Information System in Tesco Case Study Example | Topics and Well Written Essays - 3000 words

Information System in Tesco - Case Study Example In addition it operates 39 stores in China, 111 in Japan, 13 in Malaysia, 62 in South Korea, 6 in Taiwan, 219 in Thailand, 35 in Czech Republic, 87 in Hungary, 105 in Poland, 91 in Republic of Ireland, 37 in Slovakia and 8 in Turkey. (Tesco Annual Review, 2006). It therefore operates round the clock which demonstrates its commitment to create customer value which in turn generates superior value for its shareholders. Tesco denotes its success to an aggressive global strategy of geographical diversification, product differentiation, cost focus and it use of umbrella branding. In its attempt to renew the brand and keep it in sync with changing customer tastes, Tesco follows various strategies including international diversification, providing value to customers, product diversification, innovation, acquisition and umbrella branding. In the context of today's global competition, businesses and firms no-longer compete as individual companies but try to corporate with other businesses in their activities (Wu & Chien 2007). These researchers further argue that, this strategy is now quite common in many businesses including the retail chain stores. In the retail chain stores, the conventional vertical integrated company based business model is gradually being replaced by collaborative relationship between many fragmented, but complementary and specialized value stars and constellation (Wu & Chien 2007). In the present state of events, information and information systems are increasingly being used as many corporations as a competitive and strategic weapon. It helps organization such as Tesco to be a goal getter, as it redefines, their activities in terms of cost and time. Information systems help Tesco to adapt and be at the forefront of new product development and change. The management of Tesco by incorporating information and information systems have improved and increase on the processes, improving current operation efficiency and turning it into a competitive advantage. Through Tesco information and information systems, suppliers are interconnected through an electronic data interphase to develop strategic, administrative and operational planning. 2.0 Tesco Environmental Analysis LAYOUT OF THE PESTEL FRAMEWORK According to Johnson et. al (2005), the PESTEL framework can only be used to look at the future