Knowledge Management and Information System

This study material provides an overview of knowledge management and information system. It explores the internal abilities of Tesco and the influence of various external factors. The document also offers suggestions for implementing knowledge management systems to enhance the company's performance.

Knowledge Management
and Information System

INTRODUCTION
Knowledge management is an activity which is associated with making, repossessing,
delivering, using and administrating several experiences and important data that is linked to an
establishment. It assists the company in accomplishing effectiveness in the business operation
and protecting the content or information which they have regarding their target audiences and
other connected segments. It also help in determination devising because it make sure that all the
manpower can evaluate several proficiency in easy manner which form a smart workforce that
involve and engage in developing the execution of the company. Such knowledge administration
is designed in the firm with the assistance of networks and information technology so that
different activities and procedures can be maintained like documentation, assembling and storing
of the data instantly from consumer to the system of the venture. For the completion of this
written document, Tesco is the company which is considered. It is a British large multinational
grocery and general merchandise firm which operate its business across UK. This enterprise was
incorporated in 1919 by Jack Cohen and is headquartered in Herefordshire, UK. The report will
considered information about the internal abilities and influence of different macro environment
factors and their impact over business of organisation. Further, it will consider about the aim of
company which is developing their existing and future possible growth by improving sit
execution. Along with this, the document will explain about the suggestions that will be provided
to firm in context of several kinds of knowledge management system.
MAIN BODY
1) Overview of the company
The organisation which has been considered for the research on the aspects of
Knowledgemanagement and the information system flow is the most renowned company in the
retail sector of United Kingdom. Tesco Plc. is a well established retail company that majorly
deals in the grocery, general merchandise, clothing with a wide product portfolio. The company
is headquartered in Welwyn Garden City, Hertfordshire, England. The organisation is ranked as
the third main vendor on the globe wide level. It has a wider capturing of the national as well as
international market shares.

Corporate Objectives: The Company is considered as the fastest growing retail company in the
United Kingdom due to its effective and efficient working performance and most appropriate
standards of customer services. These elements are achieved by devising all the functions in such
a way to gain the associatedobjectives of the organisation. In context to Tesco, the company
formulates certain strategies to achiev thesecorporate objectives by considering various aspects
of work and performance in the organisation and to make the process more evolving and develop
the standards of work. The company has a distinctive corporate objective to enhance the
profitabilityin the current period of trading and along with that the company is also aiming to
reduce the production and marketing cost to an extent for evaluating more prizereduction
alternative in the market of its respective products.
Business Overview: The company is effectively dealing in the retail sector of world. Tesco is
also engaged in other financial services such as providing the retail insurance retail banking etc.
along with that the business of the firm is also doing well on the multiple online platforms and
through obtaining recent physical offline outlets and different other facilities according to the
need of the current trend of the marketplace, to enhance and expand the profitability and reach of
the business in the market.
Corporate Structure:The corporate structure of Tesco is mainly the hierarchical organisational
structure. In this kind of structure the organisation and the management within classifies the
roles, levels, authorities in the organisation that helps in dividing the work force as per the
designations, competences and responsibilities that are associated to the significant employee in
Tesco.
Business model of the organisation: Under the respective enterprise, the business model is
comprised of commodities, distribution channels and customers. The organisation works on the
pattern of more simplicity and effectiveness of the products and services . Along with that the
organisation and its culture of work revolves around the betterment of customer experiences with
the organisation and to provide the best in class services to the consumers so that they can ensure
their position in the lead among the extensive competition of other retail companies.(Hwang, Lin
and Shin, 2018).

2) Assessment of the interior abilities of the corporation along with the influence of diverse
green components
The business and its performance plays an effective role in determining the position of any
firm in the market. Thus significantly the performance of any business is heavily affected by all
the external as well as internal factors that are related to the company and affects its trading
activity either directly or indirectly. Thus it becomes essential for the big retail company like
Tesco to evaluate these internal as well external elements of the business and in order to analyse
these elements the company effectively use the tools like SWOT analysis and Porter’s Five
Forces to understand and evaluate the internal aspects of Tesco and for the assessment of the
external factors the management within the organisation can efficiently use the PESTEL
analysis. This analysis covers all the major factor of externalenvironment including political,
economical, social, technological, environmental and legal factor.
PESTLE ANALYSIS: The pestle analysis is here as follows in respect to Tesco Plc. for the
evaluation of its external factors.
 Political FactorsThe political factors are comprised of the policies, regulations that are
formed by the existing political powers within the nation. In the context to Tesco the
higher political stability in United Kingdom act as the high opportunity to the company
for effective growth and to formulate the furtherplanning of the company’s future
operations by considering the same old policies of existingpolitical ruling party. While
the political issues of EU affects the market of consumer in U K in a very adverse
manner.
 Economic Factors: The economic factors are those elements that are responsible in
determining the economy and all kinds of financial condition in a nation. Within the
confines of United Kingdom the economic factors like purchasing power of people and
return on investment rate are much higher. These factors gives a growth advantage to
Tesco as higher purchasing power of the individual in the country influences the
company to plan effective prising strategies that can give them enhanced profits. On the
other hand the higher rates of interest deduct a bigger amount of profit of company to
settle its loans and their interests.
.

 Social Factors: The social factors that are relvent to the culture, taste, class and
perception of the society that enforces a particular share of the consumers to accept or
reject the significant brand or its products and services. The United Kingdom is the well
developed country and the living standard of its people are very high that encourages the
bigger firms like Tesco to operate their business with higher quality among the market to
enhance the brand image. Thus the social factors and the emerging trends in customer’s
choice certainly bring the negative effect to the long term planning of the firm(Hislop,
Bosua and Helms, 2018).
 Technological Factors: The certain technological factors that takes place in the form of
new advancement in the country among various field of operations are determined as the
most affective externalenvironment. The increasingadvancements of technology in the
direction of Information Technology in United Kingdom helps the growing companies
like Tesco to use the newer and innovative technologies of I T within the confines of
organisation to enhance the productivity. The implementation of new and trending
technology sometimes brings the extensive exhaustion of financial resources in the
company.
 Legal Factors: The multiple polices, laws and legislations that are enforced by the
official authorities in the nation are termed as the legal factors. In respect to Tesco the
legal factors plays a crucial role in the survival of business for example, the laws of
employment enforces company to follow the guidelines of government in performing the
employment procedure. These factors act as the framework to complete the activities
ethically and effectively while on the other hand these factors act as the barriers due to
lack of limited formalities. .
 Environmental Factors: The environmental; factors are those factors which includes the
environmental and climatic elements of a nation. In United Kingdom the environmental
conditions are not in a good condition. Thus to overcome through it Tesco is helping in
minimising the adverse effects of environment on the country as well as on the whole
earth. The company is focusing on the effective ad eco friendly waste management
process that would help in gaining the positive publicity of company among the
market(Northand Kumta, 2018).

SWOT ANALYSIS: The swot analysis enables the corporation to evacuate the strengths,
weakness, opportunities and threats which are evaluated as follows in respect to Tesco Plc.:
Strengths Weaknesses
 The company has a very great
foundation in the market that gives it a
very handsome good will and brand
value.
 The newer and technological operations
are making the company a stronger
giant of retail industry which is enabled
to range up and level down the business
actions as per the demand of market. .
 The poor execution of law level staff
creates a very insufficient image of the
company among the customers and
delayed activities from the organisation
side.
 The organisational structure of Tesco is
quite limited that restricts the
expansions of its varied product
portfolio in different parts of market..
Opportunities Threats
 The low rate and extensive quality of
the product can be the opportunity of
the products to cover the maximum
market share in the national as well as
parameters.
 The increased use of internet and mass
appearance if people over there, Tesco
has observed the opportunity to
establish its online portals of retail
shopping, through that it can maximise
its reach of the business promotion in a
very cost and time efficient manner.
 The product range of the company has
become a bit out dated as per with the
new trends the other companies are
introducing in the market this increase
the threats.
 The timely increasing costs of the
commodities decrease the profits and
revenue of the company.
PORTERS FIVE FORCE MODEL:The Porters Five Forces is a tool that is effectively used by
the organisations to evaluate the internal elements of the organisation that certainly effects on the
growth and current working of the organisation. Tesco is a multinational company thus it
involves various kinds of forces that is directly interlinked with its performances. These forces
will be analysed by the help of Porters five forces model. :

 Competitive Rivalry: The impact if competitive rivalry is as compared to be high for the
aspects of Tesco Plc. there are a numerous other giant retailers in the markets of United
Kingdom. Organisations such as Asda, Sainsbury, Morrison’s are the effective
competitors of the company which impacts on the overall performance and market
capturing of Tesco. The company can formulate certain strategizes and policies to beat
this extent of competitive rivalry by emphasising on the prising factor, and the quality of
products. Along with that Tesco should also put more focus on the better customer
experience other than their rivalry.
 Bargaining power of the Suppliers: It is quite short because of the high availability of
raw material in the market. The different amount of dealers in the marketplace offers
various kind of services and other discount to the company that gives a chance to shift
towards the most reasonable supplier and cut a bit amount in the costing of the product.
The company can welcome these small merchants and should involve them in business
too so they work more effectively towards the higher quality of the raw material.
 Bargaining power of the Customers: The power of bargaining of the consumers is quite
moderate in respect to Tesco. The company provides a proper and varied product
classifications in good quality that are effectively used as the base of uniqueselling
preposition by the company. Along with that the thesepolicies of the company attracts
new and potential customers to enhance its business.
 Threat of substitute: The commodities which are provided by Tesco with the help of its
distributors with very low differentiation. Cause of which the target audiences can move
to other brand’s product in easy form so the switching cost is low (Au and Fung, 2019).
Apart from this there are range of grocery and Merchandise Company which offer similar
products at low cost and some extra features that can also attract customer and cause of
which they move to those ventures. Advertisement and promotional efforts o other
organisations can also get attention of consumer easily.
 Threat of new entrant: Tesco operate its business in retail sector so the risk of new
entrants is low because they have been running in large scale and to establish a business
in this sector is not so easy due to investment of more capital and there are several
legislation that are compulsory to follow. So any new entrant cannot enter easily and

affect such venture. But they have risk from the private labels because they may affect
the business of respective establishment in specific destination.
As per mentioned determination of several macro and micro environmental components, it
can be analysed that Tesco has several growth options and has ability to accomplish
opportunities that are exists in marketplace (Bazan and Estevez, 2019). Along with this, the
influence of several components is low in comparison to its rivals that imply that with
development in the current activities, Tesco can accomplish its aims and goals in easy form.
3) Suggestions to Tesco of several Knowledge management information system that can
facilitate development in the execution
The goal of Tesco is to develop their existing potential and their future potential so that
they can effectively accomplish their results. The application and incorporation of such system in
the company will able those to develop their execution, take rivalry benefits over others, create
their offerings because they have knowledge about the consumers’ needs and preferences in
addition to their desires from the venture etc. The knowledge administration information system
can be incorporated within the enterprise in three extents cause of which it becomes
appropriately. To develop the execution, the Tesco is suggested to accept such system. Some of
the system that can be accepted by respective firm considers:
 Innovation support tool: The creation and innovation techniques assist in creating
information and experience along with the activity of product designing. As it is a
software tool and technique which generates virtual atmosphere that motivated the insight
stand that is basically utilised by the investigation and research division of the
enterprises. Such tools are crucial to the firms because with the assistance of it, they can
record technical database within considers articles, patents and several research projects.
Moreover, it helps the activity of internalisation that develops the explicit knowledge and
adds tacit information is not transferable (Cabitza and et. al., 2016). This helps them to
initiate considerable amount if creation in their commodities along with activities.
 Intranets: It is the private computer networks that are urbanised on the searchable
platforms with the assistance of easy access to the information can be assisted. It
maximised coloration and social networking between the workers and in the whole
establishment. This tool of utilising the data is quite easy because all the information can
be delivered without directing any harm to it, helping all the workers in making useful

interpretations according their need. But it becomes dangerous when important and
essential data is stored as it leads to easy access cause of which any illegal access can
direct to waste of the data.
 Groupware: With the assistance of this software, the group which is running form differ
locations are supported through new branch of computer science and that is Computer
Supported Cooperative Work. This technical tool utilises push form because in it
information is delivered to the users that can take place with several mediums like chat,
emails, e-groups and many more (Cai and et. al., 2016). Along with this, it supports
casual communication cause of which individual freely exchange their information and
opinions. The sharing of the unspoken knowledge can be devised possible with the
assistance of discussion teams and chats like they are included to be the ordinary
applications of Groupware. Microsoft exchange is one of the commonly utilised software
which can be used by the management of Tesco in term of knowledge management
system.
 Wikis: It is the web page which is treated as easier to utilise tools within the information
can be distributed and data can be sorted at central place. The product records and
business reports can place on this system but as they can be altered openly through any
user and it can influence the consistency of such data. Along with this, the social
networking can also be utilised like a knowledge administration system because with the
assistance of it, a large data can be collected, documented, recorded and delivered by the
business enterprise.
 With the assistance of defined knowledge management system, it can be find out that the
Tesco can accept such systems and this will assist them to administrate them to
administrate their operations and processes effectively. The data and the information can
be categorised and arranged in a systematic manner so that they can appropriately access
the data and can acknowledge it (Dalkir, 2017). In addition to it, by accepting and
implementing these tools will assist Tesco to have effective communication between
workers and it can also direct to efficient acknowledging between the workers. High
involvement of employees will bring new thoughts in the firm which will make them able
to developing their efficiencies and competency. The respective establishment can assure
that the quality of the information that they have, are better and conducted will assist the

administrators of the enterprise in faster determination devising. But it is not potential for
the enterprise to all its systems. So, the knowledge management system that are
suggested to firm along with their advantages to Tesco are defined as under:
 Groupware knowledge management system must be accepted and implemented by the
management of Tesco because they have been running in diverse nations so it will help
their group in several locations to have an access to the information (Hislop, Bosua and
Helms, 2018). Also the casual communication between the workers will help them to
bring new thoughts according their potential and it will make them able enough of
offering effective facilities to target audiences.
 Document administration system will assure security and protection of the information of
Tesco because they will be accumulated at one consolidated place with secured password
that can defend illegal access. As per analysing the need of Tesco, they can also get such
software converted so that more or less protection can be administrated.
4) Critical evaluation of key confronts that are faced by the establishment while applying KMIS
With the motive of developing the activity and process of enterprise, Tesco lean to accept
diverse knowledge management system with the assistance of which they can develop their
offerings, administrating the target audiences, assure the protection of information of the
business enterprise etc. But when applying these system in the establishment, they have to suffer
several confronts (Hwang, Lin and Shin, 2018). These kinds of different challenges can be faced
by Tesco also when it executing such system, the description of them as under:
 Employees contribution: With the application of any modification in the firm, the
workers may feel demotivated because they may have ability to adopt and accept these
kind of alteration and this may direct to resistance towards the modification. Tesco may
suffer this issue and to administrate it, they require conducting different kind of training
programmes for the manpower. So that they can learn such technology can acknowledge
its advantages of the business venture as well as for them.
 Documentation of the information: The data is collected by the establishment is raw
information which they have to categorised in effective manner but with the help of
software system they can administrated it. The issues that they suffered are associated
with administrating the data from several sources and analysing their validity and
dependability. Software will store all the data that has been entered but it can direct to

redundancy of the information because it will generate and utilised at several sources. For
administrating this software, requirement to be modified according to the need of
establishment.
 Regular updates in the software and related technology: The technology is improved
regularly and due to it, the establishment has to concentrate over several modifications
taking place (Karamitri, Talias and Bellali,2017). While executing the knowledge
management software, Tesco may suffer this challenge because they require getting their
system modernized regularly in respect to assure effective attributes and characteristics in
effective form.
5) Short introduction and the general overview of the establishment
Knowledge management information system are utilised and implemented by the
establishment for improving the support and for conducting the activities of the knowledge
associated with the creation, storage, repossession, transmit and applications. The business
establishment has to analyse different components that have influence on their operations and on
the basis of which they have to frame and design several plan of actions so that the influence can
be minimised and decreased. Similarly in this assessment, determination of different interior and
exterior components is occupied into deliberation that helped Tesco to analyse the forces in the
sector that can impact their business (Martin, 2017). Different systems are suggested to
management of respective firm like Groupware, documentation administration, innovation
support etc. systems and all of them will assist Tesco in developing enlarging their execution and
in attaining their potential.
CONCLUSION
This has been summarised form the preceding defined information that the enterprises must
determine the macro and micro environmental components so that they can monitor the impacts
over business of firm. In developing the execution of the knowledge management information
system plays an important role because with the assistance of it, enterprise can administrate its
information and can assure their safety and protection along with effective determination
devising. But accepting different systems which direct to some confronts and with which the
organisation has to effectively handle with.

REFERENCES
Books & Journals
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