Tesco; Strategic Direction
TESCO
The actual and potential impact of information on the strategic direction of the organisation.
EXECUTIVE SUMMARY
This report discusses the actual and potential impact of information on the strategic direction of Tesco, a food and grocery retailer. This report also analyse the important of customer in Tesco and how they use Clubcard to earn customer loyalty. Tesco is the UK 's largest grocer and they not only offer fresh food and chilled meals but also increased sales in the non-food sector (Datamonitor, 2009). Tesco know the basic principles of how to run a mass-scale, create value loyalty programme and had been proven and are still used today. Tesco can understand what their customer wanted by collecting data and with the simple marketing model for example ‘Every little helps ' and saying ‘Thank you ' to customers can achieve customer loyalty (Seth and Randall, 2005).
In addition this report studied the interaction of five different forces that happen in the business using Porter 's Five Forces Model introduced by Michael Porter (1980). The benefit of using of IT and internet for online shopping also gives benefit where Tesco can gain more profit. Implementation issue of strategy also explained for instance they have a problem when there was too much data and the problems with the data warehouses and how they create the solutions. This report also examined about the customer value in Tesco and discovered how they build a strong relationship to their customers. Lastly, the report concludes by recommendation that would be used by the organisation in order to maintain their growth in the food and non-food products.
INTRODUCTION
Information becomes a resource when it gives value to the organisation. According to Garai (1997), all information started as data and it has to be converted into information, knowledge, understanding, communication and intelligence in order to be useful and powerful data. We look from the perspective of Tesco in order to
The actual and potential impact of information on the strategic direction of the organisation.
EXECUTIVE SUMMARY
This report discusses the actual and potential impact of information on the strategic direction of Tesco, a food and grocery retailer. This report also analyse the important of customer in Tesco and how they use Clubcard to earn customer loyalty. Tesco is the UK 's largest grocer and they not only offer fresh food and chilled meals but also increased sales in the non-food sector (Datamonitor, 2009). Tesco know the basic principles of how to run a mass-scale, create value loyalty programme and had been proven and are still used today. Tesco can understand what their customer wanted by collecting data and with the simple marketing model for example ‘Every little helps ' and saying ‘Thank you ' to customers can achieve customer loyalty (Seth and Randall, 2005).
In addition this report studied the interaction of five different forces that happen in the business using Porter 's Five Forces Model introduced by Michael Porter (1980). The benefit of using of IT and internet for online shopping also gives benefit where Tesco can gain more profit. Implementation issue of strategy also explained for instance they have a problem when there was too much data and the problems with the data warehouses and how they create the solutions. This report also examined about the customer value in Tesco and discovered how they build a strong relationship to their customers. Lastly, the report concludes by recommendation that would be used by the organisation in order to maintain their growth in the food and non-food products.
INTRODUCTION
Information becomes a resource when it gives value to the organisation. According to Garai (1997), all information started as data and it has to be converted into information, knowledge, understanding, communication and intelligence in order to be useful and powerful data. We look from the perspective of Tesco in order to