Task 2013, Tesco grew their grocery home shopping

Task 1.1

In 1919, Tesco founded by Jack Cohen
as a group of market stalls. The Tesco name first appeared in 1924, after Cohen
purchased a shipment of tea from T.E. Stockwell and combined those initials
with the first two letters of his surname, and the first Tesco store was opened
in Burnt Oak, Barnet which located in England.

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His business expanded rapidly and by
1939, he had over 100 Tesco stores across the country. At early 1990s, Tesco
only sell grocery but after 1990s, Tesco start retailing books, clothing,
electronics, furniture, toys, petrol and soft, financial services, telecoms and
internet services. Tesco moved from being a down market high volume low cost
retailer, to one which appeals across many social groups. Tesco offers products
ranging from its normal values items to a cheaper items range. This plan makes
Tesco become more successful and its store started to grow from 500 stores in
the mid 1990’s to 2500 stores 15 years later.

The type of business organisation of
Tesco is wholesaler as well as retailer. Tesco have a network of over 50
hypermarkets in Malaysia. The centre distribution of Tesco located at Selangor.
In 2002, Tesco start launching their stores across Malaysia and recently opened
two new stores. In total, Tesco in Malaysia have a combined floor space of over
4 million square feet. In 2013, Tesco grew their grocery home shopping business
in its first year of operation in the country.

Tesco offer more than 4,000 own brand
products that 90% are sourced in Malaysia. Tesco include Tesco Value, Choice
and Finest, as well as specialist ranges such as a Lighter Choices. Tesco not
only sell daily needs like tissue papers, cutlery, ingredients but also selling
foods and clothes like prepared roasted chicken and jeans. They selling these is
to make their customer easier to get everything they need and help his customer
to save time as they can get everything they need in one time without going to
many shops.

Even this country, Malaysia is a
country with the main race, Malay, but Tesco still sells Alcohol drinks and
pork products. They are selling this, but they set an area for specially sell
this type of stuff, we call this type of stuff as “Halal”. They also provide
delivery services. They can send you the stuff you order to your house like the
pizza or food delivery service. But they not only deliver food but also stuff
or ingredients that you need. For example, while you are cooking, you found
that your butter is already finished but you forgot to buy it. Then you can use
Tesco delivery service to send the butter to you in a short period.

Task 1.3

1. Accounting
and Finance Department

Accounting and Finance Department is
to control the profit and expenses of an organization. This Department
calculate and record the monthly expenses and profit of Tesco organization to
ensure that they do not loss more than their limit. For example, the accountant
of the Tesco company will record the transaction of the month and pass it up to
their manager. This department also plan the organization future finance and
plan the budget that the organization need to use monthly.

 

2. Human
Resources (HR) Department

Human Resources Department main
function is to hire, recruiting, provide training and develop employees. Human
Resources Department also plan the workforce planning for the employees and
provide the worker timetable for each employee. This department is responsible
for internal recruiting and external recruiting of employee when there is job
vacancy in the organization. This department provide benefit plan to their
employees to encourage them in their work to make them more efficiency.

 

3. Sales
and Marketing Department

Sales and Marketing Department major
function is to set the price of the product and make promotion to sell
products. This department have to do survey on the market to get what the
customer needs. They also responsible to set the product price according to the
market price, amount needed and cost of the product.

 

 

 

 

 

 

4. Customer
Service Department

This department is aiming to help
Tesco’s customers by solving their questions and problems, and try harder to
treat them as they would like to be treated. Thus, Tesco Customer Service
Centres is set up as a place that provides excellent customer service. The
department’s managers are responsible to ensure the customer service options
are managed effectively. Besides the routine questions, they also manage a
competent after sales service, extended warranty and credit service for
customers. Now, they are making customers experience with them which is where
‘Every little Helps’ comes from, as it’s something they strive to every day.

 

5. Research
and Development (R&D) Department

Research & Development Department
is focus on bringing major improvements to Tesco’s Store Ordering and Supply
Chain systems to deliver better product availability, reduce stock holding and
lower waste. This department covers four major areas of the business such as
Sales Forecasting and Ordering, Depot Ordering, Optimization and Simplification
and Business Insight. The project managers are able to lead multiple
high-profile projects and deliver major improvements across the supply chain
through redesigning systems and processes. In a nutshell, much of work relies
on their ability to combine in depth analysis with practical recommendations
and the perseverance to get ideas implemented.

 

 

Department: Sales and Marketing.

Information System: Point-of-Sales

How to reduce the operational cost:

-First of all, this system can reduce the labor of human,
so it can perform more jobs with a limited worker. So that company can hire
lesser employees or certain position to reduce the cost of company. Next, this
system will help to improve efficiency of the sales. With the high efficiency
will increase the profit and the loyalty customer to consume in the company.
Thus, company can make more profit to become stronger in the super business. By
the system also can reduce the cost by reduce the human oversight or cheating
from human. This is because of the system have the regular rules to perform
before the item had sold. So means that this system can avoid employees
cheating in the company and avoid the miscounting of the cashier. Another hand
is the management can check the item through the system by entering the item
code. System will generate a report in a period time to predict item sale and
analysis the consumer needs.  POS system
can store the data into database and it is simple and accessible by the
inventory management. This system can save the wasted time to perform more
jobs. This system also can coordinate with other departments such as inventory
department. Inventory department can go through the stored data to check the
item in the inventory is it balances. Lastly, this system can save time by turn
the manually operation to automate system.

 

Department: Research and Development

Information System: Inventory Storage System

How to reduce the operational cost:

First of all, Inventory Storage System helps this
company to reduce costs by reduce the number of employees to do the work. This
system is easy to use because it can be used by every employee and does not
require employee that is professional in this field to operate it. Next, this
system also helps the company to reduce costs and expenses such as reduce
employees’ overtime wages. The employees of the company do not have to work
overtime because this system simplify their works in maintaining stocks and
keep track of their inventory. Moreover, the company does not need to order too
large of amount of the stock that cannot been sold easily. The company can know
easily which goods are selling well and which goods are not selling well so
that they able to know what goods they need to order more stock from
manufacturer. For the stocks that are not selling well, they can decide to stop
the order from manufacturer so that they don’t need to spend extra money for
non-beneficial goods. This system helps the company to reduce their loss and
gain more profit by helping the employee to decide the number of stocks need to
order without ordering too much or too less. Other than that, this system also
helps to save time for the employee when they are doing stock checking. Through
this system, all the information of the stocks is recorded inside it which save
the time for the employee when they are managing the stocks.

 

 

Task 2.2

1)      Student
Name: TEOH CHUN SING

Department:
Sales and Marketing Department

Information
System: Point-of-Sales system

Features/Function:
Point of sales system can record, return
or remove items from the sales transaction when the customer wants to give
back. It also can put back the items into inventory by key in the item code.
Example, company can accept the return product that customer accidentally took
it with the system at counter.

 

Department:
Research and Development Department

Information
System: Inventory storage system

Features/Function: Inventory storage
system can simplify the searching
process by key in the stock code to find out. For example, company can get
the exactly location of the past month stock that haven’t ship out.

 

 

2)      Student
Name: Goh Wei Jian

Department:
Sales and Marketing Department

Information
System: Point-of-sales system

Feature/Function:
This system helps the company in controlling
the stocks. This helps to reduce the loss of the company. It also enables
the company to understand what its customers’ needs so that the company can
provide what the customers want which help to reduce the wasting of the stocks.
Every item that are sold to the customers will be recorded in the system which
enable the employee to control stocks they need to order and don’t need to

order.

 

Department:
Research and Development Department

Information
System: Inventory storage system

Feature/Function:
This system helps Tesco to control their
inventory by maintaining their stocks. The staff can always keep track of
the volume of their stocks available. This system helps to simplify their
monthly stock checking and recording. This involves of having enough stocks in
case of facing an unexpected delay in getting stocks or having a excess sales
during promotion days.

3)      Student
Name: Tang Li Ze

Department:
Sales and Marketing Department

Information
System: Point-of-sales system

Feature/Function: This system help Tesco retailers can anytime access to data related retail business.
The information such as customers, inventory, annual sales, or any
information could be accessed from any part of the world. With the Point
of sales system, the company able to receive the record of the customers and
inventory, and other information from a location to another location. For
example, the retailer in United States can receive the information of customer
A such as his/her order list from the retailer in Malaysia to sell the customer
A what he wants but not available in Malaysia.

 

Department:
Research and Development Department

Information
System: Inventory storage system

Feature/Function:
This system helps to confirm about
the stock information. This system is used to ensure
that the stock of the goods will not be more and lesser than the limit (Forecast inventory). When the inventory
is out of stock, the system will alert the department so that the department
can order the stock that required.

 

4)      Student
Name: Lim ZiH’Ng

Department:
Sales and Marketing Department

Information
System: Point-of-sales system

            Feature/Function: POS system help a
business to grow because it can keep old customers loyal and continue to gain
new customers. This system is also used to keep
all member information to make the contact to customer easier. The POS
system also help the retailer to offer various discount, gift card, point
rewarding system to their customers.

 

Department:
Research and Development Department

Information
System: Inventory storage system

           
Feature/Function: When
the staff sell products and services to customer, the staff can use the bar
code to get the information of the service or goods to sell the goods and
service easier.

(record
inventory details) By tracking the amount of stocks, the staff can easily
know about what they need to restock or others. An inventory system provides
the necessary knowledge both for the warehouse worker to perform daily tasks
and management to have product and financial insight.

5)     
Student
Name: OOI YIN KAI

Department:
Sales and Marketing Department

Information
System: Point-of-Sales system

Feature/Function: This
system provides quick checkout. In
this modern generation, many of the people are busy with their work. They do
not have plenty of time to spend in queue to do something. The POS system
is the system that solve their problem which able to perform functions much
quicker and within minutes. For example, Payment function and price checking
function.

 

Department:
Research and Development

Information
System: Inventory Storage system

Feature/Function:
This system helps to generate reports.
When your stock is under a limit, the system will generate a report to show
that the stock is under the limit. This system will also generate perpetual
inventory validation and inventory forecast reports. The reports help the
senior level management to make an easier decision-making process

 

Information System: Point-of-Sales System (POS)

Type of output       
: Total amount of payment/Clubcard Point/Receipt/Invoice

Content                   : Items and its price,
billing code.

To whom           
    : Customer , customers’
company, sales department, service

                                  department.

Purpose                  : This system can help
customer calculates the amount owed by the customer, indicates the amount and
provide receipt for the customer that listing the items they brought and
knowing the price of items. This system also indicates the options for the
customer to make payment such as paying by cash, paying by credit card and
other way to pay. For an example, to calculates the amount owed by the
customer, the casher can use several ways such as bar code scanner, weighing
scale and cash registers. For the customer to make payment, payment terminal,
touch screens and other hardware and software options are available. Besides,
for the customers’ company, Tesco will produce an invoice that contains the
details of both companies such as name, business registration number and
address. The customer’s company will receive the invoice to check the quantity
and quality and paid the amount at later time. Sales department will collect
and process the information such as number of items sold, sales earn and
discount that store in the POS system. Sales department will then make a new
planning to attract the customer to consume in Tesco according to the
information. Service department will collect the customer’s clubcard points and
store in another system. The customer can check their point by using the system
and get vouchers using the point collected.

 

Information System: Point-of-Sales System

Type of output       
: Monthly Sales report

Content                   : Total sales in a month,
Stock left

To whom                   : Financial & Accounting
Department, Chief Financial Officer

                                (CFO), Sales
& Marketing Department

Purpose                  : This system helps to make
sure sales have been record monthly. Finance & Accounting department will
calculate the profit of the organization. Sales & Marketing department will
plan strategic to sell the left stock. With the monthly sales report, these
department’s burden can be reduced a lot. For example, Finance & Accounting
Department can directly calculate the profits with following the report, they
do not need to find and check the old receipt or other things to make sure that
they got the correct amount. And for the Sales & Marketing department, they
can know which things is leftover or the thing is over hot, so that they can
plan easily without make an investigation in the company to know what they
should do next. CFO of the company can review the monthly record of the company
and understand the status of the company. CFO can make critical decisions about
personnel, inventory, marketing, and general operations to make changes to the
company.