The Role of Information Technology in Tesco's Business: An Analysis

This report examines the role of information technology (IT) within Tesco, a UK-based retail company. It explores how IT contributes to Tesco's success through improved communication, data management, and customer relationship management. The report also addresses potential failures related to security risks and implementation costs. Furthermore, it delves into ethical and social issues, such as privacy and cyberbullying, associated with IT in business operations. Different types of networking technologies, including local area networks (LANs), metropolitan area networks (MANs), and wide area networks (WANs), are discussed, with an emphasis on Tesco's use of WANs. The analysis reveals that IT is crucial for modern businesses, enabling efficient operations and data management. The report concludes that while IT presents challenges, Tesco effectively manages these issues, benefiting from IT's advantages. The report provides insights into Tesco's IT strategy and its impact on the company's overall performance.

Individual Report

Table of Contents
INTRODUCTION..........................................................................................................................1
Literature Review.............................................................................................................................1
Analyses and discussion.................................................................................................................5
Findings............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Information technology is a system that deals with computing including hardware,
software, telecommunication and transmittal of information or the systems that facilitate
communication. This report discuss about Information technology of Tesco. Company is doing
business in retail sector in UK. Aim of this report, to identify the role of information technology
in the success or failure of Tesco. This report covers the following topics, advantages and
disadvantages of information technology, ethical and social issues in running business. Apart
from this, types of networking technologies and benefits of information technology to
organisation are explained. As analysis and discussion is important part of report which is
also mentioned in this project.
Literature Review
Role of information technology in success and failure of organisation:
Information technology is a set of tools which included certain process, data
communications, programming, data conversion, storage and retrieval,office automation and
telecommunication (Information Technology, 2018). It is very useful tool for any organisation
because it provides help in effective communication. Tesco use information technology for better
efficiency in the organisation. Information technology plays a vital role in the successes and
failure of an organisation. Role of information technology in success of business-
Communication:
Communication is the most important thing for the organisation. It helps in exchange of
information between management, employees, suppliers and customers. It is possible through
Information technology. Tesco Use information technology for better communication between
employees, suppliers and customers. Modes of better communication are email,live chat, video-
conferencing and calls. It is the advantage for Tesco and through effective communication it can
achieve success (Manos, 2012).
Data management:
Data management and storage is possible through information technology. Tesco manage
and store data of its suppliers, customers and employees in effective manner. And immediate
access of business documents is possible through information technology. It helps in success of
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the organisation because Tesco can access the data with a few clicks and store it as per its
requirement.
Customer relation management:
Customer relation management is the need of every organisation. Companies are using
information technology to improve and manage customer relationships. Company is using it
Information technology for better understanding with customers. Customers can drop a mail or
can call to the customer support representative of company if he has any issue with the product
or he want to know more about the product. It helps in success of Tesco because organisation is
able to maintain good customer relation (Anderson and Mohs, 2011).
Decision making:
To make decisions on time is the need of the organisation for the smooth work in the
organisation. Information technology help in decision making because it provide accurate
information which helps in decision making. Tesco use information technology system for
effective and fast decision. If it want to do market research before launching a new product.
There are many ways of market research like- Online surveys and forums. It provide data related
to the taste, preference, likes and dislikes of customers about a specific product which Tesco
want to launch. Through it management can know which type of product they should launch. It
helps the business in fast and appropriate decision making related to launching a new product.
Role of information technology in failure of business:
Security risk:
Risk of security is always exist in information technology enabled organisation. Most of
IT solutions are moving towards cloud- based system. The workforce of company become
mobilised. Team members can join online meeting and access client data from smartphones and
other electronic devices. This benefit if information technology become security risk for the
organisation. For Tesco it can be a reason for failure because team members can provide secret
details and information of company to any other competitor organisation (McConnell, 2014) .
Implementation cost:
Implementation of information technology is a cost involvement process for the
organisation. After implementation its maintenance is also required according to the chances in
the system of information technology. Getting new solutions implemented requires time and
money. For Tesco it can be a reason for failure if company does not bring new solutions related
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to the implementation of information technology. If Tesco does not update its information
technology system according to the need then it can be a reason for the failure.
Ethical and social issues in the business:
Ethics consists of principles of doing a thing right or wrong in the company. Ethics in
information technology is required to be followed by the organisations. Ethical issues arises
when company does not follow its principles related to the ethics. Principles like- To provide
high quality products to its customers, does not leak the personal information of customers.
Social issues means those issues which can affect the society and people. Tesco is maintaining
ethics in the company. There are various ethical issues which associated with technology such as
follows-
Privacy:
Privacy is the most important thing which is needed to be maintained by the organisation.
Company has keep all information about its customers or even potential clients. To spread the
personal information to any other company or party is an ethical issue. Tesco does not break
privacy of its customers and potential clients. Through information technology ethical issues can
increase because of internet. Internet helps in spreading the personal information of customers
(du Plessis and Van Niekerk, 2014).
Security:
In the name of security organisation collect employees and visitors additional
information. Continue monitoring and recording the activities of employees through security
camera is a cause of ethical issue. Ethical issues arises by miss-use of additional information of
visitors and employees. Miss-use like- Provide the additional information of visitor to any other
company. Tesco does not break the ethics associated with technology. Like ethical issues there
are various social issues such as follows-
Cyber bullying:
Cyberbullying is bullying that takes place over digital devices like mobiles phones,
computers. It can occur through sms, text and use of social media. It includes sending, posting,
sharing negative and false content about someone else. All companies use social media to
connect the large number of customers and they share their personal information on the page of
that specific company. Share the personal information of customers to other organisation or party
is a social issue. Tesco does not involve in cyberbullying (Laudon and Traver, 2013).
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Crime:
Companies have all information about its costumers. Information technology helps the
organisation to keep and store data of customers. If IT related software of company has been
hacked by any person then all personal information can be seen by the hacker. He can misuse the
information of customers and can sell it to any terrorist group. Information technology system of
Tesco is secure and safe less chances of being hacked by the hacker (Bryde, Broquetas and
Volm, 2013).
Different types of networking technologies:
Networking technology is a system that allows for the exchange of data between large
and small information systems used primarily by business and education institutions. Networking
technologies used to transmit digital information including audio, visual and data files. Through
it, end users are able to transmit files, messages and other data. Internet plays a very important
role in it. Tesco is also using network technologies in its organisation. There are various types of
networking technologies such as- local area network, metropolitan area network, wide area
network etc. Different types of network technologies such as follows-
Local area network Metropolitan area network Wide area network
A network which connects a
group of computers in small
geographical area.
A network which connect
relatively large area like- cities
and town.
A network which connect large
or wide area and connect
countries together. Example-
internet. Tesco is using wide
area network.
Design and maintenance of
local area network is easy.
Design and maintenance of
metropolitan network is
difficult.
Design and maintenance of
wide area network is more
complicated.
Local area network has high
speed.
Metropolitan area network has
moderate speed.
Wide area network has low
speed.
Local area network has mainly
used for school, college and
hospitals.
Metropolitan area network has
mainly used for small town
and city.
Wide area network has mainly
used for country.
Congestion of this network is Congestion of this network is Congestion of this network is
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less. more. also more.
Ownership of this network is
private.
Owner of this network can be
private or public.
Ownership of this network is
also private or public.
Tesco is using Wide area networking technology because it established in United
Kingdom and doing its retailing business with other countries in the world. For a company like
Tesco it is important to use information technology for smooth and better work in the
organisation.
Analyses and discussion
From the above report, it has been analysed that Information technology is the need of
organisations for better and smooth working in the company. It helps in managing and storage of
data in secure manner. For effective communication between the management, employees and
customers it is needed because it makes the communication faster. In modern era information
technology plays a vital role and without it no organisation can survive and sustain for a long
time. Information technology use by Tesco is mentioned in this report. Tesco is dealing in retail
business in United Kingdom. It use information technology in its company. This report discuss
that it is very effective tool for Tesco because of following reasons like- It helps in better
communication, decision, data management and customer relationship. It is useful for the
company because of these following reasons. There are many drawbacks of it but for Tesco there
is no negative impact on its business by using it. Various networking technologies are mentioned
in the report like- local area network, metropolitan area network and wide area network but
company use metropolitan area network because has work in many countries around the world.
Also discuss about the ethical issues and social issues in the information technology and the
impact of these issues in the company. Reasons of these issues are also mentioned in the report.
Findings
After analysing the above report, the findings are that information technology is the
essential part of today's business. Without help of information technology organisation can not
survive for long time because of dynamic environment conditions. Tesco is using information
technology in its organisation for better, efficient work and management in the company. There
are many ethical and social issue related to it but company does not get affected from it because
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it follows all ethical and social principles which are mandatory to follow by a good and reputed
organisation.
CONCLUSION
From the above report, it has been concluded that information technology plays a vital
role in the growth of organisation. Tesco is UK based company which deals in retail business. It
uses information technology in its business because of its various advantages. Benefits of uses
of IT in the company leads to sustainable success and growth in the organisation. It helps in
better decision making for the management because of its multi-pal uses and advantages. Tesco
is benefited from it because it does not face the ethical and social issues related to the
Information technology.
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REFERENCES
Books and Journals
Bryde, D., Broquetas, M. and Volm, J. M., 2013. The project benefits of building information
modelling (BIM). International journal of project management. 31(7). pp.971-980.
du Plessis, H. and Van Niekerk, A., 2014. A new GISc framework and competency set for
curricula development at South African universities. South African Journal of
Geomatics. 3(1). pp.1-12.
McConnell, D., 2014. Implementing computing supported cooperative learning. Routledge.
Anderson, M. and Mohs, J., 2011. The information technology agreement: An assessment of
world trade in information technology products. J. Int'l Com. & Econ,. 3. p.109.
Manos, J., Hewlett-Packard Development Co LP, 2012. Information technology service request
level of service monitor. U.S. Patent 8,224,683.
Chong, M., Xiang, F. and Ang, H. P .V., Creative Technology Ltd, 2011. Earphone. U.S. Patent
Application 29/363,147.
Godwin-Jones, R., 2012. Challenging hegemonies in online learning. Language Learning &
Technology. 16(2). pp.4-13.
Laudon, K. C. and Traver, C. G., 2013. E-commerce. Pearson.
Online
Information Technology. 2018. [Online]. Available Through:
<https://www.lifewire.com/introduction-information-technology-817815>
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