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Introduction 1.1 The Company and Organization Structure. TESCO PLC, is a UK based international leading retail store and now has focused its business in Asia. Besides having stores in Thailand, TESCO STORES (M) Sdn Bhd has put foot in Malaysia and partly owned by Sime Group. Tesco worldwide has 170,000 employees and it is still growing as we are opening new stores. Our organization structure is very simple based on a vertical hierarchy style (Appendix 1). We have main key directors and directly under them are the managers, followed by the executives and general staff. Tescos major competitors are Giant, and Carrefour. 1.2 Company Business and Core Values

No one tries harder for customers Treat people how we like to be treated

Our company and staff developments are built on a very strong principal ground and they are educated on the importance of the Core Values of our company. Being in the retail business, customer service, customer satisfaction and value for money are the main Marketing Objectives. 1.3 Product & Services Tesco carries about 60,000 different product ranges that vary from dry food, fresh/ live food, cooked food, apparel and hardlines. Services include a food court that sells various Malaysian food and other convenient shops.

1.4 Executive Summary Tesco uses Steering Wheel format to analyze the benefits and concern of the organization i.e.; Customer, Operations, Financial and People (See Appendix 2). Relatively, in the assignment I will justify how Information System (IS), backed with Information Technology (IT) can help Tesco achieve its objectives of the Steering Wheel components by using Michael Porters Tools. The components that I will be highlighting are Customer, Operations and People.

2. Definition of Michael Porters tools. 2.1 Reduced buyer power i) Benefits win win situation By using IT, this tool could be optimized and Tescos objective to retain loyal customers could be achieved and have a bigger share of market. Customers, by receiving the best service at the most convenient way to shop would prefer non other retail store than the one perceived to be the best in service and convenient. Once this confidence achieved, buyer power reduced. ii) Hardware & Software - One of the marketing strategies is Internet shopping or E-selling. The objective is to bring the products and services to the potential customer. The customers can access to the Internet as long as there is an availability of the hardware i.e; personal computer and modem and server, and software i.e; operating system and browser. i) IS and Process - The IT tools (hardware & software) will be the transporter of the information that needs to be delivered to the market. Information entered and designed in an internal software will be stored and transferred to the website. The information read or accessed by the market will receive input (order) and transferred back into the internal software Information System so that the input is recorded, and the order can be processed and delivered. Please refer appendix A diagram of process will be drawn to support statement above. Website must me frequently updated and to ensure that the information collected from the website will be transferred into the internal software and updated in the inventory system as well.

ii) Get updated offer on line. The Marketing dept will collect information from the management on offers and discounts to be given to the Internet shoppers. Data is collected, entered, processed (transfer process from internal software to Internet website) and then will be viewed by shoppers. Shoppers will then enter their orders, this information will be collected by the server and send it to the internal software for the order to be processed. A diagram will be shown for this process. iii) Win prizes. Shoppers will win prizes by shopping from the websites. The software that is developed for processing orders from the Internet will have a feature to randomly pick the shoppers ID and winner will automatically be informed. A diagram will be shown for this process. iv) Loyal customer card. Privilege card and points collection card. This IT technology will allow the shopper to get special discounts. The process here will be, when the card is swiped into the reader, it will automatically give a discount. IT will also record the shopping list of this shopper into our software, which will then allow us to identify customers often shopping pattern. v) Other purchases outside linked / alliance Banks to have an alliance with our store to enable shoppers to use debit card or ATM card that can be used at the cashier counter. This will need a lot of careful planning and security. A diagram will be drawn for explaining the process. vi) Prepaid card for Food Court. Have to purchase cash card to buy food. Credit updated.

vii) All the above services narrows down to encouraging buyers not to carry a lot of hard cash and this will allow better security and decrease pick pocketing. All the above method of Michael Porter is currently used in our hypermarket and is quite successful in the parent company. We are slowly encouraging the community here to adapt to this system of all in one card. The i-Card solution. 2.2 Reducing Supplier power Supplier no power to increase price. No monopoly. We as customer determine the buying price due to quantity of product and establishment of our co. IS backed by IT solution can justify the above tool. i) Project/ building consultants/ contractors to invest in software to manage projects. In this aspect, we are now introducing the project consultants to use our project software. Many a time when the suppliers are asked to change a design or instructions given for modification on projects, instructions are ignored and excuses are given that instruction was not received. By using this software, supplier will not be able to charge us for the variation orders due to changes after work is done. Communication is via shared software. Information is entered daily into the software. Retrieval is allowed as and when require. Controlled by password according to level of hierarchy. Sample of Print Shots will be enclosed and a diagram of process be shown. ii) Reports can be processed and this will cut down time spent on reports. Site progress in entered in software daily and accessed by restrictions.

iii) Another supplier is Retail supplier. They can be linked with internal inventory control sware to manage their stock level. This will allow them to view only their products. Restricted by password. iv) This software will also lock them in as our supplier and this will allow us to negotiate of better terms and prices. v) In addition, automatic annual rebate is deducted by the quantity of product is sold, ensuring suppliers commitment to stay and be our supplier for long-term relationship. vi) This Porters tool can be used here to enable us to create more entrance for the supplier should he have any default in supply or price increase. As the supplier is able to view our inventory screen, they should be able to supply the product in a period of time. Should the supplier lack in doing so, the entrance to key-in new orders will be blocked and new supplier will be give the contract. 2.3 Enhanced Value Added Activities i) Need to send newsletters We send thousands of brochures every month to the residential areas. This can be done faster by IS software like customer contact and backed by IT solution. Brochures addressed to respective name and address will carry more weight that just sticking brochures into peoples post boxes and gates. Present shopper will be given special attention by giving them separate brochures as per mention earlier in reduced buyer power tools. Their contact information would have been recorded in our system. By using the same software we can reach potential shoppers and give them value added service.

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CRM software for customer contact can allow us to send congratulary card. E.g. Anniversary, Birthdays, Promote insurance scheme, housing loan etc.

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Another IT solution that will help us enhance value added activity would be developing a website for complaints. (e.g www.tesco.sucks.com) This will allow shoppers to share their opinions about shopping is Tesco. What are the areas that can be improved to serve them better? We can also place a computer in the store for shopper to log into our website and give their suggestions and opinions.

2.4 Conclusion My conclusion to the above Michael Porters tools is that the environment is moving toward new marketing era, more value for money buyer. People are becoming more and more intelligent especially the young generation that today are talking about e-mail, e-shopping, e-card, one-account, one-card, prepaid cards for almost everything. As the market is now moving into the era of new generation, we as supplier, or market players should look into this aspect which today is one of the main aspects as mention by the writer himself.