Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Sta. Mesa, Manila
COLLEGE OF ACCOUNTANCY AND FINANCE
Department of Management Accounting
Academic Year 2022 – 2023

CASE STUDY WRITTEN REPORT

THE PROBLEM OF ONLINE ORDERING

PROCESS TECHNOLOGY
TESCO PLC

In Partial Fulfillment of the Requirements in

Operations Management and TQM (BUMA 20093)

Submitted by:

MANULAT, Warren Carlo G.

BSMA 2-5

Submitted to:

Prof. Bonifacio P. Echauz

June 2023
1. NAME AND PROFILE

Tesco PLC

Tesco PLC, founded in London by Jack Cohen in 1919, is a global British retailer
of groceries and other goods, with its main office in Welwyn, Garden City, England. It
was the third-largest retailer globally in terms of gross sales in 2011 and the ninth
largest globally in terms of revenues. As one of the leading multinational retailer
companies all over the world, they aim to give service to its customers every day with
accessible, health, and sustainable food so that they can enjoy better quality of life and
easier way if living.

2. BRIEF HISTORY

The Early Days

In 1995, Tesco purchased 19 Burnard’s stores. The said company obtained 500
new stores to its portfolio over the next five years. They grew outside London over the
next decade by buying 212 Irwin’s stores in Liverpool. In 1964, Tesco ventured the self-
service business, in which they bought 97 Charles Phillips stores, bought Cadena which
has 49 bakeries and cafes, and obtained Manchester-based Adsega which owned 47
stores.

The 1980s and 1990s

Tesco bought a Cartier store in Kent in 1980 after a long hiatus. Seven years
later, Tesco's hostile takeover of the Hilliers chain, which includes 40 supermarkets in
northern England, has been completed.

In 1994, Tesco made several strategic acquisitions, including Scottish grocery

chain William Rowe and Dutch company S Market. With the acquisition of the Savia
chain in 1995, Tesco entered the Polish market.

In 1996, the company acquired a number of Kmart stores in Slovakia and the
Czech Republic. Irish retailers Quinnsworth, Stewarts and CrazyPrice were acquired
when Tesco acquired the retail division of Associated British Foods.

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 Tesco made some acquisitions that made sense at the time, but ultimately cost
the company money. For example, the company he bought Victor Value chain in 1968
was sold in 1986 due to significant losses. Also, Tesco acquired the French
supermarket and convenience store chain Catteau in 1993. Four years later, the
company had to sell the chain because it failed to meet its operational goals.

The 2000’s

In the new millennium, Tesco was able to have a series of key deals:

 Acquisition of 13 HIT hypermarkets in Poland in 2002

 Acquisition of Kipa shops in Turkey in 2003
 Purchasing of Adminstore convenience stores in London in 2004
 Bought out 21 Safeway/BP stores in 2005
 Acquiring 80% stake in Poland's Leader Price supermarkets in 2005
 Purchasing Dobbies Garden Centres in 2008 and then sold later on in 2016.
 Buying 36 Homever stores in South Korea in 2008
 Acquisition of retail consultancy Dunnhumby in 2010
 The buying of the mobile book platform Mobcast Services in 2012
 Buying Giraffe restaurants and cafes in 2013
 Buying Euphorium Bakery in 2015 and selling it a year later
 Acquiring the food wholesaler Booker Group in 2017

3. SITUATION ANALYSIS / BUSINESS OR INDUSTRY ENVIRONMENT

3.1. 5 Porter’s Forces Analysis

A deep comprehension of the 5 Porter’s Forces of Tesco PLC is a vital guide so

that we can evaluate the various external business factors that affects the said
company.

The Threat of New Entrants for Tesco PLC is very low. Considering that
Tesco PLC is one of the leading multinational retailer companies all over UK, the threat

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of new entrance is deemed to be very low due to the capital requirements, which means
the said company does not have to worry about new entrants for they already are taking
advantage the economies of scale and has its own internal competencies. In addition,
future competitors may lack ample money, access to network of distributions, and
expertise to understand the supermarket industry in the UK. Tesco established itself as
a major player in the United Kingdom's supermarket and grocery sectors by building up
an extensive brand presence. As a consequence, even if they enter the market, new
entrants will not be able to compete effectively in the near future.

The Threat of Substitutes for Tesco PLC is relatively low. It has a wide range
of products and services and is the largest supermarket chain in the UK. As similar, it's
doubtful that consumers will switch to indispensable products or services. Tesco sells
backups of the maturity of the products. For illustration, it sells both adulation and
margarine. Likewise, it also sells fresh milk, condensed milk, and greasepaint milk. It’s
thus easy to argue that the trouble of cover products and services for Tesco is veritably
low if not inapplicable.

The Bargaining Power of Customers for Tesco PLC is low. Considering that
Tesco caters service to millions of people every week, instore and online, the
customers’ bargaining power is low for the reason that they are not organized. This
results to a conclusion that it is unlikely that it would be better for them to switch to
Tesco PLC’s competitors such as Asda and Saintsbury’s.

The Bargaining Power of Suppliers in the case of Tesco PLC is low. The
dealing power of suppliers is another important factor in Porter’s five forces analysis of
Tesco. It refers to the capability of suppliers to negotiate prices and terms with buyers.
In the case of Tesco, the dealing power of suppliers is low. Tesco has a strong
presence in the UK, Ireland, and some other countries. As similar, suppliers are doubtful
to be suitable to negotiate prices and terms with it. Tesco works with 2,500 suppliers in
the UK, and numerous further thousands abroad. still, these suppliers cannot ply any
significant power on it as there are so numerous of them out there who are further than
willing to work with it. Tesco negotiates veritably hard with the suppliers to increase its
profit perimeters.

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 The Competitive Rivalry in the case of Tesco PLC is relatively high. The
intensity of competition refers to the competitiveness of the assiduity and the degree of
competition between enterprises. In the case of Tesco, the intensity of contest is fairly
high. Tesco has a number of important challengers in the UK. These challengers spend
lavishly on advertising and other marketing ways.

Though Tesco is the current leader in the UK, the pressure from the nearest
competitors is intense. Likewise, price- wars launched by Aldi and Lidl are affecting its
profit margins. Thus, it has taken a number of enterprises to beat challengers. Tesco
has been exploring applicable results to resolve the problem of intense of competition.
For example, Jack’s (a reduction chain) was opened to rival with Lidl and Aldi. Still, its
performance has been poor with disappointing deals, and job losses. Accordingly,
Tesco has decided to close it.

3.2. PESTLE Analysis

POLITICAL. Tesco operates on a global scale; hence global political factors

have a significant impact on its operations. These include tax rates, legislative acts, and
the stability of the country in which it works. Several governments urge retailers to
create jobs for the domestic population due to the world's persistent insecurity. Tesco's
role in offering job opportunities improves demand for its products and broadens its
workforce.

ECONOMIC. Tesco is primarily concerned with economic factors, as they are

most liable for costs, demands, profits, and prices. As a result, the company should be
informed of any policy changes, such as changes in taxation or any other factors that
may affect the availability of finance. It is vital to keep in mind that, while the company is
expanding worldwide, it remains heavily reliant on the UK market, where it has a 30%
market share.

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 Given that, internationalization and diversification have been two crucial
strategies adopted by the corporation throughout the years, and they have been an
important factor in its ongoing success. Moreover, as disposable income levels and
household incomes have declined, Tesco has switched its advertising focus to value
brands rather than more expensive ones.

SOCIO-CULTURAL. Guests in the UK have shifted toward bulk purchasing and

one- stop shopping as a result of a range of social developments. As a result, Tesco
has boosted the volume of non-food particulars available for purchase. Consumers'
preferences for goods and services are largely determined by their beliefs and stations,
which in turn are told by social exertion. Tesco has responded to these changes by
supporting the demand for organic products since guests are getting more conscious of
health issues, as a result of which their approach to foods is evolving continually.

TECHNOLOGICAL. Tesco was given numerous opportunities as a result of

technological developments. One of the two instances is the development and launch of
online shopping with home delivery options. Second, self-service checkout stations
have increased customer convenience and simplicity, lowering labor costs. On top of
that, Tesco has spent an enormous amount of money on energy efficiency projects in
order to meet its long-term goal of reducing its carbon footprint.

LEGAL. Tesco's performance can also be directly impacted by government

policies and legislation. For instance, the Food Retailing Commission (FRC) proposed
in 2004 the implementation of a Code of Practice that would prohibit several present
activities, such as raising prices without permission or demanding payments from
suppliers. To implement these measures, Tesco offers its customers price savings on
fuel purchases based on the amount spent at its grocery stores. There are also various
special deals with reduced costs.

ENVIRONMENTAL. Considering the growing demands on businesses to

address environmental challenges and implement business practices that benefit
society, Tesco has made an explicit commitment to lowering its carbon footprint by 50%
by 2020. Tesco is also reducing waste in its stores by raising customer social
consciousness.

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4. VISION, MISSION, MAIN OBJECTIVE, AND CORE VALUES

*(retrieved from Tesco PLC’s website for research purposes)

Vision Statement

“to be the most highly valued business by: the customers we serve, the
communities in which we operate, our loyal and committed colleagues and of
course, our shareholders.”

The statement comprises of these main components:

1. Most highly valued enterprise - This element demonstrates how effective

the vision statement is in making clarifying the ideal unborn position of Tesco.
The fact that the company strives to be largely valued shows that it remains
married to meet the requirements of all its players in colorful ways to
ascertain their fidelity. The periodic reports of Tesco show that it's formerly
making emotional mileposts towards this accomplishment.
2. Flexible for all – Tesco PLC designed themselves in a manner that is can be
able to serve everyone just to ensure that they will be the most favorable
brand for all

Mission Statement

“We make what matters better, together.”

The statement has the following key parts:

1. Improving health - The character behind Tesco within and beyond the UK lies
exactly on its exacting station when it comes to the health of its guests as shown

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 by this element. moment, this supermarket is maybe the stylish in the region,
grazing straight- from the ranch groceries and going a redundant afar to keep the
hygiene within all its outlets at the loftiest position.
2. Distinguished quality - As Tesco celebrates over 100 times of great value to its
guests, it echoes its unwavering passion in serving its guests more every time.
The company does this by going beyond the bare minimum of supplying its
shoppers with products to choose from – it creates a bond of fellowship to help
them make indeed better choices.
3. Improving lives – Tesco is much more than shopping experience. The said
company also considers the difference that even the smallest help does to the
needy.

Core Values

Tesco PLC’s core values comprises of “customer-focused, caring for all, and
little help make a difference.” For over a century, these are the main principles that
have come to define Tesco as a pot. They've created a strong internal culture within
Tesco making it a dependable brand due to how it values its guests. Tesco specifically
considers guests the most important part of its business. That's why its culture inclines
on furnishing them with the most ultramodern and conducive shopping terrain. To
ensure seamlessness and pot with everyone, this company has strategies in place to
promote the growth and provocation of its workers. In addition, Tesco demonstrates its
character by contributing to other social and profitable developments of the people it
serves.

5. ESTIMATED TIME SETTING / VIEWPOINT AND SOURCES OF DATA

This particular case analysis was conducted by Warren Carlo G. Manulat of

BSMA 2-5 on the 1st week of June 2023 and is estimated to be finished by the last week
of June 2023. This is in partial fulfillment of the requirements in the subject Operations

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Management and TQM. The researcher took almost 3-4 weeks to complete and finalize
this paper.

To ensure the credibility and accuracy of the data, the study’s references shall
only be composed of those articles and other related studies dated at most 5 years ago.
The sources of data are mostly online articles from famous and reliable sources of
information and trusted agencies or organizations.

6. CURRENT SITUATION OF THE BUSINESS ENTITY

As of the present time, it operates in several countries, including the UK, Ireland,
Hungary, and Thailand. In terms of financial performance, Tesco PLC reported a
revenue of £64.8 billion in the fiscal year 2020, with a net income of £1.3 billion.

In the 2022/23 financial year, Tesco made over 60 billion British pounds in
revenue in the United Kingdom and the Republic of Ireland. This was a growth of more
than three billion pounds compared to the previous year. Additionally, the company's
profit in the UK and ROI increased and reached 1,249 million in 2022/23.

In April 2023, Tesco had a market share of 27 percent of the UK grocery market.
Tesco's market share remained relatively stable during the survey period, varying
between 26 and 28 percent. The rest of the so-called big four, Asda, Sainsbury's and
Morrisons, have seen their market share decline. The market winners were German Lidl
and Aldi. Aldi has just taken fourth place from Morison’s in the grocery store rankings for
the first time.

Despite the significant increase in Tesco PLC’s revenue for the current period,
they recently had major technical issues for its online orders from their customers. After
approximately more than a thousand customers ordered online in the midst of the
freezing winter season, and without food to eat, their orders were suddenly cancelled.
The cancelled orders will take at least five (5) days before customers can claim their
funds, leaving them no choice but to wait since they’ve already used their funds allotted
for groceries, which made them even more furious against Tesco PLC.

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7. STATEMENT OF THE PROBLEM

Considering the recent issue about mass cancellation of online orders, how can
Tesco PLC improve their current process technology to avoid current and future
malfunctions on their online ordering system?

8. CAUSES OR SYMPTOMS OF THE PROBLEM

1. Online Ordering Demand Overflow - due to excessive demand of customers that

want to avail the online ordering service of Tesco, Tesco was not able to keep up with
the soaring demand, which extremely went up due to COVID-19 and community
quarantines all over the UK.

2. Flooded Servers - since there is large demand for the online shopping service, a lot
of users are trying to access the application or website. This results in flooding the
servers with more customers than it should be, causing the system to be unstable and
malfunction and have technical issues.

3. Poor Online Delivery System - since the system was not able to keep up with the
demand, their servers being shut down and having errors is a proof that they have weak
online delivery system

9. SWOT ANALYSIS

9.1. Strengths

a. Strong Brand Image

i. Tesco has built a powerful brand image which is well-known for
their product’s quality and affordability. With that, their company
have earned a loyal customer base that helped Tesco to establish
their name as reliable and a brand with good reputation.

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b. Large Store network
i. Tesco possesses a vast array of stores situated across the globe,
conveniently accessible to its customers. This provides the
company with the opportunity to expand its customer base and
enter new markets. The extensive branch network is a major
benefit, enabling the company to reach a broad customer base in
various regions and countries. The presence of numerous stores in
different locations also enhances the visibility and brand recognition
of the company. Furthermore, the extensive store network allows
Tesco to secure more favourable deals with suppliers, thereby
boosting profitability.

c. Efficient Supply Chain

i. The effective supply chain management system of Tesco
guarantees prompt delivery of goods to clients, decreasing waiting
periods and elevating customer contentment. Constructed to
reduce expenses and optimize efficacy, it allows clients to receive
their orders promptly and without any complications. This
proficiency curtails wastage, enhances stock management, and it
heightens the company's profitability. It also empowers enterprises
to react swiftly to variations in demand and market inclinations.

d. Sustainability Initiatives
i. By implementing measures like minimizing food wastage and
adopting sustainable energy sources, Tesco has established a
reputation for being an environmentally responsible company,
which has in turn drawn customers who are conscious of their
ecological footprint. This approach has not only led to cost savings
and improved operational efficiency, but has also resonated with
various stakeholders such as employees and investors who share
similar values.

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 e. Highly Trained Staff
i. The staff at Tesco are highly skilled and informed about the range
of products and services the organization provides, leading to an
enhanced customer experience and greater customer contentment.
Our workforce undergoes thorough training to ensure they possess
the expertise and abilities required to deliver exceptional customer
service. This not only elevates the customer experience but also
boosts sales and customer allegiance. Tesco places a strong
emphasis on employee training to ensure that we maintain a
superior level of service across all our outlets.

9.2. Weaknesses

a. Poor Online delivery Service

i. Tesco's internet-based distribution system was facing difficulties in
meeting demand, leading to tardy deliveries and cancellations,
causing annoyance to customers and adversely affecting the
company's image. The logistical complexities of transporting fresh
and perishable items are additionally creating obstacles for Tesco's
online enterprise. Tesco should focus on enhancing its supply chain
and logistics competencies by embracing more effective delivery
methods, fine-tuning delivery routes via data analysis, and
collaborating with third-party logistics suppliers. They should also
enhance customer service by furnishing up-to-date information on
delivery schedules and compensating for tardiness or cancellations.

b. Over-reliance on UK Market
i. The excessive dependence of Tesco on the UK market not only
restricts its possibilities for development and expansion into other

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 markets, but also exposes the enterprise to fluctuations in
consumer preferences and purchasing behavior. For instance, the
trend towards online shopping could trigger amplified rivalry and
disarray of conventional retail models, thereby affecting Tesco's
profitability even more. To surmount this drawback, Tesco must
investigate growth prospects in emerging markets, broaden its
range of products and services, and allocate resources to digital
capabilities to boost its online visibility.

c. Weak Corporate Social Responsibility (CSR)

i. Furthermore, the adverse coverage encompassing Tesco's
corporate social responsibility endeavors has impacted its
competence to draw in and retain skilled individuals, specifically
among the younger demographic that values social and
environmental principles. To resolve this predicament, Tesco must
participate in significant discussions and partnerships, integrate
stakeholders in its CSR decision-making procedures, and confirm
its dedication to sustainability and ethical procurement by means of
tangible deeds and quantifiable outcomes.
d. Relying on a few suppliers
i. Dependence on a limited number of primary suppliers exposes the
company to potential supply chain interruptions and scarcities,
which can impact product availability and sales. To address this
risk, Tesco may consider broadening its supplier network, adopting
more adaptable sourcing approaches, and forging stronger ties with
its suppliers. Additionally, it should put into effect risk management
measures, such as contingency plans for supply chain
interruptions, and leverage data analytics to track and anticipate
shifts in supply and demand.

e. Scandals

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 i. The reputation of Tesco has been tarnished by different
controversies, such as the horse meat scandal and claims of
abusing suppliers, making it difficult to restore the confidence of the
consumers. The unfavorable publicity has not only impacted the
sales and standing of Tesco but also led to legal and monetary
consequences. To enhance its brand image, Tesco might consider
embracing a proactive approach to corporate social responsibility,
like integrating more sustainable and ethical methods, involving
with stakeholders, and conveying its principles and deeds openly.

9.3. Opportunities

a. International Expansion
i. Tesco has the opportunity to investigate the possibility of expanding
its operations to more global markets, which could lead to the
acquisition of new clients and the growth of its income sources. The
corporation has already accomplished successful expansions in a
number of nations, including Hungary and Thailand. Nevertheless,
there are numerous other markets that it could explore, such as
Africa, Asia, and South America, as well as developed markets in
Europe and North America. By venturing into fresh markets, Tesco
can broaden its customer base and revenue streams, while also
mitigating its risk.

b. Collaborations with other companies

i. Tesco has the capacity to investigate openings for alliances and
associations with other businesses in the retail or technological
domains. For instance, the business could form an alliance with a
technology enterprise to invent advancements in the retail industry
or cooperate with a provider to generate fresh product proposals.

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 Such associations could aid Tesco in maintaining its creativity and
sustaining its competitiveness in the market.

c. Community Engagement
i. By establishing more robust connections with neighboring
communities through philanthropic undertakings, endorsements,
and other community-centric endeavors, Tesco could enhance
brand allegiance and attract more customers to its stores.
Establishing more robust connections with local communities could
also enable Tesco to comprehend and address the distinct
requirements and inclinations of diverse regions and localities,
which could potentially lead to higher sales and customer devotion.

d. Sustainability
i. With the growing awareness among consumers about their impact
on the environment, Tesco may consider adopting sustainable
measures like minimizing packaging waste, providing an array of
eco-friendly merchandise, preserving energy, advocating fair labor
practices, and extending support to local communities. This will
help Tesco enhance its credibility and attract customers who give
precedence to sustainability and social accountability.

e. Technology Integration
i. Tesco has the potential to enhance its supply chain by utilizing
technology, which may result in amplified efficiency and customer
loyalty through optimized inventory management and personalized
customer experiences. This could involve deploying artificial
intelligence, data analytics, and automation to streamline
operations and personalize customer engagements. Tesco may
also try out innovative store formats, for instance, cashier-less
checkout and augmented reality displays, to offer a distinctive

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 shopping experience. By embracing technological advancements
and innovation, Tesco can maintain its competitive edge and
sustain growth.

9.4. Threats

a. Intense Competition
i. Tesco is encountering fierce rivalry from other leading supermarket
chains, including Sainsbury’s and ASDA, as well as discount
retailers such as Aldi and Lidl. This may result in price conflicts,
diminished profits, and a decline in the company's market share.
The introduction of online retailers like Amazon into the grocery
industry could also result in a loss of market share for Tesco's
online delivery service. Moreover, Tesco's dependence on brick-
and-mortar store locations may restrict its capacity to compete with
online retailers that have lower operating costs and more
adaptability.

b. Preference Changes of the Customers

i. The tastes of customers are always changing, and if Tesco fails to
keep pace with these shifting trends, it may cede market share to
its rivals. Suppose, for instance, that customers begin to favor
organic or plant-based items more and more. In that case, Tesco
might need to modify its products to stay relevant and competitive.
Neglecting to respond to these evolving preferences could tarnish
Tesco's brand image, which could result in negative long-term
impacts.

c. Cybersecurity Threats
i. Being one of the biggest retailers in the UK with a vast presence,
Tesco is susceptible to cyber intrusions that may jeopardize

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 sensitive client information and harm the enterprise's image. The
implementation of cybersecurity protocols can be an expensive
undertaking, which could affect Tesco's fiscal position.
Nonetheless, neglecting to tackle the cybersecurity perils could
culminate in legal or regulatory sanctions, causing additional
monetary predicaments.

10. ALTERNATIVE FORMULATION AND EVALUATION

10.1. and 10.2. Alternatives and Evaluation for Each

Alternative 1: Investment on Improvement of Online Order System

Tesco PLC should invest additional capital for the improvement of their online
order system such as its applications and programs for the latter. This involves putting
money on programmers and developers to improve this system since this is one of their
process technologies, therefore has a higher possibility of increase in revenue.

Advantages:

 High demand for online order services will be satisfied and

accommodated.
 Meeting the high demand will result to increase in sales abruptly.
 It will be a good investment for the long run, generating higher revenue

Disadvantages:

 Involves risking a huge amount of money and resources

 Choosing the right software development companies will be difficult due to
competitive market in times of digital age, wherein technologies are
emerging and widely present

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  Construction of a better system might take a while, which makes the
online ordering service idle for the meantime, generating no revenues for
a while

Alternative 2: Setting a Threshold for Orders per day

Instead of changing the current process technology to keep up with high

demand, which is the online ordering service system, the company can just put a
threshold on orders per day, so that they can avoid greater cost yet can still the online
customers one at a time

Advantages:

 Tesco can avoid putting more money and has much lesser cost than other
alternatives
 With this, system malfunctions can be avoided, therefore avoiding
additional costs for fixing it since it might be much more costly
 Tesco PLC’s online order system will not be put in idle and can still
accommodate customers

Disadvantages:

 Since we’ll have a limit of orders per day, Tesco cannot take advantage of
a lot of customers, therefore cannot also maximize their profit
 A lot of customers might get angry, including loyal customers, which
Tesco risks to lose those loyal customers
 The opportunity cost is much bigger than the amount that can be gained
from this alternative

Alternative 3: Collaboration with Third-party Logistics Company

By collaborating with third-party logistics companies, they can pass some of the
heavy tasks and processes when it comes to online ordering service since they offer
order processing and services like warehousing, picking, packing, and shipping.

Advantages:

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  Passing on some part of the processes will be a huge relief on Tesco
PLC’s end since they don’t have to think much about some parts of the
process
 Let the third-party logistics worry about the packaging, delivery, etc.
 Can save cost for building maintaining costly logistics infrastructure

Disadvantages:

 Improper handling of goods being delivered to the customers

 Since there is a possibility of goods mishandling, there is a risk of
customers being angry for the poor delivery service
 Loss of control for the goods being sent to the customers

11. CONCLUSION

In conclusion, Tesco PLC still stands as one of the “Big Four” of the
supermarkets on the food retail market, in consideration the recent report of their
revenue and the significant increase of their return on investment (ROI). However, it is
evident that the problem with their online ordering service system is a major risk for
Tesco PLC and the need for it to be resolved is crystal clear since this can set
drawbacks, affecting the revenues generated on the upcoming years. Being one of the
leading retailers in UK, they definitely should uphold their core values to be customer-
focused, be caring for all, and give a little help make a difference.

12. RECOMMENDATION

All three of alternatives are great options for Tesco PLC to take. Every single
choice has its own advantages and disadvantages. After carefully weighing in the
benefits and the costs, they can either invest on improvement of their online ordering
service system, setting a threshold for orders per day, or collaborating with third-party
logistics provider companies. The first alternative is great if the management has
declared it is capable of investing. The second alternative is good for minimizing cost.

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Lastly, the third alternative is good for reducing some of the process, as well as the cost
of building logistics infrastructures.

13. RELEVANCE TO THE TOPIC

Process technology is defined as the tools, machinery, and apparatus used in the
production and/or delivery of goods and services. Workflows can be automated, made
simpler, and business processes sped up using process technology. Additionally, it can
enhance those processes' precision, excellence, and dependability, enabling
businesses to function more quickly and react to changing customer demands and
market priorities.

In relation to this case study, it is mentioned that one of their process

technologies, their online ordering service system, needs to be developed and improved
because their system malfunctioned at the worst possible time. They were not able to
take advantage of the surging demand, therefore it is deemed that their process
technology should be enhanced.

14. TWO OPERATIONS MANAGEMENT PRINCIPLES ADVOCATED IN CASE

ANALYSIS RELATED TO TOPIC PRESENTED

Customer-processing Technology

The use of customer-process technology is increasingly popular in many

businesses. A customer-processing technology is the technology that either offers a
direct line of communication between a business and its clients, employed to provide an
acceptable level of service while dramatically cutting costs, the human component of
service is being minimized. Any airline journey, for example, relies heavily on the
technology of its aircraft and in-flight entertainment systems, as well as its e-ticket
reservation and check-in systems. In relation to the case study, customers use the
process technology of Tesco PLC to make transactions with them.

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E-business & E-commerce

E-business is the use of internet-based technology to support existing business

processes and new business opportunities. Meanwhile, the buying and selling with the
use of internet-based technology is called the e-commerce. With respect to the case
study analysis of Tesco PLC, this particular company engages in e-business and e-
commerce as well.

14. REFERENCES

Tesco PLC - About. (n.d.). https://www.tescoplc.com/about/

Johnston, K. B. (2023, June 20). How many companies does Tesco own?.
Investopedia. https://www.investopedia.com/news/how-many-companies-does-tesco-
own/#:~:text=Tesco%20was%20founded%20in%201919,expanding%20its%20reach
%20beyond%20London

Rahman, M. (2023, January 27). Porter’s five forces analysis of Tesco.

www.howandwhat.net.
https://www.howandwhat.net/porters-five-forces-analysis-tesco/#:~:text=It%20aims
%20to%20examine%20the,the%20grocery%20and%20supermarket%20industry.

Tesco mission statement 2023: Tesco Mission & Vision Analysis. Biggest Mission
Statements Collection - Mission Statement Academy. (2022, October 3). https://mission-
statement.com/tesco/

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