STRATEGIC MANAGEMENT

Strategic Management

Abstract

The emergence of sophisticated technology has changed the way of doing business. In addition, the penetration of the Internet into diverse business operations has expanded the horizon of customers' demand. The changing patterns of consumer behaviour have encouraged businesses to shift from traditional ways of doing business to online business. Tesco is one of the leading retailers. The business model that TESCO has used for the adoption of e-business strategies is a hybrid model. The use of hybrid approach allowed Tesco to employ the Internet in order to streamline the order taking process. In the hybrid e-business adoption model used by Tesco, when the business volume exceeds a certain point where low-cost labour resources can no longer be used, technology will be adopted to manage the process.

Strategic Business & IT Management

Introduction

The current business environment is undergoing diverse changes. The Internet is penetrating into every area of business. The penetration of the Internet has facilitated a number of businesses. In addition, it has expanded the horizon of customers' demand.

The emergence of advanced internet technology has increased competition in the retail market of the United Kingdom. The major players that are operating in this market include Tesco, J Sainsbury, ASDA, and Safeway. The surge of sophisticated applications has encouraged all these businesses to develop online grocery operations.

The company that has been selected to conduct this study is Tesco. This paper aims to evaluate the adoption of e-business application and strategies by Tesco.

Literature Review

Corporate Objectives of Tesco

TESCO is one of the United Kingdom's leading food retailers. TESCO has approximately 519 stores in England, Scotland, and Wales. The corporate objective of TESCO is to provide customers with the best value for money. Tesco intends to offer products at the most competitive prices (Jobber, 2009, pp. 290).

TESCO aims to provide shareholders with progressive returns on investment. TESCO is achieving this objective by investing in improved technology. The corporate objective of TESCO is to develop the talent of its people. The company strives to achieve this objective through effective management and training practices. TESCO strives to meet the needs of customers seeking and respecting their opinions. This approach helps company improve the quality of its service and products (Willocks, 2001, pp. 50).

Tesco's mission is to generate worth for consumers to gain their loyalty for the life time. Tesco's success is reliant on the customers and the people, the customers who do the shopping and people who are working with them. Customers are likely to return if they like what Tesco is offering them, and shop again with them. If the team finds what Tesco reward them, team work more hard to help customers (Barczak, 2003, p.56).

The Integration of IT

In order to contend in this fast world, it is necessary to adapt to changes with an extraordinary speed, make continuous improvement of services, processes and products. Tesco's operations are not luxuries they have become necessities for the people. Systems for inventory control helps in order to maintain complete records of deliveries ...