Assignment on Global Business Management at Tesco

Running head: GLOBAL BUSINESS MANAGEMENT AT TESCO
GLOBAL BUSINESS MANAGEMENT AT TESCO
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GLOBAL BUSINESS MANAGEMENT AT TESCO1
1. Introduction
The drive of globalization is responsible for shaping our contemporary world in terms
of business, environment as well as society. Globalization has resulted in effective
connectivity amongst the different organizations of the world to enhance inter-business
processes. Due to the effect of globalization, the people, neighbourhood, cities, regions and
countries are linked via different aspects such as food, culture, music and many more. The
organizations worldwide are blooming with various technological advancements that is
leading to an economic growth in the various countries (Kaiser and Meyer 2016). Apart from
the positive effects, there are negative effects of globalization such as employee turnover and
fluctuation in prices of the products. The assignment will highlight the different aspects of
global business in the organization of ‘Tesco’; discuss the ethical considerations, pressure
from other stakeholders, and recommend solutions for the challenges faced due to the effect
of globalisation.
2. Aspects of Global Business
The organization of Tesco is a reputed leading grocer of the United Kingdom that has
revised their business model to online system to derive customer satisfaction and thus
improve their business processes in this globalized era. The high population density in the
nation led to the promotion of business amongst a wide range of customers who preferred to
shop their groceries online. Tesco grabbed this opportunity to implement an online grocery
channel in their business known as the ‘Tesco Direct’ from where the customers could shop
their groceries through the digital mode (Khan, Habib and Bakar 2018). Tesco also facilitated
its customers with home delivery options that was known as the ‘goods to person’ technology
of picking such that they can get their items delivered at their doorstep without travelling to
the grocery store.

GLOBAL BUSINESS MANAGEMENT AT TESCO2
Tesco has also implemented digitalized in-store experience in their business operating
model that incorporates ‘Scan as you shop’ handheld flexible devices and self-check-out
stations (Heller 2017). With the assistance of these stations, the customers can check out for
themselves from the store without the help from the employees of Tesco. Although this new-
age technology proves to be advantageous because it saves cost and time by incorporating
less number of employees, it has its disadvantages too. There is an increase in the rate of
fraud level due to the less monitoring of the employees of Tesco. Hence, Tesco is
determining way outs such as surveillance cameras and digital receipts to combat this theft
issue.
Tesco has also implemented the ‘Clubcard’ scheme of loyalty that generates a unique
ID for every customer that intends to shop from his or her online grocery store that leads to
the amalgamation of numerous data points from the purchasing customers (Jonah 2018).
Thus, the organization leverages data analytics models and algorithms of big data to predict
the customer choices, the trending products, arrange for discount offers, research the market
trends and many more. Hence, the innovation of technology has led the organization to
expand their business internationally and implement international strategies to meet the
business goals and increase customer base worldwide. The international strategies has not
helped the organization to create beneficial networks amongst business associates but also led
to the sustainable development of the online store.
3. Ethical Considerations and CSR Challenges
The grocery company of Tesco at United Kingdom is bound to follow the ethics of
‘Corporate Social Responsibility (CSR)’ to build up a sustainable and responsible business in
the worldwide market. The organization majorly focuses on the standard of their food
products to attain customer satisfaction and maintain a goodwill of their business in the