Global Corporate Strategy Assessment 2019

GLOBAL CORPORATE
STRATEGY ASSESSMENT
QUESTION 2019

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Open Innovation and Internationalisation..............................................................................3
Internationalisation, Localisation and Competitiveness.........................................................5
Organisational Purpose, Profitability and Social Responsibility...........................................7
Personal reflections on learning.............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is a set of competitive moves and actions that a business uses to attract
customers, compete successfully, strengthening performance, and achieve organisational goals.
Tesco is the biggest retail store chain in the UK with the market share of 28.1 percent. This
report highlights the concept of the open innovation and close innovation and the differentiation
in between them. After that the report highlights the different factor impact on the competition in
the market. After that the report goes on to highlights the demand of the internationalization and
the demand of the localization and the advantage and the disadvantages of the both and on the
basis of the same the best demand which can be applied in the Tesco. After that the report
highlights the different strategy which can be used by the organization head to compile with both
the corporate profit and corporate social responsibility. In the end the report highlights the
reflection of the learning which has been taken by the writer.
MAIN BODY
Open Innovation and Internationalisation
Open innovation is the innovation mechanism which used throws the light on the
structure that the organization should use the external and the internal idea in the organization to
move forward in their innovation process. Generally using both inflow as well as outflow of the
knowledge to bring the innovation and expand the market (Johnson, 2016).
Closed innovation is the innovation mechanism which used to have belief that the
innovation in the organization can only be maintained internally in the organization. As the
mechanism has a opinion that generation of idea to development and marketing, all the process
need to be perform internally only in the organization.
Difference between Open innovation and Close innovation.
Basis Open Innovation Close Innovation
Open innovation Company which uses open
innovation in the organization
used to operate on the basis of
the sources of the external
knowledge of their innovation
management strategies.
Company which uses the close
innovation in the organization
used to operate in the
environment where self-
contained innovative
environment.

View point Open innovation company
used to have the view point
that the innovation used to take
place beyond the four walls of
the organization as the product
which will be developed is
developed with the motive of
satisfying the need of the
employee outside the four wall
of organization.
Close innovation has the
opinion that the employee of
the organization are the best
person to make and implement
the innovation in the
organization as they are the
one who have the better
knowledge of the
organizational product rather
than the outsider.
Role of Department Research and development
department used to compile
with the promotion department
and the sales department in the
open communication.
All the department employee
are the one who used to bring
the new idea in the
organization in close
innovation.
 Factor endowment: Factor endowment is the amount of the land and labour and capital
which is possess by the Tesco and the impact which is brought by the same (Thompson,
Strickland and Gamble, 2015). Tesco used to have the 6784 stores all across the globe
and used to hire 597,784 employee in the organization this has helped the company in
getting the good amount of the information to support the external innovation in the
organization at the same time it has also helped in surviving the competition as number
store is enough for the customer to reach at any time.
 Related and supporting industries: Involve industries in the country that are considered
as the leader of a particular product. By the help of this industry information Tesco used
to develop the product in the organization at a lower cost which help the company in
attracting the different customer in the market.
 Demand condition: Demand conditions refer to the nature and size of the domestic
demand for an industry's products and services. There is a good demand of the Tesco
product in the domestic market as Tesco is the leading retailer firm in the UK with the
market share of 28.1 percent it has helped the business in dealing with the competition