Corporate Global Strategy of Tesco

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Corporate global strategy
Tesco

CORPORATE GLOBAL STRATEGY- TESCO 1
Executive summary
The purpose of the report is to critically evaluate the corporate global strategy of the Tesco. With
the global strategy, it will evaluate how external innovation, internationalization, and localization
help the company to increase the profitability of the organization. The report will cover the
porter’s diamond model to evaluate external innovation. It will also provide the benefits and
limitations of internationalization and localization for Tesco. In addition, it will cover the
leadership theories and principles to understand the CEO and higher leadership team’s strategy
towards the organizational purpose. Personal reflection will demonstrate the knowledge of this
overall assessment. The overall assessment will be covered by the secondary sources which will
include the website of the company, journal articles, and books.
Contents

CORPORATE GLOBAL STRATEGY- TESCO 2
Introduction.................................................................................................................... 3
Question1...................................................................................................................... 4
Factor endowment........................................................................................................ 6
Related and supporting industries...................................................................................... 7
Demand conditions....................................................................................................... 7
Governments............................................................................................................... 8
Chance....................................................................................................................... 9
Question2...................................................................................................................... 9
Recommendation........................................................................................................ 10
Reasons................................................................................................................... 11
Question3.................................................................................................................... 11
Strategic management of Tesco...................................................................................... 11
Leadership team......................................................................................................... 12
Question4.................................................................................................................... 14
Reflection................................................................................................................. 14
Conclusion................................................................................................................... 16
Bibliography................................................................................................................ 17

CORPORATE GLOBAL STRATEGY- TESCO 3
Introduction
In this modern world, every business owner thinks to expand the business to a global extent.
However, this seems challenging for many businesses. A global strategy helps the company to
compete in the global market and expand through collaboration with the external environment
factors (Cuervo‐Cazurra, 2019). Overall an organization pursues global strategy when they
want to expand the business internationally. A global strategy includes various terms such as a
wide and detailed plan for how a business can be successful at the international level (Cuervo-
Cazurra, 2019).
Tesco is the Leading multinational organization operates internationally, which is founded in
1919. The organization is the grocery retailer and has various stores globally as well as engages
in the wholesale business. Additionally, its activities include retail banking and other insurance
services. Tesco mainly based on the UK. The organization operates through 6800 stores globally
and also conducts sales transaction online. AS a leading retailer the organization has 450000
international colleagues (Tesco, 2019).
The main objective of the report is to understand the Tesco’s corporate strategy that assesses the
open innovation with the support of porter’s diamond model. It will critically analyze the merits
and demerits of meeting the demand for internationalization and localization and also provide a
recommendation to the company to maximize the profitability. In addition, the report will also
include Tesco’s business purpose and social responsibility and how leadership team direct
organizational performance with the great leadership style. It will also cover the personal
reflection of the understanding of the overall strategy and including limitations and benefits of
external innovation, internalization, organizational purpose and contribution of the senior
management in increasing the profitability.