MANAGING INFORMATION

Managing Information - Critical Evaluation of Relevant Issues

Managing Information - Critical Evaluation of Relevant Issues

Introduction

Organizations often used information systems to increase their overall efficiency and for better management of routine activity. At a Strategic level, objective of the operations management involves finding a sustainable competitive advantage for the company. In this connection, this study is going to discuss enterprise information architecture of Tesco and will also discuss issues in information system of Tesco. Tesco PLC is one of the world's leading international retailers. With a turnover of GBP 42.6 billion for year 2006, it is the largest British retailer and the world's third largest retailer behind Tesco (USA) and Carrefour (France). Tesco controls 30% of the grocery market in the UK, which is approximate to the combined market share of its closest rivals, Asda and Sainsbury's. Apart from being the national leader in the food sector, Tesco sells almost everything - books, CD/DVD/mini-discs, hi-fi and household appliances, household equipment, flowers, wine, apparel - the list goes on and on! With an eye to the future, Tesco has adapted to the rapid technological changes. In addition, production shops and service stations, and became one of the largest sellers of gasoline sovereign in the United Kingdom (Tesco, 2012).

Information System in Retail Operations

The basis of competition in UK retail industry has been shifting towards supply chain (Hughes and Merton 1996, pp. 4-6). The UK industry of grocery retail is very competitive and as many big names in the industry are competing to grab more customers. However, firms like Tesco, Sainsbury, ASDA and others have incorporated their supply chains into their business strategies. They are no longer concerned about cost reduction and other strategies rather supply chain is the most paramount concern to them. Companies are striving for having differentiated processes and capabilities that are supposed to be the support of supply chain (Accenture, 2010, pp. 33). Retailers are focusing on having better communication with their suppliers with greater and effective information sharing (Hammett and McMeikan 1994, pp. 4-6). This system works best when whole supply chain operates as a team instead of utmost effort of a single unit. Firms are supposed to be flexible and open to allow free communication and cooperation among different departments. A trend in UK retail industry is a quick response (QR), supply chain partnership which gathers retailers and their suppliers to carry out effective management of the whole supply chain. The approach has been adopted to eliminate supply chain flaws that make this system incompetent in any way. Firms are seeking to have longer-term relationships with a limited number of the supplier in an attempt to develop partnership-building approach to have a smooth process of supply chain (Hughes and Merton 1996, pp. 4-6). The system allows unhindered flow of information that helps the firms to respond to consumers' needs on time. This system is a huge success in the retail industry, and it is believed that it offers significant benefits to all parties involved in ...