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Tesco

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BACKGROUND TO THE ORGANIZATION AND TECHNOLOGY

“We are a team of over 530,000 people in 12 markets dedicated to bringing the best value, choice and service to our millions of customers each week. Our core purpose is 'we make what matters better, together” Philip Clarke, Chief Executive( www.tescoplc.com/interims2013)

Our Three Big Ambitions
Create new opportunities for millions of young people around the worldOpen

Help and encourage our colleagues and customers to live healthier livesOpen

Lead in reducing food waste globally

* -------------------------------------------------
Our Essentials
Trading responsibly: Tesco trade responsibly by putting our customers first and working with our suppliers to innovate and provide high quality products

Reducing our impact on the environment: We are reducing our impact on the environment aiming to be a zero-carbon business by 2050 and using scarce resources responsibly, including in our supply chain

Being a great employer: We are a great employer creating inspiring work that makes our colleagues happy and proud of what they do
Supporting local communities: We support our local communities by being a good neighbour and running our business to the highest standards

*

Tesco has signed a £28 million deal with CA Technologies, adopting the vendor's systems management tools as a global standard.
The UK retail giant has been a CA customer for 20 years, and has used its Unicenter systems management platform to support international operations since 2005.
“We rely on CA Technologies software to tame a very big, distributed, heterogeneous infrastructure," explained Tesco CIO Mike McNamara in a statement. "We are very pleased to extend our long-standing relationship with CA Technologies into a third decade."
CA says that products covered by the new deal include its service assurance system (used to monitor and maintain internal SLAs), its performance management tool (for monitoring mainframe performance) and its process automation solution (for automating systems management tasks).
Thanks to its many acquisitions, Tesco's global IT infrastructure is highly heterogenous. Before launching in the US, however, it migrated its stock ordering system, originally written in COBOL, onto IBM's System p servers (since renamed Power Systems) in order to create a globally extensible platform.
CA Technologies has recently been positioning itself as a cloud and virtual systems management provider. However, much of its revenue still comes from legacy systems management – its mainframe division accounted for 55% of its sales during the most recent financial quarter.
- See more at: http://www.information-age.com/it-management/skills-training-and-leadership/1650568/tesco-signs-%C2%A328m-systems-management-deal-with-ca#sthash.hMEt0AAf.dpuf

Over the last decade Clarke has overseen a number of large IT changes at the supermarket chain, including introducing systems to improve sales, the supply chain and efficiency across the company. Tesco has an in-house designed supply chain application, running on IBM system p servers based on Unix. * Tesco Bank in managed datacentre and telephony deal * Tesco promotes Mike McNamara to be new CIO * Tesco Bank finalising systems transfer
One area in which Tesco has made extensive efforts over the past year is in stock management. The supermarket said it had implemented more efficient ordering systems and introduced better in-store monitoring processes, which helped to increase availability of food in stores and reduce warehouse stock.
In addition, Tesco has invested heavily in self-service checkouts, which now account for a quarter of all its transactions. And the company grew online profits by over a quarter last year to £136 million, as it launched websites selling clothes and DVDs.
Earlier this year, it launched an app for the iPhone which allows customers to store their Clubcard, the Tesco loyalty card, on their phone and swipe it at the till instead of the card.
Over the years, with the work of former chief information officer Colin Cobain, the supermarket also launched the innovative “Tesco in a box” suite of operating systems, rolled out in new stores around in the world including the US launch in 2007.
Tesco has not faced many negative stories around its IT systems. But in May last year, a “routine IT upgrade” stopped tills from working at 100 stores, as Tesco launched a major loyalty scheme promotion in national newspapers to its millions of Clubcard holders.

Information Technology
At Tesco, technology is right at the heart of our business - helping to improve the shopping experiences for all our customers.
As you would expect from a world-class business, we need systems which are at the forefront of the industry - and if the technology doesn't exist, we're not afraid to innovate and be the first globally to develop and use it.
IT put to good use
So what does this mean? * Our leading edge supply chain systems create effective stock control and product availability for all our customers. * Every customer experiences the checkout process, meaning our systems and processes at the tills need to be simple, smart and at the same time sophisticated. * Then there are new ideas like the 'Self Scan Checkout' (which, incidentally, our customers love). * Or what about the things you don't see - like technology which neatly predicts when we need to open more tills, before the queues have even started to form.
Technology is integral to all our business operations - from our numerous internal systems, electronic links with our suppliers and over 5,000 office based users to support - IT is truly a business partner.
What we believe in
To us we're not here to provide just hardware or software, our contribution is to provide services and innovative IT solutions which improve the lives of our people and customers.

The Board Committees

http://www.tescoplc.com/files/pdf/reports/tesco_and_society_2013-14_halfyear_summary.pdf

ComputerWorldUK: the voice of IT Management http://www.computerworlduk.com/news/careers/20610/tesco-it-director-appointed-as-chief-executive/?intcmp=in_article;related http://www.tesco-careers.com/home/you/it
Read more: http://www.ukessays.com/essays/business/examination-of-information-systems-and-technology-in-tesco-business-essay.php#ixzz2mRuc1XSk

1. BACKGROUND TO THE ORGANIZATION AND TECHNOLOGY
A. BACKGROUND OF TESCO

Tesco was founded by Jack Cohen founded in 1920 when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Tesco is currently the third largest global retailer with over 530,000 Employess. Initially specialising in food and drink, it has diversified into areas such as clothing,
Consumer electronics, financial services, telecoms; home, health and car insurance, Internet Services and software.

Tesco's UK stores are divided into six formats, differentiated by size and the range of products sold: Tesco Extra stores are larger, mainly out‐of town hypermarkets that stock nearly all of Tesco's product ranges; Tesco superstores are standard large supermarkets, stocking groceries and a much smaller range of non‐food goods than Extra stores; Tesco Metro stores are sized between Tesco superstores and Tesco Express stores. They are mainly located in city centres and on the high streets of small towns; Tesco Express stores are neighbourhood convenience shops, stocking mainly food; One Stop stores are the only category which does not include the word Tesco in its name. These are the very smallest stores.

Core Values: We make what matters better, together.
This is categorised into three
1. No one tries harder for customers: • Understand customers • Be first to meet their needs
• Act responsibly for our communities
2 We treat everyone how we like to be treated: • Work as a team • Trust and respect each other
• Listen, support and say thank you • Share knowledge and experience
3 We use our scale for good: • Creating new opportunities for millions of young people around the world• Helping and encouraging our colleagues and customers to live healthier lives and through this helping to tackle the global obesity crisis• Leading in reducing food waste globally

Vision and Strategy
Our Vision guides the direction and the decisions we take as an organisation.
1. To grow the UK core
2. To be an outstanding international retailer in stores and online
3. To be as strong in everything we sell as we are in food
4. To grow retail services in all our markets
5. To put our responsibilities to the communities we serve at the heart of what we do
6. To be a creator of highly valued brands
7. To build our team so that we create more value

TECHNOLOGY
At Tesco, technology is right at the heart of our business - helping to improve the shopping experiences for all our customers. Technology is integral to all our business operations - from our numerous internal systems, electronic links with our suppliers and over 5,000 office based users to support - IT is truly a business partner.
To us we're not here to provide just hardware or software, our contribution is to provide services and innovative IT solutions which improve the lives of our people and customers.
INFORMATION SYSTEMS USED IN TESCO
1. EFTPOS – Electronic Point of Sale. It is commonly referred to as check outs. EFTPOS is where Customers purchase their goods. They are linked to the stores ordering Book-stock system which automatically generates a new order when products are summed. They are also linked to the Back Office which keeps records of the price which can change daily. Payments can be accepted by cash or chip and pin which connects to the Merchant Bank electronically

2. PDCU: It is a hand held mobile device which is linked to the main frame and back office. It enables. It enables employees to update the system whilst been mobile on the shop floor. They are largely used for stock take and reduction on products which are going out of code and request a shelf label.
3. MAIN FRAME: It is also referred to as sales based ordering. It is a system dating back to the 1960’s. It is still used today despite its complexity and difficulty to navigate because of its durability. It is arguably the most important system as it is responsible for the complex ordering of stock and tracking waste and shrink. It is responsible for communication between stores and distribution and for controlling multibillion stock each year
4. OFFICE TOOLS: It is a combination of Windows Office programs running at the windows platform. This is at the core of communication between head office and regional managers. Outlook is used to communicate messages at all levels of management and send them received important business updates. Other software’s includes Excel, Word and Adobe
5. CHECK OUT BACK OFFICE. It records electronic journal of all transactions at the EFTPOS. It purposely calculates the days sales. I tis particularly used for crimes protection and for tracking staff theft through cash lost. This can be checked by looking at Employees Unique Till Code which will allow you to see their last transaction, the date of the transaction and the time of the transaction
6. CCTV: This is responsible for the detection and prevention of crime in store. More than the recordings of cameras, it is linked with Central Station, so that the store can be monitored remotely when it is closed. It is also linked to the Checkout BackOffice to prevent collision at the EFTPOS by recording what Cashiers actually scan through the tills. Then the Checkout Back office allows you to see the actual transactions and what they actually scanned
7. THAF: This keeps all the records of Tesco’s Employees’ PAYE details. It is responsible for communication between stores and Head Office to ensure all Employees are coded correctly. This could include updates on sickness, Holidays and overtime
8. TESCO BACK OFFICE: This is responsible for Price Integrity throughout the store and communicating Price changes from Head Office to the stores automatically printing labels on the store’s printer. The system also have Information about the store’s planograms about how the stores should be laid out and keeps track with everything to do with cash like how much money is in the save and how much money is in the tills

2. BRIEF ACCOUNT OF THE ANALYTICAL FRAMEWORK TO BE USED

3. DESCRIPTION OF HOW PRIMARY RESEARCH WAS CARRIED OUT

4. THE MAIN SOCIAL – TECHNICAL – ECONOMIC – ETHICAL - LEGAL ASPECTS FACED

Ethical Issue in use of IS/IT
Such as security, customer details, Credit card details, Online theft, hacking or cybercrime , system copy. Information system use computer and other hardware and air for network, It can cut down some employee who doing things manually and increase unemployment. Day by day information system changing its security level and strategy so there is only little ethical issue left for solving

Threats:
Political factor can change business rules. Raw materials price increase suddenly. Economic and environmental factor can reduce profit. Competitors take over the market. Economic collapse, customer-buying pattern changed and over productivity. Innovation strategy takes the customer other competitor.

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5. EXPECTED FINDINGS

An information System collects, stores and processes data to provide useful, accurate and timely information

What is an information system?
A set of interlinked components to process, store, distribute & control information and/or provide analysis & visualisation aid to managerial problems

Understanding people – customers, colleagues, communities – and what matters to them, and then trying to make those things better, is at the heart of Tesco. It’s about listening to people and talking to them using all the tools at our disposal – from
Clubcard data to social media – and then acting by changing and innovating to meet their needs.

We know that looking after our colleagues in a culture of trust and respect is essential to the success of Tesco. Where colleagues feel recognised and rewarded for the work they do together, where they have the opportunity to get on and where they are supported in their development as they move through their careers in the business – they in turn try their hardest for customers.

Our scale means that we can provide affordable, high-quality food to people around the world and create value for customers. We want to use this scale to create greater value for society as a whole. In many ways we do this already, whether it’s by creating thousands of jobs or working with thousands of farmers to provide world-class products.
But now we want to scale up our efforts and mak

The self-service checkout offers a possibility to lower prices by offering a wider variety and larger volume of stock with fewer employees

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Tesco

...Tesco Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, and United Kingdom. It is the second-largest retailer in the world measured by profit and third-largest retailer in the world measured by revenues. It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. Tesco Aims * To Maximize their profits * To Provide goods/services that is cheap and affordable to the public or consumers * To maximize their sales * To grow and maintain the number one retail company in UK Tesco Objectives * To increase market share * To do better than their competitors and remain the market leader * Offering customers the best value for money and the most competitive prices Growth strategies for Tesco Tesco’s use Ansoff’s Matrix because they are using different ways in order to make sure that the Business is meeting its customer needs. Tesco’s use market penetration to keep their customers loyal, they also use product development to introduce new products to their customers, they use market development to try and get customers to buy existing products and Tesco have expanded their Business by opening a store in South Korea. Market Penetration/Relationship Marketing The way Tesco have tried to get Customers to stay loyal is by offering...

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