Significance of Planning Activities in Retail: A Tesco Dissertation

This dissertation analyzes the significance of planning activities within the retail sector, using Tesco as a case study. The research explores various planning activities employed by retail firms, factors influencing these activities, and the relationship between planning and business performance. The study investigates the influence of planning on Tesco's operational and financial performance, aiming to identify areas for improvement and suggest effective planning strategies. The dissertation employs a qualitative research approach, utilizing literature review, and data analysis methods to address the research questions. The findings are discussed in detail, offering insights into the importance of strategic planning for retail success and providing recommendations for enhancing planning activities within the sector. The study covers areas like marketing, financial, and human resource planning, and their impact on Tesco's profitability and market share.

DISSERTATION
(Analyze the Significance of Planning Activities
within Retail Sector: A Study on Tesco)

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
Background of the study..............................................................................................................1
Aim and Objectives.....................................................................................................................2
Research Questions......................................................................................................................3
Problem statement.......................................................................................................................3
Rationale of study........................................................................................................................3
Significance of study...................................................................................................................3
Research specification (appropriate research methods)..............................................................4
Research Gap...............................................................................................................................4
Structure of research paper..........................................................................................................4
Summary......................................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
Introduction..................................................................................................................................6
Planning activities in retail firms.................................................................................................6
Factors that impact on the planning activities of business..........................................................9
Relationship between planning activities and business performance........................................11
Influence of planning activities on operational and financial performance of firm..................12
Summary....................................................................................................................................14
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................15
Introduction................................................................................................................................15
Research philosophy..................................................................................................................15
Research design.........................................................................................................................16
Research approach.....................................................................................................................17
Research strategy.......................................................................................................................18
Data collection...........................................................................................................................19
Sampling....................................................................................................................................20
Data analysis..............................................................................................................................21
Ethical considerations................................................................................................................22
Reliability and validity..............................................................................................................23
Research method limitation.......................................................................................................23

Summary....................................................................................................................................23
CHAPTER 4: DATA ANALYSIS................................................................................................24
Introduction................................................................................................................................24
Analysis.....................................................................................................................................24
Summary....................................................................................................................................37
CHAPTER 5: DISCUSSION........................................................................................................38
Discussion..................................................................................................................................38
Summary....................................................................................................................................41
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...................................................42
Conclusion.................................................................................................................................42
Recommendations......................................................................................................................43
Reflection...................................................................................................................................44
Areas for further study...............................................................................................................44
Research limitations...................................................................................................................44
REFERENCES..............................................................................................................................46
APPENDIX....................................................................................................................................49
Questionnaire.............................................................................................................................49
Semi- structured Interview........................................................................................................50

CHAPTER 1: INTRODUCTION
Background of the study
Planning can be defined as a set of activities or processes that supports business units in
accomplishing their goal (Keep, 2014). Planning is an essential part of organization that helps in
identifying errors and finding appropriate solutions to resolve such problems. It is the
responsibility of higher authorities to review current operations of enterprise and identify overall
requirement of improvements (Fernandes and Chamusca, 2014). Clear goal and vision are the
key elements of planning because both these aspects aid in determining necessary steps that can
assist firm in meeting its organizational objectives.
Overview of company
Tesco is the leading retail firm in UK and third largest retail brand worldwide. Company
has employed more than 440000 employees who are serving mass audience across the world.
Millions of consumers come to retail shop of Tesco every week. Most of the people buy products
from online store of company. Entity offers them attractive discounts and provides high quality
goods at affordable prices (Factors that Influence Effective Strategic Planning Process in
Organizations, 2016). This has made Tesco an international brand and now, firm has many
stores in other locations as well. It is generating high revenues in the retail market and has gained
competitive advantage as well. In the year 2017 Tesco generated profit of 55.9 billion. Net
income in the same year was 54 million. Entity has made many joint ventures with other firms.
Company offers high quality retailing products to its consumers that helps the firm in satisfying
its consumers and retaining them in business for longer duration. Market share of the firm is
rapidly growing. Tesco is rapidly developing is stores in international market. It also engaged in
e-commerce business (Tesco company profile, 2004). This supports the firm in increasing its
profit to great extent.
Efficient planning process is the key element of success of entity. It is the process that
ensures effective utilization of resources (Keep, 2014). All large, small and medium sized firms
have different resources. Planning process assists top management in making effective decision
through which they can utilize their resources well and control the overall wastage. It supports in
maximization of productivity of business unit and gives them chance to gain more profit in the
market. Managing risk is another advantage of planning process (IšoraItė, 2014). Each enterprise
has to face uncertainties. In such condition, sometimes, they may get failed to run their business
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effectively. Ineffective allocation of resources, economic changes, operational errors, etc. are
many risks that can spoil the overall performance of organization.
Planning promotes team building spirit and managers become able to retain skilled
employees at workplace for longer duration. Market planning supports in analyzing internal and
external situation of firm. Furthermore, financial planning assists in utilizing resources well and
minimizing unnecessary expenditures of company (Environmental Factors in Strategic
Planning, 2018). Human resource planning is the most important part of retail firm. This helps in
identifying the needs of staff members and filling post by hiring skilled people in organization.
Inventory planning process is the set of activities that allows business in managing their stock
well and decreasing issues related to over stock or shortage of material.
Present research will analyze the importance of planning activities within retail sector. It
will examine various factors that can impact on planning process of the business unit. Research
paper will review the literatures of other authors who have prepared their article on same topic.
This will help researcher in developing understanding about the topic. In addition, it will explain
various research methods that are suitable for this dissertation. Study will analyze data and
interpret the findings (Williams, 2017)
Aim and Objectives
Aim
“To analyze the significance of planning activities within retail sector: A study on Tesco”
Objectives
 To examine various planning activities that are made by retail firms in order to sustain in
the market for longer duration
 To identify the factors that impact on planning activities of business
 To explain the relationship between planning activities and performance of Tesco
 To analyze the influence of planning activities on operational and financial performance
of Tesco
 To suggest the ways that can help retail firm in making effective planning for their
growth
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Research Questions
 What are the various planning activities made by retail firms in order to sustain in market
for longer duration?
 What are the factors that impact on planning activities of business?
 How planning activities and performance of Tesco are interrelated?
 How planning can influence the operational and financial performance of Tesco?
Problem statement
The main problem is identified in Tesco that a sale of the company is continuously
declining. Entity is facing huge loss and now it has become difficult for Tesco to sustain in
market for longer duration. Company requires improving planning activities and having to
implement these planning in workplace practices so that it can improve its performance.
Rationale of study
The main reason of conducting this research is that there are many retail firms which are
unable to run their business in an effective manner. Small retailers are facing huge loss because
of improper planning. It is essential to identify root cause of these issues and identify importance
of planning process for the growth of retail industry (Keep, 2014). Researcher has worked in
retail firm for several years and thus, individual is well aware with the fact that improper
planning can create consequences for the business unit. This is an interesting topic and
individuals can conduct effective research on the subject matter (Bryson, 2018). Furthermore,
there is huge data available on the same topic. This can support scholar in gathering in-depth
information about topic and developing knowledge about the importance of planning activities in
retail organization.
Significance of study
This study will be beneficial for the researcher in developing their understanding about
importance of planning process in retail sector. It will help other scholars in conducting research
on same topic in the future. They will get brief idea about subject which will aid them in
preparing an effective paper. Furthermore, it will be beneficial for retail firms in identifying
issues that they are facing and essential planning activities that can help them in enhancing their
revenues to a great extent (Wolf and Floyd, 2017). This will also be beneficial for small size
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retail organization in making effective plan for the improvements and enhancing their revenues
to a great extent.
Research specification (appropriate research methods)
Research methodology plays a significant role in dissertation. It helps the researcher in
selecting appropriate method through which individual can conduct research in an efficient
manner. Current research will take support of interpretivism philosophy. This will be beneficial
in involving theories and models related to planning activities. Furthermore, scholar will apply
descriptive design. This would support in describing elements in an effective manner and
answering research questions. Researcher will use primary and secondary; both data collection
sources. Individual will apply semi structured interview technique in order to gather primary
information about the importance of planning activities in retail sector. On the other hand, person
will also take support of books, journals, internet articles, etc. that can help the individual in
developing their understanding about topic. Data analysis is the most important part of
dissertation. It is essential for the investigator to analyze data in an appropriate manner so that
actual findings can be presented well. Researcher will apply thematic analysis method that will
be suitable and help in answering research questions in an efficient manner (Kazemi and
Szmerekovsky, 2015).
Research Gap
In the present dissertation scholar has not included statistical numbers and calculations for
finding actual facts. Specific planning activity of organization have not been taken into
consideration, the study has concentrated on overall planning activities and its significance for
business.
Structure of research paper
The entire dissertation will be divided into separate chapters. Structure of this study is
described as below:
Chapter 1: Introduction: This would be an initial part of this study in which scholar will give
brief overview of topic. Individual will frame aim and objectives. Furthermore, rationale and
significance of the study will be described in this section.
Chapter 2: Literature Review: This would be the next part in which scholar will review other
author’s literatures. These articles will be related to importance of planning activities in the retail
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sector. This will develop understanding of scholar and individual will be able to carry out
research in an effective manner.
Chapter 3: Research Methodology: This would be the next part in which scholar will select
various methods that can help individuals in conducting investigation in an effective manner.
This will include philosophy, design, approach, data collection tools, data analysis and ethical
considerations.
Chapter 4: Data Analysis: In this section, researcher will analyze data by taking support of
thematic analysis technique. Individuals will present graphs and charts in order to present the
data properly.
Chapter 5: Conclusion and Recommendations: This would be the last part of this dissertation
in which scholar will conclude entire study and will give necessary justification for improving
planning activities in retail sector.
Summary
Above chapter can be concluded as that planning plays significant role in business unit, this
helps the firm in minimizing risks and conducting operations in smooth manner. Use of
qualitative strategy would be more suitable for the present dissertation and will help in finding
accurate answers.
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CHAPTER 2: LITERATURE REVIEW
Introduction
Literature review can be defined as scholarly papers that have necessary information
about the current topic. Researcher has to review these articles in order to address research
questions. These are secondary data collection sources that enhance understanding of researcher
about the topic (Factors That Influence Effective Strategic Planning Process in Organizations,
2016). Investigator has to evaluate the data available on these literatures. It gives theoretical
details and helps researcher in determining the nature of entire study. This chapter will include
books and journals related to significance of planning activities in the retail sector (Shen and
et.al, 2014).
Contribution of authors
In order to critically review the literatures researcher has read other authors articles. All
these articles were relevant to the subject matter of significance of planning activities.
Arguments have been made in positive and negative both aspects. This has supported in actually
realizing importance of planning for organization. Some literatures were not based on significane
but these were reflecting the impact of planning on the firm.
Planning activities in retail firms
As per the views of Channon and Jalland, (2016) marketing planning is considered as one
of the effective planning activities that support the managers in identifying internal and external
situation of business unit in an effective manner. Each firm has its own strengths and
weaknesses. Apart from this, there are many other external factors that affect the overall
operations of organization (Ramanathan, Subramanian and Parrott, 2017). Marketing planning
helps entity in identifying real facts about company and identifying issue in firm. By this way,
managers can plan to resolve such issue and effective utilization of strong point of the
organization. Retail firms have to deal with customers daily. It is very important to provide them
goods and services as per their requirements. Effective marketing planning helps in conveying
the right message to consumers at right time (Hübner, Wollenburg and Holzapfel, 2016). This
makes them able to gather information about the needs of people. Entity can make changes in its
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operational activities in order to provide satisfactory products to the buyers (Environmental
Factors in Strategic Planning, 2018).
As per the view of Channon and Jalland, (2016) planning is considered as essential tool
that supports business in identifying risk and making effective strategies through which entity
can grow well. In the absence of efficient planning firm cannot identify its opportunities and
threats in the external business environment. For example Tesco always makes plan to open new
stores in other nation. This strategy or planning helps the firm in increasing its market share and
spreading its brand image globally.
De Baerdemaeker and Bruggeman, (2015) argued that lack of financial resources and
poor market knowledge can affect the overall operational efficiency of business unit to a great
extent. Effective marketing plan assists in analyzing the changes in needs of target audience and
gaining competitive advantage as well. Thus, management can prepare effective marketing
message that can influence the mind of people. As per the views of Bryson, (2018) financial
planning activities are considered as the most essential planning process. It is very important for
the organization to utilize their financial resources properly so that entity can generate good
revenues (Factors That Influence Effective Strategic Planning Process in Organizations, 2016).
Article explains that financial planning is the key process of success of any brand. If
management pays more attention on its financial resources, sales, profitability, cost, etc. It would
be beneficial in order to raise the revenues of company. By making effective plan to enhance
sales of business unit, retail firm can grow well and earn more profit. Effective financial plan
supports in identifying the unnecessary cost related to operational activities. By this way,
management can make effective action to have control over this expenditure and saving money
(McDonald and Wilson, 2016).
According to IšoraItė, (2014) employee retention is one of the short term goals of
retailers. In the high competitive era, there are many big organizations which are offering high
salaries to staff members. In such condition, people are leaving their job and moving towards
these firms which are providing good wages. This has created big trouble for the enterprise
because they lose their talented people and they have to spend huge money in order to recruit
new workers. Human resource planning plays a significant role in business unit HR manager is
responsible to hire skilled people and retain them at workplace for longer duration. They have to
ensure the gap between required staff and actual people. They make strategies through which
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they can meet with this gap. Sometimes, human resource team has to arrange training and
development programs for the growth of its employees. This helps in enhancing the skills of
people and improving their performance (Environmental Factors in Strategic Planning, 2018).
Effective planning in order to manage employees at workplace is helpful in improving overall
performance of company in the market. This is also beneficial in order to gain the competitive
advantage (Ramanathan, Subramanian and Parrott, 2017).
According to Channon and Jalland, (2016) Planning activities are unable to minimize risk
because there are many external factors that cannot be avoided. For example Tesco had to face
huge complications when economic condition of UK got changed. Though entity has planned to
provide goods to consumers at lower rate for increasing its sales but due to changes in economic
condition this planning did not give desired results.
Fernandes and Chamusca, (2014) stated that performance review is an essential part of
human resource management. HR manager has to plan to review the overall performance of
workers. On the basis of their performance, company offers rewards and recognition to them.
This planning can be beneficial in motivating people and making them positive towards the
brand. By this way, these persons perform well and they deal with consumers effectively.
Appropriate planning activities are helpful in managing the people well and improving
workplace environment. This is the way that can support in increasing productivity and
profitability of retailers. Bryson, (2018) argued that more than 37% retailers are engaged in
making high level operational planning. This assists in reviewing the existing performance and
making changes for gaining positive results (Factors That Influence Effective Strategic Planning
Process in Organizations, 2016).
As per the views of Wolf and Floyd, (2017) inventory planning activity plays a
significant role in the overall success of retail firm. Retail organizations have to provide
necessary items that are needed by consumers. In such condition, if they do not have managed
their inventory well then it would be difficult for them to provide goods to buyers at appropriate
time. This is an essential activity because if entity gets failed to manage its inventory well then it
might create issue of over stock. This can enhance the financial burden on an organization.
Retail industry is facing the main issue that many a times, people do not get products as per their
requirements. Many firms have limited stock that makes the buyers negative. In such condition,
they move towards other brands (Environmental Factors in Strategic Planning, 2018). For
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example: Tesco is the leading retail firm that makes an effective plan for managing its inventory
well. It identifies the basic needs of consumers and accordingly, it keep all goods in its retail
stores that is why consumers get all kinds of grocery products in its physical outlets.
Factors that impact on the planning activities of business
According to Channon and Jalland, (2016) there are many factors that create difficulty for
organization in making effective plan and accomplishing the business goals. One of the most
essential elements is economic component. This is the major factor that influences buying
behavior of the consumers. If economic condition of country is good and people have adequate
income sources then they will take more interest in spending their money but if they have limited
financial resources and have no employment opportunities then in such condition, they always
try to save their money. If company makes plan to enhance the price of its products but if
economic condition gets changed then entity will have to make changes in its planning (Lee,
2016). If there is economic slowdown then entity will not be able to offer attractive incentives to
its employees. This may put direct impact on planning activities because the people will feel
unhappy and they will leave their job soon. Channon and Jalland, (2016) argued that socio-
culture elements are the major components that influence planning activities of business unit.
Each person has different needs and it is the responsibility of entity to offer them such products
that can meet with their requirements (Factors That Influence Effective Strategic Planning
Process in Organizations, 2016). If retail firm offers same products to all consumers then entity
will not be able to satisfy its consumers. This may negatively impact the operational performance
of business unit to a great extent.
De Baerdemaeker and Bruggeman, (2015) argued that financial resources is considered as
one of the major element that impact on entire planning activities. In the year 2010 Tesco has
faced declining sales issue. In such condition it was unable to make changes in existing plan or
implement any new plan. This was creating problem for the business unit. It was not having
adequate additional resources so that it can make modification in its existing practices.
As per the views of Kazemi and Szmerekovsky, (2015) legal factor is considered as the
most influencing element that can affect overall planning activities of enterprise. Each firm
makes marketing plan by looking at the regulations. It is essential to make marketing message as
per the legal framework. Company cannot circulate any message which is against the law. If
entity makes strategy and government makes changes in existing rules, then it might create issue
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