Tesco's Growth and the Role of Information Technology

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Introduction to Information Technology
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Abstract
Tesco is one of Britain’s food retailers having 430 stores in England, Scotland, Wales and an
extra 98 in France. Around 8 million customers are served by Tesco organization. Also, the sales
increased from 13.8 percent to £ 9.2 billion. Annual report & accounts include corporate
governance data which are being provided 3in the United Kingdom. It was also chosen very
random and there is no intention of showing good or bad practices.
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Table of Contents
Abstract.......................................................................................................................................................2
Table of Contents........................................................................................................................................3
Introduction.................................................................................................................................................5
Literature Review........................................................................................................................................6
LO1.............................................................................................................................................................7
Reasons for the success of Tesco.............................................................................................................7
LO2.............................................................................................................................................................9
Various social and ethical issues.............................................................................................................9
LO3...........................................................................................................................................................10
LAN......................................................................................................................................................10
MAN.....................................................................................................................................................10
WAN.....................................................................................................................................................11
LO4...........................................................................................................................................................12
EPOS (Electronic Point of Sale)............................................................................................................12
Data Mining...........................................................................................................................................12
RFID Tags.............................................................................................................................................13
E-Commerce..........................................................................................................................................14
LO5...........................................................................................................................................................15
Role of Information Technology in Management..................................................................................15
Decision Making...............................................................................................................................15
Marketing and Business Growth........................................................................................................15
Customer Support and Satisfaction....................................................................................................16
LO6...........................................................................................................................................................17
Stages of System Development Life Cycle............................................................................................17
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Planning.............................................................................................................................................17
Requirements.....................................................................................................................................17
Design and Prototyping..................................................................................................................17
System Development.........................................................................................................................17
Testing...............................................................................................................................................18
Deployment.......................................................................................................................................18
Operations and Maintenance.............................................................................................................18
Conclusion.................................................................................................................................................19
References.................................................................................................................................................20
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Introduction
In this brief, Tesco is chosen as a retail organization in the United Kingdom. In this report, we
are discussed how the development and growth of this organization take place. We have also
discussed with the various reasons which lead to the growth of this organization, issues, and
challenges that this organization has faced while running their business, different types of
networks, what was the contribution of Information Communication Technology in the retail
industries and how the use of Internet has affected this organization. We have also discussed how
IT has played a role in management, what are the different phases of (SDLC) system
development life cycle.
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Literature Review
This report emphasizes various information by numbers of various researches with the various
books, academic journals, and different magazines. The different aspects of the Tesco
organization were emphasized for carrying out the research on the Tesco organization.
This report begins with the various reasons for the success of Tesco and the various social and
ethical issues regarding the development of Tesco. Finally, it is ended with the various stages of
the System Development Life Cycle.
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LO1
Reasons for the success of Tesco
The reason behind the success of the Tesco organization is because of its strong brand. It always
focuses on the customers, reputation of the organization and because of its low prices.
Due to the brand of this organization, it has expanded various new sectors & markets. This
organization has built strong relations with the public and also involved in the advertising of the
organization in the local market. (Lee, 2016)
Tesco provides various types of products which has its own label. It also provides various
services for customers and it also ensures that customers are satisfied or not. As this
organization is providing its own products which are helping in getting various profits for the
groups.
This company has extended its services into Eastern Europe, which has emerged various nations
such as China, US & South Korea when this organization has adopted various formats for
shopping then it has become one of the best retailers in the market.
As this organization has launched Tesco.com then it has become one of the powerful retailers in
the market. This business has helped in growing the share of the market and it has also provided
various channels for selling various non- food items.
Information Technology has helped in revolutionizing the retailers in not only in controlling
stock but also in supplier management. It has enhanced the manufacturing of retailer, decision
making and sharing of knowledge.
As Tesco is buying products in the larger volumes due to which it has enabled the organization
for keeping the prices of the products low.
After some time this organization was criticized for the management of its suppliers and various
clashes with the farmers due to which opposition has grown in the supermarket due to its size.
Tesco has a diversified portfolio which includes financing, insurance, telecommunications which
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gives various services to the customers. Various profits of this organization had been invested in
the development and in extending the international plans. (Lee, 2016)
LO2
Various social and ethical issues
Risk management policies have eliminated the fraud which has weakened the society and have
also damaged the companies. Various issues with the capitalist can be cover up for profiteering.
Nowadays various customers have made decisions on the purchase based on the ethical and
social concerns of the environment. The behavior of the corporate sector cannot be predicted and
various policies of government have set standards for fixing this behavior. There are various
adverse effects on the less involvement of the government with the various international policies
are also involved. Analysis of cost benefits and CSR strategies could be sustained if it would be a
monopoly of Tesco organization and it limited by various competitors. (Ukessays, 2017)
This organization is selling shopping trends at the level of postcode which keeps the privacy of
the stakeholders secured. Various stakeholders were misled on the terms & conditions of
disclosure of the Club card.
If Tesco wants that market should be under control then various social and religious beliefs
should be respected. If this organization is successful in finding such an area where the local
population has a high attitude towards the work then the process of recruitment will be very easy
and the turnover of the staff will also be low.
Tesco organization should always possess very high-speed communication data for keeping the
report of the regular sales updated.
Exchange rate of the currency is affecting the import and export business and if the growth of the
economy is decreasing then sales are also falling down then the customers will focus on saving
the money instead of purchasing the products.
If there is a change in any import and export business then the business of the Tesco will get
affected. Before expanding the services of this organization Tesco should properly examine the
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political stability of any country. If there are any changes in the government policies then there
will be several changes in the legislation and taxation. (Stevens, 2015)
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LO3
Networks are of various types such as LAN, MA, and WAN
LAN
These types of networks are the most frequently networks which are discussed and they are the
most common and simplest networks. These networks connect various groups of computers and
various low voltage devices together at the shorter distances such as in buildings or in the groups
of building so that information and resources can be shared. LANs are managed and maintained
by various enterprises.
If routers are used then these networks can be connected to the wide area networks to transfer the
data very quickly and safely.
These networks are confined networks and they are built in homes, offices, etc. Various
computers and devices within this network are connected with the servers and also through the
Internet. LAN is used in those cases which involve the exchange of small or big files. Devices
within the short ranges can only be connected by these networks. LAN is managed & controlled
by a single individual or a particular organization. Various technologies such as Ethernet &
Token Ring are used in these networks. (Kaur & Heena, 2018)
MAN
These networks are very larger than the Local Area Networks but are very smaller ten the Wide
Area Networks and they also incorporate various elements from both of these networks.
Ownership and maintenance of these networks are managed by the single individual or the
organization. This network is considered ideal for various kinds of users as it is of medium size
and these networks are used for building the networks for high-speed data connection in various
cities and towns.
MAN works in the same way as ISP (Internet Service Provider) works but this network is not
owned by a particular single organization. As similar to the Wide Area Networks, MAN also
provides shared network connections to the various users. This network works on the second
layer of the OSI (Open Systems Interconnection) which is the data link layer.
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WAN
These networks are slightly more complex than the Local Area Networks; WAN connects
various computers across the larger distances. They also allow various computers and low
voltage devices to get remotely connected with each other over a large network when they are
miles apart from each other to communicate with each other.
The most basic example of the Wide Area Network is the Internet which connects all the
computers across the world. These networks are owned and maintained by various administrators
or the public.
WANs are connected through Virtual private networks (VPN). It also provides communication
between the various sites. These virtual private networks also provide various levels of security
for the business. These networks are very expensive as compared to the home intranets. Various
disputes can occur between the governments for ownership rights and network restrictions.
This network contains less tolerance of fault but high congestion in the network as similar to the
MAN. A medium for communication exists for these networks such as Satellite Link. The rate of
data is slow because these networks consist of various terminals and servers. (Kaur & Heena,
2018)
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LO4
Information and Communication technology is described as that technology which enables the
transforming and distributing of information. Information communication and technology has a
great impact on how various people communicate and spend their time. For the development and
growth of organizations, knowledge is very essential. ICT is very essential as it helps in
managing all the resources efficiently and effectively. (Mahony & Ark, 2007)
There are various technologies which are used in the retail industries like data mining, E-
commerce, electronic payments, various smartphones, mobile applications, EPOS, RFID, IoT,
etc.
EPOS (Electronic Point of Sale)
In the various stores, many transactions between the various customers & retailers occur at the
checkout at the supermarkets. EPOS helps in maintaining records related to sales. Bar codes are
attached to all the items in the store. Every item is attached with the code number for identifying
the items. At the checkout, these barcodes are read by the laser scanner. After this barcode are
sent to the store controller and then the information is sent regarding the product back to the
checkout. This information contains the price of the product and the description of the product
which is then displayed at the screen of the checkout.
Data Mining
Data Mining is the process by which a large quantity of data is analyzed by using various
statistical methods. Data mining is used for revealing the patterns in the data sets. This
technology is used in future market trends as it provides necessary information and statistics.
Data mining is essential in the retail industries because retail industries produce a very huge
amount of data which involves sales and consumption of goods and services. Data mining is also
used for determining the patterns, behavior of the customers and various fraud activities in the
retail organizations. (Kumar, 2016)
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