The viability of a new computer system for TESCO

1.0 Introduction.

1.1 Background on TESCO.

As per the keynote reports, it is quite evident that TESCO has the major share in the UK retail market. Technological improvements in supermarkets have continually improved productivity and efficiency such as faster checkouts, more efficient pricing and payment options and hardware such as price scanners. Adapting a workable computer system is an option that all businesses who want to remain in the market must agree to. Competitior activity as well as environmental issues calls for efficiency in production something which leads to profitability and increased market share.

Therefore, for a company like TESCO to continue to be the market leader has to take certain steps to be on the helm. One of the ways is to get advanced in making use of new technologies, restructuring and redefining business processes by way of applying computer systems to enhance performance. The general objective of this research is to study viability of systems in the general running of TESCO. This research will seek to carry out an investigation of the feasibility of computer system in the running and management of Tesco as well as the benefits over the disadvantages of implementing such systems.

1.2 Background of the Study.

Advancement in the IT sector is bringing change to almost all businesses with effect of rapid development of information technologies. Advances in information and communications technologies are changing the goods and services that organizations offer, they are deeply affected by developments in technology for capturing, manipulating and transferring information.

E-transformation reflects rapid information flow, internet and intranet-based business and management system, IT system which penetrates the daily operation of organizations, and people who are willing to involve in this process and to utilize it to help improve work efficiency and make decision (Clinton, 1999:24).

1.3 Justification

                        Research conducted recently by (Derte & Hutter, 1999:98) showed that computerization saves businesses up to 40% of operational costs. This research is aimed at studying the current needs for TESCO with an aim of preparing the platform for initiation of computer system in its operations.

The company is in need of a new computer system capable of minimizing time wastage, increasing efficiency and cutting costs if it has to remain and thrive in business. To achieve its objective of being a market leader in the retail industry, TESCO needs a computer based system which is in line with its organizational needs. The study shall fill in that gap by producing a report that if adopted by the company shall guide TESCO into transforming into a profitable and effective business leader.

This research is aimed at revealing the opportunities that exist for TESCO to computerise its operations through moving into a new system. As mentioned elsewhere in this study, this is a big industry and involves a lot of management operations and therefore failure to adapt a new and efficient computer system would pose significant business threats to TESCO bearing in mind stiff competition it is experiencing from its competitors. The results of the study will hopefully, contribute to the solution of operational challenges facing TESCO and position TESCO in the right footing for future plans.

1.4 Research Question

The research shall seek to answer the following questions.

-How does Tesco stand to benefit from adapting computer system from the current traditional system?

-What is the cost involved in the research?

-Is the undertaking viable?

-Does the company have the infrastructure to support the change over to the new system?

1.5 Objectives of the study.

-To establish the effects computerization of operations will have on TESCOS profitability.

-To offer solutions to the operational problems facing TESCO by making recommendations based on the findings.

-To identify the main cause of the delays in supply being experience by TESCO.

-To identify the benefits of TESCO computerising all its operations.

-To establish opportunities for computerization in TESCO.

1.6 Risks of the study

Major limitations would be the hesitation to bring forth honest answers to the questionnaire particularly from those who are beneficiaries the current system and are uncertain of what a change over would mean to them.

1.7 Scope of the study.

This research shall concern it self with the extent to which computerization has been effected in TESCO as well as the gaps in computerization. This study shall not be interested in designing a computer system or suggesting a specific computer system but only in investigating the viability and need for a computer system in the entire TESCO management.

2.0 Proposed Methodology

2.1Research method

To answer the research questions, the researcher will use the survey method to gather data. Such shall include the filling of questionnaires as well as the holding of focus group discussions and semi-structured oral interviews. By use of a questionnaire the researcher shall aim at finding out how data flows in the organization, the communication flow, the procurement system and the human resource management and how all are integrated into one and whether the present system has any delays and wastage.

For sample purposes the researcher will use randomised probability sampling and a sample of 20 employees from different departments will be chosen for the survey. Since it is necessary to interview only those who have the capacity to answer and provide relevant, true and fair information regarding TESCO, the researcher will conduct oral interviews with managers as well as holding focus group discussions with the employees to discuss the perceived need of computerization of TESCO.

3.0 Conclusion

The research findings, shall act as the blueprint map for TESCO in becoming techno-savvy. It is quite clear that TESCO as an organization has to make certain corporate structural changes which will help the whole organization to run smoothly with help of internet and e-commerce.

4.0 References

Derte & Hutter, (1999): Computer system design. Macmillan’s. 98

Keynotes, (2003) Supermarkets & Superstores-Market Report 2003

Clinton W., 1999, “E-Transformation Information week: News in review” http://www.informationweek.com/752/trans.htm

Saunders, M., Lewis, P. & Thorn hill, A. (2003), “Research Methods for Business Students”, Pearson Education, Harlow

Delbridge, R & Kirkpatrick, I. 1994: “Theory and practice of participant observation”, in Wass, V. and Wells, P. (eds), Principles and Practices in Business and Management Research, Aldershot, Dartmouth, pp. 35-62

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