Evaluating Knowledge Management and Information Systems for Tesco Plc.

This report provides a comprehensive analysis of knowledge management and information systems within Tesco Plc., a leading UK supermarket chain. The introduction defines knowledge management and its importance, setting the stage for an exploration of Tesco's internal and external environments. The main body includes a detailed overview of Tesco's corporate objectives, business model, and organizational structure. It then delves into a critical evaluation of internal and external factors impacting the business, using SWOT, PESTLE, and Porter's Five Forces analyses to assess strengths, weaknesses, opportunities, threats, political, economic, social, technological, environmental, legal, and competitive forces. The report recommends the most appropriate knowledge management information system for Tesco, justifying the recommendation in terms of current and future performance improvements. Finally, it identifies and critically assesses three key management implementation challenges Tesco would face when implementing the new recommended information system. The report concludes with a summary of findings and recommendations, supported by relevant references.

Knowledge
Management and
Information Systems

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Introduction to the Organisation.............................................................................................3
Critical evaluation of internal and external factors which impacts the business and its
operations...............................................................................................................................8
Recommending the most appropriate knowledge management information system in
organisational context. Justifying the recommended information system in relation with
improvement in performance both current and future..........................................................12
Critical assessment of three key management implementation challenges the organisation
faced during implementing news recommended information system..................................15
CONCLUSION..............................................................................................................................16
REFERENCES .............................................................................................................................17

INTRODUCTION
Knowledge management is a phenomena used for extracting data and developing new
insight or new knowledge through it. Information is a very sensitive and most expensive resource
in present business world (Abubakar and et., al., 2019). Every small unit of data is very
beneficial and necessary for organisation according to the category of data. Knowledge
management and information systems are the tools allowing businesses to manage their
information, store them, sort and utilise when needed in the best possible way. The report is
developed over Tesco Plc. largest supermarket store of UK which was founded in 1919 by Jack
Cohen and headquartered in England, United Kingdom. The assignment explores the different
knowledge management and information system for the organisation. In relation to it first critical
evaluation of internal and external environment will be performed with the help of three modes
that are SWOT Analysis, PESTLE Analysis and Porter's Five Forces Model. Moving further,
most suitable knowledge management and information systems are then suggested. Along with it
three most crucial challenges will be discussed as well that are going be to become a hurdle in
organisation at the time of implementation of Knowledge Management and Information Systems.
MAIN BODY
Introduction to the Organisation
Corporate Objectives:
 Vision- The Vision statement of Tesco Plc. has five elements which are: company wants
to become the leading brand globally, innovation, full of opportunities and regularly
growing business, inspiring other and developing loyal customer base and lastly to
become local winner and apply their skills in international markets as well.
 Mission- The mission statement of Tesco Plc. reflects over the aim of organisation to
earn huge profits and run operations for longer period of time with attaining success and
through focused business strategies and plans. The core vision stays constant and the
mission change and adapt according to the market conditions and business world
(Berkemeier and et., al., 2019).
 Values- The core values of Tesco Plc. which brings competitive edge towards the brand
and keeps it competitive in the aggressively changing and increasing competition. The
company have thorough understanding of their customers and their needs. Moreover,

firm believes in keeping staff satisfied while working and rendering them the best
working environment.
Business Overview:
Tesco Plc. a British multinational supermarket chain which is operating since 1919 and
known as the largest globally present brand. Tesco Plc. was founded by Jack Cohen as small
shop on the corner of the road and since then the company have now became the best and leading
supermarket chain (Carvalho, Rocha, van de Wetering, 2019). The company offer food and non-
food items, along with have its existence in telecommunication and financial industry as well. It
has around 6800 stores around the globe in markets like India, Thailand, Malaysia, Poland,
Ireland and many others. Tesco Plc. is the largest general merchandise and grocery item
distributor and retailer in United Kingdom in relation to markets share, holding the largest
customer base which are loyal to the brand and its offerings.
Illustration 1: Tesco Supermarket, 2020
(Source: Tesco Supermarket, 2020)
Corporate Structure:
 Tesco Plc. Governance Structure

Illustration 2: Tesco Governance Structure, 2016
(Source: Tesco Corporate Governance Structure, 2016)
 Tesco Plc. Organizational Structure
Illustration 3: Tesco organizational structure at store level, 2016
(Source: Tesco organizational structure at store level, 2016)
Outline the business model of the organisation:
Key Partners:
 Perform
business
with
suppliers
on local
and
Key Activities:
 Buying
and
selling of
retail
products.
 Taking
Value
Proposition:
 24/7
shopping
services.
 Safe
online
Customer
Relationships:
 Long
lasting
and
healthy
relationshi
Customer
Segments:
 Tesco.com
subscriber
s.
 Housewiv
es,

national
level.
 Engaged
with small
retail
stores.
 Engages
in local
joint
ventures.
feedbacks
from
customers
specially
regular
clients and
rendering
after sales
services.
 Developin
g effective
distributio
n
channels.
 Analysing
consumers
behaviour
s.
 Market
analysis
for
knowing
the
demand
and
supply
graph and
units.
shopping
experience
s
(Dingsøyr,
2019).
 Favourabl
e and
special
service
offering
and
shopping
experience
to club
cardholder
s.
 Convenien
t shopping
without
lines also,
option of
home
deliveries
at flexible
time
scales.
ps with
consumers
.
 Loyal
customer
base, kept
satisfied
and
retained
through
loyal club
card
membersh
ips.
students
and old
people.
 Basically,
lower,
medium
and upper
middle
class
families of
society are
the
targeted
audience.
Key Resources:
 Warehousi
ng and
Channels:
 Physical
stores

logistics
(Evans,
Dalkir and
Bidian,
2015).
 Online
presence
on
separate
social
media
platforms.
 Physical
presence
globally in
large
markets.
 One of the
best IT
infrastruct
ure
amongst
competitor
s.
(Supermar
kets,
Superstore
,
Hyperstor
e and
Convenien
ce shops.
 Tesco Plc.
online
applicatio
n for
shopping
social
media and
websites.
Cost Structure:
 Staff/ Employee salaries and wages.
 Information technology.
 Warehousing and Logistics.
 Regular expenses and Capital
expenditure.
Revenue Streams:
 Sales through physical stores and online
shopping.
 Home deliveries (García-Holgado,
García-Peñalvo and Rodríguez-Conde,
2015).

Critical evaluation of internal and external factors which impacts the business and its operations
The organisations are surrounded with two types of environment internal and external.
Both the environments have numerous factors which has negative and positive impacts for which
company needs to make plans in order to mitigate the risks. The internal factors can be
influenced but the external environmental factors are over the whole industry. Therefore,
companies have to make plans to adjust according to the external environmental elements in
order to keep running smoothly. For apply the best Knowledge Management and Information
System these element in internal and external environment of Tesco Plc. have to be evaluated for
suggesting the best suited methods. Thus, the critical analysis and evaluation is presented under
in relation to Tesco Plc.
INTERNAL ANALYSIS
SWOT Analysis of Tesco Plc.:
Strengths Weaknesses
 Tesco Plc. has the strongest brand name
in the market which is highly
recognisable and recommended by
customers.
 The financial performance of Tesco
Plc. is efficient and strong enough to
keep firm running smoothly and
without any budget cuts or losses.
 The company is facing problems in
keeping its operations and structure
flexible. It global presence require
flexibility and adaptability which is
lacking in the organisation.
 Moreover, failure of operations in
United States and Japan due to product
quality and lack of market research is
another weakness.
Opportunities. Threats
 Diversification is the most potential and
efficient option available for Tesco Plc.
in relation to opportunities and
exploring growth options.
 Another opportunities and expansion
option is of developing discount shop
and increasing its operations.
 Tesco Plc. is incapable to adjust its
supply chain in accordance with post-
Brexit environment which is causing a
threat for the operations.
 Increasing competition and rapid
growth of other small stores or even
large supermarket chains is a huge

threat to the brand as well.
EXTERNAL ANALYSIS
PESTLE Analysis of Tesco Plc.:
PESTLE DESCRIPTION
Political/Legal The competitive position of Tesco Plc. can be affected by one current factor
that is Brexit deal in the retail markets of the United Kingdom. The company
import and export food and non-food products not only in Britain but in
international markets well. European Union exit of UK resulted in import
duties and other taxes which will increase costs of goods and affects the low
cost pricing strategy of Tesco Plc.
Economic The economy of the UK is considered to be the most stable one amongst all
the world economies. The country creates most favourable business
environment for all types of businesses and organisations, supporting the
domestic firms and entities to expand and bring in more foreign currency
(Gaviria-Marin, Merigó and Baier-Fuentes, 2019).
Illustration 4: Tesco Supermarket: PESTLE, 2020
(Source: Tesco Supermarket: PESTLE, 2020)
The firms or large businesses like Tesco Plc. UK's economy brings huge
opportunities as well allowing company to be profitable and run their

functions smoothly with support of the government.
Social The social trends in UK are fluctuating and evolving which can affect the
competitive position of the firm. In recent survey the organic food sales have
shown significant increase directing people toward more health safety and
food products for the same. The people in UK are known as loyal customers
which has a positive impact over the sales and revenues of the firm.
Technological One factor which has the direct impact over the competitive position and
operations of Tesco Plc. is technology. This environment factor has direct
influence over the business. Tesco Plc. is already using numerous technologies
for operating their functions on several levels of the firm in the organisational
structure. Tesco Plc. is well aware of the use of technologies in marketing and
have developed prominent position in virtual world as well by making online
shopping available and run effectively (Kianto, Vanhala and Heilmann, 2016).
Environmental Tesco Plc. Have reduced its carbon footprint in comparison from the
beginning. Tesco have developed sustainable operations which are
environment friendly. Moreover, this mission is still being carried as Tesco
Plc. is planning to switch operations to 100% renewable energy and
electricity.
COMPETITIVE ANALYSIS
Porters Five Forces Model:
FIVE
FORCES
DESCRIPTION
Existing
rivalry
The existing competitors and rivals have high power over Tesco Plc. As the
competition is huge in number on both national and international levels. Also,
the market is saturated the rivals compete over price, products, promotional
plans and other factors.
Bargaining
power of
The bargaining power of customers refers to the abilities and power
consumers have over the brand which is high as the switching cost is low. The

customers company Tesco Plc. servers around 80 million consumers on weekly basis but
the competition is high and the switching cost of people is really low.
Bargaining
power of
suppliers
The bargaining power of supplier indicates the power of external raw material
and other goods suppliers have over the brand. In case of Tesco Plc. the
suppliers have low power as the company is self sufficient. Moreover, Tesco
Plc. do not depend on one supplier it has numerous suppliers associated and
partnered (Lin and Lee, 2012).
Threat of
substitutes
The threats of substitutes goods and other retail stores is low for the brand.
The name Tesco Plc. Is a world known brand holding operations globally and
in the largest number possible. The company can not be affected by the small
stores and discount retailers. Tesco Plc. has its competitive edge that is
provided through its presence in the international market on a huge level.
Threats of new
entrant
The threat of new entrant is low as well for several reasons but the most
affecting one are high barriers to entry and the domination of exiting large
companies in the market. There are numerous supermarkets like Tesco Plc. of
different size which who has highly concentrated the market share and Tesco
Plc. is the largest amongst them. So, new entrant face problems in entering the
marketplace and compete these large organisations specially Tesco Plc.
Recommending the most appropriate knowledge management information system in
organisational context. Justifying the recommended information system in relation with
improvement in performance both current and future
Organisations for effectively managing their brands and potentially work for the pre-
determined goals and objectives, drive to incorporate their past and current knowledge for future
competences and capabilities. Innovation and creativity can develop better short term goals and
objectives that is aligned to the long term aims. Innovating new systems and plans is performed
through in-depth analysis of the existing information or data which can further assist in
developing new insights and fresh knowledge that is efficient enough for fulfilling the needs,
desires, preferences and wants of the buyers or potential customer's.
The knowledge Management and Information Systems are the tools which allows and
assist the company in keeping their data safe and change it into a long term source. Tesco Plc.

invest huge amounts in its IT infrastructure as the firm praises the benefits and opportunities
provided through it to the operations and functions. In the same way Knowledge Management
and Information Systems are efficient for managing the data of the company (Martin, 2017).
These systems or methods works in three stages that renders the best possible outcomes
and results for holding fresh knowledge and develop better plans supporting the aims and
objectives. These three stages are elaborated in context with Tesco Plc. in the segment below:
 Gathering the Documents- The first and foremost stage of identifying the ways of
collecting all the documents that are necessary to be collected. The first stage of
knowledge management is of gathering and managing the necessary documentation
where the management of Tesco Plc. will be focused to keep all sensitive and important
data within the organisation and to work through it to attain competitive advantage.
 Sorting and storing of Data- Once the data is collected, documents are gathered form all
the required sources than the information is sorted according to the needs for
management and maintenance purposes and stored. The sorting and storing procedures
involves deep evaluation and analysis of the information and only beneficial data is kept
within the database of Tesco Plc.
 Shared and Used- The last stage of Knowledge Management and Information System is
of utilising the sorted data by sharing into different departments in the hierarchy. Tesco
Plc. will make use of the information by sharing it to all the departments as sorted
departmental wise. Such as for example, any new information in relation to marketing
and customer needs will be transferred to marketing team of Tesco for developing the
most efficient promotional plans in accordance to it and attain the competitive edge in the
marketplace.
Tesco Plc. is already suing the Knowledge Management and Information Tools which
have played major roles in several decisions taken by the management. These Knowledge
management systems and software are also beneficial for the future of the company as well.
Thus, few Knowledge Management and Information Systems are suggested to Tesco Plc. in the
section below along with proper elaboration.
Document Management:
This is one of the most basic and common form of Knowledge Management tool. Its
name that is document management clarifies the purpose and function of this tool. This tool is