INTRODUCTION OF ELECTRONIC BUSINESS

Electronic business has been used for describing a variety of market transactions enabled by information technology and conducted over the electronic network.the emergence of internet as a vast public network with millions of people connected online has given rise to a new interactive market place four buying and selling.thus for some electronic business the capability to buy to sell good and information and services online through public network Business is not just about eCommerce or exchanging information about goods and services between you and your customers and your and your suppliers. It is about using the Internet for the transfer of information between employees using your in-house systems, between branch offices, between remote users, and between business partners, customers, suppliers and the public. E-Business is also about automation. You can automate many of your in-house procedures using new sources of information. You are freed up so you can use information and technology to let you work AT your business rather that IN your business. Here is a simplified example an AUTOMATED e Business system we can provide at competitive rates: A customer wants to order 1000 widgets. They visit Custom Shop - logging on automatically. Custom Shop checks to see whether your customer has any outstanding orders and their credit worthiness. The customer places their order Custom Shop checks to see whether there is enough stock. If not, a purchase order is sent to your supplier (according to the "rules" for widgets). Your Purchase Order information and the Sales Order information is entered into your existing accounting system (assuming your system is able to import transactions - most do).

E-BUSINESS STRATEGIES PROVIDE YOU MORE BENEFITS:

Reduced Administration Costs. Faster trading cycles. Inventory Reduction. Ability to win new business and retain existing customers. Ability to respond to new competitors quickly Personnel Cost Savings Cash Flow Improvements Improved Order Fulfillment Enhanced image 24/7 operation - it never stops Reduced geographic constraints

The benefits of eBusiness have spawned a huge range of related products and services. Your challenge to understand what eBusiness can provide for YOUR business and then match YOUR requirements to what is available. We believe that Custom Shop and Commence provide can provide you with solutions that are second to none.

TESCO
INTRODUCTION

Tesco is a UK-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic

market share, with profits exceeding 3 billion. It is currently the third largest global retailer based on revenue, behind Wal-Mart and France's Carrefour, but second largest based on profit, ahead of Carrefully.

FORMATION

First Tesco self service, St Albans, England Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall in the East End of London. The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T.E. Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word TESCO.The first Tesco

store was opened in 1929 in Burnt Oak, Edware, Middle sex. Tesco was floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self-service store opened in St Albans in 1951 (still operational in 2009 as a Metro),and the first supermarket in Maldon in 1956. During the 1950s and the 1960s Tesco grew organically, and also through acquisitions, until it owned more than 800 stores. The company purchased 70 Williamsons stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960), 97 Charles Phillips stores (1964) and the Victor Value chain (1968) (sold to Bejam in 1986)

TESCO PRODUCT RANGES

The Tesco.com site acts as a portal to most of Tesco's products, including various non-food ranges (for example, Books, DVDs and Electrical items under the Extra banner), Tesco Personal Finance and the telecoms businesses, as well as services offered in partnership with specialist companies, such as dieting clubs, flights and holidays, music downloads, gas, electricity and DVD rentals. It does not currently sell clothing online but in May 2005 it introduced a clothing website (www.clothingattesco.com), initially at to showcase Tesco's clothing brands and link customers to their nearest store with this range.

TESCO COMPETITORS
Tesco currently leads the UKs other leading grocery retailers in terms of market share. This pattern is repeated online.

The Nielsen/Netrating audience panel for September 2007 for the top UK supermarkets shows the lead of Tesco, offline market share is in brackets from TNS which monitors the household grocery purchasing habits of 25,000 demographically representative households in the U.K.:

Tesco.com (5.2. million unique users, September 2007, 30.9%) Asda (1.4 uniques users, 16.9%) Sainsburys (840,000, 16.4%) Waitrose (332,000) Morrisons (225,000). Tesco.com UK competitor update for 2006

Some companies are repeated since both their main site and the online shopping site are reported on separately. Asda.com now seems to be performing in a consistent manner online to its offline presence. However, Sainsburys online performance seems to be significantly lower compared to its offline performance. Some providers such as Ocado which originally just operated within the London area have a strong local performance. Notably, some of Tesco.com competitors are absent from the Hitwise listing since their strategy has been to focus on retail formats. These are Morrisons (12.5% retail share, Somerfield (5.5%) and Co-op (5.0%).

TESCO FOLLOWS B2C MODEL

In 2006, Tesco launched Tesco Direct to rival catalogue retailers such as Argos. Over 8,000 products will be available from beds and sofas through to kitchenware, electricals, cameras, bikes and golf clubs - giving customers

more products at great Tesco prices than they have ever had access to before. Customers can choose the product they want on a new website or from a new catalogue and then order in one of three ways:

On-line via the tesco.com website.

By phone.

In selected stores at the new Tesco Direct desks.

In the press release for this update it was reported that Tesco.com now has million regular grocery shoppers with over 200,000 orders per week and achieved over 1 billion in sales in 2005.

TESCOS ONLINE PRODUCT STRATEGY

NMA (2005) ran a profile of Laura Wade-Gery CEO of Tesco.com since January 2004 which provides an interesting insight into how the business has run. In her first year, total sales were increased 24% to 719 million. Laura, is 40 years old, a keen athlete and has followed a varied career developing from a MA in History at Magdalen College, Oxford, an MBA from Insead; Manager and partner in Kleinwort Benson; Manager and senior consultant, Gemini Consulting; Targeted marketing director (Tesco Clubcard), and Group strategy director, Tesco Stores.

The growth overseen by Wade-Gery has been achieved through a combination of initiatives. Product range development is one key area. In early 2005, Tesco.com fulfilled 150,000 grocery orders a week but now also offers more intangible offerings, such as e-diets and music downloads.She has also focused on improving the customer experience online the time it takes for a new customer to complete their first order has been decreased from over an hour to 35 minutes through usability work culminating in a major site revision. To support the business has it diversifies into new areas, Wade-Gerys strategy was to make home delivery part of the DNA of Tesco according to NMA (2005). She continues.What we offer is delivery to your home of a Tesco service it's an obvious extension of the home-delivered groceries concept. My May 2005, Tesco.com had 30,000 customers signed up for DVD rental, through partner Video Island (who run the rival Screenselect service). Over the next year, her target is to treble this total, while also extending home-delivery services to the likes of bulk wine and white goods. Wade-Gery looks to achieve synergy between the range of services offered. For example, its partnership with eDiets can be promoted through the Tesco Clubcard loyalty scheme, with mailings to 10m customers a year. In July 2004, Tesco.com Limited paid 2 million for the exclusive licence to eDiets.com in the UK and Ireland under the URLs www.eDietsUK.com and www.eDiets.ie. Through promoting these services through these URLs, Tesco can use the dieting business to grow use of the Tesco.com service and in-store sales. In 2007 it launched price comparison site Tesco Compare. But it has to be based firmly on analysis of customer demand. She says : The number one thing for us is whether the product is something that customers are saying they want, has it reached a point where mass-market customers are interested? There also has to be scope for simplification. NMA (2005) notes that Tesco is built on a core premise of convenience and value and Wade-Gery believes what it's already done with mobile tariffs, broadband packages and music downloads are good examples of the retailer's knack for streamlining propositions. She says: We've actually managed to get people joining broadband who have never even had a dial-up service

USE OF THE TESCO.COM SITE

The Tesco.com Site is provided to you free of charge for your personal use subject to these Terms and Conditions and our Privacy Policy. By using the Tesco.com Site you agree to be bound by these Terms and Conditions and our Privacy Policy. The Tesco.com Site is made up of a number of stores, including for example, Tesco Online Grocery Superstore, Tesco Wine Warehouse, Tesco Electrical warehouse, Tesco Jersey (Online Stores). These Terms and Conditions govern your use of the Tesco.com Site and Online Stores and all services provided in connection with these. All orders and purchases made on the Tesco.com Site will also be governed by the specific Product Terms relevant to each Online Store. In order to help us validate your payment card, a pre-authorisation amount of 2 is reserved from your account automatically when you check out. Upon validation of this amount, checkout can continue. On the day of delivery, full authorisation takes place whereby the total amount is requested from your bank and the 2 preauthorisation request removed. If you cancel your order, the pre-authorisation reserve will be removed from your account within a few working days. Please note that Tesco Personal Finance is not operated by Tesco.com and any services ordered from the Tesco Personal Finance site are subject to the terms and conditions available on the Tesco Personal Finance site. For the purpose of these Terms and Conditions, the Tesco Personal Finance site is not classified as part of the Tesco.com Site.

REGISTRATION
To register with Tesco.com you must be over eighteen years of age.

You must ensure that the details provided by you on registration or at any time are correct and complete.

You must inform us immediately of any changes to the information that you provided when registering by updating your personal details.

PASSWORD SECURITY
When you register to use the Tesco.com Site you will be asked to create a password. You must keep this password confidential and must not disclose it or share it with anyone. You will be responsible for all activities and orders that occur or are submitted under your password. If you know or suspect that someone else knows your password you should notify us by contacting Customer Services (see below for contact details) immediately. If Tesco.com has reason to believe that there is likely to be a breach of security or misuse of the Tesco.com Site, we may require you to change your password or we may suspend your account in accordance with paragraph 13 below.

CLUBCARD
You need to have a Tesco Clubcard or a Tesco e-Clubcard to shop at the Tesco.com Site Bonus coupons received with the quarterly Clubcard mailing or handed out instore, and product or discount coupons issued by manufacturers or promoters cannot be redeemed against purchases from the Tesco.com site.

STANDARD E COUPONS TERMS AND CONDITIONS

USING E COUPONS E-Coupons can only be used online at www.tesco.com subject to these general terms and conditions, and any other specific conditions notified to you on the issue of an eCoupon. No eCoupon is redeemable through any website owned or operated by Tesco Stores Limited (Tesco") other than tesco.com or any Tesco store. An eCoupon is redeemed by entering its code at the appropriate point in the online purchase process. Redemption may be subject to you providing proof of entitlement to use the e Coupon.Your use of an eCoupon indicates your agreement to be bound by these eCoupon Terms and Conditions.Tesco reserves the right to withdraw or cancel an coupon for any reason at any time.

DISTRIBUTION OF E COUPONS

E-Coupons are, and remain at all times, the property of Tesco.

The right to use an coupon is personal to the original recipient and may not be transferred. No coupon may be copied, reproduced, distributed, or published directly or indirectly in any form or by any means for use by an entity other than the original recipient, or stored in a data retrieval system, without the prior written permission of Tesco. E-Coupons distributed or circulated without the written approval of Tesco, for example on an Internet message board or on a "bargains" website, are not valid for use and may be refused or cancelled.

PERMITTED USAGE OF E COUPONS

Unless expressly stated otherwise at the time of issue of the coupon;

1. Each issued coupon will be valid for use by a recipient only once, 2. Only one coupon will be valid for use per customer or household, as

the case may be, and, 3. An coupon may not be used in conjunction with any other special offer or coupon. Even where eCoupons expressly state at the time of issue that they may be used in conjunction with other eCoupons or offers, any coupon code beginning XX may not be used in conjunction with any other coupon code that also begins XX. Even where eCoupons expressly state at the time of issue that they may be used in conjunction with other eCoupons or offers, any coupon code beginning TD may not be used in conjunction with any other coupon code that also begins TD.Any promotions for Double or Triple Clubcard Points will exclude delivery charge.E Coupons cannot be exchanged for cash or used to purchase gift-vouchers.

E Coupons cannot be used in conjunction with purchases from the Tesco Jersey online store

FINANCIAL PERFORMANCE
Tesco is listed on the London Stock Exchange under the symbol TSCO. It also has a secondary listing on the Irish Stock Exchange with the name TESCO PLC. All figures below are for the Tesco's financial years, which run for 52 or 53 week periods to late February. Up to the 27 February 2007 period end the numbers include non-UK and Ireland results for the year ended on 31 December 2006 in the accounting year. The figures in the table below include 52 weeks/12 months of turnover for both sides of the business as this provides the best comparative.

52/3 weeks ended

Turnover (m)

Profit before tax (m)

3,128 2,803 2,653 2,210 1,962 1,600 1,361 1,201 1,054 933 842 760

Profit for year (m)

3,090 2,130 1,899 1,576 1,366 1,100 946 830 767 674 606 532

Basic earnings per share (p)

28.92 26.95 22.36 19.70 17.44 15.05 13.54 12.05 11.29 10.07 9.14 8.12

28 February 2009 54,300 23 February 2008 47,298 24 February 2007 46,600 25 February 2006 38,300 26 February 2005 33,974 28 February 2004 30,814 22 February 2003 26,337 23 February 2002 23,653 24 February 2001 20,988 26 February 2000 18,796 27 February 1999 17,158 28 February 1998 16,452

As of its 2006 year end Tesco was the fourth largest retailer in the world behind Wal-Mart, Carrefour and Home Depot. Tesco moved ahead of Home Depot during 2007, following the sale of Home Depot's professional supply division and a decline

in the value of the U.S. dollar against the British Pound. METRO was only just behind and might move ahead again if the euro strengthens against the pound, but METRO's sales include many billions of wholesale turnover, and its retail turnover is much less than Tesco's. At 24 February 2007 Tesco operated 1,988 stores in the UK (2.581 million m, 27.7 million square feet) and 1,275 outside the UK (3.75 million m, 40.4 million square feet).

UK SHARE MARKET

According to TNS World, Tesco's share of the UK grocery market in the 12 weeks to 30 November 2008 was 30.9%, up 4.3% on 12 weeks to 2 December 2007. Across all categories, over 1 in every 7 (14.3%) of UK retail sales is spent at Tesco. Tesco also operates overseas, and non-UK revenue for the year to 24 February 2007 was up 18% on 25 February 2006.

Supermarket
Tesco Asda Sainsbury's Morrisons

Consumer Market Share +/- From Spend (000s) November 2008 \December 2007 2008 6,351,531 30.9% 4.3% 3,410,431 16.8% 7.8% 3,175,543 16% 6.1% 2,233,137 11.8% 10.3%

TESCO ONLINE MARKET SHARES

Update on Tesco UK Online Market Share - share of UK visits in September 2008 was: Tesco 27.1% Asda 10.1% Aldi (which doesn't sell online) 9.5% Sainsburys 6.9% Waitrose / Ocado on 4.2%.

As this Tesco.com case study shows, retailer Tesco is generally recognized as the worlds largest online grocer and it has an annual turnover of 1 billion online in the UK and has launched in other countries, internationally and is diversifying into nonfood categories.