Value Chain Analysis Persuasive Essay Example

analysis of Tesco's value chain reveals the importance of its primary activities. The inbound logistics play a crucial role in creating value by providing the initial opportunity for value generation. The interaction between Tesco's elements and logistics positively impacts the maintenance and enhancement of in-store consumer choice levels. However, the distribution system requires further improvement.

Tesco could enhance the company's quality control system, reducing any losses that customers may incur. At an operational level, the focus is on services such as store opening and closing as well as stocking. Outbound logistics entails the distribution of products to customers and providing customer service. Additionally, expedient trolley services can be implemented to enhance customer experience. The marketing aspect is not explicitly mentioned in the original text.

By providing discounts and promoting sustainable and healthy products, the Tesco Clubcard helps to cultivate a loyal customer base. The company values customer loyalty and recognizes the importance of promoting eco-conscious choices.

SUPPORTING ACTIVITIES

Furthermore, Tesco has increased its workforce to develop anti-fraud software (infrastructure/technology interdependence) and implement new security systems to reduce the occurrence of internal theft. The cost of these measures is included in the price of Tesco products. In terms of Human Resource Management, Tesco is also improving its training and recruitment programs to provide customers with well-trained staff at no extra cost.

Investments are being made in customer service through increased pay during training, motivating staff to meet expected standards, leading to improved service quality for customers. According to Ivory research in 2010, technology development has been a significant factor in the company's success, helping them to overcome the credit crunch

and achieve soaring profits. The launch of their web sales operation has proven to be a huge success.

Tesco is using the ExpeTune performance management software from Macro 4 to manage its mainframe servers during the busy Christmas season. This is in addition to an ongoing efficiency program called Step Change, which includes both IT and general process improvements.

INFORMATION SYSTEM MODEL

According to Sachenko (2010), data is initially collected and transformed for input processing. Then, it is manipulated and transformed into information through processing procedures controlled for storage and future use, or communicated to the end user as output. An information system encompasses a series of strategic, managerial, and operational activities that involve the processing, storing, distributing, and utilization of collected data and technological information.

One way to utilize information systems is by establishing inter-organizational systems that create or maintain a competitive advantage. This can be accomplished through the creation of consortia-electronic exchanges for both suppliers and buyers.

The provided diagram proposes that in order to reach corporate/company goals, it is necessary to implement a strategic information system. By assessing the market prior to expanding operations, the organization can make informed decisions about advancing to the next level.

The utilization of information systems has a significant impact on various aspects of the operation, including operations support systems like transaction processing systems and management support systems such as management information systems, decision support systems, executive support systems, strategic information systems, and functional business system (Sachenko, 2010). For instance, Tescos used an Extranet system that gave them a competitive edge in creating custom information between the company and its partners, resulting

in more flexibility, scalability, extensibility and integration across allocation channels. Other examples of IT integration include wireless devices, intelligent scales, electronic shelf labeling, self-checkout machines and radio-frequency identification systems (RFIS). Overall, the information systems model enhances market-oriented and pioneering contributions to Tesco by increasing product/service volume while controlling costs.

CONCLUSION

Comprehending the impact of the value chain on an organization's strategy is crucial for achieving and maintaining a competitive advantage. This understanding can help in developing an edge over competitors. Excelling in products or services within the business market can lead to economic benefits when entering new markets, as well as establishing credibility right away.

References

1. https://www.afterburner.com/strategic-business-planning/
2. http://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-and-objectives
3. https://www.tescoplc.com/media/264150/strategic_report_15.pdf
4. http://www.xmarks.com/s/site/www.ivoryresearch.com/sample5.phphttps://eternalsunshineoftheismind.wordpress.com/2013/02/09/how-tesco-use-information-systems-to-their-advantage/
5. http://www.springer.com/cda/content/document/cda_downloaddocument/9789491216886-c2.pdf?SGWID=0-0-45-1373647-p174839874
6. https://ru.scribd.com/doc/7047213/MIS-Chapter-03-Strategic-Information-Systems-for-Competitive-Advantage
7. https://ru.scribd.com/presentation/134125465/management-information-system
8. http://www.informationr.net/ir/1-2/paper5.html