How Does Tesco Use 5 Forces Model In Competitive Analysis?

QUESTION A1

(a) How can portfolio model help IS/IT strategic planning in terms of reaching a consensus among executive managers, line managers, and IT management?

Suggested Answer

Portfolio model visualises the role and importance of systems in organisations. Managers and technical experts can find it easy to organise their discussions and share their perspectives. An exchange of view should help establish the consensus.

(5 marks)

(b) Describe Strategic, Key Operational, High Potential, and Support classifications of applications in IS/IT portfolio. Give one example application for each classification.

Suggested Answer

Strategic applications create a clear competitive advantage for the business, enable the achievement of specific business

The model extends the perception of viewing competition as internal rivalry in such a way that analysis focusses on long-term prospects of growing and surviving.

(5 marks)

(b) Identify competitive advantage of TESCO and explain how does TESCO sustain it?

(3 marks for each factor x 5 = 15 marks)

(c) How can TESCO use Electronic Point-of-Sales System as strategic system?

Suggested Answer

Since fast checkout is a key success factor for supermarket, PoS can make significant change. Wallmart had implemented modern forms of PoS; e.g., RFID-based self-checkout.

(5 marks) (Total: 25 marks)

QUESTION A3

(a) With reference to TESCO case study, how do following systems complement and/or establish key success factors:

a. Electronic Data Interchange

b. Decision Support Systems

Suggested Answer

At least one system must be identified for each benefit. Core feature of the system should be related to the benefit.

(5 marks for each explanation x 2 = 10 marks)

(b) In perspective of resource-based view of strategy, Tracy and Wiersema (1993) suggest three paths of market leadership: Operational Excellence, Customer Intimacy, and Product/Service Leadership. How IS/IT can contribute in following these paths? Provide one example of IS/IT application for each of the

Information systems acquire important data, generate information and knowledge. Which contributes in analysis, and also provides patterns. Analysis and patterns may trigger ideas, and also can evaluate the potential of ideas.

((4 marks for each way + 1 mark for example of each way) x 3 = 15 marks)

(Total: 25 marks)

QUESTION A4

TESCO draws following benefits from its supply chain management due to utilisation of IS/IT. Explain how each of these benefits are generated by use of particular IS/IT system(s)?

(a) Right good at right place

(b) Reduction of stockholding

(c) Ease of dealing with large number of suppliers including those based overseas

(d) Minimised likelihood of stock-outs and the consequent loss of sales

(e) Improved efficiencies and productivity strengthening cash flow and profits

Suggested Answer

At least one system must be identified for each benefit. Core feature of the system should be related to the benefit.

(5 marks for each explanation x 5 = 25 marks)

(Total 25 Marks)

PART B: You MUST ANSWER ONE (1) of the TWO (2) questions in this section

QUESTION