There are two problems due this week (each worth 32.5 points) as follows.

• Problem 1.6 (page 20) In comprehensive paragraphs, answer requirements a to e. You will have 5 paragraphs total of four to five sentences each.
• Problem 2.5 (page 41) Match each term with its definition.

Submit your assignment in Word.

1. 1.6. Based on Walmart’s success in the United States, many expected the company to quickly dominate the British market after it bought the Asda grocery chain in 1999. That did not happen; Walmart’s market share in groceries grew to a little more than half that of its biggest competitor, Tesco. Initially, Tesco’s sales and net income rose significantly while Walmart’s sales and net income increased at a much slower rate. More recently, Walmart has made small gains in market share, and Tesco has had small decreases.Walmart found out that Tesco is a formidable worldwide competitor. Tesco operates almost 2,400 stores in Britain in four different formats. It has a very successful operation in Central Europe, and it expanded to the United States with Fresh & Easy stores. In Korea, Tesco’s 174 stores thrived while Walmart gave up after an eight-year effort to succeed and sold its 16 stores.One of the biggest reasons for Tesco’s success is its use of technology. In 1995, Tesco started a loyalty card program, called Clubcard, and over 80% of its shoppers are members. Shoppers fill out an application in the store and receive a plastic card and a key fob in the mail that is scanned before they make a purchase. Tesco gathers massive amounts of data about its customers’ 15 million purchases each week. Sales data are analyzed and turned into information that provides Tesco with a significant competitive advantage.As traditional advertising loses effectiveness, these large stores of data allow Tesco to find new and creative ways to market its products.
   

   Required

   1. What kind of information do you think Tesco gathers?
   2. How do you think Tesco has motivated over 22 million customers to sign up for its Clubcard program?
   3. What can Tesco accomplish with the Clubcard data it collects? Think in terms of strategy and competitive advantage.
   4. What are some of the disadvantages to the Clubcard program?
   5. Do an Internet search to find out how Tesco is doing in comparison to Walmart and other grocers and retailers. Write a few paragraphs explaining your finding
   7. 2.5 Match the following terms with their definitions.
      

      Term	Definition
      a. data processing cycle	1. Contains summary-level data for every asset, liability, equity, revenue, and expense account
      b. source documents	2. Items are numbered consecutively to account for all items; missing items cause a gap in the numerical sequence
      c. turnaround documents	3. Path of a transaction through a data processing system from point of origin to final output, or backward from final output to point of origin
      d. source data automation	4. List of general ledger account numbers; allows transaction data to be coded, classified, and entered into proper accounts; facilitates preparation of financial statements and reports
      e. general ledger	5. Contents of a specific field, such as “George” in a name field
      f. subsidiary ledger	6. Portion of a data record that contains the data value for a particular attribute, like a cell in a spreadsheet
      g. control account	7. Company data sent to an external party and then returned to the system as input
      h. coding	8. Used to record infrequent or nonroutine transactions
      i. sequence code	9. Characteristics of interest that need to be stored
      j. block code	10. The steps a company must follow to efficiently and effectively process data about its transactions
      k. group code	11. Something about which information is stored
      l. mnemonic code	12. Stores cumulative information about an organization; like a ledger in a manual AIS
      m. chart of accounts	13. Contains detailed data for any general ledger account with many individual subaccounts
      n. general journal	14. Contains records of individual business transactions that occur during a specific time period
      o. specialized journal	15. Updating each transaction as it occurs
      p. audit trail	16. Devices that capture transaction data in machine-readable form at the time and place of their origin
      q. entity	17. Used to record large numbers of repetitive transactions
      r. attribute	18. Set of interrelated, centrally coordinated files
      s. field	19. Two or more subgroups of digits are used to code items
      t. record	20. Updating done periodically, such as daily
      u. data value	21. Systematic assignment of numbers or letters to items to classify and organize them
      v. master file	22. Letters and numbers, derived from the item description, are interspersed to identify items; usually easy to memorize
      w. transaction file	23. Initial record of a transaction that takes place; usually recorded on preprinted forms or formatted screens
      x. database	24. Fields containing data about entity attributes, like a row in a spreadsheet
      y. batch processing	25. Sets of numbers are reserved for specific categories of data
      z. online, real-time processing	26. The general ledger account corresponding to a subsidiary ledger, where the sum of all subsidiary ledger entries should equal the amount in the general ledger account