Evaluating Knowledge Management for Tesco: A Detailed Report

This report provides a comprehensive analysis of Tesco's knowledge management and information systems. It begins with an introduction to knowledge management and its importance in the modern business environment, focusing on Tesco as a leading British multinational grocery retailer. The...Read More

KNOWLEDGE MANAGMENT AND INFORMATION
SYSTEM

Table of Contents
INTRODUCTION...........................................................................................................................3
2. Critical evaluation on strength, weakness, opportunities and challenges of chosen enterprise
and consider all environmental factors...................................................................................4
3. Recommend the most appropriate knowledge management information system for TESCO.
................................................................................................................................................8
4. Critically assess three key management implementation challenges while implementing
recommendation...................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Knowledge management is mainly referred to any kind of IT system that can store and
retrieve the knowledge, improve the collaboration, knowledge sources.
In the present era, the needs of the customer are continually changing (Irsan and Budiman
2020). Henceforth, the knowledge management and information system in the business
environment is more than the origin of ideas of creating new techniques, processes and product
for enhancing organisation profitability. To advance the working of enterprise, the technological
application needs to be introduced and developed so that systematic working can be conducted.
Thus, assignment will be based on activities of Tesco, it is British multinational grocery
sector that leading in retailer sector.
Objective
The corporative objective of Tesco is to deliver customer with excessive value at the
competitive prices, communicates with and to meet the need of its consumers by developing the
employee talents and to reward them fairly by offering better quality commodities at fair prices
(Kim, Qian, and Zhang, 2020). Thus, Tesco takes initiatives to world-wide company with
positive local impact.
Business overview-
Tesco is termed out to Number one supermarket in United Kingdom and second largest
grocery retailer in the world. It is British leading entity that deal in product and services as to sell
books, groceries and other commodities. Thus, Tesco has 28% market share within grocery
markets of UK. It is third largest retailer in the global world that can be measured by gross
revenue. Tesco has founded in 1919 by Jack Cohen, which is one of the great leader in the retail
enterprise. It has expanded the business globally since early 1990 and performed the different
operation in other 11 nations. It has continuously diversified into different areas such as retailing
software, electronic clothing and books.
Corporate structure-
Tesco is an entity that has a hierarchical structure. Thus, functional structure of the
enterprise mainly focuses on different department in entity (Tóth, Nieroda and Koles, 2020). It is
firm that follows hierarchical management system to ensure effective working and efficiency
within undertaking of enterprise. Additionally, hierarchical structure of chosen entity assists the

firm to define the role of each member without disorder. Organisation must follow the functional
structure's in its multinational retail stores.
Business model of organisation-
Tesco exist to serve customers. New business model aids to offer some completive
benefits and lower cost to firms. Therefore, innovation of business model can bring firms much
profit.
2. Critical evaluation on strength, weakness, opportunities and challenges of chosen enterprise
and consider all environmental factors.
SWOT Analysis-:
Tesco has been used the SWOT as tool or platform that helps to define strength,
weakness, opportunities and threats to assess what chosen entity can do to forwards its business
plan and trademark engagement. Hence. SWOT analysis are outlined in following context as-:
Strength-
 Tesco is the entity that has won varied awards for its retails superiority, consumer
services and also aids to enhance overall shopping experience of customers.
 Tesco has consider as one of the major and profitable superstore and retail sector in the
world (Contractor, Dangol and Raghunath, 2020).
 Tesco is the entity that strong portfolio within top driven segment and that sells
equipment and offers service across the segments throughout the world.
 Among the big supermarket, Tesco controls the grocery retail market with 27% of market
share.
 The Tesco has simplified business model and this reduce the cost, efficient waste
management policies etc. to set effective and efficient supply chain network.
Weakness-

 High arrears and credit care accountability, the monetary incomes of the Tesco enterprise
are intensely affected.
 Tesco is said to be value leader in the market of UK. Thus, it low cost strategy can help
to reduce the profit margin rate.
 Poor operational performance of the TESCO in the few areas leads to affects the working
of the enterprise in huge manner.
Opportunities-
 Tesco is the enterprise that takes initiatives to develop the strategic partnership with most
of reputed firms that assist to offers excellent opportunities for Tesco. This will enable
the chosen entity to offer more commodities and also attract wide range of customers.
 It is beneficial for Tesco to gain more opportunities by continually increasing and
advancement its online shopping business and home delivery services to customers
(Young, Cooke and Solås, 2020).
 Tesco has a chance for the joint ventures in the regions where Tesco store are failing their
business activities. Therefore, local firm can provide profound knowledge of market that
can assist to improving performance in some regions.
Threats-:
 Economic recession and credit crises will constantly loom the market share and
profitability of tesco by reducing the number and size of purchase made by customers
(Vinnem and Røed, 2020).
 Prices of food commodities tends to increase around the world and this has also reduced
what customer can purchase and how much non-refundable income they have available.
In this way, it directly affects on the overall market share, value of tesco. In order to
reduce demand of product and service in marketplace.
 The better amount of stakeholder pressure relay to environment and social responsibility
may have adverse influence on cost of tesco
PESTLE Analysis-
It is term that track the environment and aids to conduct the better planning on to launch
new product and service etc. This helps to undertake the detail external environment analysis.
Therefore, PESTLE analysis will be outlined as-:

Political- There are range of political mechanisms that disturbs the Tesco in both direct and
indirect manner (Vinnem and Røed, 2020). Thus, political components may affect chosen
enterprise that includes the political instability in UK. Henceforth, political components are
inclusive of legislation, unemployment rate, economic conditions etc. By the use of example
such as import duty on belongings can influence the working of Tesco as this imports some
record outside the china and east Asia. The political factor that directly impact on the
organization when Tesco’s dominance because of its size and market share. It has been
continuously increased the lot of issue or problem due to high competition level.
Economic factors- There are number of the components that can affects the Tesco are inclusive
of the cost, prices and profits etc. In addition to this, the entity should focus on enhanced
borrowing cost in UK. In the year, 2009 Tesco reported the earnings for the first time that were
under 10% growth due to the financial crisis hit the world. Thus, the chosen entity must be aware
of the cost, demand, profits and prices. It has been reduced the market size due to recession so
that it directly impact on the Tesco. Another way, it also influencing the towards negative
inflation and fall retail price/ cost index. Furthermore, it has been increased the demand of Tesco
in market because of their convenient physical stores.
Social factors- There are number of changes and trends in social factors affects organisational
working. In addition to this, Tesco has improved their services towards the non-food items for
sales. Therefore, the working of the chosen enterprise is relying over UK customer sand they
must understand and offer the service to meet out these issues (Vinnem and Røed, 2020).
Additionally, maximum of the customer are health conscious and they are demanding healthy
and organic products to stay healthy. In order to remain competitive in market, Tesco must take
initiatives to considering the demand for organic commodities and their changing behaviour.
Entity needs to cope up with the changes in order to meet out the needs of current customers. On
the other hand, potential consumer have started to pay attention towards ethics and also
associated with tesco. In current decade, it has rapidly increasing the consumer who always
believed on the fair trade and large proportion of client.
Technological factor- Tesco is the entity that is taking varied initiatives to invest in technical
advancement such as website development that has enhanced its profitability 10%. With the help
of making investment in online experience Tesco has also taken steps to improved checking out
system for the convenience of its visiting customers. In order to enhance the production activity,

Tesco needs to take the initiatives to have the use of technical advancement that can assist to
undertake production activities effective and this can assist to grow business activities in
effective level. With the use of technical advancement, the working of the entity can be
streamlined.
Environmental- The chosen enterprise in partnership with global action plan skilled and gave
employment to varied young individuals in relation to aid to strengthen the positive environment
in surroundings. Additionally, there are entities which are liable to respond these issues to
benefits the society. Currently, Tesco is taking initiatives to use renewable sources and also
generates 10% of its electricity by 2030. Thus, entity promises to minimise up to 50% carbon
footprint by 2020.
Legal factor- In a business legal environment, there are number of key areas where the law
changes and this also affects the performance of business to accomplish the business objectives.
In addition to this, Tesco has faced legal action for accounting fraud and this also mislead the
investor to settle the legal action. Therefore, the government and legislative factor has directly
impact the performance of chosen enterprise.

Porter Five forces-:
This is tool that aids to examine the discrete five forces that assist to regulate the degree
of overall rivalry in the grocery retail industry. Therefore, the forces are outlined in below
manner as are-:
Threat of new entrants- In this, it can be stated that new entrants in retain brings innovation and
new way of doing things. Thus, these all the things put pressure on tesco entity to lower down
the pricing strategy, to reduce the cost and to offering new value proposition to the customers. In
order to cope up with it, Tesco needs to cope up with the changes and must bring innovation so
that they can able to attract the customer at wider aspect.
Threat of entry is low by Tesco because it has given the overall market structure whereas
it only contain 68.9% of grocery market shared. It may be controlled by largest supermarkets. In
additional, new entrants would have offered high quality of item associated with other
competitive prices.
Bargaining power of suppliers- All most all the entities buy raw material from wide range of
suppliers. In addition to this, the suppliers in dominant position can reduce the margin rate of
Tesco plc can earn in the market (Kim, Qian, and Zhang, 2020). Thus, overall impact of supplier
bargaining power is tends to lower down the overall profitability of retail. Henceforth, the
bargaining power of supplier chain can be tackle with help of building efficient supply chain
with multiple suppliers. Thus, chosen entity needs to take the initiatives to maintain the cordial
relationship with customers.
Tesco suppliers have consider as low bargaining power because of existence of different
supplier in marketplace. Sometimes, multiple suppliers have replaced with other one, which give
a power of Tesco. In order to improve the profit margin rate of organization.
Bargaining power of buyers- In this, it can be stated that buyers are demanding a lot. Thus,
buyers wants to buy the best offering avail in market by paying the minimum price as possible.
With help of building the large customer base there can be possibility to reduce the bargaining
power of buyers as this one of the effective way to provide opportunities to entity to streamlines
its sales and production process. With help of continually innovating the commodities, customers
can seek discount and offering on established commodities (Irsan and Budiman 2020).

Tesco has a high bargaining power because of availability of other supermarkets, which
already established the business in marketplace. Sometimes, it make product switching low
price, givens the various option and setting pricing strategy.
Threats of substitute product and services- At the time new product or service meets that
profitability and working of Tesco can get affected. In addition to this, it can be stated that threat
of substitute commodities and service is high and this offers value proposition that is unique
from present offering of the industry.
Threat if substitutes is very high in context of grocery products. In this way, Tesco has
potentially food substitutes that can come from other retailer in marketplace.
Rivalry among existing competitors- If the rivalry among the existing players exist that this
will drive down the cost and tends to decrease the overall profitability of the industry. Thus,
Tesco plc operates their working in the very competitive retail industry. With help of building
the sustainable differentiation assist to streamlines the business activities in effective and
efficient manner.
In additional, tesco has been faced the major competition from other discounts store aldi.
It is mainly providing the offer up to 30 to 40% on their products.
3. Recommend knowledge management information system for TESCO.
Knowledge management has become a significant concept in term of practices. TESCO
have strived to manage knowledge more effectively and efficiently. Its primary aim is to improve
the entire performance by gaining competitive advantage. In another word, knowledge is mainly
referred as combination of information in term of concepts, facts, ideas, observations, procedures
facts, figures and other judgments (Milton and Lambe, 2019). In TESCO, employee can process
and store in their mind. However, it encompasses not only knowledge contained in the
individuals minds but it also consideration for existing data inside TESCO. Thus, the one of most
important concept with organization to cope with the setting up systematic structure which make
knowledge storable effectively.
Knowledge management system is based on the systematic approach that help for
managing organizational knowledge by using ICT. It mainly including documents, content,
business intelligence, visualization, e-learning and groupware (Milton and Lambe, 2019). KMS
integrate with extensive range of various tool that always support for managing the existing
knowledge insider within organization. Knowledge management represents the efforts of Tesco

to make knowledge available within specific boundaries (Loon, 2019). In order to increase the
overall performance and organization. Therefore, Knowledge management is to create, collect
and convert individual’s knowledge. However, it also seen as systematic discipline and assume
set of approaches which enable information as well as knowledge grow.
As per analysis, it has been recommendation the document management system which
providing the better facilities and services. It will be implemented in TESCO which enable
within enterprise (Milton and Lambe, 2019). Besides staff member, technology and document
related to enterprise activities. it is consider the important part of TESCO that help for storing
large amount of data records such as invoice, orders, complaints, components, queries and safety
regulation. These are consideration as part of organization which always support for holding
large volume of data in proper manner. Since such documents that can be thoughts of as
instrument of enterprise transaction facilitation (Abubakar, Elrehail and Elç, 2019 ). In this way,
Tesco is increasingly looking for modern technology as possible with which increase the
business process cycle. It is based on the database technology for storing large amount of data
and also distributing document, information people about current project activities. In this way, it
has recommended that use document based knowledge management for controlling and
managing business operations.
Justified the recommendation especially how it improve the performance of both currently and
potentially in future.
Document management encompasses the process and procedure that TESCO uses as it
pertain to capture, store, secure and retrieve information on regular basis. In current situation,
Document management information system which make it easier for business to combine with
digital files into single. It consider as great opportunities for Tesco to improve entire business
productivity and profitability in global marketplace. It mainly including the digital technology
that support wide range from database system (Mahdi, Nassar and Almsafir, 2019). Nowadays,
TESCO uses the documentation management system which are essentially electronic filling for
organizing digital document in proper manner. Each and every departments such as financial,
accounting use document management system that simply provide facility to uploaded directly
into DMS through scanner.
However, document management system allows for user to enter metadata and also tags
that can be used to organize all collected files. In this way, it will be increasing overall business

capabilities and abilities. It can be possible when implementing the concept of DMS within
organization. An on-promises solution which require to use own server, storage that need to
perform own maintenance (Al Ahbabi Singh and Gaur, 2019). Tesco is the fastest growing
retailer which always dedicated towards information technology resource due to high technical
demands. DMS automatically control the entire system for collecting large amount of
information or data.
In future, Document management system is consider as one of most appropriate concept
that provide better facilities and services. Afterwards, Tesco uses cloud based-DMS which
provide flexibility of employees to access the information through cloud server (Al Ahbabi
Singh and Gaur, 2019). It is integrated with the cloud system and benefits to run overall business
operations effectively and efficiently. In this way, it has justified that selecting a document
management system software to collect, gather sensitive information in the organization. This
can be possible constantly improving the system performance and efficiency. In Tesco, many
users can use cloud based DMS solution for document (Milton and Lambe, 2019). It is highly
scalable nature, meaning resource added in future business growth and development.
How it beneficial for business to achieve objective.
Tesco can be considered the document management system as a set of standardized
practices that always support for controlling the authentication of document. It should be
controlled the multiple version of document that will maintain within it. Sometimes, it ensure the
safety as well as security of document with dual objective of preventing unauthorized access. In
order to allow recovery from loss of documents (Al Ahbabi Singh and Gaur, 2019). Furthermore,
it will be identifying significant benefits which always support for achieving specific goal and
objective of business.
The documents are stored a large amount of information and also retrieving whenever
required. This type of management system is collecting large volume of enterprise document.
Quickly retrieval and convenient is a key objective of installing DMS (Milton and Lambe, 2019).
In Tesco, business process involve movement of document from the organization. Document
management system provide facility to share information from one department to another. In
Tesco, staff members with perform different roles and have reference to document before
completing the original business purpose. DMS is beneficial for enterprise to handle the well-
planned and efficient movement of document. It can significantly speed up enterprise process

and also enhanced the quality of service in global world (Milton and Lambe, 2019). In another
way, it also providing benefits to avoid trouble which can serious enough to control business
process. Government regulation support for Tesco to manage different kind of data, document by
using document management system.
Furthermore, a good DMS will help ensure compliances with proper rules and regulation.
Documents can contain the enterprise secrete and other confidential information such as
employee personal details. If unauthorized person gain access to control or manage documents.
In order to lead the business profitability in marketplace. On the other hand, managing the
sizable volume of documents that gathered in the business growth and development. In some
situation, document management system can reduce the price/ cost by meeting all necessary
documents and also fulfill business expectation (Milton and Lambe, 2019). DMS help for
improving the business process and also preventing serious loss which actively contribute to
enterprise competitiveness. In Tesco, Document management system is mainly specifying the
policies for handling documents. It might be achieved in standard manner. When TESCO based
on the retailer so that large amount of data transmitted from one department to another. On
regular basis, large information collected which need to classify in proper manner (Milton and
Lambe, 2019). An electronic based document management system can be implemented even
documents on paper based. DMS also increasing the usage of electronic based system that collect
large information or data.
4. Critically assess three key management implementation challenges while implementing
recommendation.
Implementation is the process that directs the changes within the enterprise. Thus, most
of the organisation faces the challenges at time of bringing changes. Thus, these as are-:
 Lack of leadership- If the leader of the enterprise is not clear about the vision of changing
strategies then entire team will not be able to understand the cause of change. Thus,
leader must motivate the employees to accept the changes effectively (Tóth, Nieroda and
Koles, 2020).
 Ineffective training- Before implementation of changes, this is crucial to train employees
so that they can access the changes. Without training the employees resist to implement
new measures.

 Inadequate resource and funding- Lack of resources may can affects the process of
implementation in the huge aspect. Thus, ineffective resources can affects the working of
enterprise.
CONCLUSION
Hereby, it can be concluded that knowledge management and information system
develops to capture, create and refine activities that assist to enhance business productivity.
Thus, present report is based on business activities of Tesco, it is global leading enterprise that
engaged in grocery retail sectors. Furthermore, report has undertake critical evaluation on
strength, weakness, opportunities and challenges, Porter five forces, Pestle analysis will be
conducted to consider the environmental factors. Also, recommendation has been given to define
appropriate knowledge management information system for chosen enterprise. Lastly, key
challenges has been outlined while implementation of recommendation.

REFERENCES
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