This is a solution of ACC508 Informatics and Financial Applications in which we discuss business finance IT strategy can help your company cope with aging systems and limited resources that can lead to fragmented IT solutions.
In this report, the Informatics and Financial Applications of UK based groceries and general merchandise retailer named ‘Tesco’. In this report, use of social media in retail business and the way it is improving performance of a retail business will be discussed. In addition to this, opportunities that proper use of data can bring to a retail business will be discussed. In the end, a conclusion of the report will be given. Retailers engage in selling of products and services through a specified supply chain to earn profit and satisfy customer needs.
Tesco is global groceries and general merchandise retailer whose headquarter is situated in Welwyn Garden City of England. In term of revenue, it is the ninth largest retailer in the world. It is currently operating in seven countries that are situated in Asia and Europe. Its main market is in UK where it is considered market leader (Mason & Lang, 2017).
Tesco and its competitors use social media for different purpose like increasing its customer base, to increase its sale, increasing awareness of new products and many more purpose like these. Tesco use social media for the different purposes by various ways. Some of the purpose and ways are listed below.
- Tesco’s human resource department is engaged their customers effectively by using Tesco-themed Twitter feeds and Pinterest posts to increase awareness of their product line or to give customer advice about different shopping matter which will enhance customer overall experience with Tesco.
- Tesco also use social event as birth of royal baby to invent new product will increase engagement with their customers and boost their sale (Dahl, 2018).
- Tesco use Facebook to encourage their customer to tell their shopping story or give likes to their post and offer incentive like clubcard points. In this way, increase their social media presence and indirectly increase their sales.
- Tesco cross sell their product by giving seasonal recipe which include their product and after watching these recipe on their ‘real food’, people buy those product increasing these product sale (Ryan, 2016).
- Tesco Customer Care operates through Twitter in very efficient way responding to hundreds of customer queries daily. Therefore, increase the customer satisfaction with the brand.
These are some of the purpose for which Tesco use social media in different ways. Although, Tesco has successfully used social media to meet their business goal for some past year but it is currently facing some issue in social media like significant decrease in their twitter and Facebook followers which means Tesco is losing touch with its online customers which is hampering their business overall performance.
Effective and efficient use of data can improve a retail business performance significantly and bring new opportunities to the business. Tesco also use data from different sources in various ways for meeting different business goal, which are listed below.
- Increase their revenue by better understanding of customer needs and demands using customer feedback and other customer data available to them. Understanding of the customers’ needs and preferences provide organization opportunity to produce customized products and services that are trendy as well as able to mitigate different preferences of their core customer base. This way, organizations in the retail industry including Tesco become able to increase their revenue and sales volume effectively.
- Increase their productivity by using internal data of different work process performance to analyze, which working process is performing ineffectively and modifying that work process to increase overall productivity (Ross, 2017).
- Tesco also use data to formulate their long-term strategic planning about different matters like in which new market they should introduce themselves, what should be their pricing strategy, what should be their distribution channels and many more. Therefore, identifying new strategies and opportunities for this business (McDonald & Wilson, 2016).
- Tesco use monthly statement of expense data to make different managerial decisions that will facilitate new opportunities for the business (Marr, 2015).
- Cross selling of product by analyzing customer preferences through customer data, which increased the overall sale of the company.
- Tesco use interactive content or data in their website to increase their customer engagement and increase their customer base. Therefore, bringing new opportunities in form of new customers for the business (Peppers & Rogers, 2016).
- Information system called ‘G.O.L.D, had been implemented by Tesco in 1998, which helped them monitor stock level of goods in their warehouses, quality of their goods, supply chain management process and many other factors. This has helped the production department in managing stock and supplying them to customers in a better way.
Therefore, it can be seen that Tesco used data in improving their work process and achieving different business goals that ultimately help them increasing their sales. The figure about their yearly sale in given below to validate the above-mentioned point regarding proper use of data can increase the performance of the company.
(Created by the learner)
In this report, a brief introduction had been given about the Tesco and the discussed topic. This report include social media use in meeting different business goal like increase in engagement with their customers, increase in sales revenue, increase in awareness among its customers about its new products, efficient customer care operation and many more business goals like these. The social media networks mentioned in this report are Twitter, Facebook and Pinterest. In this report, the use of data by Tesco to bring new opportunities and meeting business goal had been discussed. The business goals mentioned are more efficient work process, increase in customer base, superior long term strategic planning for the organization and many more business goals like these.
Dahl, S. (2018). Social media marketing: Theories and applications. Sage.
Dobrin, D., & Dobrin, D. (2018). YouGov | Tesco profits fall has big impact on social media. Retrieved from https://yougov.co.uk/news/2013/04/19/tesco-profits-fall-it-pulls-out-us/
Marr, B. (2015). Big Data: Using SMART big data, analytics and metrics to make better decisions and improve performance. John Wiley & Sons.
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