Managing Information and Technology: Tesco

Running Head: MANAGING INFORMATION AND TECHNOLOGY: TESCO
Managing Information and Technology: Tesco
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1MANAGING INFORMATION AND TECHNOLOGY: TESCO
Executive Summary
The research paper mainly focuses on the managing information and technology of the Tesco.
The study will include the idea of the competitive environment that the organization is facing
in the marketplace with the assist of Porter’s Five Forces. The paper also focuses on the
inbound logistics as well as operations and outbound logistics along with the two supporting
activities in Porter’s Value Chain. The paper also focuses on the key values that enable the
firm to expand in the marketplace. Lastly, the paper focuses on the summarization as well as
the reflection regarding the introduction of the information technology in the process and
assist them to achieve what they willing to accomplish in it.

2MANAGING INFORMATION AND TECHNOLOGY: TESCO
Table of Contents
Introduction................................................................................................................................3
Competitive Environment..........................................................................................................4
Inbound Logistics, Operations and Outbound Logistics............................................................8
Support Activities in Porter’s Value Chain..............................................................................10
Summarize and Reflect............................................................................................................11
References................................................................................................................................13

3MANAGING INFORMATION AND TECHNOLOGY: TESCO
Introduction
Tesco is one of the British multinational merchandiser as well as groceries retailer,
which is located in the Welwyn Garden City that is in Hertfordshire in England, United
Kingdom. The company is being noted as the third largest retailer all around the world in
respect to the gross revenue and marked in the ninth rank as the largest retailer as per revenue
that the company possess in the marketplace (Wood, Coe and Wrigley 2016). Tesco possess
shops in the seven countries located in Asia and Europe collectively. The company is noted
as the leading retailer in the United Kingdom as well as in Hungary, Thailand and Ireland.
Tesco was establish in the year 1919 by Jack Cohen who is by birth a Jewish from
Poland. He started selling the surplus groceries of the war in the Wall Street Market. The
brand Tesco first emerged in the 1924 as it was named after the shipment of the tea that the
founder have shipped from Thomas Edward Stockwell. The founder took the initial to form
the name of the company and in recent time the company is considered to be the largest retail
market for groceries and merchandise in the United Kingdom marketplace (Reilly 2015).
In the year 1947, the company Tesco was listed in the London Stock Exchange under
the name of Tesco Stores (Holdings) Limited. In the year 1961, the company under the name
Tesco Leicester enrolled their name in the Guinness Book of Records for the largest retail
shop in the Europe. The year 1950’s and 1960’s are marked as the growth of the company
both organically as well as acquisition (Strazzari and Tholens 2014). The company owned
more than 800 stores all around the world which is a huge number at that time. The company
also introduce the loyalty card in their business model in the year 1995, which was named as
the ‘Club Card’ and later on the also utilized the internet as the for providing the shopping
services to the customers.

4MANAGING INFORMATION AND TECHNOLOGY: TESCO
The company initially started with the selling of the surplus groceries in the market
but gradually opened the retail store in groceries as well as in merchandise. After the success
of the retail store the company aimed to open the supermarket for the people so as to flourish
in the marketplace and can generate revenue in it. Tesco later on open the hyper market
which deals with the same categories of product and services that they are providing from the
initial days (Coe and Lee 2013).
The company also aimed for the other additional products and service that they are
providing to the consumers and they are: Tesco express, Tesco metro, one stop, Tesco.com
which is basically a dark store. The company also provided the home shopping service to the
customers along with the Tesco card club and petrol station so that they can generate revenue
and can provide products and service in the different important sector in the marketplace
(Gonen et al. 2017). These enable the firm to expand in the marketplace and to achieve the
popularity in the process, so as to generate revenue from the marketplace and can become
popular in it.
Competitive Environment
There are competition in the retail industry which is considered to be the main reason
the firm require to look after the competitors that they facing in the market. These will assist
the company for the expansion in the marketplace and to gain the popularity in the
marketplace and to do so the company need to look after the Porter’s Five Forces (Haddock-
Millar and Rigby 2015). These will help them in the growth process and let them achieve
success in the process and they are:
 Threat of Substitute Products and Services: The threat of the substitution for the
company who is operating in the retail industry, which is considerably lower for
the food products that the organization is selling to the consumers in the

5MANAGING INFORMATION AND TECHNOLOGY: TESCO
marketplace. The threat is considerably high for the non-food items that the
company is selling in the marketplace. As in the food industry Tesco is selling
high quality products to the consumers which is considered to be the sole reason
the risk is low as the main competitors are considerably small in the process. The
substitute company is unable to compete with Tesco in the marketplace (Kung’u
2017).
The scenario is reverse in case of the non-food item that the company is selling in
the process which is the one of the sole reason there is considerably high risk that
exists in the non-food item that the firm is selling to the customers. In the clothing
industry, there are lot of company who deals in it and Tesco create a threat for the
other clothing company in the market (Kulmia 2014). Therefore, it is being
justified that the threat is low in food items but considerably high for the non-food
item, which the firm is dealing in the marketplace. These helps the company to
flourish in the marketplace so as to gain the success in it.
 Threat of new competitors: As the firm is the third largest retail supermarket in
the industry so the company enjoys some power in the marketplace. These is main
reason the company put a barrier in the entry of the new company in the
marketplace. To open the retail store the new company requires huge capital in the
market and that is the sole reason the threat of new entrant in the marketplace is
considerably low in the process (Akoor-Shahul 2015). These enables the company
to capture a large part of market share in the process and assist them to
accomplish what they intend to obtain from the marketplace.
There is a threat of new entrant in the non-food item as the requirement of the
capital is low in this industry and it is require to be understand by the firm so that

6MANAGING INFORMATION AND TECHNOLOGY: TESCO
Tesco need to look after the market. These will enable the firm in the expansion in
the marketplace so as to achieve the success in it. Therefore, it will enable the
company to hold on to the control and enable them to expand in the process by
putting a barrier in the entrance of the new brands in the marketplace.
 Competitive Rivalry: There is an intense competitive rivalry that are there in the
market with the competitors that are there, in terms of product, price, quality and
promotion of the products in the market. Tesco need to look after the matter so
that they compete with the arch rival Asda. These is the sole reason which the
company requires to look after the strategy so as to expand in the marketplace and
can gain the popularity in it (Bentham 2018). The firm also requires to setup their
outlet in the nearby location of the rural area so that they can compete with the
competitors who are there in the marketplace.
These need to be understand by the company so as to efficiently compete with the
different competitors who are there in the marketplace. The slow growth rate in
the market assist the organization to understand the intensity of the competitors
that are there in the marketplace. These are critical for the organization in the
growth process and enable them to achieve the success in it.
 Bargaining Power of the Buyers: The bargaining power of the buyers are
comparatively high in the market. These is so as the switching cost is considerably
lower and the customers can be easily lure in the market, with the help of the
quality of the product at low price. These enables the firm to lure the consumers
and the customers can swiftly switch from one brand to the others (Rachapila and
Jansirisak 2013). Therefore, it is crucial for the organization to look after the

7MANAGING INFORMATION AND TECHNOLOGY: TESCO
quality of the product and the pricing should be done at a lower price so that the
firm is able to lure the consumers in the marketplace.
In this situation, discount plays a major role in attracting the consumers from the
marketplace and that is the sole reason the company need to provide discounts to
the consumers. These will enable the firm to attract them in the process which will
help them to generate revenue in it. These is critical for the organization in the
growth process so that they can attract the consumers and help them to attract
them in an effective way possible.
 Bargaining Power of the Suppliers: The bargaining power of the suppliers are
considerably low in the market as the suppliers hardly switch from one brand to
the others and that is the main reason the risk is considerably low in this section.
The suppliers are afraid to lose their contract in the marketplace and that is the
sole reason for the company to control easily and switching problem of the
suppliers in the marketplace (Back 2013).
Therefore, it can be noted that the organization requires to understand the situation
so that they can act easily and in an effective way possible so as to expand in the
marketplace and can lure the suppliers towards them. These will automatically
help the company in the expansion process and assist them to achieve the success
(Haleem and Jehangir 2017). These are essential factor that need to be considered
by the organization so that they can achieve the success in the process and can
enable them in generating revenue in the marketplace.
Hence, it can be noted that the firm requires to look after the matter so as to expand in
the marketplace and can gain the success in it. These will help them to gain the popularity in

8MANAGING INFORMATION AND TECHNOLOGY: TESCO
the marketplace and can achieve the success in it. Therefore, it will assist the organization to
expand in the marketplace and to achieve the success in it.
Inbound Logistics, Operations and Outbound Logistics
Inbound Logistics
The firm possess an effective and flexible inbound logistics the organization is able to
get product from the suppliers at low cost which enable the firm to expand in the marketplace
and to hold the leading position in it. These enables the organization to expand in the
marketplace and to lure the consumers in it (Evans and Mason 2018). Tesco have upgraded
the ordering system of the company, which is quite efficient and enable the company to
attract the consumers from the marketplace. These are critical for the firm so as to attract the
consumers from the marketplace.
The organization also possess the approved vendor lists, which will assist them to
work efficiently in the marketplace and to generate revenue in it. The organization also take
up the effective in-store processes so that the inbound logistics operation can be done in an
efficient way possible and lure them to gain the popularity regarding the operation of the
company (Bergqvist and Monios 2016). These will help them to accomplish the success and
to obtain the popularity in the process. Hence, it can be said that the company is effective in
the process which is important in the growth process of the organization.
Operations
Tesco in their operational management have rightly undertaken the supply chain
management by including IT system in the business model, which assist them to expand in
the marketplace by measuring the performance in it. These enables them to adopt the strategy
accordingly so that they can work efficiently in the marketplace. These is critical for the

9MANAGING INFORMATION AND TECHNOLOGY: TESCO
company to look after the marketplace and Tesco included ERP in the business operations
(Xie and Allen 2013). These assist them to gather the essential information and enable them
to accomplish the success in it. The firm have also invested huge amount of money so that
they can rightly implement the operational management in the business model.
The digital software enable the company to generate revenue as they are able to gather
the important information, which will assist them in the growth process and enable them to
gain the success in it (Verma, Malhotra and Halady Rao 2017). Therefore, it can be noted that
the firm have taken the right decision, which enable them to grow in the marketplace and to
accomplish the success in it. These will assist them to achieve the success in the marketplace
and to gain popularity in it.
Outbound Logistics
The company holds the leading position in the marketplace and that is due to the
different types of outlet that the company have setup in the process. These enables the firm to
expand in the marketplace and to obtain the success in the marketplace. These effective and
efficient outlet enable the company to possess different range of store formats, which will
enable them to flourish in the marketplace and let them obtain the success in the process
(McFarlane, Giannikas and Lu 2016). These is the main reason the firm need to expand in the
marketplace and to lure the consumers in it.
These automatically enable them to generate revenue in the most effective way
possible and let the gain the competitive advantage in an effective way possible. The different
types of the store format is able to target the different types of consumers from the
marketplace and assist them in the expansion process and that is the sole reason the
organization is able to gain the advantage as well as the leading position in the marketplace

10MANAGING INFORMATION AND TECHNOLOGY: TESCO
(Milicevic and Djokic 2017). These is critical for the growth of the firm in the marketplace
and let them achieve the success in the marketplace.
Support Activities in Porter’s Value Chain
Marketing and Sales
Tesco is good at marketing as well as selling their products as well as services in the
marketplace and that is the one of the key factor for the success of the company in the
marketplace. The company have introduce the loyalty program and named it as ‘Club Card’
which is a type of loyalty card that the company offers to the loyal customers and that enables
the firm to expand in the marketplace and to obtain the success in the marketplace. These
assist the organization to introduce the technology as well so that they can retain the
customers and can retain the new customers from the market (Shkoukani, Alnagi and Abulail
2013). These will enable the firm to flourish in the market and to achieve the success in it.
The organization also introduce the greener living scheme, which showcase their
responsibility towards the environment, which also assist them to lure the consumers from the
marketplace. These are the marketing and sales scheme that has been taken up by the firm so
that they can lure the customers and can attract the consumers from the market.
Services
Tesco implements the duo policy in the strategy that they are implementing in their
business model, which are namely: cost leadership as well as differentiation. These helps the
firm to expand in the marketplace and to lure the consumers in it. These strategies enables the
firm to provide priority to the customers and help them to obtain the success in it. These also
enables the organization to enhance the financial as well as direct marketing process of the
firm so that they can flourish in the marketplace and can obtain the success in it. These also
assist the organization to operate in an efficient way possible so as to become popular in the

11MANAGING INFORMATION AND TECHNOLOGY: TESCO
market and can look after the factors that will enable them to generate more amount of profit
from the market (Brkljač, Stanković, and Gajić 2013). Hence, it can be said that the
organization is able to expand in the market and to grow in it, which will help them to
achieve the success in the process.
The loyalty program is the key attraction that the firm have introduce in their business
model as it enables them to obtain the success from the marketplace by retaining the
customers that are purchasing product or service from the organization. The company is also
able to attract the new customers from the marketplace, which is beneficial for the expansion
of the firm in the market and enable them to accomplish the success in it (Vanderroost et al.
2017). These is essential for the organization to expand in the marketplace and to obtain the
success in it. Therefore, it can be said that the organization is able to achieve the success in
the marketplace and to attract the consumers from the marketplace.
Summarize and Reflect
As per the porter’s five forces and also porter’s value chain it can be seen that the firm
have rightly taken up the strategy which will enable them to expand in the marketplace and to
lure the customers in it. These will help them to achieve the success and to restrict the
entrance of the new competitors in the marketplace (Foster and Noh 2013). The company
also taken up the strategy to so that they can reduce the threat of substitution in the market,
which is critical for the growth of the organization in the marketplace and to eliminate the
risk of new competitors in the market. The company operate in a market where the intensity
of the company is high but the company use its power to low the bargaining power of the
supplier. There are high chances for the increase in the bargaining power of the buyers (Guo
and Wang 2019).

12MANAGING INFORMATION AND TECHNOLOGY: TESCO
As per the porter’s value chain it can be noted that the company possess an effective
inbound as well as outbound logistics. These enables the organization to flourish in the
marketplace. On the other hand in the operational management the company have already
implemented the information technology which help them to achieve the customers from the
marketplace and to gain popularity in the process (Carey 2017). The organization also
introduce the information technology in the marketing & sales and service department of the
firm, which enable them to expand in the marketplace and to accomplish the success in it.
Therefore, it can be said that the firm can apply more effective technology so that they can
achieve the desired target in the marketplace.
Tesco have rightly use the information technology to flourish in the marketplace but
to expand further the organization need to implement the information technology in the
advertisement department as well so that the effectiveness of the advertisement can be
determined along with the impact on the consumer’s mind. The company can use the
information technology in the production process as well so as to produce more in the
marketplace and can obtain the success in it. The organization also requires to use the
information technology to gather information which will help them to understand the success
of the firm in the marketplace and that can be analyze with the help of the company’s growth
and the surveys conducted in the process so that the data can be collected from the market
and strategies can be modified accordingly in the process.
The company can also use the information technology so that they can understand the
market demand and supply as well as the market trends, which will enable them to achieve
the success in the marketplace and assist them to gain popularity in the process. These is
necessary for the organization so that they can implement that data in the business model,
which will provide them with the advantage to flourish in the marketplace and to gain the
upper hand in it. These is crucial for the growth of the organization as well as the popularity

13MANAGING INFORMATION AND TECHNOLOGY: TESCO
of the firm in the marketplace. These requires to be look after by the firm as most of the
company use IT in their business model to enhance their market performance and enable
them to become successful in the marketplace.

14MANAGING INFORMATION AND TECHNOLOGY: TESCO
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