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Business Organisation and Environment in a Global Context - Assignment

Added on - 08 Dec 2020

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Business Organisation andEnvironment in a GlobalContext
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11) Background of TESCO...........................................................................................................12) Background information on the business environment in Hungary.......................................23) Analysis of business scenario.................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONBusiness is a word which relates to producing, selling, buying products and services tomake profit and give customers satisfaction (Chiu, 2018). It is legal body which followgovernment's law & regulations. TESCO is a retail organization of United Kingdom, whichdelivers online groceries, banking or mobile services. Company planning for its expansionthrough FDI in Hungary to cover more international market shares. Foreign Direct Investment isan investment process made for business expansion in other countries. Hungary’s) political, legalor environmental factors are beneficial for retail industry. Report will explain background ofTESCO organization. After this it will describe Hungary background with the use of PESTLEand use the Porter's Five Forces Model to analysis business situation in other country.MAIN BODY1) Background of TESCO-TESCO is a British multinational groceries and general merchandise online retailerorganization. Its headquarters located in Hertfordshire, United Kingdom. It is the 3rdlargest retailcompany measured by gross revenue or 9thlargest organization on the behalf of annual revenuesin whole world. Organization has shops in seven Asian countries and with market shareapproximate 28.4%, and market leader of groceries items in United Kingdom, Hungary, Irelandor Thailand. It was founded in 1919 as a group of market stalls. TESCO name first appeared in1924 with combined initial first two letters of owner surname or 1stshop opened in 1931(Barnet).Company is listed on the London Stock Exchange (Cramer, 2017). It had market capitalization ofaround 18.1 billion and on 22 April 2015, it was 28thlargest organization on London StockExchange.The UK operations of company is the biggest within group with over 3300 retail storesand approx. 3,00,000 employees. In 2001 July,TESCOgetbecameinvolved in online groceriesretailing in United Stateand hasbyobtained 35% stake in Grocery. June20032003,it purchasedthe C two-network in Japan and acquired majority stake in Turkish supermarket. Organizationhas large diversificationatworldwide, which show its growth. The first self-service shop ofcompanywas establishedin St Albans, Hertfordshire and 1stsupermarket in Maldon in 1956. Ithas built out a good or cheap supplier system & this way can sure good prices. Its first brandwhich has been settled in the beginning of 2000 and continuously working till now. Organizationhas started expansion in Asia or stores diversification which resultinofopening of small outlet1
like Tesco Express,Tesco Metro those are famous in the city. It also has influential petrolretailing business or predominantly presentedwithin supermarket or hypermarket. According toThomas their financial servicesare providedexistthrough the Tesco personal finance or onlinedelivery services.The main objective of TESCOiswill beto maximize profit or increase shareholdersvalue. It introduced a loyalandcardbranded club card in 1995 and after this started offeringinternet shopping services. On 21 March 1997,organization announced purchase of retail arm ofBritish food which consisted of Quinnsworth, crazy prices chains in other countries like Ireland(Del Giudice, Carayannis and Maggioni, 2017). In September 2013, it launches first 7” tablecomputer, called Hudl. January 2015, Lewis who was the chairman of organization made anannouncement to close company's head branch in Chestnut and 43 those shops in future whichare not giving profit and cancelled opening of 49 newsupermarketsupermarkets. It alsoconfirmed the sales of Blink box on demand video services and fixed line or broadbandconnection Talk Talk. In June 2017, It operates large number of in-shop cafe, but began tointroduce new retro in its own shops from 2013.2) Background information on the business environment in Hungary-Hungary is a landlocked Central Europe country, 16thlargest in Europe cover 93,030km2. Since 2004,it is member of European Union. Itsclimate is temperate being impacted bythreeclimateclimateszones- oceanic, continental or Mediterranean. Country's major industriesare mining, metallurgy, agriculture, chemicals, construction, motor vehicle manufacturing, andtextiles. It collects profit from the other growing areas like retail services, telecommunication,finance, pharmaceutical industry etc. In Hungary retail business has large scopeof growth.Corporate Social Responsibility has become important in country after adhesion to EuropeanUnion. Ecological issues are less than in the other countries of Central Europe (Falkner, 2017). Ithas a liberal business environment compare to other countries. Its better trade infrastructureinvolve finance, legal environment, are good for business perspective. Its GDP grew by anaverage of more than 4% after 1990s. Hungary's external sector is dominated by other tradingactivitieswhichwhich arerelated to machinery or transport equipment.2
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