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E-Business Of Tesco Company


Electronic business is the application wherein the company gather the information and adopts the communication technology in support of all activities related to the business through the internet. An organization can trade with another company which includes the product and services through the internet network. Under this report, there are various aspects of the electronic business will be studied in the context Tesco. The present report covers, the company applies the supply chain management which helps to increases the revenue and productivity in the market. The supply chain based on the efficient and responsive under which company effectively fulfills the demand of the consumer and suppliers produces the product and services as per the economy, weather. In addition to this, the company effectively manage the demand and supply of the products in the offline and online context.

Case Study Overview

According to Fearne and Hughes, 2013, “ Tesco deal the products and services at the large scale under which many supply chain of this organization”(Fearne and Hughes, 2013).In this way, It is the third largest firm in the retail industry which offers various products and services to the customers. The company generates the revenue $54.443 billion in a year and the total number of the employees 476,000 working in the organization. Moreover, organization effectively and manage the supply chain of products and services which helps to generate a high amount of the revenue in retail industry.

Supply Chain Management

According to Janvier-James, 2012, “ supply chain management is the function wherein company can manage the flow of goods and services across the globe”(Janvier-James, 2012). In this context, it works in recycle under which includes the movement and storage related to the raw material and work in progress inventory. It also includes the finished goods under which all these process are complete and products ready for deliver thereafter company can communicate with the other supplier. It involves the chain of purchase process and distribute the products and services is called the supply chain. In this way, organization can monitoring and controlling the supply chain that is supply chain management. Furthermore, Tesco effectively uses the management of products and services which helps to maintains the flow of operation related to the material. The supply chain management is bases on the efficient and responsive. Christopher, 2016,has stated, “ efficient supply chain generates the high revenue of the firm and increases the overall productivity”(Christopher, 2016). However, if company not able to maintains the effective supply chain which creates the decline the brand image in the market. In this way, Tesco effective manage their supply chain under which includes the shipping charges, import and import charges etc. Efficiency of supply chain includes the optimization, high-quality partners, inventory management and customer satisfaction towards the material which is provided by the company. Moreover, organization also includes the third party like a government in decision making.

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The government formulates the rules and policy related to the supply chain under which manager of the Tesco manage their supply chain as per these norms. It includes the all records wherein company deal the another party regarding goods and services etc. Apart from this, supply chain directly linked up with the customer satisfaction under which company adopts the effective supply chain. In this way, organization deliver the goods and services to the customer who are willing to buy the product quickly and their needs. They provide the products with the best quality and reasonable prices which creates the satisfaction of the customer towards the services as well product. Henceforth, supply chain management plays important role in the organization which helps to maximizing the profit of the firm. Monczka, Giunipero and Patterson, 2015, “ the responsive supply chain depends upon customers needs”(Monczka, Giunipero and Patterson, 2015). In this context, manager of the Tesco are able to fulfils the consumer demand on time and quick response for demanding of the consumer. Organization focuses on the supply chain under which they fulfils the requirement at the work place and responsive to the need of the customer. It includes the order fill accuracy, scalable fulfilment, communication and customer satisfaction so that all these bases company response to the supply chain. Under order fill accuracy, company can deliver the quick services and product and order also arrived quick. However, products is inaccurate and incomplete so that negative impact on brand of the company. In this way, the employees also wasted the time as well money under which supply chain should be proper manner. It helps company to provide the products and services on time and attain the customer satisfaction. It affects performance of the organization because clients and customer are satisfied his services is provided by the employees on time. Accordingly, organization increases the sales turn over and overall productivity in retail industry. On the other hand, manager of the company have experience that ups and down in flow of products and services due to season. Wolf, 2014 ,has stated, “sales of the company also affected by the season, weather and economy”(Wolf, 2014). However, suppliers can store the raw material and complete the finish goods as per the season and weather. It helps company to effectively manage their products so as result these goods are not damages. They easily deliver the goods on time without wasted material as well damage. In this way, organization manage the supply chain under which they are able to deliver the goods whether ups and down of the season and changes of the economy. Henceforth, it affects the sales volume of the company and image. Moreover, communication plays active role in responsive supply chain and Tesco. The consumer have any query and problems which is related to the products and services.

Employees of the corporation are able to solve the issues and take the quick responses when customer have complain. Organization and customer communicate the open line communication which creates the interest of the consumer towards the product. According to Beske, Land and Seuring, 2014, “ consumer wants to the firm for producing the product as a best quality and sale at the reason price”(Beske, Land and Seuring, 2014). Tesco produces the products as per the buyers requirement which generates the satisfaction of them towards the company's products. However, organization not able to response the supply chain that effect the brand image and decline the sales turnover. Henceforth, efficient and responsive supply chain are interconnected. The chain efficient need to speed uniform order and efficiency or responsive supply chain need to the fulfils the demand , customized order etc. All these factor effectively used by the Tesco and manage their supply chain in the globe.

Supply and Demand Management in Offline and Online Context

Online Offline
According to Fan and Gordon, 2014, “company advertises the products and services through social media and online portal”(Fan and Gordon, 2014). In this way, manager of the Tesco focuses on the distributing channels which helps to manage the demand and supply. Organization appoints the delivery men who deliver the food at the home of consumer. It helps customers to easily get the product on time and company easily deliver the goods through the delivery men. Corporation effectively manage their demand and supply under which manager respond the demand of the consumer through the internet. According to Zhao, Liang  and Dolgui, 2016, “ company manage the data and supply and demand in offline context wherein manager take the feedback”( Zhao, Liang  and Dolgui, 2016). In this context, Tesco deals the products and services under which they provide the information related to the quantity and quality to the suppliers. They uses the offline communication style which manager identify the demand of the consumer through the feedback. By using feedback, manager have idea of consumer needs and wants accordingly they fulfils the demand of the buyers.
Tesco manage the demand and supply in online context under which they focuses on the delivery of products to the consumer. Furthermore, company develops their website which helps to easily classify the products category Tesco focuses on delivery of the products to the consumer under which they adopts the distribute channels. In this way, Tesco opens the number of outlets which helps to manage the demand and supply. It also helps consumer easily approach the outlet of the organization and purchases the food. Siano,2014, has stated, “ manager conducts the survey for identify the demand of the customer”(Siano, 2014).
Consumer can  order  of the foods  through the website and online application of the firm accordingly employees make the order and deliver the online. On the other hand, company provides the e- payment facility to the customer under which buyers pay the amount of the products through the debit and credit card and e- payment. It helps company easily collect the money and customer pay the amount without barriers. Henceforth, all these whether online and offline which is effectively used by the firm for managing the demand and supply of the products and services in the market. Manager get the idea as per this they require to  available of the food at the store which helps buyers easily find out the products and buy it. On the other hand, organization appoints the employees for maintaining the order which is allotted by the customers and deliver to the them. It helps manager to easily manage their supply of the products on time. It affects performance of the firm because customers are satisfied his services is provided by the employees on time. As per this, it helps corporation to increases the market share in retail industry and maximizing the profit of the firm.

Compare and Collaborate

According to Richards, 2015, “ all these methods like online and offline which is used for Tesco of manage the demand and supply”( Richards, 2015).In this context, company uses both the method but improves in the offline method of managing the demand. They deliver the goods and services via offline under which individual approach the company and wants the foods. Accordingly, employees require to quickly responds the demand of the consumer which positive affect the brand of the corporation. They are able to deliver the quick services and solve the customer issues which creates the satisfaction of buyers towards the products. Moreover, in case they not able to provide the goods on time to the customer and not solve the query of them which generates the dissatisfaction of the buyers. It affects performance of the Tesco and decreases the overall productivity in UK market as well sales turnover. On the other hand, Yao, 2015, has stated, “ online methods is also good for managing the demand and supply in the market”(Yao, 2015). Tesco requires to improves the online method under which employees quickly manage the demand of the buyers. In this way, manager reduces the barrier which occur at the workplace and while making the order of the consumer. It helps workers to easily make the order and manage the supply of goods. They need to identify the proper number of order and the delivery address of the consumer. Henceforth, the offline method is good for the Tesco under which they easily manage the supply and demand. It also helps company to increases the market share and maximizing the profit of the firm.

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Summing up the whole report, it can be concluded that, supply chain management plays an important role in the firm and suppliers. The company effectively manage the supply chain of the goods and they store the raw material in a safe place. Manager produces the products and services as per the economy and season. In this way, the manager of the Tesco effectively response the demand of the supply chain and efficiently. It helps to increases the high amount of revenue and maximizing the profit. With the help of offline and online, the company manages the demand and supply of the goods and services under which employees are able to the quick response of the consumer. It creates the satisfaction of the customer towards the product. In addition to this, the manager focuses on the distribution channel and delivery of the goods to the buyers.

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  • Beske, P., Land, A. and Seuring, S., 2014. Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature. International Journal of Production Economics.
  • Christopher, M., 2016. Logistics & supply chain management. Pearson Higher Ed.
  • Fan, W. and Gordon, M. D., 2014. The power of social media analytics. Communications of the ACM.
  • Fearne, A. and Hughes, D., 2013. Success factors in the fresh produce supply chain. British food journal.
  • Janvier-James, A. M., 2012. A new introduction to supply chains and supply chain management: Definitions and theories perspective. International Business Research.
  • Monczka, R. M., Giunipero, L.C. and Patterson, J. L., 2015. Purchasing and supply chain management. Cengage Learning.
  • Richards, M., 2015. Supply Chain Implications In Regards To Consumer Behavior In Online Retail: Site-To-Store Versus Direct Shipping (Doctoral dissertation, Texas Christian University Fort Worth, Texas).
  • Siano, P., 2014. Demand response and smart grids—A survey. Renewable and Sustainable Energy Reviews.
  • Wolf, J., 2014. The relationship between sustainable supply chain management, stakeholder pressure and corporate sustainability performance. Journal of business ethics.
  • Yao, J. M., 2015. Supply chain resources integration optimisation in B2C online shopping. International Journal of Production Research.
  • Zhao, F., Liang, L. and Dolgui, A., 2016. Lateral inventory transshipment problem in online-to-offline supply chain. International Journal of Production Research.
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