Tesco's Management Information System: A Comprehensive Report

This report provides a comprehensive analysis of Tesco's Management Information System (MIS). It begins with an introduction to MIS and presents a detailed case study of Tesco, examining its brand, vision, products, geographic presence, history, organizational structure, and the significance of its information system. The report then delves into Tesco's key functional areas, illustrating how the MIS supports human resources, marketing, finance, and production. It explores the different types of data used, the information required by each department, and the evaluation of crucial areas, ultimately assessing Tesco's competitiveness. The analysis further distinguishes between strategic, tactical, and operational data, providing examples related to different decision-making levels. It also examines how the information system serves these three levels within functional areas and discusses the performance of the information system for knowledge management techniques. Finally, the report discusses operational databases, CRM technologies, data warehousing, data mining, cloud-based data management, and web/mobile access, concluding with PELS considerations and references.

Management Information
System
Table of Contents

Introduction......................................................................................................................................1
Case Study.......................................................................................................................................1
Question 1........................................................................................................................................1
Brand name..................................................................................................................................1
Vision & Mission.........................................................................................................................1
Products & services offered.........................................................................................................2
Geographic area of business........................................................................................................2
History.........................................................................................................................................2
Organisational, cultural and management structure....................................................................2
Number of employees & specialities...........................................................................................3
Significance of information system.............................................................................................3
Question 2........................................................................................................................................3
Key functional areas....................................................................................................................3
How information system renders functional areas......................................................................4
Types of data................................................................................................................................4
Information required....................................................................................................................4
Evaluation of crucial areas...........................................................................................................5
Competitiveness of Tesco............................................................................................................5
Question 3........................................................................................................................................5
Distinguish strategic, tactical and operational data along with examples related with distinct
types of decision making.............................................................................................................5
Ways in which information system serves three levels of decision making in as well as around
functional area.............................................................................................................................6
Illustrate performance of information system for discussing KM techniques.............................7
Good as well as lacking aspects in functional areas....................................................................7
Question 4........................................................................................................................................7
Operational database & CRM technologies................................................................................7
Data warehousing, data mining & data analytics........................................................................8
Cloud based and out-sourced data management services & platforms.......................................8
Web and mobile based access to platforms.................................................................................8
Question 5........................................................................................................................................9

PELS Consideration.....................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

Introduction
Management information systems are defined as computer system that comprises of
software as well as hardware which acts as backbone of operations of organisation. MIS is
liable for gathering data from distinct online systems, carry out its analysis and renders data
for formulation of decisions (Abrink, Nilsson and et. al,, 2014). This comprises of major
assets of a firm such as inventory, personal, manufacturing, financials, project timelines,
marketing, raw materials and many others. To understand the concept of management
information system, Tesco Plc is taken into account which is a British multinational retailer
and was founded in 1919. Their services comprises of groceries as well as general
merchandise. This report is based comprises of overview of organisation, illustration of
distinct functional areas and identification of information system. Furthermore, it comprises
of different technologies as well as methodologies and PELS considerations.
Case Study
Tesco has around half million of employees who serves around 75 million customers in a
week. In 2006, they launched club card within Malaysia and near about 1.7 million customers
swipe them each day & are active. Online shopping was ventured by them and for this Tesco
used to send mass-mailing for marketing purpose but certain issues were faced like invalid
addresses and bouncing of emails. Along with this, there was decline within shoppers. Club
cards were utilised to identify shopping patterns and how much was spend.
https://www.marketing-interactive.com/case-study-tesco-brought-loyalty-back-stores/
Question 1
Brand name
Tesco. It is a retail firm and rendered their customers with an option for online shopping.
But certain issues were faced and it is necessary to have an effectual management information
system.
Vision & Mission
Tesco’s vision is “to broaden scope of business for enabling them to deliver strong
sustainable long-term growth by following customers within larger expanding markets at home
as well as in abroad”.
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Mission statement: “Creation of values for customers for earning their lifetime loyalty”.
The emphasis is laid on rendering value to consumers so that their loyalty can be attained
which will enhance their services.
Products & services offered
Clothing, retailing of books, toys, furniture, grocery, merchandise retailer, financial
services, internet, telecoms services and electronics are the products and services that are
furnished by Tesco. Their products include hypermarket, superstore, convenience shop and
superstore. Along with this, they have different subsidiaries, stores, bank, mobile, family dinning
and many more.
Geographic area of business
Around 6800 shops in India, United Kingdom, Poland, Ireland, Slovak Republic, Thailand,
Hungary, Malaysia and Czech Republic.
History
It was founded by Jack Cohen in 1911 like a group of market stalls. When Cohen had a
shipment of tea from T.E. then name Tesco appeared and the first shop was opened in Burnt Oak
in 1931. In 1939, the business expanded and there were 100 shops around the country. Till 1990s
it has expanded globally in 11 countries. Tesco repositioned themselves in 1990 from being
down-market low-cost and high-volume retailer to one which is formulated to attract wide range
social group by rendering services from Tesco value items to their finest range of products.
Organisational, cultural and management structure
There exists functional organisational structure within Tesco. Senior managers are
liable for allocating resources but liabilities are on the entire management group.
Coordination occurs by detailed specifications, regular meetings and organisational
procedures both structured and ad hoc. There is cross-cultural and friendly structure which
leads them to understand needs of their customers in an affirmative manner (Al Shobaki and
Naser, 2016. This enables Tesco to have a participative, supportive as well as relationship
oriented style. The hierarchical management structure is being followed but this is not rigid
as all of them operate within distinct structure that reflects their size, location nd many other
factors are taken into account.
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Number of employees & specialities
The multinational general merchandise as well as grocery retailer has around 4, 50,000
employees who are liable for furnishing their services in different countries and ensure that
quality is maintained. This enables firm to retain their customers for longer duration of time
(Anderson, Wipfel and Westerfield, 2015). Their specialities include clothing, food &
beverages, financial services and home appliances. This makes Tesco one of the leading
supermarkets within UK and they have been consistently ranked highest with respect to
grocery market share.
Significance of information system
IS implies set of components which work in collaboration for managing data processing as
well as storage. Information system is being utilised by firms for carrying out research as well as
develop new ways for generating enhanced revenue, streamline time consuming tasks and
engage customers. Firms like Tesco can save both money and time while making smarter
decisions (Brocke and Rosemann, 2014) Like information can be gathered as well as processed
from distinct sources like warehouses, sales agents and customers by few clicks. Tesco depends
on TPS (transaction processing system) to have a truth related with deals made to customers,
middle gathering and suppliers. Here, the bar codes are added to identify number of products that
are being sold. Managers of Tesco can make use of management information system (MIS)
which renders their managers with a crucial tool that can be utilised for management, evaluation
and successfully carrying out their operations. This enables them to have information related
with past, present as well as predict information. https://studybayhelp.co.uk/blog/information-
systems-of-tesco/
Question 2
Key functional areas
Within Tesco, they are human resources (hire and train employees), marketing (carry out
advertisement which will assist them in promoting services furnished by them), finance
(calculate how much have been paid for stoke, employees as well as for captivating customers)
and production (carry out organisation of products like bread butter to enhance overall
profitability of store) (Demian and Walters, 2014).
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How information system renders functional areas
MIS can be utilised to have details regarding different individuals who have applied for
specified vacancy within the Tesco. This will enable them to analyse who is an appropriate
candidate for specified vacancy. Then decision support system can be used for formulating
decisions with respect to who must be hired (Fountas, and et. al., 2015). Along with this, DSS
also assist within identification of patterns of sales which will lead to produce what is demanded
more by their customers. For managing finances of firm, transaction processing system can be
utilised to make that they do not go out of budget for different activities
Types of data
Data can be retrieved through utilisation of management information system (MIS) which
comprises of details associated with distinct aspects of organisation. Through this, DSS will have
appropriate information and decisions can be formulated. It will allow Tesco to develop their
strategies as well as policies according to situations which prevails. With assistance of
transaction processing system, all the transactions which have been made can be overviewed and
accordingly plans can be developed so that their stock do not get finished or their activities do
not run out of budget (Li and et. al ., 2015). Along with this, Tesco can make use customer
relationship management to ensure that effectual relations are maintained with their consumers
and they are being served as per their requirements. For this, Tesco can make use of CRM tools
which will enable them to acknowledge exact needs and have their feedback. This will aid
organisation to carry to enhancements in their products accordingly.
Information required
Human resources needs to have access to different online platforms which will aid them to
create job advertisements as well as screen the most appropriate candidate. Marketing
department require details of products which are being manufactured by manufacturing team to
ensure that they can communicate the services to their probable customers in an appropriate
manner (Lim, 2016). Manufacturing team must have details of what customers are looking for
and this data can be attained and processed by marketing and R&D department. Furthermore, all
the functional departments require budget which will enable them to render their services in an
appropriate manner.
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Evaluation of crucial areas
Each functional area has their own expectations in terms of resources available and they
need. Like research and development needs to have what customers anticipate and this can be
rendered by marketing. Then they will analyse the feasibility of expectations. Along with this,
Tesco’s Club card can also be used to identify the buying behaviour or pattern of their customers
to render them services accordingly. Details related with this will be stored on MIS which can be
analysed respectively (Liu and et. al., 2014). Each have their own specified requirements and
they can be accessed through the utilisation of information systems and decisions can be
formulated with the assistance of decision support system (DSS).
Competitiveness of Tesco
It was started as a group of market stalls and they expanded in such a manner that they have
around 6800 stores in different countries. Competitiveness can be understood by these figures.
Furthermore, it is ninth largest retailer around the world in terms of revenue (around £63,911
million) and third largest in context of gross revenue.
Question 3
Distinguish strategic, tactical and operational data along with examples related with distinct
types of decision making.
Strategic data Tactical data Operational data
Executive managers are liable
for this and ESS (executive
support system) as well as
DSS is being utilised by them
for formulation of plans
(Malcolm and et .al, 2015).
Mid-level managers are
considered here who takes
guidelines or data from
executive and formulate their
strategies according to that.
They include the details
associated with
responsibilities which low
level managers have to carry
out.
The plan has been formulated
which will provide details of
all the aspects related with
Tesco like vision, mission and
goals. This can be done by
making use of MIS.
Here, the practical steps will
be developed through
utilisation of DSS to ensure
that goals can be attained
within specified time frame.
All the details related with
stocks, products and processes
will be maintained within MIS
so that in case of any kind of
problems they can be
reviewed and appropriate
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measures can be utilised.
Ways in which information system serves three levels of decision making in as well as around
functional area.
Levels Decision Making Functional area
Operational systems They aids within keeping track
of transactions as well as
elementary activities that are
carried out within Tesco.
Here, transaction processing
systems can be utilised (Meyr,
Wagner and Rohde, 2015).
Finance like sales incurred,
cash deposits, credit
decisions, receipts along with
flow of raw material in
inventory.
Management systems They serves within monitoring,
decision making, controlling as
well as administrative
activities that are being carried
out middle managers. MIS and
TPS is being utilised to
identify whether things are
going as per formulated plans
or not.
Human resources like
carrying out processes of
recruitment and selection by
screening applications of
different individuals.
Strategic systems This assists senior managers
within handling as well as
acknowledging long trends and
strategic issues which prevails
within both internal and
external environment.
Production or manufacturing
area as this will render them
with an idea of what has to be
produced along with trends
associated with cost.
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Illustrate performance of information system for discussing KM techniques.
IS acts as an important factor which assists to attain effectual decision making within
Tesco. A KM (Knowledge management) technique furnishes a concept which is associated with
storage as well as management of data or information which is being possessed by an
organisation (Narain Singh, Gupta, and Ojha, 2014). This will aid Tesco to gather, share, develop
as well as administer data that is being possessed by them so that enhanced use of information or
knowledge can be made. This acts as an affirmative aspect for an organisation as this can be
utilised for carrying out their operations in an appropriate manner. This will lead them to have
impelling profitability.
Good as well as lacking aspects in functional areas.
Tesco ensures that their processed are defined with respect to their requirements in such a
way that they can be accommodated completely. Along with this there, employees are also
qualified and experts within their distinct job role (Theorin and et. al., 2017). Management
makes sure that they go with evolving market and for this they make use of updated Technology
which makes them different from their competitors. But, if human resources will lack within
screening appropriate candidate then it will hamper their performance. Furthermore, finance area
also need to develop a budget by analysing the activities which have to be carried out be
departments as imbalance will lead to decline within their services.
Question 4
Operational database & CRM technologies
The instance of database that is liable for creating as well as updating large amounts of
data within real time is referred to as operational database. Tesco can make use of distinct
technologies as this will support the data integrity, concurrency, speed and recoverability
(Wolden, Valverde and Talla, 2015). CRM techniques are being utilised by Tesco for retaining
their customers, maintaining cloud based data as well as carry out predictive analysis. This will
aid firm within to ensure that services delivered by them are appropriate as per requirements of
their customers.
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Data warehousing, data mining & data analytics
The process of construction as well as usage of data warehouse is referred to as data
warehousing. This can be utilised by Tesco for reporting as well as data analysis which will aid
them to ensure that what are the goals of firm and can accordingly carry out their activities. The
process associated with identification of larger data sets that comprises of intersection of
statistics, database management as well as machine learning (Abrink, Nilsson and et. al,, 2014).
This will lead Tesco to identify the consumer’s pattern in terms of their buying patterns. Data
analytics denotes the science that is being utilised for analysis of raw data for making conclusion
associated with information. It implies that information attained can be utilised by Tesco for
rendering their services as per desired standards.
Cloud based and out-sourced data management services & platforms
They imply the practices in which network of remote servers that are hosted on internet for
storage, management and processing of data rather than making it present on personal
computers. This will aid Tesco to access services from anywhere and at any moment of time.
This will smoothen the activities that are being carried out by them as it will enable them to
deliver services as per requirements of their customers (Al Shobaki and Naser, 2016). By out-
sourcing the services Tesco will be able to handle a different situation which prevails. Like by
opting for cloud services they will be able to save unnecessary cost associated with external
devices and their maintenance. Along with this security issues can also be handled by vendors
itself. So Tesco need to ensure that emphasis is laid on customer’s satisfaction by meeting their
needs.
Web and mobile based access to platforms
Tesco has their own website in which individuals can view services which are delivered by
them along with important details related with organisation. In addition to this, mobile based
services are provided by them which will enable them to assist their customers for opting for
online activities (Anderson, Wipfel and Westerfield, 2015). Individuals can login with their
credentials and look for what they want. Furthermore, they can make payments and have services
which they want. This enables them to fulfil needs of their consumers.
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Question 5
PELS Consideration
Information systems have made many businesses successful today. However, improper use of
information technology can create problems for the organization and employees. This can be
understood by certain activities that are being carried out by usage of technology. Cyber-crime
refers to the use of information technology to commit crimes (Brocke and Rosemann, 2014).
Cyber-crimes can range from simply annoying computer users to huge financial losses and even
the loss of human life. The growth of smartphones and other high-end smart devices that have
access to the internet have also contributed to the growth of cyber-crime. People as part of the
information system components can also be exploited using social engineering techniques. The
goal of social engineering is to gain the trust of the users of the system. Ethics refers to rules of
right and wrong that people use to make choices to guide their behaviors. Ethics in MIS seek to
protect and safeguard individuals and society by using information systems responsibly. Most
professions usually have defined a code of ethics or code of conduct guidelines that all
professionals affiliated with the profession must adhere to. An ICT policy is a set of guidelines
that defines how an organization should use information technology and information systems
responsibly. ICT policies usually include guidelines on;
 Purchase and usage of hardware equipment and how to safely dispose them. Use of
licensed software only and ensuring that all software is up to date with latest patches for
security reasons
 Rules on how to create passwords (complexity enforcement), changing passwords, etc.
Acceptable use of information technology and information systems. Training of all users
involved in using ICT and MIS (Demian and Walters, 2014).
Conclusion
From above it can be concluded that, information systems can be utilised by firm so that
they can deliver their services in an appropriate manner. This will lead them to fulfil
requirements of their customers as per desired services. Furthermore, cloud services can be used
to ensure that services are delivered to customers as per their needs and their expectations are
fulfilled. For ensuring that departments deliver their services in impelling manner different
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information systems can be used as it will assist within formulation of decisions and thereby
produce their services. Along with this, they need to ensure that ethical, professional, legal and
social considerations so that they can provide services by adhering to certain criteria.
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References
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