Analyzing Tesco's Use of IT in Business Operations: A Business Report

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BABS Foundation UOS IIT Assignment
Assignment 2
Impact of Information Technology on
Business Operations of TESCO
Student ID:
BA in Business Studies (Foundation Year)
University of Suffolk
Date of Submission:
I declare that this assignment is all my own work and that I have acknowledged all materials
used from the published or unpublished works of other people. All references have been duly
cited.
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Executive Summary or Abstract
The implementation of information technology has a huge impact on a vast set of business
skills and sectors. IT is essentially stated as a division of information and communication
technology as it enhances the communication between business organizations and effectively
increases the smooth flow of business globally. Implementation of Information Technology
in Tesco has a huge impact on a vast set of business skills and sectors. With the enhancement
of globalization in every aspect of retail sales and supply of products, the inclusion of
Information Technology in Tesco has a huge role to play in the vast business operation and
information storage of the retail business industry.
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Table of Contents
1. Introduction............................................................................................................................4
1.1 Purpose.............................................................................................................................4
1.2 Background.......................................................................................................................4
2. Literature Review...................................................................................................................4
2.1 Information Technology and its role in retail business in general...................................4
2.2 Different Types of Networking Technology, in general..................................................5
2.3 Ethics and Social Issues of using technology in general..................................................5
2.4 The importance of Intranet and Internet in business in general.......................................6
3. Analysis and Discussion........................................................................................................6
3.1 Role of Information Technology in TESCO....................................................................6
3.1.1 Types of different Information Systems that are used in Tesco................................7
3.2 Types of Networking Technologies that used in Tesco...................................................7
3.3 Ethics and social issues in Tesco......................................................................................7
3.3 The importance of Intranet and Internet in Tesco............................................................8
3.4 List and explain the different stage of system development life cycle.............................8
4. Conclusions............................................................................................................................9
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1. Introduction
Information Technology plays a significant role in determining and storage of massive and
excessive data and computation analytics, which is mainly implemented by huge business
organizations of global status.
1.1 Purpose
The report aims at comprehensive formulation and understanding of the impact of
Information Technology on the business procedure of Tesco, which uses information
technology for retailing business to flourish on a global scale. The role of Information
Technology in the business sector with variation and types of Information systems that are
used in the business are included in this report. Types of networking technologies with ethical
issues and considerations are scrutinized to understand the company's ethical background in
the market. The significance of the internet and intranet are detailed in the report with respect
to Tesco's global utility of IT. The report ends with detailed information regarding the
different stage of the system development life cycle.
1.2 Background
Tesco PLC, popularly known globally as Tesco is a giant multinational UK based company
that concerns with the retailing of groceries and merchandising of materials that are required
in the daily lives. The company has its headquarters situated in Hertfordshire, England. The
company has occupied the global recognition of the third largest retailer company with shops
across seven countries. The implementation of Information Technology has helped the
company to achieve the position of the market leader of groceries in the UK, Thailand,
Hungary, and Ireland.
2. Literature Review
2.1 Information Technology and its role in retail business in general
Information Technology mainly has a prime role in the complex management of retail
operations. The retail companies need to gain a higher rate of competitive advantage in the
market of emerging retail companies and the inclusion of IT in the business function also
helps them in easy storage of information and data that are the core strength of the company.
The transaction in the retail business is getting complicated which requires the
implementation of an advanced retail information system. The main requirement of the
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retailers to include IT into their business operations include flexibility and speed in terms of
catching up to the emerging retail sectors (Bheekharry and Singh, 2019). They also need to
store and analyze the customer data critically to work on their product marketing effectively.
The inclusion of IT in a retail business is essential for developing a one system functioning
across stores and even national borders for greater unification of the business globally.
2.2 Different Types of Networking Technology, in general
Networking is an essential asset for connecting every individual across the globe with a wider
range of communication options. It has, therefore, become the pillar of business development
and growth across the globe (Folarin and Hassan, 2015). Without networking, it is impossible
to create and enhance the business opportunities and scope for the globalization of the
business markets. The inclusion of different types of networking helps in a more advanced
technique of connecting business and people globally.
Personal Area Network (PAN)
This networking system includes the connectivity within a small business organization or for
a single person. The PAN connectivity enables networking within a range of two computers,
printers, smartphones, tablets, etc that are connected to a wireless modem. A single person or
a small company operates this networking.
Local Area Network (LAN)
The LAN connectivity enables connection within a wider range of distance, within close
proximity. It is one of the simplest and effective ways of networking between a number of
computers and devices of low voltage within a building or a complex within close range.
Wireless Local Area Network (WLAN)
This type of networking uses wireless network technology like Wi-Fi, which actually has the
same kind of functionality as LANs. This does not require cables to connect.
Other significant networking connectivity includes CAN, MAN, WAN, SAN, POLAN, EPN,
and VPN.
2.3 Ethics and Social Issues of using technology in general
The use of technology in every aspect of the business has a variety of ethical considerations
and issues that have given rise to a set of techno ethics. There are social issues that also affect
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BABS Foundation UOS IIT Assignment
the ethical considerations of technology. The ethical considerations draw on various theories
and modulations from domains of multiple knowledge areas. The misuse of technology in
getting involved in Information Technology based business is the greatest ethical breakdown.
The ethical demarcation of IT has a threat of spilling a vast amount of confidential
information outside the organization that spreads their information beyond secured
networking (Janssens and Kaptein, 2016). The company information breach has a huge
impact on the global status of the company and has a huge scope of cybercrime. Breach of
cybersecurity poses a greater amount of threat to company security and confidentiality. The
social background in the company is affected by the unethical culture and confidentiality
breach of personal data of the customers. The forceful injection of the virus inside the system
causes a potential threat to the company. Therefore, there are various threats in the company
security due to unethical behavior and leakage of company details to outside sources.
2.4 The importance of Intranet and Internet in business in general
The inclusion of internet and intranet in a networking area are the key requirements to enable
proper connection facility in an area. Both the networking operations are capable of binding
the company and the people to run a smooth business. Though both the terms sound similar,
there is a basic set of variations and differences between the internet and intranet. The
significance of the internet and intranet in a company business helps in the effective
functioning of networking and smooth flow of data and analytics related to customer's
personal information. The internet connectivity in the whole community of business
organization refers to a whole set of workers who are accessible to refer to the internet
connection (Lin and Peng, 2018). An intranet connection, however, refers to restricted access
to a particular area of working space. This area of working space has access to only those
individuals who are familiar with the business environment and has access to gather
knowledge regarding business confidentiality. There are sets of intranet connections within a
single working business company due to the division of various sectors in the business
organization. The inclusion of both internet and intranet inclusion leads to a successful set of
business work and helps in the steady flow of work with proper scope of communication.
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3. Analysis and Discussion
3.1 Role of Information Technology in TESCO
Information Technology plays a significant role in determining and storage of massive and
excessive data and computation analytics, which is mainly implemented by huge business
organizations of a global status (Zhao and Priporas, 2017). The implementation of
information technology in Tesco has a huge impact on a vast set of business skills and
sectors. The IT implementation in Tesco includes RFID systems, software programming to
store data of customers, food labeling system, control of the huge stock of raw food and
maintaining temperature. Implementation of Electronic point of sale (EPOS) helps Tesco in
handling the computerized data, money storage and bar code reading.
3.1.1 Types of different Information Systems that are used in Tesco
The information system of Tesco is mainly associated with its Transaction Processing system
that helps in the easy flow of customer transactions in the retail business company. The
Management Information System is a huge area that requires a lot of managerial skills for the
company to thrive (Markman et al., 2016). Manufacture and production become easy flowing
and well suited under these information systems. These two-information systems at Tesco are
useful for exchanging data and management of information in the company through the
Decision support system. The decision support system uses the data from transaction and
management for taking fruitful decisions for the company.
3.2 Types of Networking Technologies used in Tesco
The networking system in Tesco is highly connected for the retail company to function
effectively across the globe. Verizon is the wireless connectivity provider for Tesco that
provides the company to migrate the retail company to combine a global networking
infrastructure for Tesco (Mooney, 2019). This helps the retail giant company to fixate on its
centralization program. Verizon is responsible for providing connectivity and a secured
network for the company. The network connectivity has enabled Tesco to stay connected
through the 12 countries where the company has its branches. Cloud devices are applied in
the company to stay connected and store massive data within the company system.
3.3 Ethics and social issues in Tesco
The ethical considerations of Tesco mainly pertain to the secure storage of all their
employees. The company has about 472000 employees and each of their financial and
identification information is stored in the company systems. The company pertains strictly to
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BABS Foundation UOS IIT Assignment
the Data protection act and remains strongly committed to secure the information without any
access to a third party (Park et al., 2015). The company gives freedom to its employees and
they have the freedom to associate and provide the proper working condition for the workers
with hygiene maintenance. There are no such ethical breaching issues that have affected the
company directly. The social issues of Tesco pertain to social religious belief. The company
needs to respect the local social and religious considerations of the employee and the diverse
community that is associated with the company. Attitude towards work needs to be handled
by Tesco properly and they need to hire people with higher work ethics.
3.3 The importance of Intranet and Internet in Tesco
The marketing and supply of Tesco have access to e-commerce business online. The use of
the internet and intranet are effectively sorted in the company to maximize the company's
supply and delivery options through online product transfer and delivery to the customers.
The impact of intranet and internet has a huge scope for Tesco to build on its capability to
perform better and expand their market reach (Shaw et al., 2016). The company has been able
to contact a greater number of suppliers through emails and online websites that help them in
getting hold of greater products. The promotion of their products is effectively done through
television and radio platforms and online platforms that are essentially possible for internet
and intranet connections. The company has its own set of intranet connectivity and the
company executives approved the latest version of the company Intra version to 2.0 that
incorporates a number of platforms and functionality.
3.4 List and explain the different stage of the system development life cycle
The systematic development cycle is crucial for delivering of any logical aim of a workflow.
This becomes easier for any company to deliver high-quality products for the customers who
are in dire requirement of the products (Tomar and Saha, 2016). The procedures of the
Systematic Development Life Cycle include concept building along with the improvement of
hardware and software. The customer requirements need to be thoroughly kept in mind and
maintenance of the system security issue. This cycle is highly applicable to any field of
business development. The company has taken into consideration in this report also has a
higher scope of affectivity by using this life cycle.
The five phases of the system development life cycle include the Analysis phase,
Development phase, Implementation Phase, Operation Management Phase and finally
Disposal Phase.
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Analysis phase- This phase focuses on the identification of the problem and the effective
building of a plan to reject the problem. The security considerations need to be handled while
operating the system.
Development phase- This requires the development of the product required by the customer.
The areas of requirement need to understood thoroughly by the company. This phase mainly
pertains to the conceptual designing of the product demanded.
Implementation Phase- This is the duration of the physical building of the product. This
phase is wide and requires efforts from the customer and company end as well.
Operation Management Phase- This stage is formulated after the product has been devised
and has been sent to the user. This further requires monitoring.
Disposal Phase- This is the end of the functionality of the product and needs to be disposed of
if it is not useful.
4. Conclusions
The significance of Information Technology in the multinational brand of Tesco is essential
to formulate proper working connectivity for the company. The implementation of
Information Technology helps in keeping steady track of the records of the numerous
employees across the countries where the company has been established. The IT
implementation in Tesco includes RFID systems, software programming to store data of
customers, food labeling system, control of the huge stock of raw food and maintaining
temperature. The networking system in Tesco is highly connected for the retail company to
function effectively across the globe.
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Reference
Bheekharry, N.D. and Singh, U.G., 2019. Integrating Information Technology and Marketing
for Better Customer Value. In Information Systems Design and Intelligent Applications (pp.
1-9). Springer, Singapore.
Folarin, T.O. and Hassan, Z., 2015. Effects of Technology On Customer Retention: A study
on Tesco Malaysia. International Journal of Accounting, Business and Management, 1(1),
pp.28-49.
Janssens, M.R. and Kaptein, M., 2016. The ethical responsibility of companies towards
animals: A study of the expressed commitment of the Fortune Global 200. Journal of
Corporate Citizenship, (63), pp.42-72.
Lin, C. and Peng, J., 2018. Analysis and Solution of the Problems in the Distribution of
Suning Tesco. Transportation Management, 1(1).
Markman, G.D., Russo, M., Lumpkin, G.T., Jennings, P.D. and Mair, J., 2016.
Entrepreneurship as a platform for pursuing multiple goals: A special issue on sustainability,
ethics, and entrepreneurship. Journal of Management Studies, 53(5), pp.673-694.
Mooney, S., 2019. An investigation into attitudes of Tesco customers in South Dublin
towards private-label brands (Doctoral dissertation, Dublin Business School).
Park, S., Stylianou, A., Subramaniam, C. and Niu, Y., 2015. Information technology and
interorganizational learning: An investigation of knowledge exploration and exploitation
processes. Information & Management, 52(8), pp.998-1011.
Shaw, D., McMaster, R. and Newholm, T., 2016. Care and commitment in ethical
consumption: An exploration of the ‘attitude–behaviour gap’. Journal of Business
Ethics, 136(2), pp.251-265.
Tomar, V.S. and Saha, S., 2016. In-Store Digitization and Technology Advocacy Among
Retail Consumers. Amity Journal of Management, pp.40-49.
Zhao, S. and Priporas, C.V., 2017. Information technology and marketing performance within
international market-entry alliances: A review and an integrated conceptual
framework. International marketing review, 34(1), pp.5-28.
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