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Wednesday, 3 June 2015

CHAPTER 8 : BUSINESS PROCESS OF P.O SYSTEM


Value chain activities of TESCO Stores  

Primary activities are the activities which are most directly related to the firm’s production and their main contributions of products. Primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and services activities. Inbound logistics include receiving and storing the materials in TESCO’s warehousing systems for distribution to productions so that when customer order product from Tesco website, Tesco can check to their warehouse system whether the quantity of  customer request have stock or not, if the quantity insufficient, Tesco will contact their supplier to order the product that customer requested. Tesco also have produced their own product.  Besides that, they can inform their supplier to add certain amount product when Tesco have promotions.  The operations activities in the TESCO value chain include the compute-controlled machining systems which transforming the inputs into output or finished product.

Marketing and sales are promoting and selling products. They promote their product to customer during festival season so that customer can get product in best price. They are also promoting customer to used membership card to get best price. Their marketing and sales activities include promoting and selling their products in their website by using technology department. The outbound logistics activities include the shipment or delivering schedule systems such as distributing products, scheduling the driver and routine road. So that customer will get information about scheduling and routine road. Customer can collect product in certain pick place of product. The services are including the maintenance and repair the equipment’s or returning, the goods of the TESCO’s production. Based on return policy, customer get return their product if have any problem.


Support activities are the activities that make delivery of the firm’s primary activities possible highlight the management systems used to support the primary activities. For TESCO, the support activities include the infrastructure of TESCO, human resources management, technology development, and procurement. The TESCO’s infrastructure are include the administration and the management of the TESCO itself, while for the human resources management activities are includes the hiring, recruiting, and training the employees. Technology development activities of the firm include the improving the products and the production process. Procurement for the TESCO includes all the activities of purchasing all the inputs or resources. 


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