Examining The Management Information Process Of Tesco Information Technology Essay

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It is an international grocery and general merchandising retail industry. It is third largest retailer in the world measured by revenues and second largest measured by profit. Tesco has stores in 14 countries and is the grocery market leader in UK.

Jack Cohen was the founder of Tesco. Jack Cohen started the business with tea from T.E. Stockwell and he used those initials and first two letters of his surname. The first Tesco store was opened in 1929 in Burnt OAK, Middlesex. AT the end of Tesco 2009/10 financial year, Tesco has 190 Tesco Extra Stores, 455 Tesco Superstores, 181 Tesco Metro,

1,130 Tesco Express, 513 Tesco One Stop and 13 Tesco Home-plus stores. Other then grocery stores, Tesco has many other business i.e. Tesco Bank, Tesco Mobile, Tesco petrol Stations, Tesco Tech Support. The total numbers of employees are 552,004. The main object of Tesco is to provide goods and services at cheaper price to consumer.


Be able to understand the impact of management information on decision making.

The first learning outcome has been divided into following headings.

Management Information:

The process of collecting, organizing, summarizing and storing the information is called management information.

Management and organizations facing constantly changing problems, diverse managerial styles, and ever present information needs offer a challenging context for developing computer based information systems. MIS uses computer technology to provide information and decision support to managers, helping them becomes more effective. Developments in the young computer industry are changing corporate management style.

Attributes of Management Information:

The major attributes of management information are given below.


It is the major attribute of management information. Through management information, all the important and relevant information is available on single click. In business, time is too precious.


It is also an important attributes of management information. As every person knows that where business is situated that place is very expensive and through management information, businessmen are enable to store very big information in small device. In this way, they can save their money and time to find and store information.


It is another important attribute of management information. The information is needed to make decisions and for making decision, it is necessary that information is complete is every aspect. A perfect decision cannot make on the basis of incomplete information.


Timeliness is an-other important attribute of management information. Timelines means all the necessary information available without any struggle. In business every minute is very precious. So, it is necessary that information is available on time. Any delays may be caused by management information system itself or gaps in the relevance, comprehensibility and accuracy of the management information.


Accuracy is linked to timeliness. Time factor can introduce errors in information. An inaccurate may lead to disastrous decision. For example, an erroneous record of patient's reaction to penicillin might lead to doctor to harm patient while them she is helping him

Information System:

L.T Williams (2007) says that the information is important one to making the decision in all hierarchy of the organization. The information system based decision making process classified in to three types namely Strategic, Tactical and Operational. The strategic decisions are focusing on the senior level of management and helping the organization to take corporate decisions to meet the global competition and other factors. The tactical decisions are mainly focusing on middle level management to take the short term forecasting and implementing the strategies by using structured process. The operational decisions are focusing on the junior management to take the day to day decision to maintain the organization in right track. According to the author the information is really important to take decision in all hierarchy level based on the responsibility.

Categories of Information System:

The main categories of information system are given below.

Transaction processing systems (TPS):

Transaction processing systems mean the systems which are commonly used in transaction. The systems used on till is most common example of Transaction processing system.

Management information systems (MIS):

According to Dr. József KÁRPÁTI,

"The management information system in the 21st century is an IT solution that extracts timely, relevant and wide ranging data from the transactional2 systems of an enterprise, for the purpose of an integrated overview and matching of data from different sources, ready for analysis of the most important information and serving the goal of supporting the high level decision making"

Decision support systems (DSS):

MC Fadden (2004) Explain about the decision support system and the roll of the system in decision making process. The organizations are normally use the computer tools in the decision making process. The customized software is highly helping the organization to take the managerial decision. The author developed contrast between DSS and the other managerial tools to identify the tool to store the information. The DSS system comprised with customized facilities for taking some effective decision.

The author explain about the data and its use in the decision making process. The information is unstructured form and the data are structured form and the customized data maintenance system is strongly recommended by many authors. The implementation of the DSS process is step by step one and the organization need to measure the performance periodically. In the roll of DSS system is increasing interaction between the employees and used to take effective decision in day to operation.

Executive support systems (ESS):

Executive Support System is a type of management information system. Executive Support System is usually used for making strategic long term planning. It takes external environment as input. With the help of Executive Support System, the directors easily make decisions. The figure of Executive Support System is given below


Be able to understand the importance of information sharing within organisation.

The second learning outcome has been categories into following heading.

Importance of Information Sharing:

The responsible information sharing increases the productivity, customer and profit of business. The main importance of information sharing is given below,

Harmony among the department:

When a department share the information with other departments, it will help them to control the business more effectively and reduce the chance of fraud. For example, in college if finance department does share the information of students with administration department then most of students do not pay the fees.

Introduce the new product:

The main importance of information sharing is that the businessman easily introduces the new product in the market with the help of internet, newspaper, radio and T.V.

Capture market share:

With the help of information management, the people know an organization and its product. So, the information sharing helps the owner to captures market share and tells the customer about the quality, price and all important features of product.

Attract the new talent:

When a company is doing a good business and has a good reputation in market, every person wants to work for that organization.

Get the attention of investors:

The information sharing helps the owners to attract the investors to invest their money in their organizations. When an organization publish organization's reports, its helps investors to invest their money.

More profit:

When an organization shares his information, the organization gets more efficient employees, more capital and more customers which increase the profit of organization.

Increase government income:

With help of information sharing, an organization earns more profit. If an organization more profit, he will pay more tax. In this way, the company increase the government income

Data Protection Act 1998:

The Data protection Act is a UK Act of Parliament and it comes under force on 1st March 2000. The Data Protection Act applies only the data of living people. The Data Protection Act 1998 comprises of eight principal. The eight principal of Data Protection Act is given below.

First Principal:

All the personal data should be processed faithfully and lawfully without any discrimination.

Second Principal:

The personal data should be collected for one or more specific purpose and such data should not be processed for any other purpose without permission.

Third Principal:

The personal data should be collected according to need and it should not be collected more than need.

Fourth Principal:

The personal data should be collected accurate.

Fifth Principal:

The personal data should be kept for a specific period of time and after that such data should be disposed.

Sixth Principal:

The personal data should be processed in accordance with Data Protection Act 1998.

Seventh Principal:

The personal data should be kept under secure system.

Eight Principal:

The personal data should not be transferred to a country outside the European Economic Countries; unless the country ensures you that they have complete protection system.


Threats to Information System:

There are a lot of different threats to information system. The figure of threats are given blow.

The detail of some threats is given below.

Unauthorized Access:

Unauthorized access is threat to information system. The unauthorized access means that someone accesses your system without your permission and manipulates and deletes your information. Sometimes that person gets undue advantages. The latest example of unauthorized access is WIKILEAKS.


The biggest threat to information system is Malware. Malware is short for malicious software. It is designed to secretly access a computer without owner's permission.

Malware includes computer virus, worms, trojan horses, spyware, crime-ware and other unwanted software or program.

Data leakage:

Data leakage is also biggest threat to information system. Data leakage means someone intentionally or intentionally publishes the sensitive company and personal information. The latest example is WIKILEAKS.


Another threat to information system is Insiders. Sometimes, the employee or worker of company intentionally steal the sensitive information, commit fraud or cause damage to company system or information is called insider.

Knowledge Management:

Data means raw facts and figures. When we put data into proper structure, it becomes information and when an expert expresses his opinion and applies skills on information, it becomes knowledge and the process of collecting, storing and manage the information is called knowledge management.

Type of knowledge:

The knowledge has two types that exist in market. One is tacit knowledge and other is explicit Knowledge.

Explicit Knowledge:

Explicit knowledge means the knowledge that has been captured and recorded and made accessible for others to use in making decision. There is a lot of software available to record the explicit knowledge and a lot of internet sides are available where we find useful information. The most common example of explicit knowledge is Course books.

Tacit Knowledge:

Tacit knowledge is related to man's skills, experiences and observations. Tacit knowledge is also known as personal knowledge. Such knowledge is difficult to write, context specific and formalize. Tacit knowledge is also difficult to communicate and share with other. The most common example of tacit knowledge is that a person know how to cycling the cycle but he cannot explain to others how perfectly cycling cycle. Tacit knowledge is usually stored is shape of pictures.

Importance of Knowledge Management:

The most important advantage of knowledge management is that a company becomes enabling to store, retain and analyze his knowledge. If a company did not store the tacit knowledge of an employee, it will cost money to organization. There is also a chance that company needs knowledge of specific person but that person has expired. If company starts storing the experienced knowledge of employees, the company can enjoy benefit for a long time in spite of that the person is available or not. Knowledge management helps the managers and executive to understand.

Most of companies emphasising on producing a product or service to a customer and they think to earn the profit the most important factor is customer and their product and they forget one important factor that is knowledge management. Knowledge management helps them to critically examine the current situation of their business and the gives them knowledge about their products quality and procedure to make their product more effectively.

In the book Value-Based Knowledge Management, the authors believe that every organization should attempt to have following capabilities working together


Apply the right combination of procedure and knowledge so that it creates knowledge based environment.


Constantly monitor and respond the market through efficient employee force within decentralization organization.


Become pro-active by participating events and issues based on this new decentralized knowledge based system


Attract people who have a thirst for knowledge, people who clearly express that they love to learn and share their knowledge opening with others. These so-called knowledge professionals are one of the most important gears of your intellectual capital


Provide a strong learning atmosphere for the thirsty knowledge employee. Allow everyone to learn through experiences with customers, competition, etc.


Safe long-term devotions from knowledge professionals. These people are key drivers behind your organization. If they leave, there goes the knowledge

Rene T et al., 1996. Value-Based Knowledge Management. Prentice Hall PTR, 1999


Be able to use information to inform and support strategic decision making.

The third learning outcome has been categories into following heading.

Types of Decisions:

The major types of decisions are given below.

Structured decisions:

Structure decision means pervious decision is related current decision. There is relation between every decision, every decision affects each-other. The most common example of structured decision is monthly payslip.

Un-structured decisions:

Unstructured decision means the decision which is made without any procedure. The most common example of unstructured decision is introduce new product into market without having enough information about market condition.

Decision Making Tools:

The main tools of decision making are given below

Data warehousing:

Data warehousing is a jargon which is used to explain the system used in an organization to collect data. Data warehousing is the combination of Data Bases. Data warehousing is commonly used by companies to examine the fluctuation in data over a time. Data warehousing is commonly used by the larger companies to analyze the data.


Data mining:

Data mining is a branch of computer science and artificial intelligence. Data mining is process of extracting patterns from data. Data mining is become a most important tool for business to transform the data into business intelligence giving an informational advantage.

Data mining is the principle of sorting through large amounts of data and picking out appropriate information. It is usually used by business intelligence organizations, and monetary analysts

Tesco use information gleaned from Dunnhumby. Dunnhumby is a British data mining firm and it manages all the Tesco data, such as number of Tesco stores, sales, purchase, targeted sales profit and etc. It provides data to Tesco executives for making decision.

Clifton, Christopher (2010). "Encyclopaedia Britannica: Definition of Data Mining". http://www.britannica.com/EBchecked/topic/1056150/data-mining. Retrieved 2010-12-09.


Management cockpit:

Management Cockpit is a business decision room or strategic management solution, helping the executives to manage their business and making the decision and finding the solution of problems. The diagram of management cockpit is given below.

Competitive Intelligence:

Competitive intelligence is the steps of defining, collecting, examining and distributing the intelligence about the products, consumers and competitors and any phase of surrounding need to support executives and managers in making strategic decision for company. The competitive intelligence can be better described with the help of following diagram.


Be able to monitor and review management information.

The fourth learning outcome has been categories into following heading.