler of business success and innovation. As by the using of information technologies, many organizations or companies’ standards and revenue can be maintained and improved since they have been using technologies in managing, processing, storing and sending information. The process and procedure can be done easily and accurately. These can lead to a fulfill wants and needs of customers. Nevertheless, customers satisfaction on the company services can be increased too.