MSIN1003

Informa/on World
Assignment 1 Value Chain Report
CONTENTS

1. Executive Summary……………………………………….….. 2

2. Introduction…………………………………………………..… 3

3. Value Chain………………….……………………………….….4

3.1. Primary Activities……..………………………………… 4

3.1.1. Inbound Logistics………………….……………. 4

3.1.2. Operations………………………………………..4

3.1.3. Outbound Logistics…………………………….. 4

3.1.4. Marketing and Sales……………………………. 4

3.1.5. Customer Service………………………….…… 4

3.2. Support Activities………………………………………. 5

3.2.1. Procurement……………………………..……… 5

3.2.2. Human Resource Management………………..5

3.2.3. Technology Development…………………….…5

3.2.4. Infrastructure…………………..……………..….. 5

4. Conclusion…….……………………………………………….. 6

5. Bibliography……………………………………………………. 7

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1. EXECUTIVE SUMMARY

Tesco supply chain is efficient. The transport supply is

seDng industry standards. Self-service is highly effec/ve.
Online and offline retail segments achieve maximum
customer exposure, thus Tesco builds brand loyalty
throughout Tesco Clubcard.

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2. INTRODUCTION

This report covers Tesco’s ac/vi/es regarding “Porter’s

Value Chain Model”. The primary ac/vi/es covered are:
inbound logis/cs, opera/ons, outbound logis/cs,
marke/ng and sales, and customer service.
Support ac/vi/es displayed are procurement, human
resource management, technology development, and
infrastructure.

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3.1. PRIMARY ACTIVITIES

3.1. Inbound Logistics

• Tesco manages energy and water efficiently, introduces double decker lorries to transport more
goods per journey and links stores to the closest depots.
• One performance indicator is reducing the transport cost.

3.2. Operations
• Tesco implemented Tesco Digital program, an enterprise resource planning solu/on.
• One performance indicator is minimising the stock holdings within the company.

3.3. Outbound Logistics

• Tesco developed online and offline food retail segments (Express, Metro, Superstores, Extra and
Homeplus) distributed according to the target customers.
• One performance indicator is achieving maximum customer exposure.

3.4. Marketing and Sales

• Tesco Clubcard is one of the strongest marke/ng and sales tool.
• One performance indicator is increasing brand loyalty within the customers, and collec/ng data
about their needs.

3.5. Customer Service

• Tesco has been using a double strategy of cost differen/a/on and leadership, implemen/ng self-
service kiosks, which led to an increased a\en/on placed on customer service.
• One performance indicator is that self-service is less /me consuming than cashier service.

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3.2. SUPPORT ACTIVITIES

4.1. Procurement
• Tesco has replaced manual processes with systems from Eqos that enable Tesco’s buyers to
manage the supply of goods.
• One performance indicator is that systems enable them to check online product quality and
receive alerts when delays occur.

4.2. Human Resource Management

• Tesco manages everything from recruitment to management development. The company aims to
increase the number of training schemes and further improve its recruitment programmes.
• One performance indicator is that well trained staff is mo/vated to learn, and improve customer
service.

4.3. Technology Development

• Tesco adopted a new technology to manage logis/cs and opera/onal processes, highly
computerised stores. Improving informa/on systems increases efficiency in distribu/on at
different development stages.
• One performance indicator is broadening opportuni/es to explore its grocery market.

4.4.Infrastructure
• Control and planning func/ons account to provide a con/nuous focus on the costs and cash
management opera/ons. Profit protec/on department reduces shrink. A larger number of staff
upgrade the an/-fraud so`ware, installing new security systems which reduce internal the`.
• One performance indicator is increasing Tesco’s online security and customers’ personal data
confiden/ality.

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4. CONCLUSION

It can be concluded that Tesco con/nues to hold its

leadership posi/on within the retail segment, where
companies are required to pursue both cost leadership
and differen/a/on strategies.
Tesco has been able to achieve both of them with the help
of a lean and agile supply chain management, along with
strategic use of informa/on technology.

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5. BIBLIOGRAPHY

h\p://www.ukessays.com/essays/business/opera/ons-management-at-the-tesco-supermarket-
business-essay.php

h\p://www.ukessays.com/essays/management/value-chain-analysis-of-tesco-management-
essay.php

h\p://www.ivoryresearch.com/samples/business-essay-example-tesco-swot-pestel-porter-five-
forces-and-value-chain-analysis/

h\p://www.360doc.com/content/11/0612/19/7115046_126472561.shtml

h\p://www.ivoryresearch.com/samples/economics-essay-example-strategic-management-of-tesco-
supermarket-pestle-analysis-porter-5-forces-analysis-cri/cal-success-factors-swot-analysis-value-
chain-analysis-tesco-strategic-op/ons-core-comp/