Information Strategy For A Global Economy Commerce Essay

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This paper is to analyse information strategy for global economy. The retailing sector will be analysed in this paper. For reviewing information and technology, I have selected Tesco looking at how it is adopting information into operation. Tesco, clear leader of food in the UK, has been diversifying its business areas with time and today is present in markets such as telecom banking. Both in its 1,800 establishments in their store as virtual, British buyers can find all the necessary items for the everyday life. Although with time has acquired an unquestionable reputation International - ranks fourth among the largest retail companies of the world (Panos, 2006).

It is necessary to establish the information technology (IT) in business which is defined as, the tools and methods used to collect, store, manipulate and distribute information. The information technology is usually associated with computers and related technologies applied to decision making. The first generation of computers was designed to keep records and monitor the operating performance of the company, but the information was not timely because the analysis obtained on a given day actually described what happened a week ago (Logan, 2001).

As per my understanding, current advanced technology makes it possible to capture and use the information the moment it is generated from advanced software. This has not only changed the way of doing the business and the workplace but also has a big impact on the way in which firms compete. The professional concept IT is used to encompass all those experts related to the field of information technology (IT). These professionals can perform variety of tasks such as installing applications, creating software, computer network design, system administration, etc. Professionals involved in the governance of information systems play a major role in support to business managers and administrators.


Jack Cohen was the person who founded Tesco in 1919. In the starting, all the goods were sold just in the market of East London. Its first shop was in London and it took the name Tesco in the year 1924 and company was listed in the London Stock Exchange in the year of 1947 (Tesco, 2012). In 1956, Tesco opened its first supermarket in Essex and the major supermarket was opened in West Sussex in 1968 (Lei, 2003). Then Tesco kept on opening its stores in different cities and towns. It is one of the most productive and successful supermarkets in the world. Creating value for customers in order to earn loyalty is the main aim of the company.

Tesco is a food retailer company and it is one of the largest food retailers. (Tesco, 2012) It employees about 325,000 people and operates many stores around 2,318. Tesco's largest market is U.K. It works under four different banners in U.K, which are Express, Superstore, Extra and Metro. Online services are also provided by the company through its website, which is Around 40,000 different food products are available in the company including clothing (Tesco, 2012). There are three different levels for the own label products of the company. These three levels are finest, value and normal. It is becoming one of the largest petrol retailers of Britain as the stores have gas stations (Richard, 2006). Tesco also offers other retailing services like Tesco personal finance (Tesco, 2012).

Vision and Mission of Tesco

Tesco's vision is to grow to be the industry leader in all over the world. It talks about "Every little helps a lot". This is not just the slogan, the company works on it, it believes on this phrase. The company started from just groceries, and now it is providing everything, like electronics, cloths, cosmetics etc.

Company specifics

Tesco is the only UK food retailer with an international platform for growth. In contrast to the more challenging international markets, domestic markets are a major revenue pool. Tesco has promising growth prospects, because they grow faster and more fragmented, with less scope of competitors (Tesco, 2012). In international markets, local level is an important driver in the operating margin. Tesco is one of the few companies that seem to have integrated this insight into its international strategy (Richard, 2006). Tesco has followed a deliberate course of expansion, entry into a relatively few countries, but implements major projects on the most sustained market (Tesco, 2012). As a result, operating margins was quickly enjoyed by the British market than on the other.

Information Implemented:

Tesco has adopted information systems throughout the organisation.

The information operated was on various factors. Some of the areas where information system used are on rewarding scheme, Logistics, Recruitment and selection and employee communications and Tesco online.

Reward system: Google gives Tesco Club card information technology lesson (Mitchell, 2008). Information systems are fully integrated on the club cards reward system by Tesco. Tesco provides a club card for its loyal customers (Turner & Wilson., 2006) where they can use them whenever they visit. This system is used to access the customer information and their shopping habits which are integrated by a smart card technology. This technology was upgraded further which is produced on the phones creating an application. This innovative club card is carried on their iphone (Mahroof, 2000) rather than carrying them physically. Where tesco is introducing wifi in its all stores (Löffler & Hettich, 2010). This development of the iphone app shows the innovation of the company when it comes to information technology. A additional attachment to the app is the barkage which allows customer to add their item into the basket using their phone in the store. The online reward exchange can be redeemed for variety of different vouchers. Tesco has being to use the Akamai Dynamic site accerator technology (Li, 2001) to deal the traffic expected from the usage of club card, to over this issue tesco is using the other server when customer is using the club card.

Logistic system: Tesco has its own Tesco information exchange for logistic. This allows to share and communicate from the information between the suppliers on a real time basis. The introduction of this technology allows the company to achieve the competitive advantage (Porter, 2001) over others. Which benefits the company by reducing the costs (Fisher, 1997) and lead times and increase customer service (Disney, 1999).

Recruitment and selection: when recruiting the employee, Tesco initially do it with the company's internet page by filling the form online. The job roles are advertised to the people externally on the store boards, online or advertising in the Tesco's website. To recruit an employee the result on the online application will be analysed first for the performance about the employee. This technology used have allowed the company to process of recruiting is easier minimizing human era (Budhwar, 2006) on online overtime booking system.

Employee Communications: Another information system is the customers are allow online overtime booking system. This technology is used to reduce the human errors and producing the quality service. Which allows a more efficient management implementing this by Tesco.

Tesco online: This was launced on 1994 which was fully developed in 2004 to incorporate a variety of different departments. Tesco's integration of sophisticated and innovated web services and the huge amount of database on the internet. A larger number of viewers have view Tesco page recently and remained one of the fastest moving retailer in British. Such as, Access to diet plan, iphone apps and browse a large number of recipes look up are the additional plans for the customer has just come to shop grocery items.

Tesco Home plus, Marketing Success beyond the Borders

One of the goals of Tesco, it is said on their website is the online chain growth. Tesco Home plus , of which we have spoken on occasion, gives its name to bet virtual supermarket, which along with QR codes has developed a useful advertising strategy and fun (Alan, 1990). We intend to bring the store to the street. What made ​​this possible? Creating posters that simulate supermarket shelf, which are products with their price and information, along with your QR code, made this possible. When people walk down the street or the subway, you can read the codes and generate order online that will come straight to home. This idea has already been implemented in Korea, where in a short time the network has become the second market sales increased by 130% (Alan, 1990)

Tesco's Globally Improvement in the Strategy:

In the highly competitive supermarket sector, customers look for a wide variety of quality products, available 24 hours a day and at the right price. Retailers cannot fail to balance all aspects of the management of their supply chains and demand and invest in IT infrastructure to suit the demanding needs of both customers and shareholders.

With the purpose to help meet those needs activities, Tesco began thinking about developing new IT solutions in spring 2001 (Wright, 2006), at which time focused on the opportunities that the web-based operation could make to its stable chain foundations. To assess this, Tesco has hired IBM to carry out some consulting work (Srivastava, 2007) to fin of clarifying major car company's business processes, and identify potential opportunities and advantages of implementing solutions that work through a web browser on a wireless platform.

Although Tesco do not focus only on wireless technology, it involved an important part in their research. The work carried out by IBM became manifested this that there are many opportunities and perhaps most significant was that first the company should focus their energies on the stable foundation, so they focus on the main mind through a program web browser in stores.

For a wireless solution, Tesco choose Intermec Technologies (Castro, 2007). Portable terminals Intermec 700 Colour competition offered something that could not offer: a mobile unit consistent, high robustness can exchange data in real time, and a powerful platform from which to offer an integrated value chain from the supplier to the end user or consumer (Mogull, 2008).

Today Intermec is bridging the gap between supply chains and demand (Lakshmanan, 2009), and leading companies in the retail sector as Tesco gives star in the demand for solutions focused on the integration of these two factors. Tesco has a robust and comprehensive wireless solution proven mind both for the customer and in the offices. Their technology integrates processes on a single platform while providing an accurate and real-time supply chain that can be customized according to the specific needs of each client (Mogull, 2008).

Tesco is available in many areas that he thought the new technology could be used to improve the operation and one of them was the consistency of price and storage processes on the shelves. Another was to improve the level of information in the areas of customer support that in principle it was a process that is generating a lot of paper. Another aspect was the fact allows managers facilities to carry out their work where it should be, in the store, and not in the office (Pamela, 2006).

The customer support function is now fully automated and generates almost no role. The information is captured electronically using a web-based system that is located in one of the registers of the customer support area. However, another important investment area in which Tesco focuses, probably more significant, is the task of storing and placing prices on the shelves, and that's where the Intermec 700 Series Colour comes into play (Newman, 2005).

Tesco has installed nearly 10,000 mobile computers from Intermec 700 Colour supermarket chain in the UK to bring down prices, record inventory transactions and to prepare for the planned graphic cost ion of the distribution of the products and the design of the shelves. They are also used to check deliveries to the store, using a GPRS connection that sends data in real time and allows contrasting deliveries with invoices (Pamela, 2006).


Summarizing, Tesco has changed its business process as a result of information technology implementation. The flow technology was complex but, despite this, Tesco has been able to re-evaluate their business process and perform fin modifications to be more effective. Before, the business process focused on the fact that the staffing needs information and also had to go back to the office to get more information and the status of the stock. It was a business process implemented by necessity since there was no other way to gather this information.


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