Impact Of External And Internal Factors Commerce Essay Example

sales operations involve activities like advertising efforts, managing sales forces, and selecting distribution channels to offer convenient purchasing options for customers. At the core of Tesco's values is creating value for customers through rewards from their Tesco Club Card program that motivates continued shopping with Tesco. Service activities such as installation services, repair work, and supplying parts contribute to enhancing or upholding value. As a global retail merchant group,Tesco offers customers convenience with a wide range of products available.The Human Resources Management department at Tesco recognizes the importance of talent development in managing sales growth in the retail industry. To remain competitive, Tesco recruits and trains a strong workforce to effectively handle daily operations using a balanced scorecard approach. This approach aligns key performance indicators, resources, and stakeholder needs across various aspects including customers, people, operations, finance, and the community.

Tesco understands that having individuals with extensive market experience is crucial for managing local business and adapting to changes especially during economic downturns. They believe in staying close to their customers which becomes even more important during challenging times.

In terms of technology development, customers prefer using Tesco.com for their shopping needs as it offers convenient access to a wide range of products such as groceries, clothing, electronics, and furniture. These items are delivered directly to their homes within the estimated timeframe.

Figure 2: SWOT Analysis [available at] hypertext transfer protocol: //export.business.vic.gov.au/export_home/preparing-an-export-strategy/reviewing-and-analysing

The text emphasizes the significance of aligning an effective company strategy with both internal resources and external environment. Since 2000, Tesco.com has successfully grown its business through e-commerce by providing customers with convenience and affordability.The platform offers a wide variety of products for increased choices, while the

Tesco Club Card acts as a robust database for personalized service and efficient inventory management. Nevertheless, one weakness in Tesco's operations is its refund policy that requires goods to be returned within a specific time frame determined by management. This has a negative impact on the quality of merchandise and influences customer purchasing decisions. Additionally, compared to other retailers, Tesco charges customers based on distance for online purchases, which could potentially affect buying decisions. As a result, customers may seek alternative ways to save on delivery fees. Furthermore, Tesco lacks efficiency in providing real-time information during the online shopping process, leading to misunderstandings or mistakes.

On the other hand, as the leading UK retail store, Tesco encounters growth opportunities through its consistent expansion strategy and potential entry into new markets. Currently operating in 14 markets outside of the UK, including its latest market entry in India, it is crucial for Tesco to meet local customer expectations for successful business expansion. Moreover, Tesco boasts well-established logistics and transportation systems that support daily operations across its 4308 global stores. Their ability to produce their own merchandise presents various business opportunities, especially during global recessions when their products are more affordable compared to other vendors.

However,Tesco also faces threats or challengesGovernment laws and regulations are a potential threat to Tesco, as non-compliance may lead to punishment by local authorities or license revocation. The retail industry is highly competitive, with new stores opening regularly. Established giants like Carrefour and Wal-Mart are rapidly expanding with similar business strategies to Tesco's, creating a tough competitive market for them. Additionally, the rising prices of suppliers' goods pose another menace to Tesco's profitability.

To thrive in

this challenging environment, Tesco must focus on maximizing profit margins by effectively meeting customer demands. To understand the overall external environment of the industry, the PESTLE analysis and SWOT analysis serve as useful tools. From a political perspective, Tesco faces challenges in entering foreign markets due to government regulations that investors must comply with. Political instability can significantly impact business growth, as seen through recent protests in Thailand from "red shirt" dissenters.

From an economic viewpoint, Tesco offers cost-effective products through their own production and targeted promotion. Unlike competitors like Wal-Mart, they provide a wide range of affordable house brand products priced 10-20% lower than similar items from other brands. This gives customers alternative choices.Tesco's job guarantee program provides employment opportunities for local communities. Additionally, they prioritize accurate nutritional information on their products and pioneer front-of-pack screening guidelines (GDAs). In contrast, other retailers do not offer this information. While Tesco needs to improve website maintenance, Carrefour excels in technological matters with a dedicated team. Tesco has implemented the scan and travel electronic payment gateway and uses advanced resources. They prioritize compliance with labor contract laws in China and take ethical issues seriously. Environmental concerns are also prioritized, as seen through initiatives like promoting reusable bags and reducing food waste through BOGOF (Buy One, Get One Free Later) deals.Tesco is committed to reducing CO2 emissions and energy usage by utilizing natural light and fully loading vehicles on every trip. Their goal is to become a zero-carbon business by 2050, aligning with the increasing focus on green environmental issues. The government's restrictions on plastic usage are supported by Tesco for their future success. E-Business plays a significant role

in integrating Tesco's organization, enhancing services, and innovating products through online ordering services. This improves customer convenience while reducing procurement time and effort. Ever since Tesco began its home delivery service at Tesco.com, the popularity of online shopping has significantly increased over the past decade. As a result, many companies have changed their operations to invest in e-retailing, including small retailers. To keep up with this trend, Tesco focuses on developing e-business within its internal operations to increase business volume. They consistently provide updated information to customers who prefer shopping online from home rather than visiting physical stores. The success of e-business activities has been beneficial for busy individuals such as business professionals as it saves them valuable time.
These professionals prefer using the internet to purchase or obtain items they need in their daily lives or businesses. Tesco's e-business service helps clients save time and money by delivering products on time and according to their terms and conditions. This convenience is especially helpful for busy individuals who cannot visit a physical retail store. Customer satisfaction is a priority for Tesco, particularly for working couples with young children. On Tesco.com, customers can easily add various products to their shopping list with just one click.

Nowadays, every retailer relies on e-business to generate additional revenue from online shoppers. They often exceed expectations during promotional periods or special events like member's day. However, Tesco.com lags behind in meeting the demand for advanced cyberspace servers. This frustrates online shoppers who have to wait for webpages to load when making purchase decisions. In contrast, Carrefour and Wal-mart have divided their webpages into multiple sections to enhance loading speed.

To attract and retain

customers, webpage navigation should be quick-loading and regularly updated with the latest promotions. Unfortunately, Tesco.com has a drawback in that it does not provide sufficient information about delivery dates and times, with charges determined by distance. Conversely, other retailers have reliable servers that estimate delivery dates for online shoppers.Tesco.com faces a problem where all items are consolidated on one webpage, confusing online shoppers who struggle to find what they need. In contrast, other retailers categorize their items appropriately and some even have separate websites under the same retailer. To compete with rivals who can quickly deliver goods after online purchases, Tesco must enhance its e-business service. Urgent delivery is often sought by customers who cannot shop in-store and instead choose online purchasing. Therefore, Tesco should prioritize this aspect of their e-business as competitors are capable of promptly delivering goods, especially during holidays. Failing to meet customer expectations can harm business success. Competitors efficiently organize and present product information to customers before purchase.Tesco should adopt a similar approach in their e-business strategy. Allowing customers to thoroughly view and analyze products before buying will enhance their confidence in making purchasing decisions, contributing greatly to marketing the brand and adding value to the business.In 2010, prioritizing speed, simplicity, and achieving goals is crucial for businesses like Tesco to remain competitive in an uncertain future.Improvements are necessary on the servers of Tesco.com to prevent overload caused by a high number of clients logging in simultaneously in order to address this issue.To resolve the issue of server slowdown that negatively impacts customers' online shopping experience, Tesco should regularly maintain or invest in additional servers. During peak periods such as Christmas

or New Year's Eve, upgrading their system database would better equip them to handle increased internet traffic. Implementing software that provides estimated delivery times could allow customers to track their own deliveries and reduce customer service interactions. Furthermore, improving the delivery scheduling system on Tesco.com requires accurate organization and categorization of items. To stay competitive, Tesco should enhance the navigation of their web pages by reducing the amount of information on each page, as currently all information is loaded onto a single page causing slow website performance. Appropriate classification and categorization of inventory items is crucial to avoid confusing customers and effectively counter competitors' strengths. It is also important for Tesco to focus on improving online sales and advertising strategies on their website to attract more customers. For example, providing clear explanations about online shopping guidelines including policies and product categories will contribute to a transparent customer experience. Additionally, ensuring that the web application is user-friendly and secure during payment transactions is necessary for protecting customer information and preventing disputes.To maintain competitiveness and seize opportunities, Tesco should consider expanding its e-business into other countries like Malaysia. It is important for Tesco to closely monitor specific factors within its organization in order to enhance operations and mitigate potential business failures. Addressing weaknesses in this highly competitive environment will help Tesco maintain customer loyalty and drive future growth. Expanding its global e-business operations is the best solution for Tesco to outperform competitors who have not yet entered the market. In today's fast-paced world, people are increasingly seeking advanced technology to save time. However, developing a strong e-business infrastructure may pose a challenge for Tesco as it risks

falling behind its rivals.The text below provides further information on the topic of Tesco's potential success in overcoming a hurdle before anyone else does. The sources for this information include Pearce II, J.R. & Robinson R.B. (2000), University of Sunderland Business School (2005), Phan, D.D., Chen,J.Q., and Ahmed,S.(2005), Sheng,M.L.(2005), Van Baal,S.and Dach,C.(2005), Amit,R.and Zott,C.(2001), and Bart,Y.,Shankar,V.,Sultan,F.and Urban,G.(2005).The article titled "Seeking strategic advantage in the post-net epoch: screening ERP systems from the resource-based position" by Beard, J.W. and Sumner, M. (2004) emphasizes the importance of screening ERP systems to gain strategic advantage in the post-net epoch.It is published in the Journal of Strategic Information Systems, Vol.13 No.2, on pages 129-50.

In another article titled "IT doesn't count" by Carr, N.G. (2003) in the Harvard Business Review, Vol.81 No.5, pp.41-9, the author argues that IT alone is not sufficient for business success.

Cazier, J.A., Shao, B.B., and St Louis, R.D. (2006) discuss value-based trust as a way to differentiate e-businesses in their article "E-business distinction through value-based trust," published in Information & Management journal's Vol.43 on pages 718-27.

Christensen, C., and Overdorf, M.(2000) provide strategies to adapt to disruptive change in business in their publication "Meeting the challenge of riotous change." This article can be found in Harvard Business Review's Vol.78 No.2 on pages 67-76.

Christiaanse E., and Venkatraman N.(2002) conducted an empirical test on expertise development in electronic channels beyond SABRE.Their article titled "Beyond SABRE: an empirical test of expertise development in electronic channels" can be found in MIS Quarterly ,Vol .26 No .1,on pages 15-38Evans, M., Wedande G., Raltson L., and new wave 't Hul S. (2001) present qualitative insights on consumer interaction in the virtual epoch in their

article titled "Consumer interaction in the virtual epoch: some qualitative insights." This article is published in Qualitative Market Research: An International Journal, Vol.4 No.3, pp. 150-9.

Palmer, M. (2005) examines Tesco's multinational acquisition strategy in a case study named "Retail multinational acquisition: a case study of Tesco." The case study is featured in the International Journal of Retail Distribution & Management, Vol.33 No.1, pp.23-48.

For more information about value chains related to Tesco's business strategy, please visit http://www.quickmba.com/strategy/value-chain/. This webpage was accessed on March 15th, 2010.

The text contains multiple hyperlinks to different webpages on Tesco's website along with their respective viewing dates.

Word count for the text is 3658 words.