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Distinctive Strategic Management (Case Study) 
Prepared by : Harwindra Yoga Prasetya (55113310061)
What is re-engineering? The differences 
of re-engineering and restructuring 
The engineering process in 
wholesale/retail...
 Reengineering is a complete restructuring of business processes to create positive 
changes in current performance measu...
RESTRUCTURING 
 Most frequently the process of integrating 
connected corporations will only be possible by 
using revolu...
 The need of more effective and efficient system to achieve the competitive goals 
that will demanded in the general and ...
Case Study : 
Tesco-Homeplus 
Virtual Shop in 
Korea 
and 
The Counter Move of 
E-Mart
 People in South Korea work one of the longest hours in 
the world, they are very busy. 
 For people in South Korea, sho...
 Homeplus plastered the glass walls of subway stations with 
pictures of their products, laid out just as they’d be in a ...
Youtube Link : 
http://www.youtube.com/watch?v=nJ 
VoYsBym88
 E-Mart is also appear in this new competition in digital channel 
 They also build an e-commerce website completed with...
Youtube Link : 
https://www.youtube.com/watch?v=q 
HGejSWTmvw
Youtube Link : 
https://www.youtube.com/watch?v= 
Qch3kNUF0fE 
Youtube Link : 
https://www.youtube.com/watch?v=E 
vIJfUySm...
 This steps that firstly taken by Tesco Homplus and E-Mart in Korea is one of re-engineering 
form in retail business. 
...
 tesco virtual supermarket in a subway station : http://www.designboom.com/technology/tesco-virtual-supermarket- 
in-a-su...
September 18th, 2014
Re-engineering at Retail Business
Re-engineering at Retail Business
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Re-engineering at Retail Business

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Distinctive Strategic Management

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Re-engineering at Retail Business

  1. 1. Distinctive Strategic Management (Case Study) Prepared by : Harwindra Yoga Prasetya (55113310061)
  2. 2. What is re-engineering? The differences of re-engineering and restructuring The engineering process in wholesale/retail business Case study : Tesco Homeplus Virtual Shop in South Korea
  3. 3.  Reengineering is a complete restructuring of business processes to create positive changes in current performance measurements that are critical to operations management (Olorunniwo,1998)  Business process : a collection of value-adding work activities having a preferred order, an identifiatable beginning, and an end. Inputs and output of a business process are usually well-defined, and the activitiesare usually performed by cross functional teams.  Re-engineering, just like restructuring, is a method of revolutionary change and, therefore, embodies all general features of such radical changes (Dubrovski, 2005)
  4. 4. RESTRUCTURING  Most frequently the process of integrating connected corporations will only be possible by using revolutionary methods of change, as which one can classify restructuring and business process reengineering.  This process, representing a transition from the existing structure to a new one (program-market, manufacturing, technological, financial, organization, personnel, ownership, ecological, developmental) which enables greater successfulness and efficiency of corporate operations, is designated as restructuring.  Restructuring is one of the methods of revolutionary changes and a way to achieve renewal of the corporation as a result of strategic alliances. RE-ENGINEERING  Re-engineering, just like restructuring, is a method of revolutionary change and, therefore, embodies all general features of such radical changes.  Re-engineering brings about ‘a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.  Focus on corporate processes, radical changes, dramatic improvements and a multidisciplinary approach.  Focus on corporate processes which can be interpreted as a set of connected activities which engage an input (from suppliers), transform it and produce an output (for the customer). Source : Dubrovski, Drago (2005) Restructuring and Business Reengineering in Integrative Processes
  5. 5.  The need of more effective and efficient system to achieve the competitive goals that will demanded in the general and spesific industry environment of the 21st century.  Meeting/exceeding rapidly changing customer expectations in the marketplace successful retailers/wholesalers, by using technology and other strategic tools to create demanded value for customer, that are :  Speed of delivery and ordering  Improved and streamlined customer service  Reduce cost inventory levels  The long term idea is to stay relevant, competitive, more profitable and sustain.
  6. 6. Case Study : Tesco-Homeplus Virtual Shop in Korea and The Counter Move of E-Mart
  7. 7.  People in South Korea work one of the longest hours in the world, they are very busy.  For people in South Korea, shopping is not an activity people would like to utilize their free time in.  Tesco’s South Korean network of shops, called Home Plus, have grown to become the country’s second-largest supermarket after E-Mart since launching in 1999.  Being number two is never enough for Tesco, they want to be number 1 in South Korea.  They came to an answer, expanding their online sales rather than spending a lot of money opening new shops.  The opportunity : South Korea has more than 10 million smartphone users in a population of less than 50 million, it made sense to look at mobile shopping as much as websites for desktops.
  8. 8.  Homeplus plastered the glass walls of subway stations with pictures of their products, laid out just as they’d be in a traditional shop.  The ‘shelves’ featured QR codes - squares filled with a black and white pattern, unique to the product in question, they’re a more versatile successor to the bar code.  This QR codes are scanned by the traveller’s mobile phone, building up a shopping basket in the few minutes before the train arrives.  If they haven’t got the apps on their mobile phone, they can just simply download free Homeplus mobile apps through application store  Homplus build an e-commerce website and also mobile apps to complete the brand new shopping experience  If their train comes before your basket is complete, they can carry on shopping without the pictures and codes if you wish.  Tho goods will be delivered timely straight to their houses
  9. 9. Youtube Link : http://www.youtube.com/watch?v=nJ VoYsBym88
  10. 10.  E-Mart is also appear in this new competition in digital channel  They also build an e-commerce website completed with a mobile apps, to complete consumers’ shopping experience  They also try to bring their shop closer, just around their customers HOW?  Story : to make people staying far from E-mart, do shopping at E-Mart  The campaign was executed by using flying truck shaped figures that were placed around Seoul.  The flying store had a WiFi installed that allowed users to download the E-mart smart phone app and make online purchases.  The flying store proved to be very popular increasing the online sales by 157% and offline sales by 9.5%
  11. 11. Youtube Link : https://www.youtube.com/watch?v=q HGejSWTmvw
  12. 12. Youtube Link : https://www.youtube.com/watch?v= Qch3kNUF0fE Youtube Link : https://www.youtube.com/watch?v=E vIJfUySmY0
  13. 13.  This steps that firstly taken by Tesco Homplus and E-Mart in Korea is one of re-engineering form in retail business.  It simplifies the purchase process, speed up the delivery and ordering, reduce cost inventory levels, and bring more values to it’s customer  By utilizing technology and rapidly growing information technology, both South Korean number 1 and number 2 retailer give retail competition a new meaning.  Massive users of smartphone in South Korea triggered a new opportunity. Both in creating and increasing awareness, and also : SALES!  South Korean nowadays are using their smartphones to shop, to guide them through supermarket alleys to ease them finding goods they needed, hunt for discount session by scanning QR codes, etc.  As mentioned before : re-engineering brought radical changes in retail business through technology and internet utilization.
  14. 14.  tesco virtual supermarket in a subway station : http://www.designboom.com/technology/tesco-virtual-supermarket- in-a-subway-station/ (Jenni Filippetti, July 6th, 2011)  Tesco brings the supermarket to time-poor commuters in South Korea : http://www.wired.co.uk/news/archive/2011-06/30/tesco-home-plus-billboard-store (Olivia Solon, June 30th, 2011)  The Future Of Retail Is Full Of Challanges As Well As Opportunities : http://mootee.typepad.com/innovation_playground/2013/03/the-future-of-retail-is-creepy-whether-you-like- it-or-not.html (Idris Mootee, March 6th, 2013)  Tesco PLC (Homeplus Korea) website : http://www.tescoplc.com  E-Mart Flying Store : http://thedigitalpost.blogspot.com/2013/07/e-mart-flying-store.html  Olorunniwo, Festus; Wood, Donna (1998) Reengineering in the wholesale and retail industries (Norcross, USA, Institute of Industrial Engineers-Publisher )
  15. 15. September 18th, 2014

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