Tesco's IT: Network Technologies, Ethical and Social Issues Report

This report delves into the significant role of Information Technology (IT) within Tesco, a leading UK retail company. It begins by defining IT and its importance in the business context, followed by a review of relevant literature on the subject. The report examines the specific IT infrastructure ...Read More

IT

Abstract
IT plays an important role in the success of a company and that is why, the current study
shed a light on the Importance of IT and for that it describe the role within organization. The
chosen firm is Tesco. Also, there are different network technologies are used by the company
i.e. LAN, WAN and Pan and different ethical and social issues face by a firm such that
packaging material affect the environment. Also, with the help of internet and intranet, company
is able to meet the attract range of customers as well.

Table of Contents

1. INTRODUCTION
IT refers to the usage of some stored data, computers, web, stages, physical devices,
processes & infrastructure for creating, processing, securing, storing and exchanging all kinds of
the electronic data. It is used with respect to operations of business as opposed to entertainment
or the personal technologies. The Commercialized utilization of the IT comprehend with
computing device as well as telephony. The present report is based on Tesco, the largest retail
sector organization of UK operating as the grocery retailer and the supermarket chain.
Furthermore, the study presents the meaning and function of the IT in the retail business along
with the networking techniques and its types. Moreover, the study highlights the ethical & the
social issues in using the technology and the significance of internet and intranet in the business.
2. Literature Review
It means as the comprehensive summary of the past research on the particular research
issue. It surveys the scholarly articles, other sources and books which are relevant to specific
research area. In this section, proper review is been made by describing, enumerating and
summarizing the study in adequate manner.
2.2 IT and its role in context of retail sector organization
Kumar (2018) stated that IT is an application of the computing machine for recording,
transmitting, recover & altering the data with respect to business enterprise. With increase in
globalization of the merchandising in terms of their factor of scale & their respective supply
point, an IT plays a crucial role in retail sector with regard to administration of the complex retail
business trading operations. Knowledge of Market and control of the information & data is seen
as key for achieving a competing edge in retail segment. Marketplace are constantly growing and
becoming as more analysable. Simple steps of retailing begin with deploying more of the
advanced retail information systems for coping up with all transactions involved. Retailers
require to transform their IT capacity for several reasons like for increasing knowledge of the
company for react to evolving market places through an enhanced flexibility and the speed. IT in
retail companies plays a vital role in collecting and assessing the customer data at the time of
enhancing differentiation. In order to work efficaciously, retailers require unitary system that
works across the stores for ensuing the use of stock effectively and improving the processes of
business.

In view of Morimura and Sakagawa (2018), it has been identified that importance of IT
in the merchandising sphere stems from the significance of the data. It is considered as nothing
but an information that helps the company in making decisions. IT plays an essential role in
efficient stocking of the merchandise items as the items bought facilitates an subject matter on
the commodity sold within the store, this acts as basis of sales assessment and the decisions on
the replacement re-ordering & planning of merchandise. If such information is passed to
manufacturer, it could enable in reduction the time of production. Use of technology assist in
transmitting and the grouping of an information. The trends in the sales could be assessed with
the use of IT and also helps in avoiding the situations of the stock out that helps in spotting the
products timely and the higher turning of inventory.
Moreover, the utility of IT serves as the base for integrated working of several
departments. With usage of IT result to higher amount of cost or investment, but, it reduces the
time in performing the task as the processes gets automated. It aids in collection of the data
relating to the customers, their frequency of buying the product and basket size. This information
enables retailer in distinguishing customers who shop at the store often times & reward them.
2.3 Different kinds of the networking technologies
In accordance to Casas and et.al. (2017), There are various type of networking
techniques which can be used by the company that includes personal area network, Wide area
network, metropolitan area network. PAN is counted as almost basic kind of the network which
is made up of the wired electronic equipment, computer, phones, tablets, printers etc. & revolves
across one individual in one type of structure. Such type of network are mainly seen in small
business office or the residence & are been managed by an individual or the company from the
single device.
WAN referred as the wider area network that connects the computer collectively around
longer physical distances. It allows the computers and the low-level-voltage machines that is to
be connected unlikely towards each other all over a unitary larger network for communicating
even in the situation when they are seen miles apart. An example of WAN network is considered
as internet as it connects all the computers together across the globe. As this network has wider
reach, so it is typically maintained & closely-held by the multiple decision maker or public.
MAN is the system technology that are counted as higher than LANs, however smaller
than WAN and incorporated components from both kinds of network. MANs span an overall

geographic area mainly a city or the town but sometimes the campus as well. Maintenance and
the ownership is been handled through either the single person or an enterprise as a whole.
2.4 Social & ethical issues in using the technology
Ethical & the social issues that arises from usage of the technology within all the
business areas lead to creation of the new branch of the ethics that is techno-ethics. Atli and
et.al. (2018) viewed that no. of ethical sites is seen as increasing every day and circumstances for
accessing these websites are easier in present condition than before. By getting exposed to
immoral sites also consists of danger relating to highly-risky intimate behaviour, psychological
problems, societal dilemmas and the psychical problems. Larger percentage of users are seen as
open to the moral compensation & the IT abnormalities, as having the virtual identity became as
the common place or the main origin of most social abnormalities. A process of the internet
dependence has been considered very high in the highly-developed countries as one of
conditions regarding ever-increasing evolution of electronic communication web and had caused
several harms to society, individual and the family. More use of the social scheme could result to
an addiction & is not been tolerated by numerous of the physical communities.
According to Afolabi and et.al. (2018), theft of the software, music and films with the
legal right has become as very common in the societies. Unofficial use of the systems is been
done by making use of different and the newer methods which is exploding every day. In today's
world hacker have imposed the superlative challenge over the IT ethics & with general violation,
they made many attempts to induce commercial and the finance accounts of individual & try to
go against privacy of an individual.
2.5 Significance of the internet and intranet within the business organization
As per Tavani (2016), internet plays a major role in growth of the business and provides
an opportunity to business for reaching wider audience worldwide. Promoting through internet
helps in increasing the sales and reaching desired level of growth. It helps the companies in
grabbing powerful opportunities as it offers in growing the business and making operations more
effective. Internet enables in making the communication faster and as cost-efficient. Businesses
could use Skype, video calls, email, video conferencing for the purpose of making
communication as virtually instant. Internet websites plays a critical role in the business
networking through connecting with minded professionals. Through internet, companies have
found business partners and also talent pool of employees.

Griffin and et.al. (2018) identified that intranets are seen as extremely useful as the
business tool that allows an entity to make a strategic alignment. It facilitates an overall
experience of an employee hub as one atomistic environment for the on-boarding, on the job
learning, mentoring, recognition, action and collaboration. Intranets work as actual digital work,
frictionless collaboration and fast powering. There are the capabilities & location for the team,
division and the cross-functional cooperation and for working with the outside contractors and
the agencies. Intranet get rid of most of the inefficiency and the headaches by providing ready
access to the service resources, one-to many expert assistant and support of peer . It acts as the
living library & an organization memory, conserving ideas, display, innovations and discoveries.
It turns out transient interactions into the lasting collective knowledge which is visible, re-usable
and searchable so rather constantly forgetting, an entity in getting more smarter over the time.
3. Analysis and Discussion
3.1 Role of IT in Tesco
IT plays an important role in Tesco such that it improve the communication between
business areas and also improve the stock availability. Also, IT helps to improve the shopping
experience for customers because it develop the complex system which offer lottery tickets,
banking and insurance facilities to the customers (Ellitan, 2020). Not only this, in Tesco,
marketing department is also uses IT in order to promote the new product to new customers like,
direct communication with customer via the Tesco Advertising campaign whose aim is to build
trust in brand. Also, company implement digitalized in- store experience by providing self-
check-out station that helps to saves cost and minimize the time of customers as well.
In addition to this,IT is also plays a crucial role in the inventory management system such
that Tesco is consider the heavy user o wireless network in their store and that is why, it uses
mobile device in order to access the information about stock level and this saves time and
provide exact stock of inventory as well (Alzoubi and Yanamandra, 2020). So, this is clearly
reflected that company is completely depend upon the IT because in every department, company
uses advance technology and IoT in order to manage the work.
3.1.1 Types of different Information system used in Tesco
Information management system is all about to collect, process and store the information.
So there are different types of IS used by Tesco and some of them are as mention below:

Management Information system: It is a computer system which comprise of hardware
and software, also consider a backbone of Tesco. This IS also collect information from different
online system and then analyze the same and then help management to make decision
accordingly (Beynon-Davies, 2020). It is a complete use of IT that produce information and
extract data from different sources for business growth. Through this, Tesco manages record
keeping and provide reference point for each transactions.
Decision support system: This IS system is also used by Tesco which is used to support
determinations, judgment for a favor of a business. It is so because it improve efficiency and
speed of decision making activities which in turn help to enhance the interpersonal
communication as well.
Office information system: This system is an advanced system which provide the
technical support to the company in order to provide accurate information which help in effective
planning, operation and monitoring the services (Tamm, Seddon and Shanks, 2020). That is why,
Tesco uses these IS in order to improve the overall business performance.
3.2 Types of networking technologies in Tesco
With the help of different network technologies, company serve its services and product
to different customers. Such that with the help of WAN, Tesco links its network with 12
countries with a single infrastructure with its headquarter. Thus, it is analyzed that with the helps
of WAN, company connected in large geographical area because it has many branches in
different countries (Zhang and Deng, 2020). In addition to this, Tesco also uses PAN in which it
provide personal official phones to their employees where they may easily communicate the
urgent information. On the other hand, company also provide email facilities to every employee's
where they can share the information easily. Sometimes, company also provide a facility to use
storage area network which is actually linked for sharing storage device within the worker's
official computer.
So, these entire arrangement clearly define that Tesco put its all effort to use best network
facilities within the premises in order to meet the define aim and focus upon communication
along with used for storage much information.
3.3 Ethics and social issue in Tesco
Ethical issue is also faced by Tesco and in recent time i.e. in August 2019 company;s
scoring goes to worst rating with regards to animal testing. This is because they removed their

fixed cut- off date for animal testing of its own brand. On the other side, company also faces
environmental issue in September 2019, where it also received a worst rating regarding Ethical
consumer for using toxic chemicals in their electronic products (Potdar and et.al., 2020). Even
though company has a zero discharge of hazardous chemicals by 2020.
Social issue which Tesco faces is such that more than half of the population avoid using
of fast food product because most of them faces an issue of obesity. But still, Tesco offers fast
food products which contain high percentage of saturated fats and sugars. So there is a need to
change the product line and invest upon the Research and development department so that they
determine the taste and preference of the customers which in turn help to cope up the social
issues. Also, company waste many products and it has some farming supplies which do affect the
entire success in negative manner (Vatanasakdakul, Aoun and Putra, 2020).
3.4 Importance of Intranet and Internet in Tesco
Importance of Intranet: It is a local network which is mostly used in- house
communication only. That is why, for inter-communication, Tesco is also uses this which is
recognized through the IP address. Through intranet, company's interior communication is also
improve and there is no error in communication. Apart from this, Tesco also uses Intranet
because managers easily communicate with subordinate and also share the necessary information
to them as well and as a result, it save time for others as well (Hasan, 2019). This method is
consider more safe and secure, even without a permission of employees, no one have a right to
access the intranet which help to save the data.
Importance of Internet: Tesco also uses internet for digital marketing because it is
operating in world wide. Such that company provides advertising on Internet and reaches many
customers which in turn help to improve the sales. Apart from this, Tesco also uses online
business in which it sell many product to their customers that saves time. Also through social
media, company keep posting new offers and products so that it help to draw attention of many
customers and this in turn help to reduce cost of advertising as well. Internet helped Tesco in
achieving growing success by increasing its sales and profits through connecting with large
audience (Boarcăs, 2017). It helps the company in building better relations with its customers
and offering them with quality product so that it could be able to achieve its targets effectively
and within the time frame. It provides the firm with new opportunities and could expand by
having online business divisions.

3.4
This model enables the users in transforming recently developed proposals into the
serviceable one. It is the procedure that is been used to the model for providing the structure for
the technological and the non-technical activities to deliver quality systems that meets the
concern expectation and in managing the progressions in decision-making (Arribas, 2018).
Similar to project life cycle, SDLC makes use of system approach in describing the process and
is often used or followed in case where there is an IS or IT projects going under development.
The seven stages in the system development life cycle that are as follows-
Planning- The primary objective of this phase in finding out range of question & in
determining the solution to the problems. Cost, benefits, time, resources and the other items is
been taken into account under this phase.
Analysis of system & requirements- In the next phase where the teams consider
functional need solution of project. It means where the system assessment takes place or
assessing the requirement of ultimate users for ensuring that new systems could meet with their
expectations.
Design System-It is the phase that describes required condition in detail, its attribute and
the operations which would satisfy structural needs of the projected system that will be in a place
(Bohnes and et.al., 2019).
Development- In this point the real work starts that marks an ending of first section of
procedure. This phase shows beginning of the manufacture and is characterized by the change
and instillation.
Integration & testing- It sis the stage that view system testing & integration of the
activity and programs that is been carried out by the professional of attribute sureness to identify
if a proper design meets a first set of the business goals.
Execution- In the sixth phase, when most of the code for program is been written &
when project is been putted into the production through moving data & the elements from older
system & placing them in the new system through direct cutover.
Maintenance and operations- The last stage is when the end users could fine tune a
system, if they wish in boosting the performance, adding the new capabilities and in meeting
additional requirement of user.

4. CONCLUSION
The above report summarized that IT helps in running the business with efficiency by
way of providing appropriate data in defined manner. Technology is changing with a fast pace
which induces the business organization to operate its business in a better way and its users.
Practical application is enhancing many of the industries that is from financial institutions to the
retail outlets. It is essential that the firms stay up-to-date with increasing changes and enhancing
technology for achieving growing success in long run. Internet helped in cutting down the cost
by the informant services to the countries where it seems as inexpensive in providing such
services. Apart from reduction in cost through outsourcing role of an internet in the business
concern, informant enables the concern in concentrating on core services and becoming as more
cost-efficient. One of the most important role of internet is seen as new opportunities opened and
giving rise to the group of the booming online commercial enterprise owners.

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