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Analyse the Significance of Planning Activities- Tesco

University: Imperial College Business School

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 4 / Words 931
  • Paper Type: Assignment
  • Course Code: HCMG101
  • Downloads: 636
Organization Selected : TESCO


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. 

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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 (IšoraItÄ”, 2014). Each enterprise has to face uncertainties. In such condition, sometimes, they may get failed to run their business 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)

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Aim and Objectives


“To analyze the significance of planning activities within retail sector: A study on Tesco”


  • 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

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?

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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 performanc

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