E-Business: Evaluating Problems and Opportunities for Tesco Plc

This report analyzes the problems and opportunities faced by Tesco Plc in the e-business environment. It discusses the company's digital infrastructure, including point of sale systems and RFID technology, and examines the internal and external factors affecting the business. The report also explores potential digital business solutions such as digital strategy and information system planning, and provides an implementation plan for chosen solutions.

E – BUSINESS

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. EVALUATING PROBEM/ OPPORTUNITY.........................................................................................3
1. Company introduction.........................................................................................................................3
2. Problem definition...............................................................................................................................4
3. Digital infrastructure............................................................................................................................4
4. E- Environment...................................................................................................................................5
CHOOSING SOLUTION............................................................................................................................7
1. Digital strategy and information system planning............................................................................7
2. Digital marketing.................................................................................................................................9
3. CRM....................................................................................................................................................9
CHOOSING SOLUTION..........................................................................................................................10
1. Digital transformation........................................................................................................................10
2. Project management..........................................................................................................................11
3. Monitoring and controlling................................................................................................................12
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
E-Business refers to a kind of organisation or commercial transactions that reflects sharing
information in all over the globe with the use of internet. Information system plan defines as a structured
approach that is developed by IBM to helps business organisation in developing and preparing plans to
fulfill short term and long term information requirements. This report is based on Tesco Plc. That is one
of the British multinational groceries and general merchandise retailer in UK and represents as a third
largest retailers in world (Kollmann 2019) . The company shows their presence since 1919 by selling
varieties of products such as food, clothing, and financial services etc. using digitalization. This report
includes problem and opportunity of Tesco that is mainly solved by information system along with
analyzing internal and external issues that highly affects business. It also inculcates Tesco current digital
infrastructure that helps in solving issues and creating opportunity for gaining profitable results. It also
demonstrates potential digital business solutions such as CRM, Digital strategy and information system
planning, digital marketing etc. that meets the opportunity and problem. At last it demonstrate
implementation plan for chosen solution along with monitoring and controlling so that successful results
are attained by business enterprise.
MAIN BODY
1. EVALUATING PROBEM/ OPPORTUNITY
1. Company introduction
Tesco is one of the largest British multinational groceries and general merchandise retailer in
world and having their stores in around five countries within Europe. Tesco sold variety of products and
services such as supermarket, superstore and convenience shop, hypermarket etc. Within this there are
around 4,23,092 employees are working. The company shows their presence in 1919 by Jack Cohen.
Tesco focus expanding their customer base by using Tesco.com that attracts one million regular
customers that helps in enhancing firm profitability and revenues. Tesco has positioned the leading brand
in China, India, Malaysia, Poland, Hungary, Ireland etc. The main value of Tesco Pl. is to being
inspirational for gain substance by opening first zero-carbon supermarket Ramsey and awarded as a first
Green retailer in world with the aim of being carbon free business by 2050.
The vision of Tesco is “to be most valued organisation by serving best to customers,
communities in which Tesco operate business, our committed and loyal colleagues and shareholders”.

To fulfill this vision Tesco is working on mission “to make what matter better together”. Both
vision and mission are interlinked to shape the success and growth of business in all over the world. It
digital technology helps in differentiate their business and operating model from their competitors that
helps in gaining profitable results in their survival.
2. Problem definition
Problems or opportunities are mainly recognized by the company to enjoy long term sustainable
results within marketplace. A problem in a business enterprise reflects core condition that cause
undesirable results whereas Opportunity is the one that present potential for desirable results
(Stouthuysen, 2020). Within an organisation problem is to be identified by analyzing the symptoms that
are faced by company because symptoms are mainly signals of underlying problem or a cause. In terms of
Tesco Plc problems are to be identified by recognizing the symptoms that is presented below:
Symptoms- The major symptoms that Tesco Plc identified is the reputation of company is to be
affected on their online market by declining the customer loyalty and satisfaction on firm. After
recognizing symptoms Tesco plc manger can easily identified the problem that is mainly solved by the
use of information system.
Problem- In Tesco Plc. online customers is unable to get products and services on its official
website because of high demand for Christmas bookings. Another problem that was faced by Tesco Plc is
regarding the quality of products and services which they offered to their customers due to which their
sales within company market is to be affected (Tesco apologises after online issues amid Christmas rush,
2021).
3. Digital infrastructure
Digital infrastructure defines the digital technology that offers foundations of organisation
information technology and operation. The main examples of digital infrastructure involves broadband,
mobile telecom, digital communication suites etc. This entire digital business infrastructure helps in
managing services contractually (Sokiyna and Aqel, 2020) . This engaged by clients and partners with the
aim of managing operating, optimizing infrastructure that highly supports digital business solutions to
present best outcomes for business. In terms of Tesco Plc digital infrastructure is core aspect for global
business that is presented below:
 Point of Sale (POS)- It is one of the core digital infrastructure that helps Tesco Plc in their
checkout system. This type of digital infrastructure is consist of scanner that has an ability to scan
bar codes, credit card readers, till drawers, a digital display etc. basically it is used for checkout
system and self-checkouts. In terms of Self-checkouts, customers individually scan the codes of

selected products and pay for it without taking help of Tesco Staff. It is all done because of
information system. This digital factor helps in reducing the long queue of customers and helps
in gaining competitive advantage in rival market. This current digital infrastructure force
company to use hybrid printers so that customers get receipts frequently.
 Electronic Self-Labels- This digital infrastructure is designed to make a full use of store
lightening infrastructure to transmit data and information. The adoption of ESL information
system helps Tesco to prevent instant inaccuracy and inconsistency, it also changes price of
product without human intervention that is very essential for doing e-business. It also maintains
customer loyalty on firm products (Hasibuan and et. al., 2020). This also maintains quality of
services in Tesco that affects business sustainability in their global market. This also helps in
managing demand at e-business of Tesco plc.
 Radio Frequency identification Technology (RFID)- It is one of the best current digital
infrastructure that is adopted by Tesco Plc to solve the problem they faced at the time of E-
business. This digital technology and helps to track radio waves that are a substitute of bar code
that only identified categories of items. This technology facilitates system of Tesco on track that
is useful to scan items so that stock level is to be maintained effectively. This helps in solving
issues of shortage of products on online market.
 Direct Store Delivery- It is an effective digital technology in which Tesco Plc provides websites
as a platform where customers allow to shop at their home through home delivery service. This
also helps in encouraging more potential customers towards company products and services.
4. E- Environment
Analyze internal and external environment by using SWOT analysis and PEST analysis
It is very essential to examine the internal and external environment because it provides
information related to opportunities that Tesco has and problems or issues that they face while doing
business in global market in terms of E- Business. To analyze e-environment SWOT and pestle analysis
of Tesco Plc is considered that are presented below:
SWOT ANALYSIS
STRENGTH WEAKNESSES
The main strength of Tesco is the strong
investments in use of information system within
operation to attain competitive advantage in
marketplace. In this company point of sale, RFID
In Tesco key weaknesses that management face is
changing economic conditions within countries
where firm has its operation.

technique is highly sufficient to overcome with
problem of customer loyalty.
OPPORTUNITIES THREATS
The major opportunity that Tesco enjoy is their
diversification range of products that offer in their
shelves. To fulfill customer demands company
offer products such as electronic and beauty
products.
Tesco face the threat of high competition in market
because of problem in fulfilling customer demands
and offering services at e-business platform. Due to
this threat firm spend heavy cost of international
investments.
PEST ANALYSIS
 Political analysis- As Tesco Plc exposed several political factors like political instability, tax
rate, unemployment etc. that majorly affects company operations in several manners. In this
government policy can potentially affects Tesco and in this firm will focus on understanding
these terms to overcome with the issue of customer dissatisfaction. To overcome this effect
company buying political risk insurance so that risk of potential political risk at global level can
be easily minimized.
 Economic analysis- As changes in economic environment is done very rapidly that affects
Tesco. Effects related to economic analysis needs frequent changes within business strategy. This
aspect reflects inflation, purchasing power of customers etc. If there is high inflation in global
market than economy highly focuses achieving on low rate inflation by ensuring than products
and services are produced in effective and efficient manner (Cristofaro, 2020). It represents as a
negative effect on Tesco because it has less control over internal and external economic factors
face when positioning itself in business world.
 Social analysis- It is basically based on the consumer trends and perception that changes very
frequently with time. At this time company focuses on meeting their demands for quality goods
and services. It reflects opportunity for Tesco because they highly focus on fulfilling customer
demands by improving the online shopping experience by offer better values so that demands of
purchasing products is to be fulfilled on time. It encourage customer towards purchase and boost
organisation sales and revenues.
 Technological analysis- It is an essential factor in e-environment because of this e-business
company come into existence. In terms of Tesco it has several innovative technologies such as
radio frequency identification technology, self-checkout technique, point of sale technique etc.
All these technologies create an opportunity for business by enhancing the customer shopping

experience. In this Tesco mainly adapt strategies related to adopting new possible advanaced
technologies to enjoy more opportunities and identify threats to maintain customer service
experience and building reputation. In this manager of Tesco execute a use of Artificial
intelligence to attain goals. And deliver better customer service so that more and more people are
retaining with company for a longer period of time.
CHOOSING SOLUTION
Tesco is a leading multinational British grocery company that face the problem that customers
cannot get the products online because of high demands of products and it also face the issue related to
quality of goods and services that they offered to customers in high demand of offerings that impacted
sales and profits in negative manner. To overcome with this issue company implement digital
infrastructure where they execute several techniques and according to that examine external and internal
environment so that opportunities and threats are to be examine at the time of doing e-business. As a
manager of Tesco several solutions are to be examined so that best one is to be chosen for benefits of
company. These solutions are based on information system /digital business solutions that are useful to
meet the problem in effective and efficient manner. Several digital business solutions to solve above
problems are to be presented below so that best alternative is to be selected:
1. Digital strategy and information system planning
Digital strategy mainly focuses on using technology to enhance and improve the performance of
business whether to create new products or reimagining present processes. It represents directions that an
organisation can use to gain competitive advantage within market and tactics to attain the changes that
were occur due to problem raised within an enterprise. Therefore, Tesco is a company that focuses on
boosting digital strategy with mobile site. For digital strategy company launches a mobile website for
their non-food business to solve develops the demand at the time of Christmas and managing demand at
e-platform. However, mobile site is represent the next stage of Tesco Digital strategy and also reflects
transaction sites for the first time ever via the use of mobile sites (Tesco boosts digital strategy with
mobile site, 2021). With the use of mobile sites Tesco IT department focus on QR code scanning so that
smartphone user can scan the code and go directly to company official website where customer enjoy
shopping and develops demands for goods and services to gain competitive advantage. The digital
strategy helps Tesco PLC to get to overcome with the issue of lacking of customer service and products.
Choosing this strategy impacts the Tesco short term goals in positive manner by improving current
information system that covers more information of an organisation. The main motive of company is to
offer best to customers so that high sales and profits are enjoyed by organisation. It also impacted

operation management in positive manner by providing ease in working so that supply chain related
targets are attained on time.
Information system planning defines as a structured approach that is developed to assist business
organisation in establishing plan for satisfying short and long term information requirements. The main
purpose of this information system planning is to emphasis on systematic process for developing the long
range plan for information system on the basis of company overall strategic plan. There are several types
of information system that was planned by Tesco to overcome with the issue that was elaborated above.
Some of information system solutions are presented below:
 Management information system- It is one of the best information system that is planned
by Tesco to convey data into information that is received from transaction processing system
related to sales, profits and customer etc. This system helps manager in order to take decision
in effective and efficient manner and make plans for success and growth. This digital system
used by manager of Tesco in sales and marketing, accounting etc. for instance- Previously
company use Linux system for digital marketing purpose but to solve the problem of lacking
of fulfilling customer demands firm uses oracle marketing platform that helps business firm
to close to their customers and encourage their buying habits by maintaining stock on all
types of stores i.e. online and offline stores (Ghouchani and et. al., 2019). In this oracle
creates a personalized incentive and discount scheme for customers so that they are
encouraged towards firm product and services that is vision of Tesco while doing E-business.
 Transaction processing system- It is another information system planning that is used to
analyze, retrieve, collect, modify and store transaction in a business firm. It represents as a
ACID test that considered Atomicity, consistency, isolating and durability. And this entire
factor under TPS helps Tesco to maintain the long term strategy and processes so that high
profitability goal is to be attained on time. As Tesco is highly focused on digital applications
such as software to physical devices like electronic point of sale by using this technique
employee and customers of Tesco easily scan the items that they select to buy that connected
to barcode so that when customer scan that code price of products are seen that helps in pay
amount easily. It helps in solving problem that was faced by Tesco and encourage customer
purchasing power.
2. Digital marketing
It is another solution that is effective for solving the issue of handling excessive demand within
organisation at peak season so that quality of products and services are to maintained successfully and
encourage sales and profits in positive manner. There are several tools of digital marketing such as e-

mail marketing, online advertising etc. that are presented for to provide solution to problem that Tesco Plc
face:
 E-mail marketing- It is one of the best solutions that Tesco can adopts to provide the
information regarding goods and services and also understand customers’ demands and needs
towards company. This helps in fulfilling business aim that is customers received that matter best.
By using this technique firm send information to potential and targeted customers related to
products in stock and out of stock. It helps in building good business relationship among
customers and business organisation (Eltweri and et. al., 2020). In this manager of Tesco realized
that e-mail marketing is the best path to done e-business and it also creates long term business
strategy in terms of long term achievements. Using this software Tesco Plc attain huge amount of
sales and profits.
 Online advertising- It is one of the most effective process that is used to promote products and
services online. This advertising helps in getting the knowledge regarding what products attracts
customers towards company. In this Tesco adopts the use of Facebook and Instagram that helps
in building strong relationship with customers. If Tesco plc adopts this strategy then they analyze
what customers likes and dislikes which is used to increased sales and profitability that is main
aim of Tesco Plc to sustain in competitive marketplace.
3. CRM
Customer relationship management is a crucial technology that is used by company to manage
relationship and interactions with customers and potential customers for a longer period of time. This
technology creates efficiency in day to day operations by examine the way to interact with customers and
make the data so that easily accessible. If Tesco adopts this digital business solution to solve the problem
related to customer so that it provides best solutions in terms of maintaining best relation with customers
so that customer develop their purchasing trends along with enjoying their self- service facilities so that
issue like long queue is to be resolved at the time of peak season like Christmas. In this staff member of
customer service departments focus on managing the interaction via using e-mails, phones and chats so
that demands and issues of customers are easily identified by them. Therefore, using this CRM
technology Tesco enhance customer satisfaction and also improve quality of services and products as per
customers’ needs and desire.
Hence, by analyzing above digital business solution information system planning is to be
adopted by manager of Tesco Plc to solve the problem related to online customers is unable to get
products and services on its official websites because of more demand in peak. Because this technology is
mainly used for analyzing and tracking the stock at all online and offline store so that issue related to

shortage of inventory at peak season is to be resolved. By using TPS and MIS Company easily examine
the sales and marketing so that more and more loyal customers are developed. It is very essential to
developed more potential customers to fulfill the vision and mission of company. This also helps in
maintaining quality of products and services because with the help of information system Solution
Company get knowledge related to their all operations so that managing quality at all level is to be
possible.
CHOOSING SOLUTION
1. Digital transformation
Within Tesco Plc the process of change will be conducted by using PDSA cycle in which 8 steps
are to be included that is presented below to execute the solution that is information system planning and
digital strategy:
 Plan (Identify what will be improved)- In terms of Tesco Plc., company wants to improve
customer relationship by offering quality products and services on time. In this Tesco also
improve the technology related to stock updating so that problem of unavailability of stock is to
be removed. This builds the customer loyalty for a longer period of time.
 Do (Present it to shareholders)- In this manager of Tesco plc. Share the improvements with
shareholders so that they invest the amount and company will enjoy long term sustainability in
the competitive marketplace. it is very essential to present the plan with shareholder so that high
profitability results are attained in short period of time (Wang and et. al., 2019). In this manager
of Tesco Plc provide a proper plan related to execution of information system and digital strategy
as a solution to solve problem so that they understand the plan and invest in to get the profitable
results in future point of view. In this firm will test the outcome of implementing Digital strategy
and information system within Tesco for future safety. It is necessary to achieve the changes for
getting desirable outcomes.
 Check- In this manager of Tesco check the profits and revenues by comparing the data after
implementing digital strategy and information system within the organisation to track, manage,
retrieve stock for developing customer loyalty and maintaining quality of services and products.
After analyzing the results it is to be identified that implementing this solution on e-business
helps Tesco to enhance their profitability and revenues due to this they survive for a longer period
of time and also gain competitive advantage within the marketplace. To encourage customer
loyalty and satisfaction this digital business solution is the best technique. This technique also
helps in managing the operation level work in systematic manner.

 Act- It is one of the effective steps in processing the change. This stage demonstrates that the
implementing plan gives successful results or not. If it does not give successful result than review
again all the stages analyze the issue and overcome it (Tan, 2019). In terms of Tesco Plc manager
can adopts the plan in an effective manner by using authentic and efficient resources such as
updated technology, experienced human resource team, strong financial resources that are
collected from clients, partners and shareholders etc. all these resources are very useful to
implement the change in an appropriate manner. In this manager offers proper training and
appreciation to staff members so that they work well and accept the digital change frequently and
efficiently by working productively.
2. Project management
The manager of Tesco focus on implementing the plan by focusing on several aspects that are
time, cost, resources, scope, communication, risk and all these aspects are presented below:
 Time- It is very crucial to achieve projects objective on time . it is essential to avoid delays and
misunderstanding while implementing change. In this manager of Tesco set time for completing
this change by avoiding risk within organisation. Hence for completing this project, manger
select 1 year in which they effectively implement change for company success.
 Cost- This represents the expenses that are incurred while implementing changes. In this manager
of Tesco plc focus on preparing budget so that wastage of financial resources are eliminated. To
complete the change effectively manager has a budget of £1000 so that all changes are done
eventually.
 Quality- It is one of the essential aspects at the time of implementing change. It represents
validity and reliability of accepting change within Tesco plc. While conducting change manager
ensures that all tasks are attained on quality basis so that systematic results are enjoyed by
organisation.
 Communication- It is very essential aspect while implementing change. In this manager of
Tesco Plc. Communicate in a two way process so that employees are accepting change positively
that is necessary to attain quality results (Al-Omoush, 2020). In this manager also maintain
transparency by communicating all information to supervisor, clients, customers, shareholders
etc.
 Risk- While implementing change the major risk is to be faced by manger of Tesco plc is related
to high investment of money because of upgrading digital business solution to overcome with the
problem. Another risk is the risk of leaking information to competitors firm due to this firm need
to protect it by using legal contracts so that whole change is to be implemented successful.

 Resources- To complete the change within Tesco it is essential to have as machine, manpower
etc. So that whole project is completed on time and in successful way within presented time
frame.
3. Monitoring and controlling
After implementing plan it is very essential to monitor and control the activities at all level so that
changes are implemented successfully and risk are overcome. In terms of Tesco plc., manager, adopts
monitoring and controlling techniques that are presented below:
 By using control chart manager can effectively examine the quality of projects so that profitable
results are enjoyed by business enterprise. In this company adopts the multivariate chart displays
so that whole features of projects are demonstrated that helps in analyzing quality at every stage.
This technique helps in attracting customers and gaining competitive advantage within
marketplace (El Rassi, 2020).
 By using work breakdown structure company manager can break the task into small units so that
mistakes and misunderstanding are to be eliminated and overall activities within change is to be
implemented successfully and in presented time period.
CONCLUSION
From the above report it is to be concluded that digital infrastructure is a significant term for
business in solving the problem that they were faced in their profitability and sustainability in market.
This report elucidates problem and digital infrastructure of company to solve the issue and achieve the
requirements of business enterprise. Further it involves internal and external analysis that affects the
problem or opportunity that was faced by company while doing e-business. Further it demonstrates the
several solutions to solve the issues that are majorly CRM, digital strategy and information system
planning, digital marketing etc. from these solutions company adopts the digital strategy and information
system planning and focus on preparing plan and implementing the selected solution so that high
profitable results are attained. At last this report monitor and control the plan for digital transformation so
that overall project provides successful results and also beneficial for attracting customer loyalty and
revenues that gain competitive advantage within rival market.

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Online
Tesco apologises after online issues amid Christmas rush, 2021. [Online], Available through: <
https://www.bbc.com/news/business-54894779>
Tesco boosts digital strategy with mobile site, 2021. [Online]. Available through:
https://www.marketingweek.com/tesco-boosts-digital-strategy-with-mobile-site/