BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS

SEMESTER 9 / 2021

BBED4103

E-COMMERCE

MATRICULATION NO : 951013106124001
IDENTITY CARD NO. : 951013-10-6124
TELEPHONE NO. : 012-3156547
E-MAIL : [email protected]
LEARNING CENTRE : PETALING JAYA LEARNING CENTER

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TABLE OF CONTENTS

1.0 INTRODUCTION OF SELECTED ‘BRICK AND MORTAR’ LOCAL BUSINESS

…………………………………………………………………………………page 3-4

2.0 EXPLANATION OF THE PROPOSED ONLINE BUSINESS CONCEPT

……………………………………………………………………………………page 4-7

3.0 IDENTIFICATION AND EXPLANATION ON THE PROPOSED DESIGN OF THE

ONLINE SHOP FOR THE BUSINESS
…………………………………………………………..………………………page 8

4.0 EXPLANATION ON THE BENEFITS OF ONLINE BUSINESS FOR THE SELECTED

COMPANY
…………………………………………………………………………………page 9

5.0 SUMMARY………………………………………………………………..page 10

REFERENCES………………………………………………………………….page 11

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1.0 INTRODUCTION OF SELECTED ‘BRICK AND MORTAR’ LOCAL BUSINESS

The present business surroundings are characterized by rising cutthroat competition

amongst competitors, ever-increasing shopper demands, technological advancements, and
regulative changes. Ecommerce is one such tool that helps organizations to bear such. The term
"brick and mortar" refers to a conventional street-side business that provides products and
services to its customers face-to-face in a workplace or store that the business owns or rents. The
native market and therefore the corner bank area unit samples of brick-and-mortar corporations.
For this assignment, Tesco has been chosen whose gift e-commerce activities, online business
conception and online look are looked into.

Tesco PLC may be a British international grocery chain headquartered in Welwyn

Garden town, county, England, and the UK. It’s the third-largest merchandiser within the world
measured by profits and therefore the second-largest merchandiser within the world measured by
revenues. It stored in 12countries across Asia and Europe and is that the grocery market leader
within the GB, Ireland, Hungary, Malaysia, and the Kingdom of Thailand. the corporate
presently offers products in several classes together with attire, Bakery, Deli, Dairy,
contemporary turn out, General Merchandise, Grocery, Liquor, and Meat. Tesco may be a
leading international merchandiser having its headquarters within the UK. For it to take care of
its business potency and productivity, it desires its main business functions to control effectively.
the most business functions of Tesco area unit – Finance, procurable & Purchase, Human
Resources, Sales & promoting, info Technology and provide Chain Management, business
services practice etc. alongside this, another crucial perform of Tesco is that the analysis and
development perform.

Tesco management encourages feedback from the workers through completely different
programs particularly, the workers time, Viewpoint workers Surveys, Processes of workers
Forum etc. Moreover, provider relationships area unit a facet that's crucial for the success of
Tesco, and therefore the latter takes a lively role in developing the suppliers for meeting their
quality criteria and standardizations. Tesco has in situ AN economic capitalist Relations team
that, maintains the capitalist relations. Lotus’s Malaysia, the new owner of Tesco Malaysia’s

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business, has declared that its rebranding exercise ought to complete by this year-end. Last year,
a people grocery chain divested its business in Malaysia and the Kingdom of Thailand to the
Charoen Pokphand cluster (CP Group) for an enterprise price of $10.6bn. The merchandiser
reportedly declared the changes through its official Facebook pages. Currently, Lotus’s Malaysia
has taken charge of the operations of all existing Tesco stores. The erstwhile referred to as Tesco
Stores (Malaysia) are renamed Lotus’s Stores Malaysia. Quite eight, 600 workers work across
one head workplace, 2 distribution centers and sixty-two stores throughout ground Malaysia. It
conjointly has a web grocery home looking network with quite one hundred delivery trucks and
operations in Penang, Johor Bahru, Melaka, Negeri Sembilan and Ipoh. Meanwhile, the
rebranding of stores has conjointly started in the Kingdom of Thailand. The business is being
renamed Tesco Lotus, as per the Facebook page of Kingdom of Thailand operations. Smaller
Tesco Lotus specific stores are renamed Lotus Go contemporary.

2.0 EXPLANATION OF THE PROPOSED ONLINE BUSINESS CONCEPT

Nowadays, the utilization of e-commerce for businesses has become necessary not just
for the aim to preserve their place on the market but conjointly to increase market share about the
fast development of data technologies, increasing the role of the net and integrated automation
industries. The virtual World Wide internet offers an honest chance to develop one own online
business as a result of its world character. Any individual will with success do business online,
dominant it by the utilization of the net, notwithstanding geographic location. Additionally, there
are several different advantages of online business, details of which may be found within the
thought of the subsequent material. In such the simplest way, we tend to see that the utilization
of the net isn't solely relevant, however, it's conjointly essential for firms in today’s
surroundings. Thus, the most aims of this paper are to gift the foremost necessary reasons for the
requirement to use the net for business development and to demonstrate the advantages of doing
online business.

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 2.1 THE ONLINE BUSINESS PROCESS FOR TESCO MALAYSIA

Online business permits increasing the list of opportunities for the shopper. In an
exceedingly up to date business atmosphere, it's a key issue of business success to supply a client
with every kind of data he wants and due to the net technology, it's attainable to understand
constant support for patrons additional with efficiency. In such some way, the corporate’s
website shouldn't solely contain a customary set of data regarding the company, its merchandise
or services however conjointly guarantee effective communication between the departments of
the corporate, customers and suppliers. This successively can increase customers’ satisfaction,
which successively can profit the corporate within the manner of accelerating the gain of this
type of online business. Tesco runs the world’s largest grocery home-shopping service,
Tesco.com. The positioning was formally launched in 2000 – six years when Tesco initial began
in operation on the net. Trade goods, telecommunications and monetary services also are
provided via the net. Tesco Direct, the supermarket’s catalogue was additional to the retailer’s
portfolio in 2007. Customers will browse the Tesco Direct catalogue or go browsing to buy non-
food merchandise starting from home electrical, toys and furnishings to sporting goods, jewelers
and even toilet suites. Tesco’s online business has matured by a humongous ninetieth across the
3 months to the top of August, driving overall food sales up by Sept. 11 and seeing pre-tax
profits for the half-year hit.

2.2 ILLUSTRATION OF THE NEW ONLINE BUSINESS PROCESS FOR

TESCO MALAYSIA

Reviewing the promoting combine was conjointly needed and one among all the
steps Tesco took was to launch a different line of the most recent farm complete merchandise.
This dramatic rebranding of merchandise like beef, fish, pork and fruit allowed the company to
attractive to cost-conscious customers did not antecedently price Tesco's offerings. Before the
rebranding, Tesco's basket of farm-style merchandise was concerning costlier. The complete
understood the need to vie throughout this class and prices were reduced. The result was a

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dramatic increase in farm and fish sales at the new worth purpose. A tried and true mega-
business in any market would be expected to require a grip billions in promoting. Several
businesses that get pleasure from the market share that Tesco has, invest heavily in TV, press,
radio and cinema. Tesco completed, however, that changes throughout this explicit promoting
strategy had to occur. In 2013, Tesco spent more or less £110 million on promoting efforts in
ancient shops. By 2014, that range had declined by concerning ten per cent. In 2015, Tesco's ad
defrayal declined sharply to however £80 million, marking a huge shift compared to solely 2
years previous. Whereas specific figures are not accessible, it's rumored that a shift in ad defrayal
from ancient promoting ways to digital promoting efforts has occurred. This implies that the
company is currently defrayal a minimum of half-hour of its promoting revenue on digital
promoting. This allows the business to realize highly-targeted people in strategies that ancient
promoting merely cannot give.

2.3 NEW E-COMMERCE BUSINESS MODEL FOR TESCO MALAYSIA

Ecommerce has been an area of the big method of social amendment, constituting
the economic process of the economies, transformation towards data and data, accrued
prominence of various varieties of technology etc. Electronic commerce helps in shaping the
whole society as an entire and thence, social factors have a right away influence on the
expansion of such development. 2 social enabling factors fuel the expansion of e-commerce.
These are – digital economy and trust & confidence. Tesco’s e-commerce strategy reflects the
brand’s commitment to worth and convenience. These priorities are evident in everything from
the brand to the pictures and even the overall layout. Web site visits are even as economical and
orderly as in-person purchases at Tesco’s physical locations. Tesco’s website, like its stores,
might not be fancy—but it gets the task done. During this Tesco case study, we’ve analyzed
many of the key e-commerce ways that facilitate Tesco’s page stand move into a competitive
digital marketplace, similarly as some areas that warrant improvement. Concerning the e-
business model of Tesco, the retail big has adopted the Market Portal Model, which is an
interactive model. This model accommodates not solely the purchasers but the provider facet
similarly. It conjointly includes innovative functions and options that alter each of the purchasers

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and suppliers to try to do business effectively. The recognition of this model is that other
international retails, such as U.S.-based Wal-Mart, have conjointly adopted this thanks to its high
level of effectiveness in inventory management and distribution. Tesco adopted this model
conjointly as a result of its dealings model through consumers’ transaction data. A business
model helps find the simplest strategy to use for its business. There are many various business
models that the corporate will choose from. It helps the corporate to grasp what the value of the
operation goes to and therefore the product market wherever they're planning to sell. The
business model of Tesco focuses on four basic actions to get an understanding of what customers
need and wish.

2.4 THE KEY ELEMENTS FOR BUSINESS MODEL FOR TESCO

MALAYSIA

For Tesco, the organization ought to be able to get means that of classifying the
stakeholders, the most issues of the stakeholders; tactful of the stakeholders’ viewpoints and
adding within the stakeholders’ viewpoints to the plans of the business. What is more, the
business ought to grow to supply client markets to sponsor the event and progress of the business
organization. This may address the expansion potential of the organization to present out not
solely the scenery customers but additionally present services to a superior shopper base.
International relatives and therefore the on the complete company performs and movements
everywhere the planet ought to be explored to form sound conclusions that may perceive the
objectives of the corporate. Tesco’s main revenue stream comes from selling and grocery
production. Victimization massive knowledge, Tesco determined that merchandise were being
oversubscribed the most effective and began manufacturing their line of merchandise to extend
their profit margins. To become even less expensive and to permit an additional specialization,
Tesco followed a vertical enlargement strategy. Tesco, a self-producing corporation, has
additionally had loads of success as a result of its been creating its grocery merchandise for a
protracted time. As a result, it should work at way lower rates than its competitors don't have the
resources to manufacture its merchandise. The corporation has tried therefore undefeated at self-
producing its things that it's currently concerned with within the production of high-end
merchandise that is offered underneath the Tesco brand. Except for its production and selling,

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they need associate degree e-commerce vertical still, swing the business model of Tesco except
for its competitors.

3.0 IDENTIFICATION AND EXPLANATION ON THE PROPOSED DESIGN OF

THE ONLINE SHOP FOR THE BUSINESS FOR TESCO MALAYSIA

Market chance analysis may be a tool to spot and assess the attractiveness of a business
chance. Before enterprise a product or service, it's necessary to investigate the marketplace for it
to see probable profit and revenue from it. The primary step is to spot the business atmosphere
forces that embrace economic conditions and trends, relevant social changes, and cultural
variations. Tesco has internationalized its retail in each Asia and Europe; but, Tesco has been
unsuccessful in Japan and also the USA. The failure was because Tesco dominated the
importance of understanding the target market. Once solely nine years, Tesco left the Japanese
market in 2011. In keeping with Tesco, the failure was a result of the high price of commerce
and also the demands were troublesome to fulfil. However, Tesco could have unnoted the
cultural variations as a result of the Japanese liking high-quality merchandise and services
throughout their searching expertise. Tesco store is massive and this has created Tesco unable to
supply high levels of client service to each shopper. There are 5 steps in market chance analysis
that determine the business atmosphere forces, describe the trade and its outlook, analyze its
competitors, produce a target market profile, and set sales projections. Tesco has to have a good
market chance analysis because it will facilitate in obtaining valuable insights into the shifts
within the economy, competitors, current market trends, demographics, and also the traits of
customers’ expenditure. Marketing research is one every of the very important parts to assist
businesses with all the essential info and create wise business choices. Moreover, Tesco should
be able to produce a target market profile for its business because it permits the corporate to
direct its resources to those customers with high potential for sales growth, interest within the
product and loyalty to the complete. Once Tesco established its target market and may come
through a solid presence within the target market, it'll act as a barrier to competitors seeking to

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enter the constant market and holding a competitive edge could also be one every of the foremost
necessary edges of target promoting.

4.0 EXPLANATION ON THE BENEFITS OF ONLINE BUSINESS FOR TESCO

MALAYSIA

The advantage of online business is infinite business. One truth concerning brick-and-
mortar stores that you just cannot deny is: they cannot reach a worldwide audience.
Ancient stores are square measure restricted to an area audience solely however that’s not
constant within the case of online stores. And here I’m close to introducing alternative
edges of getting an internet site. The importance of online business is that it allows you to
attach with customers across the world. This might sound rude to you, however, if you're
not brooding about the expansion of your business then you're not doing business. Going
surfing together with your business will be thought-about to be a region of growth for
your business. By making an internet presence your business merely becomes obtainable
to the shoppers even once it's closed. One nice advantage of having an internet business
has a bigger audience pool. This may directly increase sales and revenue. The second
advantage of online business is reaching customers worldwide. Several ancient
businesses square measure confined to an area market, which may mean a tiny low city or
a district. Moving them online can attract customers worldwide. Apart from that, the low
expense is additionally one amongst the advantages for online business. Moving your
business online doesn't need any reasonable warehouse, inventory, vehicles, or staff. The
shift is thus sleek that everyone you have got to try and do is sell constant products that
you just sell at your offline store to a large base of consumers. Lastly, 24/7 availability
for online business. While not the net, it's next to not possible for your business to supply
its services for twenty-four hours. With the assistance of an internet website, you'll let
your customers visit and understand your services at any time from any corner of the
globe. Your purchasers and customers will examine your merchandise and place orders at

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 their convenience. It’s rather like creating cash even after you sleep as a result of the net
is there for you

5.0 SUMMARY

Ecommerce has gained widespread importance in today’s business world and is predicted
to achieve the next momentum within the future. Tesco Plc, the organization chosen for this
report has been putting vast importance on such e-commerce activities and has future relevant
strategic objectives which can facilitate in enhancing the performance and also the profitableness
of the corporate. This report would be of great facilitate to students of business management as
they'd acquire a comprehensive image of e-commerce and its implications on a number one
organization of these days. We’ve mentioned the advantages of online business with all the
required details and given the foremost vital reasons for the requirement to use it for business
development. Within the business model of Tesco, we've seen that it's organized its business
model in the most effective ways. It’s been providing its customers with many alternative
merchandises in one place and with convenience. It’s one of all the market leaders with the third
position within the market. Creating it one of the most effective grocery chains in the world. The
corporate has created several sensible moves like beginning their production lines for prime
demand merchandise and beginning their online stores. The obvious gap within the business
model of Tesco is not relying well on their selling wing, as incontestable by the dearth of
information of their e-commerce store.

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REFERENCES

Gupta, A. (2014). E-Commerce: Role of E-Commerce in today’s business. International Journal

of Computing and Corporate Research, 4(1), 1-8.

Manzoor, A. (2010). E-commerce: an introduction. Amir Manzoor.

Gangeshwer, D. K. (2013). E-commerce or Internet Marketing: A business Review from Indian

context. International Journal of u-and e-Service, Science and Technology, 6(6), 187-194.

Damanpour, F., & Damanpour, J. A. (2001). E‐business e‐commerce evolution: perspective and
strategy. Managerial finance.

Mohapatra, S. (2013). E-commerce Strategy. In E-Commerce Strategy (pp. 155-171). Springer,

Boston, MA.

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