Knowledge Management and Information Systems Report on Tesco

This report provides a comprehensive analysis of Tesco's knowledge management and information systems. It begins with an introduction to information technology and knowledge management information systems, followed by a detailed overview of Tesco's corporate objectives and business model. The report then delves into a SWOT, PESTLE, and Porter's Five Forces analysis to assess Tesco's internal and external environments. It identifies an appropriate knowledge information system, specifically the innovation support system, and provides recommendations for improving Tesco's knowledge management practices. The report also addresses the challenges of implementing knowledge management and concludes with a summary of key findings. The report uses information from the year 2020 and discusses various factors influencing Tesco's operations including market conditions, competition, and technological advancements.

KNOWLEDGE MANAGEMENT
AND INFORMATION SYSTEMS

Contents
INTRODUCTION...........................................................................................................................3
1. Tesco........................................................................................................................................3
SWOT Analysis...........................................................................................................................6
Pestle Analysis.............................................................................................................................7
Porter’s Five Force Analysis.......................................................................................................8
Appropriate knowledge information system...............................................................................9
Recommendations........................................................................................................................9
Achievement of Corporate Objectives-.....................................................................................10
Challenges for implementing key management........................................................................11
Short introduction......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Information Technology can be defined as the use of computers to create, store, retrieve
and transfer information and data in electronic format. Information Technology is mainly used in
business context. Information Technology has become crucial for the success of the organisation
and effectiveness of organisational activities. Enhancing information technology has required
organisations that they also make improvement in their existing technology and technological
infrastructure. Information technology is playing important role in all activities and functional
areas of organisation and among all these areas knowledge management is one of the important
function which is carried out with help of information technology. In relation with knowledge
management, knowledge management information systems are utilised in the organisations.
Knowledge management information system is use of information system for storing and
retrieval of knowledge to improve understanding, collaboration and process alignment. This
report will discuss about information technology and knowledge management information
system in context of Tesco.
1. Tesco
Corporate objectives
Corporate objectives refer to something that an organisation is willing to achieve through
their activities and corporate functions (Awadari and Kanwal, 2019). Corporate objectives that
Tesco has are-
 Maximising wealth of shareholders
 Growth Maximising
 Sales revenue maximisation
 Diversification- growing the company
 Increased market reputation- by providing high quality services
 Addressing environmental issues- by providing facilities like recycle bins and charity
facilities

These are some of the objectives of Tesco, different objectives are aimed at growth of
Tesco and providing benefit to shareholders of the company. in its objectives company also have
considered environmental issues and what company can do to address the issue.
Business Overview
Tesco Plc is a British multinational groceries and general merchandise retailer. Founded
by Jack Cohen in 1919 Tesco Plc is headquartered at Hertfordshire, England. Serving at 8
countries Tesco is available at 6800 locations. Tesco is operating under Retailing Industry and
products of the company are Supermarket, Hypermarket, Superstore, Convenience shop. Other
than this, services of Tesco are also available on online platform. In order to complete and
manage all the activities of the Tesco company has employed around 450000 (Wood, Wrigley
and Coe, 2017). Tesco was founded originally in 1919 but Tesco brand first appeared in 1924
and during time of 1950 to 1960 Tesco grew organically and through acquisition and by this time
it owned more than 800 shops.
Corporate Structure
Figure 1 Structure for Corporate Governance

Figure 2Organisation Structure at Store Level
Business Model of the Organisation
Model of Tesco Plc is based on Serving shoppers better. This business model
involves-
Our differentiating capabilities
Understanding customers- using expertise to understand customers and their needs
Our colleagues- sharing single purpose with every colleague
Scale and Reach- bring great quality products to more customers
Own brand and products- this means sourcing best quality products and with expert technical
teams and close partnerships with growers and suppliers
Services- this involves mobile and banking needs of customers of Tesco
Innovation- this means focus on encouraging a culture of innovation so that business remains at
the cutting edge of new trends and demand.

SWOT Analysis
Strength
One of the biggest strength of Tesco is that they have the biggest store among all if it is
evaluated in terms of revenue. The revenue of the business was more than 60 thousand million
pounds which was the aggregate of Ireland and UK. Also the relation of the business is good
with their suppliers which has helped the company to maintain a simple model of business so
that they can reduce the cost and manage the waste by putting it to other use. On this they take
the help of suppliers and because of their good relations they agree to it.
Weakness
One of the weaknesses of the company which has even affected their profits are that they have
been making a lot of financial errors. It is because of the wrong tracking of credit card debt that
they are suffering from losses. The strategy that is implemented by the company is traditional
and not working for them as because of keeping their prices low they are not able to generate
profits (Kravchenko, Kuliev and Kursitys, 2016).
Opportunities
The company is looking to enter into different markets and they have the scope to come
up with a partnership with a local company which will help them to form the strategies on the
basis of that. This way they will be able to gather the knowledge of the local market through
which in future they can maintain their operations independently. The company currently serves
in around 14 countries but now in order to increase their base of operations they need to look and
focus on those markets who are emerging and have potential such as Turkey, Indonesia and
South Korea.
Threats-
Earlier this year the company was facing threat from Brexit and this year the company is facing
threat from Covid-19 which is affecting every business due to lockdown and company has to
bear high cost in order to maintain their working capital. Also the economy of the country is in a
flux which makes it difficult to bare with the chances of growth and development and for that
they need to comply with the new rules of government, credit and taxes etc.

Pestle Analysis
Political Factors
The company is currently seeking the support of government as after the referendum of EU as
many of the investors has backed down and in order to achieve growth they want that rate of
taxes decreases as many goods are imported from other countries (Cecez-Kecmanovic and
Kennan, 2018).
Economical Factors
The condition of economy is not strong which is limiting the rate of growth of business
which is why they are facing difficulty to keep up with the increased rate of labor which is
affecting the profits of the company.
Social Factors
The trends of people change at a rapid rate as now at the time of pandemic they want
their safety first that is why they want home delivery of their items and this will help the
company to serve as per their basis.
Technological Factors
With the help of these factors Tesco has been able to improve the level of satisfaction
they provide to their customers. As they came up with the technology of RFID so that stock can
be automatically counted and order can be given to the suppliers.
Environmental Factors
In order to comply with these factors they have made sure that at the time of delivering
goods to their customers they will take routes that are short which will help to save the fuel and
save the forces of the environment (Hendriks, Ligthart and Schouteten, 2016).
Legal Factors
In order to keep serving in the market it is necessary that company keeps up with legal
aspects. There have already been many cases for fraud with investors which has affected the
goodwill of the company and to settle those cases company had to pay 12 million pounds.

Porter’s Five Force Analysis
Bargaining Power of Buyers-
The bargaining power of buyers of Tesco is high because of high level of competition in
the market. Due to this they have the benefit of switching to other companies and the price of
which is very low. Some of the customers get high quality products at cheap rates from other
companies.
Bargaining Power of Suppliers-
Suppliers of Tesco have do not have much power over the company as in the line of
groceries there are many suppliers available and they can be easily replaced as per the deals they
make. This is a loss for the suppliers and profitable aspect for the company (Arshad, Noordin and
Bint Othman, 2016).
Threat of Substitutes-
The threat and impact of this factor is high as there are many products offered in the line
of groceries. The whole range of products offered by Tesco can be offered by the other brands
coming from different markets which can affect the business of the company.
Competitive Rivalry-
The competition that the company faces from its competitors is high as the cost of
switching can be bared by any customer. This is the reason why all of them reduced the prices of
their products in the market and Tesco is focusing on advertising the brand so that customer
remains loyal to the brand (Al-Emran, Mezhuyev and Kamaludin, 2018).
Threat of entrants-
Tesco has the highest share in the market of this sector which is not easy to be obtained
by any company that has entered newly into the market. Also in order to come at this point they
need to raise high amount of funds from the market and the condition of market will not help
them to do so.

Appropriate knowledge information system
The best and appropriate system of information for the company will be innovation support
system. As this system will help Tesco to contribute in the area of knowledge and come up with
the process of designing of product. With the help of this company will be able to gain insight
which will be on an environment that is virtual. This will help the company to look and invest
more in the area of research and development. There are different features of this software and
that is it will record all the data which is technical which also involves patents of the company,
articles and projects that are completed with research. This helps the team of research and
development of the business to assess and obtain more knowledge so that they can look for new
combination. For example a new element is used for the packaging of the product which can be
adopted by Tesco for its benefits. Also digital libraries must be included in this aspect. Another
feature is of stimulation of graphics which helps to comply with internationalization.
Internationalization is the process through which company can gather more knowledge which
will help them to develop their own tactics. It is done with time and gaining experience and the
aspect of stimulation is also involved in it. One more feature of this software is to assess the tools
of combination so that they can evaluate all the possibilities that are not usual which is required
in the process of designing and complying with the level of innovation. This way company will
be able to work with measures that enables creativity (Zhang and Venkatesh, 2017).
Recommendations
This system of information will help the company to improve their performance in many
ways as with the help of this Tesco can make their culture innovative. This will help the
employees to share their ideas even to top level of management and in return they will be
appreciated for work. If the company is able to make the culture innovative then employees will
be able to get insight and share more ideas. Also the projects that the company is working on
currently will be complied with the innovation. If they are able to make changes in their culture
then it will help Tesco to improve the level of teamwork and engagement with employees. This
is because when they share the ideas they are put under a team and they work as a group.
Dedicated employees work with multiple approaches which help to develop the aspects of
business. This also improves the efficiency of work as collectively they are able to generate more
creative ideas and process it faster with the help of others. Managers of Tesco awards them on
the basis of their performance so that they can work up to their potential. It is beneficial for the

improvement of employees as well as with the upgraded technology those who are not confident
can work and share their ideas in a process that is held online. This can help the business to
achieve growth. This entire process of innovation and the management of information system
will allow the business to work on new and different process so that more work is added into
their portfolio. They need to analyze the growth of the project and then look for the progress they
have made. This will help the company to maintain the efficient flow of work. For instance
employees will be able to comply with tools for managing their operations that are automated
and with the help of this any information be it large or short can be easily sorted. Other than this
it keeps the information to be protective from loss. There are other software that helps the
business to schedule and manage their work so that they can focus on the development of ideas
but this process will help Tesco to work on the right area who has greater scope and potential.
The system of innovation tools involves the aspect of assistance from computers so that
they can work on one project at a time which is beneficial for the company in future. This will
help them to not waste their efforts repetitively on the same issue and focus on others which are
more important, this is how this system ensures that there are no errors made in the work. Other
than this it also helps the business to reduce the level of duplicity in the task and appreciates only
creativity. This system helps the company to work with transparency so that any decisions taken
by the managers is final and clear. This way it is easy to keep trace which saves the resources of
the company and that can be put for future use (Galkin and et.al., 2017).
Achievement of Corporate Objectives-
The innovation support system will help the company to know the degree of innovation
so that they can assess its impact and intensity it will bring in the market. The needs of the
market are much diversified and it will be difficult for the business to satisfy the needs of every
customer that is why this aspect will help the company to do it so that they can achieve their
corporate objectives which they have set as per their vision. Also it is necessary to make sure that
Tesco assesses the preferences of their employees. It is necessary to assess that company have an
idea that either their employees are comfortable with groups that are networked or in their
chosen teams. The network group must be the focus of the company as they will help them
promote the aspect of innovative ideas and develop it. Other than this it assesses those conditions
through which it helps to promote the level of innovation (Vernadat and et.al., 2018).

In order to achieve the corporate objectives Tesco needs to put their centre of attention on
increasing the level of sales and competitiveness. This is necessary because operations are
maintained on a huge scale and company can leave the trace of many activities which may affect
the experience of the customer (Olson, 2018). This platform will help the company to open a
channel where they can get complaints or feedback regarding their services so that they can
improve it. This way internal department of Tesco will look on to it so that their complaints can
be resolved and they are able to establish customers who will remain loyal to the company. This
way they will be able to make them as promoters of the brand which will improve their goodwill
of the brand and will help them to gain competitive advantage and this way objectives of the
corporate sector will be achieved by Tesco. The most important and delegate aspect of this
measure and innovation support tool is that it will help Tesco to figure out which markets have
potential so that they can make their model of business disruptive with the necessary
development patterns so that they can achieve success in different markets (Mao and et.al.,
2016).
Challenges for implementing key management
Compliance-
The standards for compliance has increased to a very high level and in order to set it up it
is necessary that they are specific to it. For example PCI DSS has a requirement to enable that
companies use the keys for encryption so that they can protect the data from getting disclosed or
avoid getting it misused. It is necessary to form a document so that they can meet and implement
the processes and procedures of key management. it will be helpful if companies such as Tesco
puts more effort in this line so that they can meet with the requirements that are stringent.
High Cost-
It is considered as difficult to enable keys that are new and forming relationship on the
basis of it takes time to trust on it. The complexity of this aspect is more as it is considered that
removing the keys or rotating them for the company is more difficult. The aspect and factors of
market are dynamic in nature which increase the needs of enabling with key operations. If it is
required on a vast level then the cost of cloud computing will also be added in it. Other than this

it will create difficulties for the department of IT as they have to look after many institutions (Au
and Fung, 2019).
Growing Risk-
On the basis of assessment made by IBM X-Force 2011 Trend and Risk report many
attempts were made for breaking the password so that they can enter into the servers that were
secure and shell. On the top of that there have been many cases of breaches in companies that are
operating on the scale of Tesco. Most no of cases that have been filed for is stolen data for login.
This is why it is necessary for the companies operating on a big scale to remove the work that
undergoes manually with its complex nature and with that lower the risk of access that is
unauthorized which will help the company to improve the level of visibility so that they can meet
with the level of required compliance. Also they need to change processes that are traditional and
old as it takes too much time and consumes a lot of time which increases the cost of the company
as well.
In order to overcome these challenges it is necessary that company focus on area of
discovery, management and monitoring of activities (Abualoush and et.al., 2018).
Short introduction
This report emphasizes on knowledge management and information system that helps the
business to look after security of their operations and complying with the needs of the
environment of business by making changes in their culture. It is up to the nature and line of
dealing of business that they choose the appropriate level of information system and that will
determine the path for the operations of the company and their safety. As there are many key
challenges which is difficult to implement in the process and procedures. This report also gives
an analysis of the environment of Tesco which is a British based multinational company in the
line of grocery sector. This report provides a complete analysis of the external environment of
the business of Tesco which helps the company to prepare their activities on the basis of it and
form the strategies as per their requirement so that they can satisfy the needs and wants of the
target audience.

CONCLUSION
From the above studies it has been concluded that it is necessary that Tesco makes changes in
their process and strategies as since the last few years they have been loosing their share in the
market as they are facing high level of competition from the companies such as Aldi and Lidi.
The rates that they are offering are very less from Tesco which is attracting the customers and
decreasing the share of the company. Other than this it also highlights the importance of
knowledge based information system and in what measures it helps the company to improve
their performance and achieve their corporate objectives. The information system that was
chosen as appropriate for the company was innovation support system which helped the
company to make changes in their culture and increase the creativity in their ideas which helped
them to change the design and pattern of their offerings so that they can leave their completion
behind and achieve their position in the market back. There are some challenges in order to
implement the aspect of key management as the cost of the setup is high and it takes time to earn
trust. Also it is necessary that all the traditional methods are stopped and changed to this so that
they can increase the security of their data which will be beneficial for the business as well as
their customers.

REFERENCES
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