Strategic Information Systems Planning

The provided content discusses various aspects of strategic information systems planning, including private sector techniques for the public sector, information processing, knowledge development, and supply chain performance. The articles explore the importance of effective information management, organizational context, and inter-group behavior in ensuring successful strategic information systems planning. Additionally, the texts highlight the need for continuous improvement through cycles such as PDCA and the application of SWOT analysis to identify strengths, weaknesses, opportunities, and threats.

STRATEGIC INFORMATION
MANAGEMENT
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................5
TASK- 1...........................................................................................................................................5
1.1 The features of data and information.....................................................................................5
1.2 Criteria to be applied when selecting the data and information to support decision making 7
1.3 Evaluate the impact of a management information system to a company.............................9
TASK- 2.........................................................................................................................................10
2.1 The legal responsibilities in sourcing, sharing and storing information..............................10
2.2 When information should be offered and access allowed...................................................11
2.3 The formats in which information can be offered...............................................................12
TASK- 3.........................................................................................................................................13
3.1 Analyses the information to identify trends and patterns....................................................13
3.3 Sources available to assist in analyzing the information.....................................................16
TASK- 4.........................................................................................................................................16
3.2 Evaluate range of decision making tools and techniques available to support a strategic
decision......................................................................................................................................16
TASK - 5........................................................................................................................................19
4.2 Evaluate methods of developing information capture to inform and support strategic
decision making.........................................................................................................................19
4.3 Processes for analyzing impact of information on strategic decisions made......................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23
APPENDIX....................................................................................................................................25
PLEASE REWORK ON THIS FILE, DON’T NOT WORK ON THE PREVIOUS FILE.
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ILLUSTRATION INDEX
Illustration 1: Ansoff model.............................................................................................................5
Illustration 2: PDCA cycle...............................................................................................................7
Illustration 3: SWOT analysis........................................................................................................16
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INTRODUCTION
Strategic information management (SIM) is termed as the process of integrating the
applicable information so that, business can gain competitive edge in the market. To operate
business effectively, the management should determine all the information regarding their target
market so that, they can plan according to it and achieve the objectives (Hausmann, Williams
and Hardy, 2014).
For conducting the report I have chosen the Tesco PLC which is the renowned
supermarket chain in the UK and provides wide range of grocery products and services to their
market customers. Working as a manager in the Tesco superstore my role is to measure the
information within the organization that will assist in taking strategic decisions. The assignment
will mainly concentrate on the identifying the data and information of the organization to take
effective decision making within the organization.
TASK- 1
1.1 Features of data and information
Strategic decision making is the effective process that requires processing, storing and
reviewing the data and information so that, management of the organization can take proper
decision (Lee, Lee and Kang, 2005). Tesco PLC is the largest supermarket chain in the UK
market that serves different need of the customers. For supporting the strategic decision making
in the Tesco PLC, they need proper information and relevant data. The theory of Russell Ackoff,
has suggested that, the content in the individual mind can be classified into the four different
categories that is data, information, knowledge and wisdom (Walters, Jiang and Klein, 2003).
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(Source: Data, Information, Knowledge, and Wisdom, 2004)
 Data: The data simply can be termed as the raw or unstructured information that features
no information. For example, for formulating the strategies to expand their activities
Tesco collects the data from market customers.
 Information: Information refers to the structured or organized data which is useful for
the management to take effective decisions. For example, Tesco ensure collected data
sorted and categorised under different section and answer that who are the customers that
will be satisfied by Tesco (Jaspers and et.al., 2004). Knowledge: It is deterministic process or can say application of data and information
that mainly answers the “how” questions. For example, how Tesco will expand their
activities the company possess required human inventory with the proper skills and
capabilities to enlarge their activities.
 Wisdom: The last category includes wisdom this deals in the future as it integrates the
vision.
Key features of the data and information are:
 Accessibility: The identified features of data and information are accessibility that is it
should be conveniently handled and available to the Tesco organization so that, they can
take proper decision (Kunnathur and Shi, 2001).
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Illustration 1: Ansoff model

 Relevance: Another feature is that, the collected data and information about Tesco
should be relevant and related so that, they can take effective decision regarding the
specific purpose of expanding their activities.
 Comprehensibility: The collected data and information should be understood by the
management as it will help the firm in taking effective decision (Hult, Ketchen and
Slater, 2004).
 Timeliness: Another feature of data and information is that, it should be collected
properly. Data or information that arrives after the decision taken by the management is
of no use.
 Accuracy: Accuracy is very important as the data should be correct and without any
error or mistake.
1.2 Criteria to be applied while selecting data and information to support decision making
For effective decision making, management of Tesco PLC should follow certain criteria
for selecting the data and information (Lee and Pai, 2003). The different criteria for selecting
data and information consist of decision action cycle that mainly include Plan, do, check and act
(PDCA) and Observe orientate decide act (OODA). The decision making process of Tesco PLC
includes 8 steps that include
 Identify problem: The first step in the decision making process of Tesco PLC include
determining problem or to analyze the opportunities which will benefit the company. For
example, with the advanced technology the company should focus on expanding the
activities on the internet platform to serve their global customers (Wheelen and Hunger,
2011).
 Establish decision criteria: The second step includes establishing the decision criteria
by gathering the necessary information which are relevant for the organization to take
decision. Weigh decision criteria: Another step is to measure the decision criteria that are it is
suitable or not for the Tesco.
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 Generate alternatives: After weighing decision criteria, the management should create
or generate several solutions so that, Tesco should ensure they should design effective
online system to serve their customers (Laudon and Laudon, 2004). Choose the best alternative: After measuring all the alternatives Tesco PLC should
choose or select the effective alternative that will assist the organization in grasping the
opportunities of expanding their business in the internet platform.
 Implement: After that management of Tesco PLC should properly implement the
chosen alternative for organization so they can improve their performance and attract the
large customers (Shapiro and Varian, 2013).
 Evaluate the decision: The last step in the decision making process include evaluating
the effectiveness of decision by measuring the number of customers that purchase Tesco
PLC products through online services.
Criteria to be applied while selecting data and information to support decision making
process includes ensuring PDCA cycle by the manager of Tesco. PDCA cycle includes:
(Source: Weinstein and Vasovski, 2004)
 Plan: The first step is planning that is establishing the goals and objectives to meeting the
expected output. Proper plan will help the management in taking proper decision
regarding the accomplishment to objectives and goals.
 Do: Another step includes implementing the plan so that they can execute according to
the plan projects.
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Illustration 2: PDCA cycle

 Check: After that Tesco manager need to check the actual result with the expected output
and determine the deviation in the decision making so that they should rectify them
 Action: The last step of PDCA cycle includes taking action to improve existing
performance.
1.3 Evaluating the impact of management information system to a company
The management information system assists the Tesco PLC in collecting the necessary
information or data from inside and outside the working environment (Schultze and Leidner,
2002). Management information system is defined as software that is implemented within the
business enterprise that assemble or gather information so that management can effectively
operates their business. The main function of Tesco using MIS is to collect data and integrated so
that management can access the data in future for their purposes. After that all the assembled
data are computerized, stored and measured by the management and it helps to take impressive
judgement. It helps Tesco in upgrading their supply chain management across different countries
that will support the company in delivering quality and timely services and products. However, it
also help the Tesco manager those are working in warehouse to control their level of stock and
function of different warehouses.
The advantages of using MIS within the Tesco will help the manager to perform their
activities and enable in providing organization proper direction so that they should follow on the
proper direction. MIS also assist in integrating the activities of different department for
completing the tasks as this software consume the time of department for performing the
activities. In Tesco, MIS software combines the past and present data related with the sales
figures or total number of human inventory in the supermarket in order to meet the changing
requirement of customers.
There are some negative impacts of using MIS Tesco should be aware of that it might be
too much expensive for the large organization. As, the MIS need to be updated in the regular
time interval with the up gradation of technology. Therefore, this will result in increasing the
expenses of the company.
However, the positive impact of using MIS also help the Tesco PLC in managing internal
activities and operations so that they keeps render quality services to their customers in terms of
providing quality product at fair prices.
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TASK- 2
2.1 Legal responsibilities in sourcing, sharing and storing information
Tesco deals in providing the different grocery items and products to their market
customers so there are certain legal responsibilities in sourcing, sharing and storing the
information. The company while sourcing or sharing the information mainly focuses on the legal
aspects that is confidentiality, authorised access for information, data protection etc. for this
Tesco PLC should focus in the act that is
1. Freedom of information act 2000: This act is enforced by the parliament of UK that
provides the right to the public to access the information that is held by the national
dominance.
2. Data Protection act 1998: This act is being framed by the UK government on processing
the data or information of the identifiable living people (Luftman, Bullen and Neumann,
2004). The basis eight principles that need to be followed by Tesco PLC are:
 Information should be used fairly and lawfully
 Data should be used for the specific purposes
 Data or information should be used adequately not excessively
 Information should be accurate
 Unnecessary information or data should not being kept with the organization
 Company should handled the personal information properly
 Company or individual should keep information or data securely or safely
 Company should not transfer the information outside the UK region
Identifying two types of information:
Customer’s information: Tesco collects personal information from their customers such
as name address, email and date of birth for several different purposes such as club card, market
survey, online activities, etc.
Employee’s information: Accordingly to recruitment policy Tesco PLC collect their
employees information such as copies of passport, current address, previous work references,
valid visa status and employees national insurance number.
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2.2 When information should be offered and access allowed
Acquiring information, accessing and processing should be accordant to the act that is
Data Protection Act, which gives the precise right to Person and organization to know what
information or data need to be handled and which data need to be disclosed to the other parties
(Pearlson and Saunders, 2004). The information of the Tesco PLC should be offered and access
allowed in terms is below:
 Political Opinion: The political opinion should ensure that Tesco PLC should abide by
with employers legal duty/ obligation/rights.
 Radical or origin: The information regarding the origin of their employees so that they
should not being discriminated on the basis or their origin.
 Religious or other benefits: The Tesco manager may also offer their employees the
information regarding the religious offers so that they should attract more and more
customers.
 Trade union membership: However, Tesco manager should also offer the information
regarding the trade union so that they should maintain proper relation within the
organization.
 Physical or mental condition: Tesco manager should also offer the information
regarding the physical working location so that they should ensure that their employees
should render proper services.
 Criminal offences: The Tesco manager should also offer the information regarding the
criminal offences that are unethical in the organization. .
All the different types of information offered by the Tesco should accessible in Tesco
such as accurate and fairly and lawful way that is through conducting feedback sessions from
their employees, surveying in the organization, etc.
2.3 The formats in which information can be offered
Tesco PLC collects and stores the information related with the units and costs in the
different formats (Piccoli and Ives, 2005). These formats are also effective within the company
so that they may make effective decision. The four formats in which the information or data
regarding the customer’s preference can be offered are:
 Structured format: Structure data format is the one that mainly serve the information or
data in the sequential manner or proper database structure. It may be in form of tabular
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formats or presented in the database format. The structured data are effective as the
information should be offered properly to the management or other authorities of Tesco
PLC so they can take effective decision (Somogyi and Galliers, 2012). Through
structured format all the collected information should be separated according to their
relevancy and stored in the proper format or database. For example,
1 Maintaining database with proper sales products and customers information to
determine that what products are mainly prefer by the customers.
2 Sales figure to ensure that Tesco has sold how much product in the each and every
month.
 Unstructured: The unstructured format are opposite to the structured format. In this
format data or information are not presented in the structured or sequential format. These
are also termed as the costly form of data because the unstructured format require more
time and cost to handle the relevant information needed by the Tesco for supporting their
decision making process (Wade and Hulland, 2004).
 Self organized format: In the electronic format the information offered to the
management or customers is with the help of different electronic means like E-mail,
database etc. while, the manual format of the information is being provided on the printed
paper that is handwritten logs, reports, letters etc. this format is economical in nature as it
require huge cost associated with maintaining and storing the information (Ensour and
alinizi, 2014).
 Spatial and non-spatial format: Another format of offering information of Tesco PLC
to their management include computer generated document. The application program
saves the data or information with the unique data file name. This unique name of the file
will assist the authority of the organization in recovering the document.
TASK- 3
3.1 Analyzing the information to identify trends and patterns
An in-depth analysis of information is necessary to generate valid and reliable outcomes.
The wide range of information is available for the organization through its internal and external
sources. In order to analyse the available information, the researcher needs to determine adopt
appropriate techniques (Alcami and Caranana, 2012). The financial information is extracted for
Tesco for last five years.
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Table 1: Revenue and profitability of Tesco in last five years
2015 2014 2013 2012 2011
Revenue 61276.71 63557.00 63406.00 63916.00 60455.00
Operating profit -5698.00 2631.00 2382.00 4182.00 3917.00
Net profit -5626.51 1912.00 1528.00 3164.00 2777.00
Figure 1: Revenue of Tesco
The graph presented above indicates that revenue of Tesco has increased for year 2012
and 2014. However, the same has been decreased for year 2015 which indicates reduction in
market share of businesses. It can be said that competition within retail sector is increasing on
continuous basis. This in turn leads to reduction in sales for Tesco in year 2015 (Hausmann,
Williams and Hardy, 2014). The business unit should therefore emphasize on creation of strategy
that provides an edge over competitors. The increased level of revenue is expected to support
business operations for long run.
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Figure 2: Operating profit – Tesco
Figure 3: Net profit – Tesco
Profitability of the organization corresponds to revenue earned during the years. The
graphs presented above indicate that the business unit has incurred losses in year of 2015. It is
with decrease in revenue that profits within organization have reduced. It is seen that operating
and net profit is moving is same direction. The decreased level of revenue results in incurring
losses for the organization (Al-Aboud, 2011).
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As per the analysis of financial information, it is seen that Tesco needs to improve quality
of products and services. The organization needs to create an edge over competitors so as to
increase market share. It is with increasing business revenue that the organization is able to
achieve its objectives. The graphical analysis indicates that the revenue should be increased in
order to improve business profitability (Lee, Lee and Kang, 2005).
In order to conduct smooth operations within business unit, it is essential to properly
disseminate information to related parties. The decision making process within the organization
is highly dependent on dissemination of information. Henceforth, availability of information on
right time is considered to be highly important in nature. The relevant information should be
made available to right people at right time before it loses its significance. It is through proper
flow of information between different departments that activities within organization are co-
ordinated in a proper manner.
3.3 Sources available to assist in analyzing the information
The business unit can accumulate information through different sources as external and
internal. The information related to budgeted figures, operational cost, employees turnover and
so on can be accumulated through internal sources of information (Dufner, Holley and Reed,
2002). On other hand, external information is accumulated in form of market/ customer
information, specialist knowledge and so on.
Market and customer information: The management of Tesco can accumulate
information related to market and customer base through its external sources. The information
helps in evaluating customer base and help the Tesco management in framing strategy in
comparison with the competitors’ strategy (Kunnathur and Shi, 2001). Moreover, the information
accumulated can be analysed through adoption of quantitative or qualitative tools. For example,
with the help of market and customers Tesco can sell the variety of products according to the
requirement of their different market customers.
Specialist knowledge: The specialist knowledge in present scenario is published and
available as secondary information. The same is considered to be highly important for decision
making process of the Tesco PLC. It is the external source of information that supports decision
making process within the organization (Jaspers and et.al. 2004).
Information related to business process: The information related to business processes
and operations is available within the organization.
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Management information/ plan: The information related to decision making and future
plans is also available within the business unit. A clear communication of management
objectives and future plans provides guidance to employees within the organization (Walters,
Jiang and Klein, 2003).
TASK- 4
3.2 Evaluating the range of decision making tools and techniques available to support strategic
decision
Different range of decision making tools and techniques that are available with Tesco PLC to
support the strategic decision include:
Swot analysis:
One of the effective decision making tools that is being used by Tesco’s manager is SWOT
analysis. This tool supports in assessing the strengths and weaknesses of organization as well as
different threats and opportunities that exist outside the firm which overall impacts the
operations and activities of Tesco.
The main advantage of using SWOT analysis model is that it will support Tesco in determining
their internal strength as well as weaknesses that they possess so that while taking strategic
decisions they must strengthen their strength by minimizing their weaknesses. Another
advantage of using SWOT analysis is that it will support the firm on determining their core
competencies that support in strengthening their performance. However, SWOT analysis also
plays a significant role in assessing the key strengths that must be strengthened by Tesco
manager to survive in the retail industry. On the other hand disadvantage of using SWOT
analysis is that it may not focus on the significant factor among the four different aspect that
result in delaying taking strategic decisions (Hult, Ketchen and Slater, 2004). Another
disadvantage of SWOT analysis is that it mainly focuses on subjective analysis. Furthermore, the
data that is being gathered from conducting the SWOT analysis become outdated quickly with
the changing trends and opportunities in the market. In addition to this, SWOT analysis is also
consider as costly method as it requires financial investment to accumulate the reliable and
relevant information from the customers.
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Market research:
Another decision making technique includes conducting the market research in an effective
manner. It refers to the tool under which manager accumulates relevant information from the
market through conducting primary and secondary research.
The foremost advantage of using market research method is that it supports the management of
Tesco in gaining up-to-date information regarding the preferences and demand of market
customers. Furthermore, another advantage of using market research method is that it supports
the management in exploring the new market for expanding their business activities and products
(Lee and Pai, 2003). Conducting market research also support in evaluating the information
regarding the customers, market information, customers satisfaction etc. Despite of this,
disadvantage of conducting market research is that it will be very time consuming process that
takes time in collecting the relevant information from market. However, another disadvantage of
market research is that it also involves huge cost in surveying the market customers.
Cost-benefit analysis:
The major purpose of using this decision making tool is that it supports the manager of Tesco in
measuring total cost associated with the overall project and task so that manager can easily
allocate sufficient financial resources to the activities.
The foremost advantage of using cost benefit analysis is that model is easy to understand.
Through using this model of management, Tesco will be able to easily measure the overall costs
as well as benefit associated with the project. The main function of CBA is that it enables the
calculation of net monetary value and total benefit that are associated with the program of the
Tesco. However, the cost benefit analysis also has certain disadvantage that is inaccurate
calculation of costs associated with the project that result in misleading the overall outcome. On
the other hand, another disadvantage of cost benefit analysis is that results that acquire from the
analysis is not accurate. As the future is uncertain therefore, relaying on the results of cost
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benefit analysis results in arousing the error that further leads to taking incompetent decisions
that increases the risks for the business. However, the cost-benefit analysis tool is also costly for
Tesco as in terms of investment and associated risks that will affect the overall performance of
the organization.
Comparison
From the above analysis of three different models that is SWOT, Cost benefit analysis and
market research, it can be said that all are distinct from each other. SWOT analysis focuses on
measuring the overall strengths, weaknesses, threats and opportunities of business. While, the
cost benefit analysis method focus on measuring the total cost that is associated with new project
so that management can take effective strategic decisions. In addition to this, market research
focuses on gathering the information from the customers so that management can take effective
decisions.
However, from the above different decisions making tools SWOT analysis method will be
beneficial for the Tesco organization as it is less time consuming as well as economical
method that support the organization in gaining internal and external knowledge. However,
through conducting SWOT analysis of company, it may also be considered as a cost
effective method as compared to other decision tools. Furthermore, this tool is also effective
in determining the internal strengths and weaknesses of Tesco that directly impacts the
overall productivity and performance of organization. Through SWOT analysis,
management comes to know about the internal strengths as well as weaknesses of the firm.
While, it also supports in knowing external opportunities and threats that are present in the
external environment that directly and indirectly affects their operations.
4.1 Methods of evaluating management information within a company
For advanced level of administration information Tesco utilize various information
assessment methods to assure the dependable, trusted and superior of management information
system (MIS). Writers like Cashmore and Lyall has identified the three levels of business
environmental flow of information that is external, internal and corporate level of information.
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 External level of information: The external level of information focuses on the flowing of
information outside the Tesco organization among their market customers (Laudon and
Laudon, 2004). The external information should focuses on the offering the information
to their different stakeholders and the customers so they can serve their requirement
effectively. Internal information: Another level of management information flow is internal in which
the management information flow inside the organization so that senior management can
focuses on the effective decision making processes (Shapiro and Varian, 2013).
 Corporate level information: The last level of business environmental information flow is
at the corporate level in which information flow among the corporate sector among the
different competitors.
The method of evaluating management information within the company is through Data
governance (DG). It refers to the overall administration of the data or information employed in
the Tesco PLC. It also ensures that the employed data or information is accurate, usability and
also ensure proper security so that it may not be modified or changed by the any third party
(Schultze and Leidner, 2002).
TASK - 5
4.2 Evaluating methods of developing information to inform and support strategic decision
making
There are different methods for developing information capture to inform and support the
strategic decision making include:
 Questionnaire: one of the effective method of processing the information captured
include questionnaire. It is an effective method that is being used by Tesco PLC to gain
information and data regarding expectations and needs of their market customers
(Melville, 2010). The advantage of using questionnaire method by Tesco manager is that
it assesses the necessary information by their customers this gathered information
through questionnaire will assist in supporting the strategic decision making process of
the Tesco PLC. However, there is also a disadvantage in using the questionnaire method
that it lacks the validity of data that has been accumulated (Wheelen and Hunger, 2011).
Using questionnaire method for developing the information is costly as well as time
consuming method as this method focuses on gathering information from the different
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market customers. Therefore, sometime it results in gaining incorrect information that
result in ensuring very time consuming method.
 Environmental scanning: Another method of capturing the information is through
environmental scanning (Luftman, Bullen and Neumann, 2004). Tesco PLC scan the
environment to understand the internal and external factors that may be develop to
improve the performance of the organization (Pearlson and Saunders, 2004). However,
since not every customers are aware of this survey with the help of environmental
scanning Tesco manager will develop the information by gathering external information
and data so that manager can take effective decision regarding strategies to be
implemented in the Tesco PLC firm. Environmental scanning is costly as well as time
consuming it focuses on analyzing both internal and external environment under which
Tesco operates their business.
 Performance test: Another method for capturing the information includes ensuring
performance test within the organization so that Tesco manager can take or support the
strategic decision making. Advantage of using performance test is that it will support the
organization in ensuring that employees and organization have improve their past
performance that will assist them in performing the activities properly and satisfying their
market customers by providing them quality services and products. However, with the
help of performance test Tesco manager get to know about the employees current
performance regarding providing services. This method is not so costly nor will time
consuming as measuring the performance of customers directly benefit the company in
rendering products according to the requirement of their customers.
 Surveys: However, through conducting surveys within the organization or by conducting
online survey to accumulate the information from the different market customers. So, that
Tesco manager can enable the effective decision making process. The advantage of
adopting the survey method include that it will result in targeting and accumulating the
information from the market customers residing in the different countries. Thus, through
survey technique manager will also get adequate information regarding the preferences
and requirement of the customers. Disadvantage in using the survey method is that it
demands reliability and validity of collected information that has been accumulated from
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the target customers. However, this method is also expensive in nature as it require huge
amount to frame and collect the information from their target customers.
4.3 Processes for analyzing impact of information on strategic decisions made
For analyzing the impact of information on the strategic decision made, Tesco PLC
should focuses in the following steps like:
 Setting objectives of process: The decision maker of the Tesco PLC should focuses on
developing or setting the objective and also aligns the different resources top
accomplishing the objectives and goals of the company (Piccoli and Ives, 2005).
 Evaluate the goals: Another step in the process for analyzing impact of the information
in strategic decision made include evaluating the goals and objectives. Even the company
adopt gap analysis for the assessment that goals have being achieved or not (Somogyi and
Galliers, 2012).
 Assessing the reasons for variance: Another step in the process include measuring the
reasons for generating the poor quality result in terms of decreasing the sales and revenue
of the Tesco PLC.
 Revise and implement new approaches: The last step in the process includes revising
or implementing the new goals and objectives of the Tesco PLC so that they should
assess the correct and accurate information so that company should make strategic
decision (Wade and Hulland, 2004).
Another effective process includes accessing the strength and weaknesses of the
organization and also their various threats and opportunities. Measuring extraneous threats and
opportunities of the Tesco PLC help in the process of strategic decision-making, as it permit the
managers to design the things that will help the organization to gain competitive advantage.
CONCLUSION
From the above report, it has been concluded that to operate business effectively, the
administration should find out all the information and data regarding their marketplace and
competitors so that, they can programme accordant to it and accomplish the goals. The report has
also determined the different features of the data and information that is they should be accurate,
relevant, timeliness etc. that will assist in taking effective decision within the organization.
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