Tesco's Success in International Markets

This assignment delves into the key factors contributing to Tesco's successful expansion into international markets. It examines Tesco's strategies, emphasizing the importance of employee well-being, customer understanding, and adherence to European international trading regulations. The analysis aims to demonstrate how these factors have propelled Tesco's growth and performance on a global scale.

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Business Environment
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Business Environment
Contents
Task1...........................................................................................................................................................3
1.1 Identification of organisation Primark and discussion of its purpose................................................3
1.2 Description of the extension to which Primark meets the objectives of its different stakeholders...5
1.3 Explanation of the responsibilities of Primark as an organisation and the strategies employed to
meet them...............................................................................................................................................6
Task2...........................................................................................................................................................8
2.1 Research and explanation of the type of economic system operated in the following countries.....8
2.2 Assessment of the impact of fiscal and monetary policy on the following type of businesses..........9
2.3 Competition policy and other Regulatory policies in the United Kingdom......................................10
Task 3 – Essay..........................................................................................................................................12
3.1 Explain how pricing and output decision of business is determined in the following market
structures..............................................................................................................................................12
3.2..........................................................................................................................................................13
3.3 judge how the business and cultural environment shape the behavior of a selected company.....15
Task4.........................................................................................................................................................18
4.1 The significance of international trade to UK business organizations..............................................18
4.2 Analysis of the impact of global factors on UK business organization.............................................18
4.3 evaluation of the impact of the policies of the European Union on UK business organization.......20
References.............................................................................................................................................23
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Task1
1.1 Identification of organisation Primark and discussion of its purpose
Primark is the company which is the supplementary company, linked with the Associated British
Foods Group or ABF Group. In the year of 1969, the company was established in Ireland which
was trading by the name Penny's. Primark which is an organisation of private sector trades on
general accessories(Berry, 2004). The company, Primark has been expanded itself today that by
the year of 2000, the company has enlarged its wings at Britain and Ireland over hundred stores.
By the year of 2012, the company has enlarged its branches all over Ireland, United Kingdom
and Europe; the number of branches they have got still is more than 238. The company does not
go through so much expense which returns to them as a portion of the profit. The offerings of
Primark become so evaluative that consumers of this company never lose such interests upon it.
Besides this, the company has the most inventive factors which may appreciate by the
consumers. As Primark has got its own retailing business, the company does not make their
production house. The company makes dealings with its suppliers and the productions of the
materials are named as the product of Primark, this is what the retailing business deal with. The
products supplied by the company are specifically coined as of Primark. By this total procedure,
Primark helps itself to work with proper goods at the right place at the market with proper prices.
The profitability of Primark enormously depends upon the sales' sheer volume. Beside all these
things Primark maintains is the value or price-oriented job by the term of very low cost so that
the company runs on profit; the costing price of production get lower so that lowering of price
does not get effective to the company as well(Bubonia et al., 2012). All these protocols and
decorum are followed to make a record upon the working rate, economic valuation of the
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company and the distribution which has done efficiently. Primark works internationally, its most
of the business lie upon Europe and Asia; the key resources of suppliers the company gets from
Turkey, China, Bangladesh and India. These are those main countries from Primark used to get
its suppliers and resources. For providing better quality products, Primark uses to consult with
worldwide international experts, international organisations and surrounded partners too. As the
company manufactures their products in these countries, the countries get the help of having the
job at these manufacturing sites(Carlsson, 2014). Thus Primark helps their consumers and
employees in many ways and ultimately gets maximum profits for itself though it never deprives
the customers of getting their benefits as well.
Identification and discussion of the purpose of the following categories:
a) The public sector
Public sector organisations help the customers and consumers by the devotion of working
towards them. These organisations must have to follow specific rules, legislation of
government as well as some other code of conducts. The organisations have got so many
differentiated sectors where are different managements to follow up. Such sectors are
differentiated as Human Resource Management, Market Development wing, Market
Research management, production development sectors and much more(King and
Cruickshank, 2010). Such organisations are mean to serve the people by many says;
public sector organisation may be a part of the government which means the public sector
organisations are here to serve the public which may sometimes without benefits and
profits.
b) Charity
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The organisations which work over charitable programs such as the child labour
movement or some orphanage are meant to say as a Charity organisation. Charitable
organisations are more similar to the non-profitable sectors; in most of the cases, these
organisations do not follow with the workings upon profitability only. Some
nongovernmental organisations also work with these kinds of job specifications. A
charitable organisation is more over a non-profitable organisation or in some cases
government organisations too. The charity institutes are based on the educational sectors,
public welfares, religious, and it may work in different sectors, or it may be a total
foundation of a charitable organisation(Kramar, 2013).
c) Cooperative
Cooperative organisations are something different where the people work for their
organisation as well for themselves. At these kinds of a company, the amount of profit
which may gain through heavy work is distributed among the employees rather the
employees run the organisation. Cooperative units are a different kind of business
organisation which makes money using their services, gain profit up to a specified
saturation level and earn profits. There are neither such authorities nor the organisations
work for some other foundations. There are such basic points at these types of sectors that
the employees work here for themselves and gain the profit on their own(Meijerink,
Bondarouk and Lepak, 2015).
1.2 Description of the extension to which Primark meets the objectives of its different
stakeholders
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The most important thing for the Primark at their business is that the company runs the business
in a proper ethical way so that there are different stakeholders and suppliers of the organisation
through the whole world(Tinari and Betz, 2013). There are many more stakeholders, and Primark
follows a definite way to continue the business with them; thus Primark uses a Community
Engagement of program at India. Primark uses different channels to communicate with their
various stakeholders. As the ethical business runs the company smoothly also follow some other
criteria to maintain the business relationships with their stakeholders. This initiative has taken by
the organisation since 2006. It is a long chain of the non-governmental organisation, trade
unions, and over 60 organisations. Primark visited the movement regarding Better Work
Partnership since 2010, and it has made the organisation with a new banner. Use of civil society
for evaluating the work functioning. Maintaining a trade union which always helps the
organisation to be beneficial for the company. Primark works with their stakeholders in different
ways so that it maintains the reputation of the company and serves it by its way(Vuorinen, 2009).
1.3 Explanation of the responsibilities of Primark as an organisation and the strategies employed
to meet them
The reputation of the organisation, Primark comes by the way it serves its customers and
consumers by its way, but it has to be accepted that the company maintains the quality of its
products and also with that maintain a good relationship with its consumers as well. Primark is
always supplied high quality of materials as well it always makes an observation over its
factories that these factories should have to be eco-friendly so that the production of the
company also becomes of high and good qualities. The costing prices of the products’ raw
materials are lowered by Primark so that they can offer products to its customers at a very low
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price. The organisation puts an effort to set a low price at an exchange of their products, but it is
not that they leave low wages to their employers' pocket. Primark does not ignore their workers
as they are the ultimate provider of the products which make business internationally so that they
take an enormous care of their employers. As well as these the organisation also have made
perfect relations with its workers and get them proper allowances, their children proper
educations, health issues are also be solved by Primark. For the sake of strategy, Primark always
follows the term of the good relationship that may be with the employees or the stakeholders.
Thus all these stuff help the company to reach up to a level of high reputation in the market by its
evaluating strategies and responsibilities(Yaffe, 2015).
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Task2
2.1 Research and explanation of the type of economic system operated in the following countries
a) Cuba
The economy of Cuba is something which is a very orthodox kind of economy. It
follows the communal economy to run their financial strategies. Corruption has got a
serious problem here. There is no movement occurs freedom, it is completely
prohibited. Private sectors are limited at Cuba, efficiency here still poor. The
economy of Cuba is highly contacted towards and elite or high-level politics or
military economy so that it can be said the economy is not so much dynamic as well.
As it has been said that the economy of Cuba is also stated as Communist Economy,
the reserved strategies are also followed there; such as foreign trade investment is
totally suppressed here.
b) United Kingdom
The United Kingdom has got one of the largest economies around the world. It
follows much disciplined and much dynamic strategies for its financial stability. By
the time of 2015, the United Kingdom has ranked in between one to ten for exporting
and importing in both ways. The economy of United Kingdom gets the tag of Mixed
Economy; it is followed by this way. It is moving to the upward path which goes for
the United Kingdom. They have a strong administration towards its economy, rules
and regulations, law and orders are very disciplined and maintained. The United
Kingdom gets its work upon Fiscal and Regulatory methods of continuing its
economical strength. The regulatory frameworks follow the business with the basis of
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proper legislation as well as Fiscal performs here too. The business of housing and
farming get the high rising at their business by the mean of these different strategies
of an economy.
c) China
China has got the second largest economy around the world so that it has been
developed with many ways through the years. It is run through the strategy of social
market economy. At a certain period, China had got the fastest growing economy.
China's historical factors had given it this vulnerable financial system. China exports
its products all over the world so that it has a big market all over it. The economy of
China is Orthodox too, but it is maintained in a disciplined way. The type that is
named as Transaction Economy defines the economy of China in a whole. As it has
got one of the largest economies in the earth, the economy of China is much
expanded and involved in variant trades.
2.2 Assessment of the impact of fiscal and monetary policy on the following type of businesses
a) Farming
The farming or the agriculture technology at the United Kingdom is much advanced
as well as it is also following much-upgraded technology. Fiscal policy is nothing but
the sister policy of Monitory policy; what monetary policy do is supplying the fund
through the influence of banks and the policy of fiscal is to maintain the taxation
rates and other decorum for put a stability upon the economy of United Kingdom. By
the case of farming, the government supplies a lot of expenses through the monitory
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policy and to support the farmers they use the fiscal policy as they can serve them too
by returning the benefits of the job they work on.
b) Housing
As the fiscal and monetary policies are much stronger by the economical balance of
United Kingdom, the housing or constructions' business get a huge benefit by this. As
here have so many trade units, financial growth of Britain is much stronger. In
housing sector, the United Kingdom puts have played with its ultimate and lasting
effort to make it more resulting and financial support as well. The government has set
for the monitory policy by the funding from some banks, and the business of housing
serves the government as well. By this procedure of fiscal policy, it also gets a strong
benefit by the business of housing.
2.3 Competition policy and other Regulatory policies in the United Kingdom
Five competition policy in the United Kingdom
1. The United Kingdom has got the project of Merger Control aim which also protects to
combine diminutive organisations as the competition there at rest leftovers.
2. There is a procedure of market investigating which was established after Second World
War and follows up to spot ended the market that happens like an unethical integration of
companies.
3. The United Kingdom which has been included to the Economical Regulatory systems
which arise at the corresponding path or more particularly, an alternative level of policy
where Monopolistic business is also run through its way.
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4. It is totally illegal of having predation and price discrimination in the business strategies
at the United Kingdom; complexities should be avoided.
5. Finally, the rules of Competition may not be distorted, warped, customised, and it is
tightly offensive.
Other Regulatory policies in the United Kingdom
There are many other Regulatory policies which run the financial stability of United Kingdom
and put a huge growth to its economic condition. Craving up at the market is termed as it
signifies that companies can split up at market and will not compete at variant sections in there.
Thus the United Kingdom gets a strong condition upon the economic state which has turned to a
smooth uprising for its country.
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Task 3 – Essay
3.1 Explain how pricing and output decision of business is determined in the following market
structures
The market structure is consists of different types of elements, inter-connected with the
behavioral approach of individuals. Many more renowned companies are already ruling the
contemporary market. On the other side, each business sector like retail industry includes
demand and supply chain management. Management of an organization is concerned with the
requirements of their customers. In others words organization meets the customers’ needs and all
the demands. Supply chain management helps the organization (retail industry) to fulfill the
essential needs of a customer. The price estimation and decision making process of an
organization are able to influence the different types of market structure. Those types are-
Perfect competition: lots of reports suggested that the comparative products are offered by the
market through the sellers. All the association do the same. There are no idea of strength is
considerable. For an example- in the horticulture firms products are difficult to be separated. The
opportunities of the organization are free.
Monopoly: this is a type of market where the single dealer has an extensive number of
purchasers. Passages of the different organization confined by the beat players. Beat players
influence the industry by separating products. These organization cope different strategies to beat
their rivals.
Oligopoly: this type of market is made up of few organizations, rule the industry. Tesco, Marks
& spencer, ASDA, Sainsbury gives same type of products in the retail industry.
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Duopoly: duopoly is type of market where two organization are present to command the
industry. Function of the duopoly is mainly depend on the either quality or number of products.
Best example of duopoly are the Pizza hut and Dominos.
3.2
Demand: the requirements or demands of the customers completing by the successful
organization. Demand is described through a diagram below-
Demand curve
Fig: 1 movement along the demand curve
Demand and supply are the important components. These elements assist to drive the company’s
reaction by the leadership approaches identified with cost. Clients requirements, need, seek to
buy the products paying the price is termed as demand. Besides the needs of client and whatever
they need is present on the market. Demands could be fluctuate as per need of a particular
product by the client.
Product’s demands are influenced by the different variables like-
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Clients taste and inclination
Changes in salary scale
Availability of substitute products
Fluctuation in purchaser’s quantity
Supply: it is an idea of economics which shows the availability of products in the market for the
clients. Makers has the capacity to choose the delivery of the supply and availability of the
products. According to the law of supply there is an extension in the demand of a particular
product, supply of abatement and another way where the cost is corresponding to the supply.
In the supply chain the decrease in the cost of the item, the portion of amount
provided diminishes.
Fig: 2 movement along supply curve
The relation between the demand and supply
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Fig: 3 supply and demand curve
Fig: 3 describe the demand and supply bend. While the demand is introduced to the supply.
Both are the inter-connected with one another. If the price increase then demand is automatically
high as well as Quality goes down. Quality is very high with the low price as per law of demand.
3.3 judge how the business and cultural environment shape the behavior of a selected company
Business culture is especially balanced by the business environment. It has its effect on the inside
and outside of the environment. A company like retailer cannot exists without the support of
cultural environmental factors. Apart from this the best company is known by its changes in the
way of life. Demographics, changing the preference of the customers, promotional activities and
internal environment are the some major parts of the cultural environment. Business must adjust
to remain in their position in front of their rivals as per the change of the society and culture.
Changing preference:
The cultural environment and the decision making authority both are critical factors of
customer’s satisfaction issue. After the analyzing the changing preference of the customer
business decision is made. Long, fruitful products and services are determined through the
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diverse styles and as per need. For an example a retail company should aware of making new
product. Otherwise it will decrease the rate of the customer satisfaction.
Demographics:
In the business or retailer industry a big factor is the changes in the demographics. The company
should fulfill the expectation of their customer and produce the product as per the Age of the
population, sex, gender, Occupation, lifestyle. The extension of sexual orientation, racial
problems, religious and ethnic gatherings has the effects on the working environment of that
organization.
Promotional activities:
Advertisement is the best way of analyzing the mind of customers. It is nearly connected with
the socio-cultural changes of that business. Organization has to pay the attention for the
advertisement which posted on the radio, TV, or other social media. Through the advertisement
company grab the attention of the general publics. Making of products by modifying the ethnics,
values and designs strong the relationship between the organization and the customer.
Internal environment:
Relationship between company and the client influenced by the cultural factors. It has an effect
on the organization’s management system and decision making process. For an example, office
should take proper step to avoid the sexual violence. Organization have to take the responsibility
to secure the female employee in the office. Office should have maintain the rules for a good
working environment. Sexual harassment can damage the working culture of an organization.
Mentalities towards the racial segregation and misbehave with the employee is punishable. The
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behaviour of employees can improve by the rules or discipline of an organization. These are the
cultural factors which can affect the organizational environment. The formal structure of an
organization is measured by the cultural factors of environment. With the help of cultural factors
of business environment, an organization can accomplish their future goals.
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Task4
4.1 The significance of international trade to UK business organizations
As per as the norms of international trade any organization or industry can exchange their goods
or service along international borders and can also import goods and services from abroad. This
international trading has evolved in eras following some basic and certain guidelines. Tesco, in
this field is one of the most renowned and well established organizations and has set an example
for the new organizations which are planning to spread their business internationally. According
to the rules of international trading, the rate of goods exchange also helps to improve the
economy of the nation. Thus, being one of the most successful and renowned organization and
Tesco is also contributing to improve the economy of the nation by increasing their rate of
exchange of goods. International trading in only possible when the organization or the company
is able to provide goods and service to the international market. Other than these, there are also
some other aspect that the organization or the industry should follow in order to spread their
business worldwide. The organization or the management of the organization should have a nice
and polite relation with the local or national governments as well as the stakeholders of the
organization. If the organization does not follow the rules and the legislations they would never
be able to spread their business worldwide. These are the basics of the international trading
which should be followed for a better result in business. Tesco being a well-established
company, it is quite clear that they are maintaining all the rules and regulations and the also
maintaining their rate of exchange of goods.
4.2 Analysis of the impact of global factors on UK business organization
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This essay deals with the different aspects of international trading. The international business or
trading depends on certain global factors which are mentioned below such as the political
factors, economical factors, social factors, technological factors and environmental factors.
Political factors
The main and the prime advantage for any organization in UK is that the local government is
very much supportive and cooperative. If the organization maintains a nice and pleasant
relationship with the local government by following all the legislations, they will surely help the
company to get established in the international market. Tesco, being a very well settled and
trustworthy organization the local government of the UK has always helped the company in
many ways.
Economical factors
Economical factor is something which is also very important for the betterment of the business
of the company or the organization. As mentioned earlier, if the rate of exchange of goods and
service is high the economy of the country will automatically increase which is again very
beneficial for the local government of the nation. Tesco has always maintained a high rate of
exchange of goods and service, thus the mentioned company has also helped the economy of the
country which is one of the prime reasons behind the success of the company or the organization.
Social factors
Social aspect is another important point for the betterment of the business of the mentioned
company. In this process the main responsibility of the management of the organization is to
create a positive impact in the society. This will help the organization to get some good
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reputation among the local market. This will help the company to get success in the international
market in future.
Technological factors
Technological factor is something which is very important nowadays. The management of the
company or the organization must be aware about the technological aspects of the company. For
that the management must implement new and modified technical support for the employees of
the company and also for the customers of that particular company or organization. Tesco is also
very good at this point. Management has always been concerned about the technological factor
of the company.
Environmental factors
Environmental aspect plays another important role in the success of the company. The
management of the company must have a strong market analysis then chose a nice and pleasant
place or environment for the company, where the management of the company can operate the
business easily. These are the main points which are needed to be established and settled.
According to above analysis it is quite obvious that the mentioned company has always been
successful in maintaining the stated guidelines.
4.3 evaluation of the impact of the policies of the European Union on UK business organization
European market has established a very successful and renovated international trading norm.
According to the European market the rate of exchange of the goods and the service should
always be high for the sake of the betterment of the organization itself. To be precedes, the
performance graph of the organization should always be consistent in the abroad countries
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otherwise the organization as well as the management of the company would not be able to
create a strong impact through their business. In this case, it must be admitted that the business
performance graph of the mentioned company, Tesco is always to the mark. This is one of the
prime reasons behind the success of the company in international markets. For that, the
management of Tesco has always followed some basic and certain guidelines such as taking care
of the basic needs and requirements of the employees of the organization and providing them a
nice and pleasant working environment. The management of the mentioned company is also
quite aware of the expectations and requirements of the customers of the organization. If the
management of the company is not able to provide to customers what they want, they would
never be able to reach to the top. But Tesco has always used customer analysis before providing
service and goods to the customers. These are the main factors that are stated in the rules of the
European international trading. Several surveys prove that the mentioned company, Tesco is
quite up to the mark with their business strategies and business performance. Not only Tesco, but
any fresher organization can get success by using these mentioned rules and guidelines.
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