Research Report: Sales Performance Impact on Tesco's Long-Term Growth

This report presents a comprehensive analysis of Tesco plc's sales performance, focusing on its impact on the company's growth and long-term sustainability. The research explores factors affecting sales within the competitive UK retail industry, including the impact of economic recessions and the rise of substitute products. The report examines Tesco's sales strategies, assessing their effectiveness in maintaining market position and generating revenue. It also includes a literature review, research proposal, and data analysis to support its findings. The study concludes with recommendations for Tesco's management to improve sales performance and maintain a competitive edge, emphasizing the importance of adapting to changing consumer preferences and market dynamics.

RESEARCH FOR SENIOR MANAGERS

TABLE OF CONTENTS
Task 1 Introduction...............................................................................................................................
Factors contributing in selection of research questions...............................................................1
Research Aim and Objectives......................................................................................................1
Rationale behind Aim and Objectives.........................................................................................2
Research Questions......................................................................................................................3
Rationale to the defined research questions.................................................................................3
Task 2 Research Proposal.....................................................................................................................
Background of the study..............................................................................................................3
Scope of the study........................................................................................................................4
Research Aim and Objectives......................................................................................................5
Literature Review........................................................................................................................6
Success criteria for the project.....................................................................................................6
Rationale of the success criteria for the project...........................................................................6
Research Techniques...................................................................................................................7
Time scale....................................................................................................................................7
Task 3 Literature Review.....................................................................................................................
Literature Review........................................................................................................................8
Bibliography of Material...........................................................................................................10
Task 4 Data Analysis..........................................................................................................................
Data Analysis.............................................................................................................................10
Conclusion and recommendations.............................................................................................14
References..........................................................................................................................................

TASK 1 INTRODUCTION
Topic:
“To assess the importance of sales performance in growth and smooth running of Tesco
plc.”
Factors contributing in selection of research questions
Looking at the nature of selected topic there are several factors associated which
supported and contributed in the selection of research questions. Herein, one of the major factor
is significance of sales performance given by the companies operating in the retail industry. It is
because of the fact that, increasing level of competition and availability of number of substitute
products has affected the sales performance of the companies. Thus, defining the appropriate
research questions assist in addressing different aspects about the study in more reliable and
suitable manner. Following are the other factors contributing to the process of successful
research question selection:
 Internet: There are several internet sources who provides wide range of valuable
information regarding the importance of sales performance for a company in maintaining
its growth and long term sustainability. Thus, I am excited to gather such information and
enhance my knowledge and skills regarding the sales performance and its importance for
smooth future contingency.
 Interest in the selected topic: Being a management student, I am curios enough to
understand the factors affecting sales as well as the tactics employed by Tesco plc in
maintaining its sales performance in such a competitive working environment.
Research Aim and Objectives
Aim:
“The main aim of the present research is to assess the importance of sales performance in
growth and long term sustainability of Tesco plc.”
Objectives:
In regards to achieve the defined aim of the study it is essential for the investigator to
frame suitable objectives on the basis of which different aspects of the study can be analysed in
in-depth manner. Following are the objectives of the present research:
 To assess the factors affecting the sales performance in retailing sector.
 To identify and understand the effectiveness of sales strategies employed by Tesco plc.
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 To measure the significance of enhancing sales performance in attaining long term
sustainability.
 To suggest potential tactics to Tesco plc for maintaining the competitive edge within the
retail industry.
Rationale behind Aim and Objectives
Aim:
Aim of the present study is to assess the significance of sales performance in attaining
and growth and long term sustainability of Tesco plc. The main purpose of framing this aim for
the present study is because, looking at the present condition of retail market in UK, increasing
competition has affected the course of different companies to a great extent. However, increasing
competition has led to inclusion of several problems such as difficulty in establishing business,
generating demand as well as satisfying the changing needs and wants of customers has affected
the sales performance of the businesses. Thus, dealing in such a competitive environment it is
important for managerial level people of Tesco to make sure that they employ effective and
smart sales strategies in order to attract and influence people so to generate higher business
volume in the future contingency and leads to attain long term sustainability.
Objectives:
The rationale behind developing objectives for any study is to bifurcate the overall aim of
the research in different parts so that, researcher can smartly and effectively address each and
every aspect of the selected topic and generate desired results and outcomes. Similarly, certain
objectives have been developed for the present study with that aim of assessing the contribution
of sales performance in the growth and long term sustainability of Tesco plc.
Herein, first objective is developed with the purpose of identifying and evaluating the
factors that affects the sale performance of a business in competitive retail environment. So that
risks and uncertainties that can affect the sale performance can be addressed and accordingly
potential measures can be employed to improve the actual performance against the several odds.
Second objective framed with the tenacity to identify and assess the strategies and tactics
employed by Tesco plc to attain leading position in retail industry as well as maintaining its level
of functioning for such a long period.
Third objective is to justify the importance of measuring the performance at regular
intervals. However, by the means of literature review, researcher is focusing of justifying the fact
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that, monitoring the sales performance assist in increasing sales by providing right products to
right people at right place.
Lastly, after assessing the current sales performance it is important to recommend few
smart and effective strategies on the basis of which senior authority of Tesco plc can improve its
performance and generate higher revenues.
Research Questions
Developing questions for a research is considered as the important task for the
investigator. It is because of the fact that, research questions assist in developing suitable base
for the study on the basis of which results and findings are justified. Following are the research
questions for the present study:
 What are the factors that distresses the performance of sales of companies dealing in
retail sector?
 Define the effectiveness of sales tactics employed by Tesco in maintaining its position in
such intensify environment?
 To what extent sales performance assist Tesco in maintaining its long term sustainability?
 What recommendations are to be given to the management of cited from in terms of
improving their sales performance?
Rationale to the defined research questions
The rationale behind defining research questions is that it will assist in developing
suitable base or platform for the researcher in carrying out the entire course of study. However,
each of the question is framed with the aim of addressing the aim and objectives. By the means
of this, level of study can be enhanced as well as understanding and knowledge regarding
different aspects of the study can be improved.
TASK 2 RESEARCH PROPOSAL
Background of the study
In the present era, retail industry in UK is one of the biggest sector in terms of
contributing towards the growth and stability of country’s economy. However, it is one of the
prominent source of income for UK as there are large number of companies operating in it and
putting tons of efforts to earn higher revenue for enhancing market share and attaining the future
sustainability (Chan, P., Finnegan and Sternquist, 2011). Herein, researcher focuses on assessing
the significance of sales performance for the sustainability of Tesco Plc. Being a leading retail
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firm around the globe company offers grocery and general merchandise to its customers to
satisfy their needs and wants to a great extent.
The main purpose of company’s existence is to offer quality of wide range of products
and services at affordable price under one roof. It is because of the fact that, owner’s wants to
satisfy the varied desires of within specified premises as well as enhancing the convenience of
the people. In terms of competitiveness retail sector is prominent industry because of large
number of enterprise dealing in it increases the level of competition (Preuss, 2013). To maintain
position in such a market it is important for the companies to bring innovation and creativity
within their approach as per the changing taste and preferences of customers to generate higher
revenues. The main purpose of this study is to assess the importance of sales performance in the
growth and smooth running of Tesco plc. Considering the sales performance of company in
recent past it has been evaluated that decreasing results are because of recession in the economy
of UK. Despite of offering basic amenities and grocery item, Tesco’s sales has shown declining
results and it is because recession has impacted the spending power of the people. In this
condition, it is important for senior authority of Tesco plc to make sure that they offer superior
quality of products and commodities at affordable prices (Cohanier, 2014). Apart from this,
increasing level of competition is another emerging issue for the functioning of Tesco as it is
affecting the revenue generation negatively. Further, increase in competition has led to enhance
the number of substitute products which directly or indirectly affects the loyalty of the customers
as the switching cost decline in significant manner for the people.
In context to research conductor, there are certain expectations regarding conducting this
study i.e. researcher aims to enhance his knowledge and understanding regarding retail industry
of UK. Along with this, strategies and tactics employed by such large enterprises to enhance
their sales performance despite of increasing competition. In addition to this, use of different
tools and techniques researcher aims to enhance his skills and abilities regarding application on
the selected subject matter. Herein, use of excel for presenting the gathered data in graphical
manner will assist the course of enhancing presentation skills for the individual.
Scope of the study
In the current research study, investigator focuses on assessing the economic position of
Tesco plc on the basis of its sales performance. However, scope of the study can be defined as
this study would be beneficial in terms of corporate level as managerial level people of Tesco plc
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can use the findings in making smart and effective decisions regarding sales performance and
strategies employed. Further, through the means of assessing the challenges and/or problems that
top level management of cited firm is facing in regards to enhance its revenue generation as it is
declining in significant manner from recent time as well as undertake potential measures to
improve the overall functioning for near future.
In context to future scope of the research, study can be molded with another company to
considering the other factors such as customer satisfaction, marketing efforts, human resource
management that are affecting the growth and long term sustainability of Tesco plc. By
considering this prospects will assist in evaluating the cultural and other dimensions of Tesco plc
so that associated flaws and obstacles can be identified and accordingly measures can be
recommended. Contrary to this, present study also illustrates the strategies and tactics that are
employed by the top level management of Tesco to reach such heights in competitive sector.
Further, assessing strategies and tactics indulged by Tesco can help the course of other
companies to attain success in near future or establish their position in such a competitive
working environment. Considering the scope of study from the academic point of view, it will
help the course of researcher to enhance or improve knowledge and understanding related to
retail sector, approaches used by Tesco plc as well as improve abilities in carrying a research on
the given subject matter.
Research Aim and Objectives
Aim:
“The main aim of the present research is to assess the importance of sales performance in
growth and long term sustainability of Tesco plc.”
Research Questions:
 What are the factors that distresses the performance of sales of companies dealing in
retail sector?
 Define the effectiveness of sales tactics employed by Tesco in maintaining its position in
such intensify environment?
 To what extent sales performance assist Tesco in maintaining its long term sustainability?
 What recommendations are to be given to the management of cited from in terms of
improving their sales performance?
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Literature Review
The main purpose of carrying out literature review is to undertake the studies made by
different authors and scholars on the related topic so that proper theoretical base can be
developed to understand each and every aspect appropriately. Herein, literature review aims at
assessing the retailing industry and factors associated in negatively affecting the sales
performance of businesses operating in retail industry of UK (Töyli and et.al, 2008). Further,
strategies and tactics employed to improve the revenue generation has been taken into account so
that knowledge can be increased on the available methods through a retail organisation can
improve its sales performance.
Success criteria for the project
The primary objective of researcher is to complete the research in successful manner by
achieve desired aim and study questions. In order to do so it is important for the investigator to
make sure that entire course is carried out in smart and effective manner. Following are the
major success criteria that researcher is focusing upon:
 Conducting successful and valuable research from readers and learners point of view it is
essential to attain all the defined aim and objectives.
 Make use of reliable and suitable primary and secondary sources for gathering
information as well as analysing the data so that desired findings can be generated
(Davis, 2008).
 Personal expectations of researcher need to be considered and given proper attention in
order to achieve the overall aim of the study.
Rationale of the success criteria for the project
The main purpose of carrying out any study is to achieve the defined aim and objectives
so that valuable information can be presented to the readers and learners. However, conducting
report on such a critical topic it is important for the researcher to undertake suitable methods and
techniques so that achievement of goals and objectives can be justified. Achieving the aim and
objectives of any research is considered as one of the most significant success factors in research
project. Furthermore, to maintain the ethicality of research and ensuring reliability and validity
of findings it is important for the investigator to select suitable and smart primary and secondary
sources for gathering the information. Thereafter, on the prospects to conduct research study
successfully, researcher needs to make sure that his personal expectations are also achieved. For
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this study, researcher aims at enhancing knowledge and understanding regarding retail industry,
significance of sales performance, use of different tools such as graphical presentation etc.
Therefore, it can be said meeting all three criteria would leads to conduct the research project in
successful manner. Along with this, make sure that expectations of readers and learners can be
satisfied.
Research Techniques
There are several researcher techniques that plays vital role in ensuring the achievement
of effective and reliable results and findings (Andersen and Poulfelt, 2007). In context to conduct
the study in appropriate manner it is important for the researcher to select suitable methods and
approaches. Following are the research techniques used for present study:
 Research Design: It assist in defining the type of study which researcher is focusing on
conducting. There are two types of research design: descriptive and exploratory (Galvez-
Martos, Styles and Schoenberger, 2013). According to the nature of present study,
exploratory research design has been selected because it will assist the course of
investigator to investigate the phenomenon in detail and collect wide range of
information for generating feasible findings.
 Research Approach: In research, appropriate approach assist in enhancing the validity
and reliability of the study. In general, two types of approach present i.e. qualitative and
quantitative (Ahearne and et.al, 2013). Herein, qualitative approach has been selected
because it will help in illustrating findings and collected data in appropriate manner as
well as make easier for the readers to understand. For this, thematic analysis will be
selected for presenting the data on the basis of different themes.
 Data collection method: According to the nature of selected topic, both primary and
secondary data collection methods will be used. Rationale behind using both approaches
is to make sure that wide range of valuable information is collected on the topic. Herein,
for collecting primary information survey methodology will be employed in which
questionnaire approach has been selected (Yu, Ramanathan and Nath, 2014). Further,
sample size of 50 mangers of Tesco will be selected on the basis of purposive sampling
and questionnaire will be distributed to generate adequate amount of information.
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Time scale
Activity 1st
Week
2nd Week 3rd Week 4th Week 5th Week 6th Week 7th Week
Setting up project plan
Opening of report
Aims and objectives of the
research
Literature Review for the
research
Application of various
research methodologies and
approaches
Collection of data
Analysis of collected data
Conclusion
Evaluation of the report
Submission of final report
TASK 3 LITERATURE REVIEW
Literature Review
Literature review is considered as one of the most important aspect of the study because
it assist in developing suitable theoretical base on the basis different theories and studies of other
authors. The main purpose of this section is to support the researcher in drafting conclusion as
per the past findings and studies (Garg and Garg, 2013). Retail industry in UK is considered as
one of the biggest sectors in terms of revenue generation as well as offering high rate of
employment. According to _____ there are several companies that are operating in the retail
market and making valiant efforts to generate higher sales and profitability. Considering the level
of competition that existing companies are giving to each other encouraging each firm to
innovate and offer products and services at affordable prices. In the study of Hills (2014)
researcher identified that, UK retail industry has employed over 2.8 million people in 2015 and
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till 2020 the sector workforce is projected to grow by 54800. However, in which majority of
growth (41700) is expected to be in managerial position. It is because of the fact that, demand of
highly skilled managers is increasing day by day as companies are facing major issues and
problems from increasing competition as well as maintaining competitive positioning (UK Retail
Stats and Facts, 2016).
According to Varley (2014), looking at the present competitive environment companies
irrespective to their sector have to make valiant efforts so that they can create demand and
maintain its position within the target market. In particular Agrawal and Smith (2015) defines
that, sales performance is one of the most important aspect of a business enterprise and in order
to attain long term sustainability managerial level people have to undertake effective sale
strategies. In this context research of Yu, Ramanathan and Nath, (2014) illustrate that,
competition is one of the major factors in affecting the sales performance of businesses in retail
sector. However, constantly increasing level of competition is negatively affecting the customer
loyalty and base of different companies in retail sector UK such as Tesco, Sainsbury, and Nectar
etc (Tesco Plc Annual Report and Financial Statements, 2014). This is the reason that several
authors defines because of which sales performance of Tesco is declining each year.
Contrary to this Ahearne and et.al, (2013) describe that, increase in number of substitute
products is also affecting the sales performance adversely. At present every retail outlet of
supermarket offers grocery and other basic products due which its substitution has increased.
This indeed influence people to buy from the cheapest source that directly affects the sales
performance. Similar to this Davis (2008) defines that, changing taste and preferences of
customers is another major factor because companies operating in the sector if they are unable to
change their portfolios or services as per the taste and preferences of target audience than it may
decline their sales as companies would face issues in attracting or influencing audience (Ahearne
and et.al, 2013).
In context to sales management study of Chan, Finnegan, and Sternquist (2011) illustrates
that, better sales performance assist in maintaining the financial position of the company
whereas, declining sales performance may affect the overall position of the business in the
market. In particular to the retail sector maintaining sales performance assist in attaining long
term sustainability. Supporting to this Preuss, (2013) illustrates that, having better sales
performance assist in enhancing the profitability of the firm as well as support in expanding
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business for future contingency. In order to attain future growth and success, companies like
Tesco, Sainsbury and Nectar etc. are employing different sales strategies so that revenue at
constant basis can be improved and overall performance of the firm can be enhanced.
Bibliography of Material
In general, study material or information is considered as the base of any research. There
are several sources through the means of which researcher conduct the entire course of study in
suitable and reliable manner. According to the nature of present study, researcher has used
different sources for collecting data or information as well as ensuring the validity and reliability
of the whole research. In addition to this, bibliography assist making accurate and reliable use of
information gathered as it ensure the proper citation of the work (Töyli and et.al, 2008). By the
means of this, researcher evaluate the thoughts and viewpoints of different authors and experts
related to the topic for making the current study look more ethical and validate in terms of
findings and results generated.
TASK 4 DATA ANALYSIS
Data Analysis
In the current study, analysing of data possess great significance because it will help the
course of researcher to generate findings as well as compare it against the defined aim and
objectives so that overall success can be measured.
Theme 1: Varied factors have been identified for the contribution in successful run of
products and commodities of Tesco plc
Main features in the successful run of Tesco products Respondents Percentage
Quantity 12 24
Quality 20 40
Price Affordability 15 30
All of the Above 3 6
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