Analysis of Information Technology's Role in TESCO's Business Strategy

This report provides an analysis of the role of Information Technology (IT) in the success of TESCO, a UK-based multinational retailer. The report explores how IT influences various aspects of TESCO's business, including decision-making, customer communication, collaboration, and promotion. It also addresses ethical and social issues associated with IT, such as hacking, privacy concerns, and cyberbullying. The report identifies and differentiates various networking technologies like LAN, WAN, and MAN, and discusses the importance of both the intranet and the internet for TESCO's business operations. Furthermore, the report outlines the stages of the system development life cycle and their significance. The analysis covers the potential benefits and drawbacks of IT investments for an organization like TESCO, concluding with a summary of the key findings regarding IT's impact on the company's performance and strategy.

INTRODUCTION TO
INFORMATION AND
TECHNOLOGY
ABSTRACT....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Analysis of role of information technology in an successful business organization...................4
Different social and ethical issues that concerns running business.............................................5
Identification and difference in various type of networking technology.....................................6
Importance of intranet and internet in business...........................................................................9
Define various stages of system development life cycle.............................................................9
ANALYSIS AND DISCUSSION.................................................................................................10
Potential benefits and drawbacks for an organization while investing in IT.............................10
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12

ABSTRACT
This report is based on TESCO that is an UK based multinational organization which
deals in retailing sector. Also under this report role of information technology in relation to
success of business because of activities like advertising, promotions, assisting to take right
decision are to be covered. Various ethical and social issues like hacking, lack of privacy etc can
be dangerous towards an organization. As it creates an negative impact over it. Different
technologies like LAN,WAN and MAN should be used by TESCO for interacting with business
partner and communicating with its customers. Both intranet and internet is benefitted in success
of business of an organization like TESCO. Information regarding system development life cycle
is also helpful in developing a robust system that increases productivity in an organization.

INTRODUCTION
Information and technology is regarded as development and use of software, including
network and system. This helps in process of maintaining of data can take place in proper
manner. In relation to information and technology, data is considered to be as that fact and
statistics that is collected for analysing and doing storage. Implementation and design of
computer network is very important for data communication process because it promotes
efficiency in them. In this report the company that has been taken is TESCO that is an UK based
Multinational retailer which helps in dealing with general merchandise and groceries. Company
has its headquarters in Hertfordshire, England. Further in this report role of information and
technology in success, failure of company is to be discussed. Also ethical and social issues
related to technology are discovered. Various networking and technology of both internet and
intranet in business is mentioned. In the end last stages related with system of development of
life cycle is discussed in generic manner.
MAIN BODY
Analysis of role of information technology in an successful business organization
Information and technology has brought an revolution in business organizations which
has changed old methods of performing work. In modern time digital marketing, online
shopping, cloud computing, social networking has changed ways of performing activities with
helps of marking ou easy way to perform them in an organization. Factors that helps in growth of
organization are many but one such important factor is right use of technology. Regarding
TESCO, role of IT inn the success and profitability of the company has been explained below:
 Right decision making: Accuracy and speed has helped in taking those decisions that is
right and has helped in achieving of task within specified time. Every business
organization is required to perform research that is related to comprehensive market
research. This is done to take decision of accurate nature which helps an organization to
grow. Information and technology like Big data, Microsoft CRM dynamics important
information regarding customer and market is collected that is going to helps in
promoting of decision making in timely manner. TESCO is going to be benefitted by this
in a way that advantage can be gained over rivals by fulfilling customers requirement
base (Soma, MacDonald, Termeer, and Opdam, 2016).
 Communication with customers: Information and technology has allow a company to
interact and communicate with customers in efficient manner. In present business
environment and essential part is communication or interaction done by an business

personal with its client should clear and quick. This can be achieved with the help of
online platforms like social media and websites that are part of IT. This helps in
acknowledging about various kinds of products and services given by company to its
customers. In relation to TESCO, IT is going to be helpful to the company in a manner
that it creates positive and strong image of the company. Also revenue enhances with
expected results.
 Collaboration opportunities: Wide customer base and high profitability, information
technology is going to help TESCO in identifying of its potential in order to promote
business activities over vast area. TESCO is able to help in gaining of large quality of
resources , capital, access over new technology for doing business activities. Search
engine like Yahoo, Bingo is part of IT benefits only. TESCO is required to identify such
investor for its growth.
 Promotion and advertising: Information and technology is an boon to business of firm
as this is going to benefit them towards promotion of its products and services in less
time. TESCO is to be benefitted from this in a way that gaining of attention in order to
generate high amount of sales. As boosting of sales company is able to earn high profit
and revenue that is going to allow competition with its rival in strategic way. Various IT
tools can be used by companies to promote product and services with the help of online
platforms (Ritala, Kraus and Bouncken, 2016).
Different social and ethical issues that concerns running business
Ethical issues are related to those problems and situation in which an organization is
required to select an particular opinion out of two available choices. Having a right choice is
considered to be ethical whereas in selecting of another alternative is going to be unethical.
Social issues are that kind of problems that can create an impact upon large number of people in
society. Such social issues are the consequences of that aspects which are beyond control of an
individual. In relation to TESCO some social and ethical issues are to be marked out this can
have huge impact upon an organization are explained below:
Ethical issues concerning business activities of TESCO
 Hacking: This is considered to be an crime of ethical nature in which a programmer
steals information and data present in an system. In relation to if the company is going to
hack its competitors data then image of the company is to be effected in drastic manner.

 Lack of security and privacy: As interacting or working in an organization customer
and workforce of the company is needed to be shared and sensitive information like
account number, card number etc. In relation to TESCO managers is responsible to
provide security to all data of employees and consumer in order to build trust in them of
data security. If an organization does not do so then it amounts to ethical crime.
Social issues that concerns business operations of TESCO
 Cyber bulling: TESCO can be adopt this technology to manage business and other
activities in proper manner. IT has made defamation of an person easy in modern world.
If employees of TESCO is not going to keep secure data of other persons in proper
manner and harasses them by misusing it. This is going to become an issue and is going
to damage companies image in both national and global market (Rajesh, and Ramesh,
2016).
 Communication breakdown: Face to face interaction with customers is the best way in
which an company can acknowledge customers about its services and products in detail
manner. As there has been advancement in internet and information technology, people
do not want time to be wasted and prefer more of online communication methods. This
has caused communication breakdown.
Identification and difference in various type of networking technology
Network and technology has been defined as an technology that has enables individual
from communicating with other individuals through computer and other communication devices.
There are basically three types of networking technology that is MAN, LAN and WAN. These
are explained below:
 LAN: Local area network has to hold connectivity over small area ad coverage. These
are privately owned networks that covers a limited geographical area like school, home,
building etc. It is used commonly for connecting of computer system and other
networking devices. In TESCO wireless LAN network is use to connect local networking
devices to internet (Price, and Shanks, 2016).
 MAN: Metropolitan area network is a new type of network. It is bigger than LAN but
smaller in comparison to WAN. It can cover up to 100KM. This is to be used by big
companies like TESCO. So, that various branches cab be interconnected in systematic
way.

 WAN: Wide area network that an interconnection of hundreds of LAN in order to cover
wider area that is going to help in proper communication and interaction. This is capable
to connect to LAN and can be opposite side of building also.
Difference between networking technologies
LAN MAN WAN
 Local area of network
is only limited to an
house, schools, office,
hospital etc.

 Metropolitan area
network is limited to an
city, town or small
region.
 Wide area network has
unlimited connectivity
that is up to country or
an continent.

 To set-up LAN is low
and requirement of
hardware is less.
 Cost is higher to set-up
in MAN because of
coverage range
 To set-up WAN
network is very
expensive and large
hardware is required
for it (Plumb and et.
al., 2017).
 Less bandwidth  MAN has higher
bandwidth then MAN.
 WAN has highest
bandwidth.
 Transmission rate is
very low only up to 1
Km
 Transmitting range is
high for MAN 100 Km.  WAN has highest
transmission range that
is beyond 100 Km.

Importance of intranet and internet in business
Internet is an global computer network which is responsible for communication facility in
which assistance of interaction and communication protocol is there. To perform an business
operations desirably, TESCO has to increase internet and its usage.
Importance of internet in business
This is one of those process in which low price is there and faster process is involved an
organization like TESCO. This helps them in interacting with customer and cover large base of
customer also. Assistance in an internet is carrying out an online market that is going to help in
identifying of pattern of customers and trends in market. Social networks like e-mail, instant
messaging, communication among workforce is making communication very easy. Internet is
helpful and is considered with an organization in reducing of operational and processing cost.
This is going to eliminate wastage in procedure. Also internet is helpful in considering concern
within an organization in reduction of operational an processing cost. This results into wastage
elimination and social networking helps in accomplishing of work in given time.
Intranet and its use in business
Intranet is referred to as that kind of intrinsic network which allows the user mainly
employees of an organization to have access over it. Intranet works with that internet technology
and offers benefits to an business organization at low level. Organizations like TESCO can be
helped by this in a manner that all important data can be shared related to project and other
processes in appropriate manner confidentiality can be maintained. This is going to help in
incasing of digital communication needs of company that can be satisfied by the company in
desired manner. Also intranet is going to provide company a secure due to which development
process and information can be stored in appropriate manner. Replacing of manual working in
intranet is going to benefit TESCO by enhancing organizational productivity of company. This is
going to make customer satisfaction to be achieved in proper manner (Otrel-Cass, 2019).
Define various stages of system development life cycle
System development life cycle is defined as that kind of framework which is going to
include steps of development in software at each stage. This involves a detail plan for
maintaining, deploying and building of software in an appropriate manner. Main aim of this is to
describe complete cycle of development. Various stages is associated with this system of
development life cycle and is explained below:
 Requirement gathering and analysis: Such phase includes all relevant information that
is gathered through customer which helps in making an effective product according to
needs of customer. TESCO is able to develop an application in order to make customer

perform payments easily. Manager of the organization is required collect opinion from
customer about such plan.
 Design: This is the second phase under which collected information is used as an input
method with an specific architecture that is used for implementing of system
development.
 Implementation or coding: At this stage, coding and implementing is going to take
place after system designing. Coding is going to be helpful in designing of software
design that is going to be transformed as source code (Murphy and Goossen, 2017).
 Testing: This is the forth stage which is going to take place when an coding is
completed and modules are being prepared in order to test them. In such phase
development software is going to be tested in detail manner and defects found is going to
be given to developers again. Developers is going ti carry out modification as per
requirement. Testing is to be continued until satisfaction is gained by customers.
 Deployment: On completing of testing of an product it is brought down for first use in
production environment. This is going to be acknowledge and if needs are satisfied nit
the demand of customer. Then the process mentioned above is going to be repeated
again..
 Maintenance: Last stage of system development life cycle is periodic maintenance to
that software which makes in gaining of high outcomes to be achieved in proper manner.
This is going help TESCO in enhancing of customer experience (Khan, Bankole, and
Alomari, 2017).
ANALYSIS AND DISCUSSION
Potential benefits and drawbacks for an organization while investing in IT
Benefits of investing in IT
Various advantages are there which can be enjoyed by TESCO due to this investment in
IT is going to be there. Advantages of it are explained below:
Main benefits of investing in IT is that it helps in improving of interaction and
communication procedure at both external and internal level. This is going to benefit TESCO in
performing of activities like recruiting, communicating , retaining and leveraging in an
simplified form.

 Information technology is helpful for an organization like TESCO in facilitating the
process of strategic thinking an knowledge transfer. In order to develop efficient strategy.
Drawbacks of Investing in IT
IT offers different benefits of business organization but certain drawbacks are there while
investing in information technology. In relation to TESCO advantages and disadvantages are as
follows:
 Implementing of information technology is required as high amount of capital. Along
with this company is also spending high expenses in training of workforce for the
utilization of technology. This is going to help in managing of cost and expences in
TESCO
Maintenance of a robust IT system is an very complex kind of process which can be a big threat
towards effectiveness in an organization. This is so because it is important to manage important
data in proper manner and if not done the trust on TESCO is going to break. Resulting into
revenue loss (Chirumalla, 2018).
CONCLUSION
From the above report it can be concluded that IT has an very vital role in both success
and failure of an organization. As it has to be used in proper manner. This is going to be helpful
for the company in gaining attention of millions of customers at a single point of time. Also a
organization is able to increase its sales and revenue in visible manner. Various kinds of ethical
and social issues can be related with technology like privacy, hacking and cyber network security
can create an negative impact over organization in drastic manner . Various technology and
network is benefited in connecting an organization with its customers from both national and
international market. Intranet and internet assists is helpful in achieving of high business growth.
At various stages of system development life cycle the company has to develop strong system to
perform business activities.

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