Forecasting and Purchasing Activities

FORECASTING AND PURCHASING ACTIVITIES IN TESCO PLC SUPERMARKET

Tesco plc is an international general merchandizing and grocery retail chain based in the United Kingdom and has the largest retail market share in Britain . Originally it was specializing in food products but now it has diversified in electronics , clothing and other services

Being an international firm , the operation management of the firm must be ready to deal with the ever changing world due to innovations in technology and globalization that has enlightened the consumers to demand for better services and products that may

even be customized

In trying to plan its operation , market forecasting is of paramount importance since it enables the firm to plan its products and services to avoid losses that may arise due to changes in the market . Market forecasting is usually done through the use of market research after critical evaluation of the weaknesses , opportunities , strengths and threat . Market evaluation is very important because some of its products are perishable while other depreciate and appreciate within a short span of time

The demand for the Tesco plc products mostly on the market forces of demand and supply . There is stiff competition from other supermarkets like Wal-mart , marks Spencer and many others . This necessitate the supermarket to carry out economic , social , political and technological analysis continuously , the firm further segments it products and services depending with the geographical location , population , and the income distribution that enhances effective competition

Since Tesco plc is a profit making firm the marketing information system is greatly involved in market research in both micro and macro environment this enables the firm to make the decision about what to sell or not to depending with the market survey results

Forecasting is closely related with purchasing , this is because the results realized from the market surveys of Tesco plc are use to determine the kind of products and services to stock in their chain stores in different locations of the world

REFERENCES

C . Donald Waters (1999 ) Operations Management , PricewaterhouseCoopers UK

Tesco PLC Pro retrieved on 30th , July , 2007 , available at

HYPERLINK "http /www .dailylead .com /news /GMA /companyData .jsp ?companyId 11516 www .dailylead .com /news /GMA /companyData .jsp ?companyId 11516

Tesco Plc : Overview , retrieved on 30th , July , 2007 , available at HYPERLINK "http /www .corporatewatch .org .uk ?bid 28 www .corporatewatch .org .uk ?bid 28

Tony Curtis (2006 ) Marketing in Practice Elsevier publishers , UK

Wikipedia , the free encyclopedia , retrieved on 30th , July , 2007 available at

HYPERLINK "http /www .wikipedia .org /wiki /Tesco www .wikipedia .org /wiki /Tesco

FORECASTING AND PURCHASING ACTIVITIES...