Impact of COVID-19 on TESCO and Strategies for Business Development

This research project focuses on the impact of COVID-19 on TESCO, one of the leading retail organizations in the UK. It explores the challenges faced by the retail sector due to the pandemic and provides strategies to manage the situation and achieve business development. The research also analyzes the financial performance of TESCO during the pandemic and its implications. The study uses a mixed research approach and includes a literature review, methodology, and data analysis.

CW1: Research
proposal

Table of Contents
Title........................................................................................................................................3
Objectives:..............................................................................................................................3
Rationale................................................................................................................................3
Aim.........................................................................................................................................3
-Methodology.........................................................................................................................3
Approaches.............................................................................................................................3
Mixed approach-....................................................................................................................4
Design....................................................................................................................................4
Methods..................................................................................................................................4
-Participants............................................................................................................................5
Validity and reliability-..........................................................................................................5
Data analysis..........................................................................................................................5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7
Books & Journal:....................................................................................................................7

Title
“To formulate suitable strategies for achievement of higher competitive advantage with
relation to present changing situation of COVID-19 pandemic. “A case study on TESCO”
Objectives:
1) To evaluate the impact of fast changing external environment on functioning of retail
sector organisations.
2) To analyse the challenges associated with the present COVID 19 situation on TESCO.
3) To formulate suitable strategies to manage the scenario of COVID 19 in context of
TESCO.
Rationale
Main reason for this research project is that covid-19 has created a massive impact on
business sector. Also another reason for selection of this project is back it helps in providing
information about the changing market situation and its impact on organisation.
Aim
“To explore the massive impact of COVID 19 and adapt competitive strategies for
development of business”
Literature Review
Impact of external factor on retail industry
As per the view of Rigsby (2020), the pandemic has resulted in closure of many retail shops
in UK. This has been termed the retail crisis, The pandemic has created an environment
where the consumer are spending less while the retail costs are rising. The main driving
factors of change which are forcing retail shops in UK to closure are high business rates,
labour costs and weak consumer demand. It is evident that changes in the external
environment such as rising labour costs impact profitability of enterprises operating in the
retail sector. The political instability caused by Brexit will continue to impact retail firms
(The factors driving UK retail, 2020). The main retail organisations which face disruption
due to Brexit are those enterprises which are used to managing European supply chain,
recruiting European staff and selling cross border without payment of tariff. This will result
in disruption of supply chain as retail firms have to search for more feasible ways to gain raw
material and supply products.
Effects of COVID-19 on financial performance of TESCO
According to Barker (2020), COVID-19 has impacted businesses all over the globe. The
suspension of economic activity at some parts of the world due to trade restrictions imposed
by the government hampered growth of in many industries. Retail industry is one of the main

industries to be heavily impacted by the pandemic. This is because of the complicated supply
chain of most retail firms and low consumer spending during the pandemic. TESCO is the
leading member of the British retail sector is affected due to the pandemic. The impact of
pandemic on TESCO can be understood by looking at the financial performance on the
company. Group sales of the company fell down by 0.7 per cent at actual rates to £56.5
billion. Pandemic increased payroll, distribution and store expenditure which resulted in
additional costs between from £650m-£925m (TESCO warns of financial impact of Covid-
19, 2020). This had negative impact on the overall profitability of the company. In addition to
this, the initial panic surrounding COVID-19 lockdown resulted in influx of demand which
could not be handled by the respective company.
Strategies for reducing negative impact of COVID-19
According to Brewer, O'Neil and Gregory, (2021), the healthcare, retail and airline sector are
at the centre of immediate impact. Retail firms face the obstacle of responding effectively to
this crisis in order to emerge with profits. The deterioration of UK economy in fourth quarter
of 2019, many retail firms view the pandemic as a moderate or severe threat to their business.
Retail business firms need to build an effective and nimble crisis management plan in order
to deal if the situation worsened. Retailers need to take a control tower approach to crisis
management. This approach includes building a single point which includes all the
information and commands the decision making process. In addition to this business firms in
the retail sector need to scenario plan around digital channels usage in order to ensure that
they are able to fulfill consumer demand for digital services increases (Responding to
COVID-19: Six things retailers should do to keep calm and carry on, 2021).
-Methodology
Research methodology is an important part of research project this to be used in most
efficient manner as because it is defined as a process of investigation that exist researcher
collection and gathering of data as well as information for completion of the project. This
concept consists of different types of elements which are further discussed below-
Approaches
Quantitative- In this approach, it is a kind of a method which is used in research
methodology then information in data is to be collected on the basis of numerical form. This
approach is useful when researcher needed the statistical information. Moreover, it is also
analyse that using this approach is not easy as it is skills and expertise to understand the
numerical credentials (A Ramezan, 2019).
Qualitative- Qualitative research is a type of method which is used in research
methodology and it is defined as a collection and gathering of information in theoretical
perspective. This method of collecting data in research is more flexible as compared to
quantitative research. In this research methodology approach, researcher uses theoretical
aspects and accordingly decisions are made.

Mixed approach-
It is another approach which is used mostly in which both as well as quantitative and
qualitative approaches are being used. It is also to be viewed as appropriate type of research
which is helpful in collection of information for the research project.
Design
In research design refers to the tactics and strategies which I used integrate with the
different element of this study and logical and effective way. In research there are different
types of research design which are further explained below-
Descriptive research deigns- It is defined as a research design in which researcher
individually explain the situation under their research study. This design mostly helps in
analysing the need for the research (Cucinotta, 2020).
Experimental design- Experimental design refers to establishing the relationship
between the cause and effect of a specific situation. For example in this report experimental
research design is being adopted as because the situation of covid-19 pandemic is being
targeted.
Correlational design- It is another research design in which it is defined as a non-
experimental research design technique which is it helps researcher to create a relation
between two connected variables.
Methods
In research project, research methods important to be used on the basis of which it is
easy to carry out research processes. There are different types of research methods which are
used and are mentioned below-
Survey- It is a type of a research method in which information and data is being used
from the large people group and also different types of service having carried out like through
the telephone interviews, face to face forms etc. (Divan, 2017)
Questionnaire- Questionnaire is also the research method which is used in which it
focuses on collection of information from the large number of people and after them set of
questions about a particular topic questions can be multiple choice questions attitude scales,
closed questions and open ended questions. It is necessary for the researcher to analyse and
determine the information as well as the data of people so that it cannot be accessed by third
party.
Interviews- Interviews are also to be used by the researcher in which it is conducted
as a face to face, telephonic use of computer applications such as video call on Skype. It is

necessary for interview is to identify whether they are applicable and comfortable to give the
interview to researcher or not.
-Participants
Participants in research are the number of people from whom the information has
been undertaken and collective. So, in this research random sampling is being used and 30
participants or say 30 samples has been chosen.
Validity and reliability-
This depicts about what measures are being undertaken in order to increase the
validity and reliability of the undertaken research. As the research is based on impact of
covid-19 on Tesco and strategies to resolve the issue, so qualitative approaches is being
mostly used as because it reflects about the actual information and how practices can be
adopted by researcher to produce solution for the encountered problem (Dodds, 2020).
The truthfulness credibility of the method will be maintained by keeping the
information safe and secure and not allowing any other party to use it without authorisation.
Data analysis
Data analysis is important part which is to be properly considered in research project.
So in this project primary source has been used to analyse data for the chosen to obtain the
appropriate information. This has been further stated that with use of primary source
information and new data is being collected (Forni, 2021).

REFERENCES
Books & Journal:
A Ramezan, 2019. Evaluation of sampling and cross-validation tuning strategies for regional-
scale machine learning classification. Remote Sensing, 11(2), p.185.
Cucinotta, 2020. WHO declares COVID-19 a pandemic. Acta Bio Medica: Atenei Parmensis,
91(1), p.157.
Divan, 2017. Survey of research approaches utilised in the scholarship of teaching and
learning publications. Teaching and Learning Inquiry, 5(2), pp.16-29.
Farghaly, A., 2018. Comparing and Contrasting Quantitative and Qualitative
Research Approaches in Education: The Peculiar Situation of Medical Education.
Education in Medicine Journal. 10(1).
Dodds, 2020. Adapting research methodology during COVID-19: lessons for transformative
service research. Journal of Service Management.
Forni, 2021. COVID-19 vaccines: where we stand and challenges ahead. Cell Death &
Differentiation, 28(2), pp.626-639.
Gleason, 2020. Disability and the COVID-19 Pandemic(Doctoral dissertation, Carnegie
Mellon University, Pittsburgh, PA, USA).
Leavy, 2017. Research design: Quantitative, qualitative, mixed methods, arts-based, and
community-based participatory research approaches.
Muhammad, 2020. COVID-19 pandemic and environmental pollution: A blessing in
disguise?. Science of the total environment, 728, p.138820.
Schoonenboom, 2017. How to construct a mixed methods research design. KZfSS Kölner
Zeitschrift für Soziologie und Sozialpsychologie, 69(2), pp.107-131.

Tsang, 2020. An integrated research methodology to identify and assess knowledge risk in a
corporation with application to a financial institution. Knowledge risk management,
pp.135-158.
Waluszewski, 2017. Researching the interactive business world; interplay of research object,
methodology and theory. In No Business is an Island. Emerald Publishing Limited.
Yu, 2020. Applications of the experience sampling method: A research agenda for hospitality
management. International Journal of Contemporary Hospitality Management.
Online
Responding To COVID-19: Six Things Retailers Should Do To Keep Calm And Carry On,
2021.[Online] Available through <
https://www.mmc.com/insights/publications/2020/march/responding-to-covid-19--
six-things-retailers-should-do-to-keep-c.html>
TESCO warns of financial impact of Covid-19, 2020. [Online] Available through <
http://www.fruitnet.com/fpj/article/181444/tesco-warns-of-financial-impact-of-
covid-19>
The factors driving UK retail, 2020. [Online] Available through <
https://internetretailing.net/research-articles/research-articles/the-factors-driving-
change-in-uk-retail>