Drivers of Globalization : Tesco

Added on - 21 Apr 2020

  • 9

    pages

  • 2910

    words

  • 52

    views

  • 0

    downloads

Showing pages 1 to 3 of 9 pages
TESCOGlobalization: TescoExits South KoreaDRIVERS AND IMPACT OF GLOBALIZATIONRunning head: Drivers of Globalization0
Drivers of Globalization1Table of ContentsIntroduction......................................................................................................................................2Drivers of Globalization for Tesco..................................................................................................2Cost Drivers:................................................................................................................................2Market Drivers:............................................................................................................................3Government Drivers:....................................................................................................................3Competitive Drivers:....................................................................................................................4Tesco maintained its Growth in South Korea..................................................................................4Store Layout:................................................................................................................................4Supply Chain Management:.........................................................................................................5Joint Venture................................................................................................................................5Brand Positioning:........................................................................................................................5Reasons behind leaving South Korea..............................................................................................6Conclusion.......................................................................................................................................6References........................................................................................................................................7
Drivers of Globalization2IntroductionTesco is a British multinational grocery and a general retailer in merchandise, headquartered inWelwyn Garden City founded by Jack Cohen in 1919. It is known to be a third largest retailer allover the world and Tesco is listed on London Stock Exchange and forms an integral part of theFTSE 100 Index, with a primary listing of any company on London Stock Exchange. In 1999,the company has entered South Korea in a joint venture associating with Homeplus which is aunit of Samsung Corporation (Tesco plc. 2017). The company had marked their success inmarket leadership and lead as an international retailer in a span of few years. A number ofhypermarkets, convenience stores and supermarkets was operated by Tesco and in terms ofrevenue it is a proven fact that for Tesco setting up a business in South Korea is beneficial alsoknown to be a successful international business (Business Today. 2015).This report consist of the drivers of Globalization for Tesco relative to their expansion and exitfrom South Korea. The company maintained its growth over the years when other companiesfails to do so. Once being known for the most lucrative consumer markets Tesco decided to exitfrom it due to the changes occurred in the operating environment of Korea. The company’sgrowth in past years and the drivers which had impacted their expansion and reasons behind exitare being showcased here under.Drivers of Globalization for TescoThe key drivers are the key factors which are directly responsible for the flourishment ofGlobalization and its overall process. These key drivers embrace Globalization and affectentity’s performance by way of direct and indirect means. There are commonly known drivers tobe follow around are Technological innovations, market drivers, competitive drivers and costdrivers. They cover a wide range of other drivers which also affect the globalization namelypolitical drivers, social and economic drivers (Collinson, Narula, and Rugman, 2017).The driverswhich are behind the Tesco’s expansion and exit from South Korea are cost drivers, governmentdrivers, competitive drivers, market drivers and political drivers. These drivers are analyzed indetail below:Cost Drivers:Tracing Costs and efficiency vary from country to country and companies whoworks global take advantage of the fact and rest of the cost drivers creates certain opportunity to
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document