An Analysis of IT's Role in Tesco PLC's Business Success and Ethics

This report provides a comprehensive analysis of the impact of information technology (IT) on the business operations and success of Tesco PLC. It begins with an introduction that highlights the importance of IT in modern business, particularly in the context of globalization and modernization. A literature review explores the roles of IT in determining business success or failure, emphasizing its function in data storage, retrieval, and management. The report examines the ethical and social issues related to IT, including ethical principles, integrity, trust, and corporate social responsibility. It delves into various networking technologies, such as PAN, LAN, WLAN, CAN, and WAN, and discusses the significance of the intranet and internet in business operations. The report also outlines the different stages of the system development life cycle (SDLC). The analysis and discussion section synthesizes the information, emphasizing how IT supports Tesco PLC in managing information, customer service, inventory, and data security. The report concludes by reiterating the critical role of IT in driving growth and success for Tesco PLC, providing valuable insights into the integration of IT within a major retail organization.

Individual report

ABSTRACT
This report is on the topic information technology influencing the success of the
business of Tesco plc. It provides an insight into the role of IT in attaining success or failure.
In addition to this, it provides an understanding about the ethical and the social issues faced
the business while running the business. The different network technology implemented by
Tesco plc and the importance of intranet and internet in addition to the system development
life cycle presented in the report.

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................4
LITERARURE REVIEW..........................................................................................................4
ANALYSIS AND DISCUSSION..............................................................................................7
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................11

INTRODUCTION
The IT has a huge impact over the running of the business organization along with the
performance of its functions. The IT in the today’s time have become very popular and
demanding which is mainly because of the globalisation and the modernisation of the
businesses. In this report, Tesco plc is taken as an organization which is one of the retail
giants in UK. The market is globalised which has influence the performances of the business
therefore have focussed on the enhancing its IT efficiency. It either results into either
attaining desired success or outcome or face failure while handling the business. This report
mainly provides an insight into the IT in the business functioning of the Tesco plc. the
research will highlight the how the IT of the organization will impact the business from the
various angle.
LITERARURE REVIEW
Roles of IT in determining the business success or failure
The IT technology is nowadays is helpful in determining and analysing the different
aspects of the business from the perspective of a business. As per Malgharani, Soleimani and
Hajebi (2017) the information technology mainly refers to making use of the computer
system for the purpose of storing and retrieving the data for meeting with the requirements.
This has become an important factor in the business environment and is having the ability to
determine the success and failure of the business. Many of the business organizations are IT
based or are operating the business online or in simple words are much dependent upon the
IT usage. The efficiency in the usage of IT helps in determining and evaluating the business
performance in the business organization. There are different roles being played by IT which
helps the organization in accomplishing its objectives more effectively but it may result into
business failure. Due to globalisation, the role of the IT has increased quickly.
According to Granja, Janssen and Johansen (2018) the main role of IT is to managing
the business operations of an entity as it works in storing and transmitting the information
from one place or system to another. Along with this, IT has a role in effectively managing
the various function of an organization pertaining to various departments as the IT system
works on interconnecting the system of each of this department to one another so that
information can be easily transmitted. Communicating with the clients and providers is
reliant on IT utilization and implementation. The extension of correspondence among the
purchasers, providers and workers is set up by the IT and it is considered as a significant
function of the Information Technology. IT assumes the main function in the stock

administration system. For dealing with the stock of the organization, IT assumes an
extraordinary job. Being informed pertaining to the data regarding the stock level and market
demand is subject to utilizing IT or can be said to be dependent upon it. Further stated by
D'Attoma and Ieva (2020) another role of IT is to determine the how the CRM system can be
implemented and handled within an organization which will result into effective
accomplishing the desired goals and meeting with the customers’ expectations. It also assists
in enhancing the performance and productivity by way of providing proper records of the
production which will consequently lead to success of an organization. But on the other side,
it is important to make sure that the company is having highly skilled and knowledgeable IT
team, otherwise, attaining success through IT would be difficult.
Ethical issues and social issues of IT in business
According to Swirsky, Gu and Boyd (2020) the ethics is a set of certain principles or
the code of conduct which are must be complied by the business organization. In case the
business organization fails to meet with the ethical standards then it will result into incurring
a problem known as the ethical issue. Every business organization is having a certain set of
principles and ethics which it requires to communicate with the employees so that they carry
out their work in compliance to it. Certain ethical issues in respect to running a business are –
inevitable ethical issues which are mainly concerned as the primary issue for the purpose of
running a business. It is further bifurcated into two on e is integrity and the other is trust.
There should be integrity between the employers and employees from the frontline workers
to the top management. It helps in ensuring that the functions are properly implemented as
per the code of law.
The relationship of trust is crossed over between the association and the clients. CRM
is remembered for this specific kind of ethical issue. The ethical issue also persists within an
organization as it includes diversity and a different working environment. As stated by Balraj
(2016) the government has sets certain principles which a business entity is required to
comply in order to avoid the intervention of government in its business operations. This type
of ethical concerns varies from one organization to another. Apart from this, there are certain
social issues as well which are a point of concern while running a business. It mainly refers to
issues which an organization should follow in order to effectively meet with the societal
demand and responsibilities. The CSR responsibility of the organization towards the society
and the community in which it is operating its business may pose as an issue if the company
fails to meet with the expectations. This has a positive impact over the outcomes of the
business in terms of increasing the goodwill and brand image of the corporate. A business

association should fittingly finish its CSR as its social obligation. The social obligations
should be kept up by an association as it has a few obligations towards society. Likewise,
social and ethical issues encourage the association to follow the right direction and attain
growth and development.
Various networking technologies while running a business
There are various networking technologies which are being utilized by an
organisation for effectively and smoothly running the business. It can also be referred to as
the various forms of IT. As defined by Pike and et.al., (2019) each of these networking
technologies is having a various roles and functions. First is Personal Area Network (PAN),
which is the smallest type of networking technology involving a small range. This is usually
utilized by an individual entity and also it can be a person or a firm. It has a different form for
instance, computer, laptops, phones, printer and so forth. Also, it can be used in a building or
a single room as well. Second is Local Area Network (LAN), it covers greater area in
comparison to the PAN. Through this, different and multiple systems can be connected and
the range is short but within this range the devices can be connected. In this networking
technology, the connected devices or the systems can share information. If the LAN is
connected to a WAN then it can transmit information on a broader range.
As stated by Michael (2017) another type networking technology is Wireless Local
Area Network (WLAN), the functioning of this is similar to that of the LAN. The solitary
distinction between these two systems administration frameworks is LAN requires a physical
connection while, the WLAN needn't bother with any physical connection with to be
connected. Wi-Fi is an illustration of a WLAN organizing framework. Next is Campus Area
Network (CAN), which is mainly seen in the campus area. This has a greater range in
comparison to that of the LAN. In this, all the faculties of the university are connected and
provides information to the students in respect to the different departments they are
connected to. Through this, the students are also provided with the notice or any their
relevant information. The last is the Wide Area Network (WAN), which helps in connecting
the devices remotely in a wide range. It offers long distance range all around that area. The
most suitable example of this network is internet.
The importance of intranet and internet in a business
As defined by Mathews and et.al., (2018) intranet refers to the system through which
all the devices and the system is within an organization are connected with one another.
Under this type of system, one business entity makes use of the system for the purpose of
facilitating the business performance. The importance of the intranet to the business is that it

helps in establishing bridge between the organizational functions and effectively handling the
internal business presentation. Along with this, it helps in bringing efficiency in respect to the
business operations along with monitoring r supervising the business goals. On the other side,
internet is widely used networking technology all across the globe. Roshan and Rao (2016)
states that this makes its crucial for the business entity for running the business as the
customers’ orders the products from various locations. The important of internet is that it
helps in connecting with the people worldwide and making the goods available to the global
customers. This has the potential for grabbing more customers, increasing the client base and
this will consequently lead to rise in the profitability. This can also be considered as a cost
saving process.
The different stages of system development life cycle
According to Lakshmisri (2017) the System Development Life Cycle is a model
which involves the policies and the procedures pertaining to the developing or altering the
systems in the entire life cycles. This is basically utilized by the analysts for the purpose of
developing an information system. It is a systematic system which is bifurcated into 5 stages.
The first stage is planning which involves getting approval, assessing feasibility, preparing
schedule etc. the second sage is analysis, which involves understanding the business needs
and then working on processing those needs. The third stage is design, which states about
designing the solution system on the basis of the requirement and analysis decision. The
fourth stage is implementation, in which the plan is implemented and test reports is being
prepared which states about the errors. The last stage is maintenance, which works on
ensuring that the all the systems are working properly and are in good situation.
ANALYSIS AND DISCUSSION
Based on the understanding gained from the above, it can be easily analysed that the
role of IT in an organization like Tesco plc is very huge as it helps the organization in
effectively and appropriately managing the business information and other useful data and
along with the same it assists in handling the operational activities of the organization which
results into accomplished the desired goals in a better way (Sanaei and Sobhani, 2018). It has
a huge contribution in providing best customer service along with maintaining a good relation
with them. Apart from this, the IT system supports the organization in managing its inventory
which results into avoiding the situation of wastage or lost. The most importantly, Tesco plc
makes use of this system in sharing of information from one source to another through a

secured data storing system which help in protecting the data from any unauthorised usage.
All these roles of IT help the organization in meeting growth and success.
There are different types of IT system being used by Tesco plc like the management
information system (MIS), it is much dependent upon the IT and as the more developed IT
system is, the more information managing tools the management is required to use. MIS uses
the data and information of the business and afterward they are broken down to direct how
the business is performing (Nascimento and et.al., 2018). MIS is underlined in the Tesco plc
with the aim that the managers can investigate the business activities, exhibitions and the
representative commitment of the Tesco plc. MIS is a data framework created in most of the
association to comprehend and assess the performance of the business, for example, the
Tesco plc. The organisation also uses decision support information system which provides
assistance in carrying out the decision-making process properly. Tesco plc has also
implemented this system through the way of bridging it with the information system. this
supports the organization in decision making procedure because of this reason the decision
support system is being introduced in the company pertaining to Tesco plc.
The ethical concerns in the Tesco plc faces are – the integrity and probity between the
employers and the employees, integrity in providing better performances and issues in
effectively managing the customers. Along with this, the government has created certain
ethical concern and issues pertaining to the ethics in the working environment etc. these are
certain ethical issues which are being faced by Tesco plc in the way of managing its business.
In respect to the social issues, the company finds it difficult to effectively meet with the
increasing measures of the CSR and catch up with the set society ethics and values.
From the perspective of the networking technologies, Tesco plc is utilizing different
types of networking technologies such as- Tesco plc utilizes LAN networking framework to
encourage the business execution in the locality where is the business is being carried out. It
raises the Tesco plc through arriving at more neighbourhood clients and potential customers
(Rajput and Brahimi, 2019). Along with this, Tesco plc also makes use of WAN systems
networking technology in order to reach out to its clients around the world. It encourages the
business activities of the Tesco plc as it gives the occasion to arrive at more potential clients
around the world. WLAN networking system is utilized by the Tesco PLC with the goal that
they can offer their items worldwide to the clients through its online portal and actual
retailing stores as well. The WLAN system and framework offer an association to encourage
the presentation of representatives through interfacing them with one another.

The organization Tesco plc is focused on managing the usage of both intranet and
internet in the entity pertaining to various situations and circumstances (Boarcăs, 2017). The
internet is very important to Tesco plc as it assist in getting connected with the customers at
various locations across the globe, it facilitates and manages the online services. It also
involves organising the regular based team meeting through video conferencing. On the side
of intranet, it assist the company in enhancing its efficiency and effectiveness through the
way of employee engagement, bridging the gap between the various business divisions and
making use of the resources and the available assets in a better and effective way. Therefore,
these are the importance of internet and intranet on the business functioning.
System Development Life Cycle (SDLC) is the way toward arranging and executing
an Information Technology inside the association that is more evolved than the past IT
framework. The development life cycle in relation to the IT framework alludes to the life
stages or cycle phases of the IT framework development. There are a few phases of building
up an IT framework. On implementing these stages on Tesco plc, it is being analysed that in
the first stage which is planning, for the purpose of developing a systematic IT system Tesco
plc has majorly focused on the planning stage which is considered to more developed in
comparison to the current IT system (Chowdhury and et.al., 2018). The next stage is
analysing, in this, Tesco plc will implement the plan and then observe the resultant outcome
of it through the way of carrying out the proper evaluation and analysis procedures for the
inputs put for SDLC. The third stage is designing, in which Tesco plc mainly concentrates on
the designing the IT system again by the way of analysing the new introduced SDLC. It
provides the entity with relatively higher efficiency and effectiveness. Along with this, it
assists the business entity Tesco plc in reducing the mistakes and implement a more
favourable IT system in the organization.
The fourth stage is in respect to the implementation which accounts for the
implementation of the IT system after redesigning it. The company Tesco plc at this step
mainly concentrates on the determining how the new IT system will bring higher efficiency
to the business. This is the final design or the form of the system which will be implemented
within the organisation (Kyeremeh, 2019). The last stage is maintaining, in this, after
implementing the system, regular and continuous monitoring and maintenance is being
carried out by Tesco plc. this is essential for the organization as it is important to determine
the satisfaction level of the customers with respect to the implementation of new IT system
along with the benefits it will generate for the employees in terms of performance and

productivity. Thus, these are stages which is being followed by Tesco plc in regard to
introduce the new information technology system in the organization.
CONCLUSION
From the above analysis, it can be concluded that the information system pays an
important role in respect to bringing change and managing the business. There are various
roles being played by IT within an organization which cannot be ignored as these activities or
the roles performed by the IT system provides assistance to the business organization in
regard to the enhancing the business performance which will consequently lead to improving
the productivity. Thus, all these aspects make the role of IT crucial. The usage of networking
technologies as per the various needs and requirements of the business assists in carrying out
the business activities in a better and effective way along with it, the ethical and social issues
being faced by the organisation like Tesco plc in running the business. The effective IT
execution inside the business settings of the Tesco PLC decides the accomplishment of entity
along with the future of the business. The report highlights on how IT assumes a role and
why it is significant all through various types of IT. Additionally, the SDLC in an association
like the Tesco PLC decides why the IT and the enhanced IT framework is significant.
Therefore, it can be stated that Tesco plc has implemented the various forms of IT system in
its organization which has resulted into enhancing the performance and productivity of the
organization resulting into accomplishing greater goals and success.

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