Tesco's Information Technology: Business Strategy and Impact Analysis

This report provides a comprehensive analysis of information technology (IT) within Tesco, a leading retail organization. It begins with an introduction to IT's crucial role in today's competitive business environment, emphasizing its impact on performance and profitability. The report delves into Tesco's specific IT implementations, including the use of intranet and internet for achieving business goals. A literature review identifies the role of IT in business success and failure, followed by an examination of ethical and social issues related to IT, such as privacy concerns, identity theft, and hacking. The report further explores networking technologies, including LAN, MAN, and WAN, and their application within Tesco. It highlights the importance of intranet and internet for internal and external communications. The report also outlines the stages of the system development life cycle. Finally, the report concludes with an analysis and discussion of the findings, drawing conclusions about the significance of IT in Tesco's overall business strategy and providing references.

Introduction to Information
Technology
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Executive Summary
Information technology plays very important role in today’s competitive world in order to
achieve success at the market place. It has been analysed that there are various approaches with
the help of which company can enhance their performance and profitability. In the present report
chosen organization is Tesco which adopt numerous information technology within their
organisation, so that it will create positive impact on the company. Intranet as well as internet
helps in attaining goals of the enterprise in an effective manner.
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Table of Contents
INTRODUCTION.......................................................................................................................3
Literature Review........................................................................................................................3
Identification of role of IT within organisation...........................................................................3
Ethical and social issues .............................................................................................................4
Networking technologies............................................................................................................5
Importance of intranet and internet.............................................................................................6
Stages of system development life cycle....................................................................................6
Analysis & Discussion.....................................................................................................................6
Conclusion.......................................................................................................................................6
REFERENCES................................................................................................................................6
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INTRODUCTION
The term information technology is related with use of computer systems, their overall
maintenance and development of software according to new innovations. This system is mainly
used for distribution and data processing. Data is evaluated as the information which is in raw
form is converted into binary digits (Eason, 2014). The information which is stored is used for
analysis and reference of the research. The present report is based on Tesco which is dealing in
retail industry and this is being used for evaluating and analysing the concept of Information
technology. This firm is operating as a public limited founded in the year 1919 by the owner Jack
Cohen. The report reflects about Role of IT in the achievement and failure of business
organisation, social and ethical issue. Furthermore, there is comparison carried out of among
intranet and internet, the stages involved in development of life cycle of systems.
Literature Review
Identification of role of IT within organisation
Information technology is linked with collecting and processing the information at large
organisation. The main role played by technology is transaction of data is made calmer, database
is used for management of information, software is used in order to perform special functions
thus execute the working in smarter ways. The role of Information technology at IT is evaluated
below as:
Flow of information: This is the main resource of the organisation in which there are
subjective, objective internal as well as external data gathered. The external data consist of
information which is gathered from the outside environment. Subjective implies the data which
is not known and the opposite is objective in which data is gathered which is known. The new
technology helps in centralization of data from where the information can be easily gathered.
Tesco is executing their business activities around 7000 different outlets around the world so it is
essential for them to have a strong data base so that information can be easily available to their
employees according to their needs and requirement (Kiran,Oudshoorn and Verbeek, 2015).
With the help of information technology Tesco can easily execute their working thus making
their daily business operations easy and effective.
Workgroup support: It develops an environment in which employees can easily share
their valuable information and also there is interaction with the members of the other department
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without facing any type of difficulty. This results in making the working easier thus saving both
cost and time. The different sources used by the firms for making contracts with employees are
tax chatting, web surfing, emails etc. this results in making the task easier. The support system
helps in making the decision making process and grouping system work effectively at Tesco.
Executive support: The executive support system is accumulated with AI and DSS
support systems for assisting senior managers working in the organisation for making decisions.
The EIS system help in management of information from different angles so that difficulties can
be easily handled (Law, Buhalis and Cobanoglu, 2014). There is effective environment
developed in which employees can easily share their problem and solution can be developed for
making improvement in those areas where the problem is faced.
Data management: The database software helps in application of data where Tesco can
store valuable information of their employees. This process can be carried out internal or
external at business organisation. In the internal system data can be analysed within the company
on the other hand external system helps in analysing data which is available outside the
organisation. This states that firm will use the IP address or domain name with the help of this
management team of Tesco examine the data with the help of passwords.
Communication: Electronic Mail is the service used by management team of Tesco in
order to transform mail in an effective as well as in easy manner. It is one of the best tool for
development of the business programmes with the help of advanced and innovative technology.
This result in effective decision making with supports business operations.
The points which are discussed above helps organisation in order to achieve competitive
advantage at market place. This results in achieving either failure or growth of business. The IT
and management department will determine the role effectively then it results in attaining
effective outcomes. On the other side if role of IT is not determined then Tesco will not be able
to achieve effective result and there can be chances of errors (Marchewka, 2014). This results in
failure of business as they are not able to gather accurate information which was required by
organisation.
Ethical and social issues
Ethical issues: It refers to the way related to the reflection of morality, what is right and what is
wrong by the examination of their choices adopted by the company while accomplishing their
goals . In the present context of IT, success of any enterprise highly depends upon the accuracy
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used while mobilising goods and services from one place to another. In context to Tesco, some
of the ethical issues are as follows:
 Personal privacy concern: IT plays very important role in today’s world by making
work faster and smoothbut sometimes it creates issues while transferring information and
data from one place to another.In addition to this, privacy of individuals might be
violated due to sharing of data (Mehlman and Li, 2014). In context of Tesco, manager of
company should be responsible towards the security of employees data as it will create
negative impact on the overall development of organization.
 Harmful actions: It consist of different negative impactswhich includes loss of
data,information, property and many more. Accordingto this principle it has been said
that it will negatively affect employees, organisation, general people, users and so on.For
instance, if any rival company sent virus within the organization of Tesco, itcreates
chance of destroying data and information stored in a system. It largely depends upon the
degree of virus.
Social issues: Accordingtothis, problems which arise can create affect huge number of
candidates available in the society. Some of the social issues which are related with society are
as follows:
 Identity Theft: Inthe world of high technology, huge number of people becomethe
victim of fraud. For instance, if an individualactlike the staff member of Tesco and sent
message to a person that they won gifts from the company which requires some personal
details. This refers to the act of fraud and require identification of theft in order to stop
such act.
 Hacking: It isa process where unauthorised networkaccess the internet connection
without permission (Neuhofer, Buhalisand Ladkin, 2014). Therefore, for collecting
information and data ofan organization or individual by entering into the system by any
third person. In the organization of Tesco, theyare separate IT department which will aid
them by protecting their system. In addition to this, managers of the company provides
training sessions to their employees regarding security system.
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Networking technologies
Computer Networking – The network that allows to connect and communicate with
different companies by any medium which helps to share ideas and innovations and data from
one place to another. LAN, MAN and WAN are the major types of network which is used by
many companies for executing their operations. The management of Tesco uses these
networking techniques in order to communicate with different departments with the help of
different sources such as massaging etc. There are some of similarities and dissimilarities
between each of them (Nieves, Quintana and Osorio, 2014). The major difference is the distance
area which they cover i.e. LAN covers smaller area; MAN covers larger area than LAN and
MAN covers largest area of all and it covers major area of network.
 LAN – (Local Area Networking) It is a network connection device in which share data,
tools and programmes with in the local area group. LAN cover smaller geographical area
and which is owned privately. LAN network can be seen in school, colleges, home,
hospitals, office building etc. it covers short distance so the error can be easily
minimized. LAN is used by Tesco for connecting with group of computers within same
building. The connections are high speed and is inexpensive.
 MAN- (Metropolitan area network) This network connects larger area as compared with
LAN. It covers large part of geographical area of network. MAN is basically used by
those customers who needs high speed that is Mbps. Device used for transmission of data
through Modem, Wire/Cable. Man is used in many large universities, cable television
and it more expensive then LAN (Pardo and Siemens, 2014). The administration of Tesco
uses MAN in order to have interaction with various outlets which are present within the
city area.
 WAN- (Wide Area Networking) This computer network covers large geographical area
within the state or country. The technology is of high speed and expensive. WAN is
bigger than LAN network. WAN covers large area of network that usually spans several
building in the same city or town. WAN is ownership can be private or public it covers
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the coverage up to 100 kilometres and speed can go up to 100 Mbps. Tesco uses WAN
network in order share different resources and information with other outlets which are
available outside the border of country.
Difference between LAN, MAN, WAN
Basis LAN MAN WAN
What it is Systems are present
close to each other
either within building
or office.
Local area network is
described as the
systems which are
present very close to
one another these can
be anywhere in office
buildings, home etc.
These are large
networks which
connect different
organisation.
Metropolitan area
network interconnects
different users of
computers in
geographical region
according to the size
of area (Sampsonand
Makela, 2014).
In this two or more
LANs are connected to
cover large
geographical area.
Wide area network is
described as
geographical
distributed network
that interconnect
various LAN
Distance covered It covers are around 2
miles or 2600 mts.
It is seen in limited
range around 100
miles to 20 km
It is spread in very
limited area
approximately 1000
km in order to achieve
high range digital tools
are used for
connectivity.
Speed The speed of Lan is
very high as there are
very few systems
connected. The speed
The speed range of
this network is also
high within the range
of 100 Mbps
The speed of this
network is slower as
compared to others
because large number
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is about 10, 100 to
1000 Mbps
of devices are
connected and their
function is mainly
dependent on wireless
technology. The speed
measured is usually
1.5 Mbps
Technologies used The technologies
which are mainly used
are twisted pair cables,
fiber optic cable etc.
This network is based
on common carrier
like twisted pair cables
and they are installed
locally.
These software's are
sometimes installed
locally or they are
using common carrier
like cellular networks.
Importance of intranet and internet
INTERNET
Internet is providing correct information to global network. It is a providing network to
public, business, private, government, academic. It is world wild network and it helps to
communicate with each other. it is too much useful because by the internet an individual found a
correct solution. This is necessity of every organisation's. Mostly organisations depends on
internet, without internet they can't earn their profit (Santoro, 2015). Internet make individuals
life easy and batter. People find quick solution by internet and also save their time by the help of
Internet. mostly people and organisation both bare depends on internet. In the present context of
Tesco, company adopt various methods for transferring information from one place to another.
Some of these are as follows:
1.ELECTRONIC MAIL:
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Electronic mail is an official message cress or e-mail which transfer your document and
message to another one. some 25% email transfer by internet every week. It is very easy to use
and too much protective then another online services. Mostly it is compulsory for everyone to
save individuals information. This is mostly uses officially. In the present context of Tesco
managers of the company,use email in order to transfer information fromone department to
another department, so that employees will be able to perform their task effectively.
2.SHOPPING-
Online shopping is also not possible without internet. Online shopping make the
customers life easy and also save there time. It is too much beneficial fore the busy people or
working peoples. there are many companies like Amazon, flipcart etc. these companies are
working on international level. In the present context of Tesco, in order to sell products across
the whole wide world, company use online platform. With this they can enhance their
profitability and sales at the competitive marketplace (Schwalbe, 2015).
3. ELECTRONIC NEWSPAPER AND MAGAZNIES-
there are many facilities like online news in mobile phones, also can read newspaper and
magazines, found information of sports and weather. there are many companies which provide
online newspapers and magazines like times of India, the Hindu, dainik bhaskar etc. In reference
to Tesco, managers use this method as a promotional tool. With this they promote their goods
and services in an attractive manner so that they will be able to gain profitability and competitive
advantage at the market place.
INTRANET
Intranet is a private network which is accessible within the organization. It is used for
local area network. The main purpose of intranet is to share the information and resources
among the employees of Tesco. The main benefit of intranet is that it helps in communicating
information across all the employees in minimum time period.
Productivity- Due to the local area network, information can pass easily to all the
employee at any time. It helps the applicant to get the information whenever they want. It
improves ability of employees to perform job effectively and efficiently thus achieving
organisation goal. In context to Tesco, management team of the company, adopt intranet within
their organisation so that they can share relevant information related to productivity. This will
help them to create effective products and achieve desire goals and objectives.
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Time and Availability- Intranet helps the organization get the information whenever they
need according to their convenience in a minimum time frame. As good internet has no limit of
access within the corporate area, as it is available 24/7. It is not a time consuming process. In the
present context of Tesco, managers provide required information to the staff members within
specific period of time. This as a result aid them to accomplish desired objectives in an effective
manner as well as in given time frame.
Cost- When the employee need the information, they can access on their smartphones,
desktop as it saves the space against the physical documents and save the spaces & expenses on
papers, printing, overhead of maintaining of documents etc. In context of Tesco, managers with
the use of intranet produce require productsand services according to the requirements of
customers (Wang and et. al, 2016).
Communication- Intranet plays important role in communication, as it helps in flow of
communication between the employees of the organization. Staff have the opportunity to keep
themselves up to date with information focusing on the business activities such as: e-mails, blogs
etc. In reference to Tesco, managers with the aid of intranet, effectively communicate with their
staff members. Therefore, they will be able to share information required to manufacture goods
and services in an effective manner.
Stages of system development life cycle
SDLC is a set of multi process software which is structured in a methodological manner. It isa
project management model which includesdifferent stages whichstarts from initialisation to its
implementation. The steps areas follows:
 Planning: In this steps, R&D department of Tesco hasthe responsibility to identify
problems and its existing scopes. Also, objectives of latest system are also available. In
case of R&D of Tesco, it is there responsibility to identify threat, problems, constraints
as well as security of the whole system.
 Analysis: Underthis, Top management team of Tesco identify Or gather information and
data. As per the requirements, they gather information and then improve the available
system.
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 System design: It includes design of network, system and user interface, database,
application. Under this stage, managersof Tesco develop a special system in order to
perform their task effectively.
 Implementation: In context of Tesco, IT department of thecompany is responsible
toimplement design with the help of code.Apart from this, in order to identify defects and
virus, it includes various modules ina training environment.
 Support/Maintenance: In order to implementthe system within Tesco, it includes
activities like phone support, physical, on-line andmore. With the help of software,
changes can be installedwithin the organization in a specific time period.
Analysis & Discussion
Information technology plays very essential role in today’s competitive world. Itrefers to
the system, software used for transferring information from one place to another . In the present
context of Tesco IT plays verycrucial role in order to achieve their goals effectively. Along with
this, for transferring information as well as resources , network technologies isused by manager
of Tesco. As it is the company deals in retail industry, it is important for them to adopt effective
IT, in order to satisfy requirements of customers. Thus, it will also aid Tesco inorder to enhance
their performance, profitabilityalong with productivity of the organization at the competitive
marketplace.
Information technology isone of the fastest growing technology, with the help of which
Tesco can provide their products throughonline portals and compare with other products and
services. With this, individuals will be able to critically evaluate the products along with its
features with other goods. It has been analysed that management team of Tesco adopt WAN
technology withintheir organization so that they can carry out their operations across the whole
wide world. But on the other hand major drawback of this is that it is very complex as well as
costly technology. Along with this, in order to manage data and information within the company,
they adopt MIS. With this, managers will develop strategies effectively and implement them
successfully.
Conclusion
As per the above stated report, it has been concluded that information technology playsvery
important role while transferring information from one place to another. With the help of this,
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most work performed are accurate and effective in nature. It has also been identified that in
order to retrieve data internet is used by companies and on the other hand in order to transfer
information from one department to another intranet is used. Along with this, management team
of the company use various software which includes Sage 50 and structured query language so
that information must be shared effectively. As a result it will help them in accomplishing
organizational goals and objectives within specified period of time.
References
Books & Journals
Eason, K. D., 2014. Information technology and organisational change. CRC Press.
Kiran, A. H., Oudshoorn, N. and Verbeek, P. P., 2015. Beyond checklists: toward an ethical-
constructive technology assessment. Journal of responsible innovation. 2(1). pp.5-19.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management. 26(5). pp.727-750.
Marchewka, J. T., 2014. Information technology project management. John Wiley & Sons.
Mehlman, M. J. and Li, T. Y., 2014. Ethical, legal, social, and policy issues in the use of
genomic technology by the US Military. Journal of Law and the Biosciences. 1(3).
pp.244-280.
Neuhofer, B., Buhalis, D. and Ladkin, A., 2014. A typology of technology‐enhanced tourism
experiences. International Journal of Tourism Research. 16(4). pp.340-350.
Nieves, J., Quintana, A. and Osorio, J., 2014. Knowledge-based resources and innovation in the
hotel industry. International Journal of Hospitality Management. 38. pp.65-73.
Pardo, A. and Siemens, G., 2014. Ethical and privacy principles for learning analytics. British
Journal of Educational Technology. 45(3) pp.438-450.
Sampson, J. P. and Makela, J. P., 2014. Ethical issues associated with information and
communication technology in counseling and guidance. International Journal for
Educational and Vocational Guidance. 14(1). pp.135-148.
Santoro, G., 2015. Evaluating performance in the hotel industry: An empirical analysis of
Piedmont. Journal of Investment and Management. 4(1-1). pp.17-22.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Wang, D. and et. al, 2016. Assessing hotel-related smartphone apps using online reviews.
Journal of Hospitality Marketing & Management. 25(3). pp.291-313.
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