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to manage information technology in the bigest UK retail industry Tesco
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  1 Executive Summary In today's competitive business world, Information Systems (IS) and Information Technology (IT) is one of the critical aspects of firm's strategy formulation and implementation because 'information systems offer distinct opportunities for competitive advantage for a company' (Ives and Learmonth, 1984). Moreover, Mata, Fuerst, and Barney (1995) argue that 'IT can add value to the firm by minimizing cost or increasing revenue' thus improve firm's performance. A firm's success largely depends on how effectively it can integrate and manage the information system and technology in the process of strategy formulation. but rapid advancement of technology and increasing cost of managing information system make it difficult for the firm to effectively manage their information system and technology to create sustainable competitive advantage. Therefore, every managers must have a clear knowledge and understanding of all the aspects of information system and technology to be successful in this competitive business environment. Therefore, this report aims to explore the role of information and technology in firm's strategy formulation and implementation. In this regard, the paper analyze firm's competitive environment using some competitor analysis tools and identifies how information system and technology facilitates an organization to achieve competitive advantage. The study is based on secondary sources of information resources. The report investigates different concepts, issues, models, ideas, and practices of information system and technology to explain the concept by using the organization Tesco PLC as an example. The report uses different books, journals, reports to collect information about the issue. The www and online study also contribute a lot in this regard.  2 Table of Content Pages 1. Introduction 2. Profile of Tesco 3. Objective of The Report   03 4. Porter Five Process as Competitive Analysis Model ------------------------------ 4.1. Porter Five Forces Analysis: Tesco Perspective --------------------------------- 4.1.1. Threat of substitute products and services--------------------------------------- 4.1.2: Threat of new entrants ------------------------------------------------------------ 4.1.3. Rivalry among exiting competitor ---------------------------------------------- 4.1.4. Bargaining power of customer -------------------------------------------------- 4.1.5. Bargaining power of suppliers --------------------------------------------------- 5. Information System (IS) -------------------------------------------------------------- 5.1. Use of IS and IT in Tesco ---------------------------------------------------------- 6. Strategic Goal -------------------------------------------------------------------------- 6.1. Tesco: IS support to achieve Strategic Goal ------------------------------------- 7. Current Business Process: Tesco ---------------------------------------------------- 7.1. Impact of IS in Business Processes of Tesco ----------------------------------- 8. Competitive Advantage of Tesco ---------------------------------------------------   04 - 05 05 05 05 06 06 06 06 - 07 08 08 08 - 09 09 10 10 - 11 9. Conclusion ----------------------------------------------------------------------------- References and Bibliography ----------------------------------------------------------- Appendices -------------------------------------------------------------------------------- 11 12 - 15 16 - 17  3 1. Introduction  Now a day's most of the organizations are using information and technology to successfully manage their activities to achieve their desired objectives because IS and IT helps managers in quick decision making and exploit the opportunities to become competitive. Moreover, IS and IT facilitates coordination between departments or divisions and assists in managing the vast amount of diversified activities especially in retail industry where a huge number of transactions take place every day. Therefore, for a global retailer like Tesco PLC , the successful use of IS and IT is very crucial to remain competitive in this volatile business environment. 2. Profile of Tesco Tesco PLC (Tesco) is a multinational grocery and general merchandise retailer which was founded by Jack Cohen and now Sir Richard Broadbent is chairman of Tesco (Global Data, 2013; Tesco PLC, 2014). Now the headquarter of Tesco is located in Cheshunt, England (Tesco PLC, 2014). Tesco operates 6784 multi-format stores in 12 countries all over the world which includes Homeplus, Superstore, Extra Stores, Metro, Express and Hypermarkets and 537784 employees work with Tesco who serve ten millions customer every week (Global Data, 2013; Tesco PLC, 2014). Tesco produces a wide range of foods and non foods products such as clothing, household appliances, home entertainment, consumer electronics products and electrical goods, telecom, banking, stationery, health and beauty products, kitchen utensils, soft furnishings, fuel and other related products (Global Data, 2013). According to 2012-2013, Tesco's revenue is 64826 million GBP and net profit is 124 million GBP (Global Data, 2013). As the strategic goal, Tesco build the relation between customers and colleagues and high quality assets around the world which provides multiple growth opportunities (Tesco PLC, 2013). 3. Objective of The Report The main purpose of the report is to describe the role of information system and technology in strategic development and implementation. Some other objective includes :-    To indentify the importance of IS and IT link strategic development.    To analyze how IS and IT facilitate in achieving competitive advantage for a company.    To explore how Tesco uses IS and IT in formulation and implementation their strategy.  4 4. Porter Five Process as Competitive Analysis Model Porter (1980, 2008) developed the idea of five forces model first in 1980 which indicates five forces that shape an industry's competitive environment. Firstly, if the barriers of new entrants is low then the industry is less attractive for company to compete (Johnson, Whittington and Scholes, 2011). Secondly, the bargaining power of suppliers indicates the ability of suppliers which increase input prices or the cost of industry (Hill and Jones, 2007). The third, bargaining  power of buyers refers large measure on its ability which attract and retain customer and charge  premium prices (Laudon and Laudon, 2012). Threat of substitute products and services concern that when the threat of substitute is high, customer can switch from company's product to substitute's product (Robson, 1997). Finally, threat of rivalry determine competitive intensity within an industry (Rothaermel, 2008). Sources : Porter, M. E., (1980). Competitive Strategy . and Porter, M. E., (2008). The Five Competitive Forces That Shape Strategy.
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