Another example is through decision-making, in Tescos the old hierarchal system like the one demonstrated above has been replaced in some ways for example, the creation of teams so that there is now team members. The idea of this is to open up the flow of communication and to try and involve more people in decision making. If an employee of Tescos was able to give suggestions this would show a democratic style of management because individuals or teams have been given the responsibility to make decisions. If the manager was then able to pass on these suggestions to there manager who could then reinforce the suggestions, would show evidence of a flat structure as there are fewer levels involved. This new creation forms part of task culture whereby employees are being encouraged to take on more power and responsibility instead of waiting and being told what to do.
ICT:
Tescos website is one of the most regularly visited in the UK with over one million registered users. The site offers over 20,000 different products for sale, including groceries, CDs, DVD’S, videos, electrical goods, flowers as well as personal finance.
Tescos’s say:
‘The information on our website forms an important part of our commitment to corporate social responsibility. It illustrates the steps Tescos takes to contribute to the communities we serve, whilst outlining some of the specific achievements we have made in reducing our environmental impacts during 2000/2001’
(Terry Leahy, Chief Executive, Tescos PLC, 2001)
One major way in which Tescos are improving relations with their customers is through their website by providing a substantial amount of information online. The site outlines the company’s aims and objectives and states its responsibilities to customers, suppliers and investors. It also contains useful information on issues that are of concern to consumers such as organic farming and GM foods. The website enriches the customer’s browsing experience by providing additional features that are unique to their websites. Tescos website contains a rather large collection of news release articles, which provide detailed information on the company’s activities over the past few years, together with notes to editors. The website also allows you to order your groceries on-line by browsing a virtual store which allows you to place products into virtual shopping baskets and pay at the checkout using a debit/credit card. Next day delivery is also promised at no extra cost as long as a minimum amount is spent.
I was asked to give some suggestions on how Tescos could make their website more appealing or beneficial to customers but I can honestly say Tescos have everything covered; their website is very impressive and contains information that not only helps shoppers but students like me. Tescos have even opened a website with greater accessibility for blind customers whereby software can read the text in webpage’s aloud with descriptions of the images of products to make shopping on-line easier for these type customers. I also asked my mother for her opinion on the Tescos website as she is a personal on-line customer of theirs and she too was very pleased with the contents of the site and felt her shopping experience on-line went very smoothly.
Another form of ICT used by Tescos is e-mail which is used by the company internally and externally. Internally e-mail is used between the different departments of Tescos whereby employees can simply write a message on one computer and send it to a person on another computer. The advantage to any company using e-mail internally is:
- Flexibility as you can attach any sort of digital file to a message such as a spreadsheet or a message.
- Price as the cost of any e-mail is the same regardless of distance.
- Speed – e-mails should reach its recipient in minutes.
- Convenience – messages can be stored until they are ready to be sent, the same message can also be sent to a large amount of people, saving paper and postage costs.
- A permanent record – unlike phone calls, a record can be kept of messages and replies which help Tescos to keep organised.
Externally the Tescos website allows customers to e-mail them via the customer service department whereby the customer can enquire about products and services, ask for information; give their suggestions and any complaints. This connection line means Tescos can interact with their customers by computer and assist them with any problems without them having to come into the store. Tescos can also benefit from this service as they can meet some of there objectives by finding out what customers want and by addressing any complaints or problems customers are experiencing and challenge these problems by putting a new system in place so customers are no longer experiencing these problems which gives customer satisfaction.
I actually e-mailed Tescos with an enquiry to experience how the system works, how they would deal with my enquiry and the speed at which they would do this. Unfortunately I didn’t receive an e-mail back to enclose in this document to show this. Although I have taken into consideration that Tescos receive hundreds of e-mails a day and may have problems with replying to them all in relation to time management.
Tescos have created excellent communication channels within the business and outside the business which enables them to achieve its business aims effectively for example their website helps them to build strong relationships with customers, which is one factor that helps Tescos to stay ahead of competition and remain the leading supermarket ahead of Asda and Sainsbury’s who are currently in second and third place.
