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Unit 26: Managing Business Information

M1: Explain how information is used for different purposes in a selected organisation
In this task, I am going to explain the different ways why Tesco using information benefits
the organisation
...
Firstly, it helps
them to gain a competitive advantage over rival superstores, as they are able to keep track
of customer shopping habits, so that they would be able to give them customer benefits,
based on what they bought, so the customer may be sent vouchers,offers and
recommendations, so therefore they can ensure that customers remain loyal to Tesco, and
through communicating effectively through marketing emails for example, they will then be
able to have that advantage by offering better deals, and incentivizing loyalty
...
It is
also more efficient to the customer, as they are then able to see the products they are
interested in much more easily on the website, and therefore as a result, their online
shopping experience will be much easier, and through this, it may encourage repeat
purchase, as then the customer will become accustomed to the layout and efficiency if the
Tesco website, so as a result, they will be more likely to return
...


Secondly, by Tesco accessing qualitative data (opinion based data such as what customers
think about Tesco), it can influence decision making, both operational and strategic
...
By accessing this data, it can also promote
efficiency, as Tesco will then become more efficient in terms of adapting to the customer
needs, as the more they carry out surveys, the more data they will have to deal with, and as
a result, they will have a larger sample size, and will then receive a general consensus on
what the general public thinks about Tesco, and therefore they can act according to what the
customer thinks about the store, experience, etc
...

Tesco uses information, in store for different purposes, such as stock control, in order to
maintain the level of stock in store, to ensure that the shelves are never empty
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The advantage of this is efficiency, as it would ensure that the
warehouse is never empty, and always has the products that the customer needs, so
therefore, would avoid a situation where there is an empty shelf
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This would also help with administration purposes, as the stock control is always accounted
for, and therefore whoever needs to access the stock control, always has the correct figures
from the program, helping the administration to run more smoothly
...
The advantage of monitoring sales
information is that it promotes efficiency, as it gives the manager an insight into what
products are doing well, so therefore the manager can come to a decision much quicker, as
they have seen the most important figure to them, and therefore based their decision solely
on this to either continue selling or withdrawing it , and therefore, this influences decision
making effectively, as then it takes away bias, from if a manager personally likes the product
and will continue to sell it, and by looking at this information, helps to influence decision
making, to make it more efficient, and help the store as a whole, to continue to be profitable
in the long term
...
For example, Tesco managers may review how many transactions there are per till
on average per day, and this may tell them if they need to increase or decrease the amount
of tills they have in the store
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In terms of home delivery, in order to promote efficiency, Tesco accounts for where the
customer lives, so therefore they select the correct warehouse, so that the delivery driver is
as close as possible and doesn't have to drive as far, in order to keep the food fresh, and
also to ensure that the customer gets their delivery on the day they requested and on time
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Finally, Tesco managers may use information to see how successful promotions are by
viewing transactions and stock figures, as this would impact decision making in the long
term, so for example, if the Tesco manager wanted to see if a certain promotion was
successful, they would look at the sales figures from last month and compare them to those
of the promotion data and see if there was a significant increase, so therefore, by looking at
sales data, you can view if certain promotions have a positive impact on the sales figures of
Tesco
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