Global Strategy, Development and Implementation

GLOBAL STRATEGY,
DEVELOPMENT AND
IMPLEMENTATION
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Reasoner for International expansion of the brand..................................................................3
2) Strategies and choices available to parent company...............................................................4
3) Choice of location for the organization...................................................................................5
4) Strategic methods of entry and the possible consequences.....................................................6
5) The potential organizational and managerial problems for the subsidiary operating in the
new international environment....................................................................................................7
6) You should provide strategic advice for the subsidiary to overcome the problems
highlighted in v............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Globalization strategy refer to the process of developing the strategies including process of
expansion in market and it is important for the organization to increases to new countries so that
they can provide the product and services in those country and earn profit (Collinson, Narula and
Rugman, (2017)). It is crucial for them to work with the strategies when expanding the business.
Tesco work in the retail sector and one of the leading brand in the retail market of the UK
(Zakarija-Grković and et.al., 2020). They are leading the market share of the UK retail market
and are top brand in the working. The report Will explain the reasons of Tesco for international
expansion and there possible strategies choices available for them. Further the report will explain
the choices or regions the company want to expand. The potentials of the organization and the
managerial issues the organization can operate in the new international environment.
MAIN BODY
1) Reasoner for International expansion of the brand.
TESCO : Tesco is one of the leading brand in the UK and are providing the facilities including
the supermarket and retail sector. They are the leading brand in UK retail market and are
providing the best services in the country and working across the globe. They are developing the
strategies and expanding the business in different location to capture new market and is helping
them in reaching better results in profitability and productivity.
The historic performance of the Tesco is that they are working since 1919 in London
and are providing the services from such a long period. It is essential for them to increase the
business expansion, and they are developing the business work to create more market share and
increase the benefit & profit in market. The company worked from London and started its
expansion plan which reached to 10 plus countries and the result the organization gets from the
market is very good.
The product and services which the organization is having in the market are very wide
range. They are working in all the product and services of the retail industry and are providing
the quality product to audience (Solberg, 2017). They're having the market share of 27% in the
UK retail market and are leading the market of retail sector in UK. They are having a lot of
competition in market, and they are leading the market by its services they are giving to there
customers.
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TESCO is planning to promote the product and services of the company to provide in
new country. They are planing to develop and expanding the business in Germany. The
organization is increasing its growth and capture of market in the ASIA continent and Europeun
continent, and they are focusing in development of increased working in the process of
expanding to new country in Europe or Asia. They are planning to expand the business in
Germany, and they are developing the strategies of providing their own product in the market as
they are working in the low pricing strategies product and it could provide them a good result in
the market of Germany (Arteag, and Arteaga, 2017).
Since, TESCO is on working on the principle of serving more and more customers with
better products so it would only be possible if it would internationalize its business. An
expansion of business by TESCO would enable it to have widening its scope of business
operation. This will allow the company to serve more customer in different countries. Expansion
will also enable the TESCO to broaden up its business along with grabbing future opportunities
and becoming a competitive player for other.
2) Strategies and choices available to parent company
Strategic choices of the business in the process of working in retail industry. It is important for
the organization to develop the strategies which can help them in dealing with the situation they
can feel in the new market. They need to develop planning and organized structure to work in. it
will also enable the process of working in the industry and increase the overall performance. It is
important for the organization to make sure that they are following the strategies which can help
them in increasing business in new country (Gupta and et.al., 2019). Here are the strategic
choices available to Tesco which are explained with the context of this framework : -
Ghoshal and Barlett framework:
As per this model there are four main strategies that lead to expansion of the business.
Global strategy:
This strategy is concerned with global expansion of the business. This means under this
concept the strategies related with global expansion is made by the companies (Hill and Hult,
(2018)). These strategies will help the company to expand its business.
Transnational strategy:
This strategy is generally followed by those companies which already operate their
business. This means that the companies that deal in variety of product and operate in
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