International Business Strategies and Cultural Sensitivity: A Case Study of TESCO in Mexico

This case study analyzes the international business strategies and cultural sensitivity of TESCO in Mexico. It includes the application of theories of international and intercultural communication, critical evaluation of cultural sensitivity, analysis of communication barriers, and recommendations for effective communication strategies.

International Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Brief introduction to the selected developing country................................................................3
Application of theories of international and intercultural communication on the selected
context/country............................................................................................................................3
Critical evaluation of cultural sensitivity when doing business in the selected country
supported by relevant examples..................................................................................................6
Analysis of different communication barriers experienced by foreign businesses in the
selected country supported by different examples when relevant..............................................6
Provide appropriate communication strategies and other relevant recommendations to enable
the company to succeed in the selected developing country.......................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International business and communication refers to run the organization and selling their
product internationally. For sold their product globally management established effective
communication system with all employees. Because good communication is essential to facilitate
the best quality service and product to customers in time (Eidan, 2019). The company which is
finalised for evaluating cultural sensitivity and international business strategies are TESCO.
TESCO is multinational retail organization which is located in UK. The company was
established in 1919 and the main purpose of this organization is to provide best quality service to
customers. It is one of the company who facilitate wide range of products in different to all
customer segments. The research is prepared on the basis of using secondary data which includes
newspapers, journals articles and so on. Good communication also helped to maintain the
reputation of the organization in market and between the customers for long time.
TASK
Brief introduction to the selected developing country
Mexico is one of the place which is known for the land of extremes such as heavy
canyons and rainforest (Gopparov, 2021). This place is also famous for their vibrant culture and
also for rich natural resources which highly useful for TESCO international business. Natural
resources include natural gas, wood, silver, copper, lead and others. In this place various cultural
events and beautiful architecture are establishes. These cultural events and attractive architecture
easily increase the knowledge of the people about the Mexico place. The famous places which is
useful for attract the for visit Mexico are delectable food, margarita, Mayan temple and so on.
For running the business internally Mexico is a suitable place because in this place people are
easily consumed the food and other products effectively. It leads to increase the portfolio of
organisation in high rate. In Mexico chocolates are highly consumed by consumers because in
Mexico desserts are made with original ingredients.
Application of theories of international and intercultural communication on the selected
context/country
Hofstede model -
It is a method or tool which is used by TESCO for maintaining the cross culture
communication effectively in various countries and society (Kim and Ferguson, 2018). In this

method values and behaviour of employees and consumers are easily analysed which are
described below -
Power distance – It basically refers to unequal powers between employees in organisation. It
means that like in TESCO, top, middle and lower level management has different powers and
fictions.
In UK both men and women has the equal right to live their life happily because in that place no
discrimination are there between employees in their job (Masini, Bazzi and Zanella, 2018).
 In context to TESCO, for running their company it is necessary for management must
provide equal wages to both men and women for enhancing their work efficiency.
 But in Mexico priorities are given to male and women did not have any type of value for
their job and their life. For running their activities smoothly, it important for TESCO that
they must made changes in their departmental activities for providing preference to more
domination system and also for running their functions easily.
Individualism – It means that individual have the power to take any type of decision. For
example, senior level manager has the power to take decision regarding managing their
employees effectively.
 In UK individual has the own powers for taking the right decision in their job. Because
according to culture the individual firstly considers others benefits. In context to TESCO,
management must give more values to employees and consider them as a family which
enhanced their work efficiency easily.
 In Mexico due to male domination powers are only utilized by male and they give
priority as secondary to family. In context to TESCO, it is essential for management that
they must powers mostly to senior officers for managing the employees effectively in
discipline.
Masculinity – It refers to in which way seniors motivate the employees for achieving the
organizational success for long time (Mudambi and Zahra, 2018). It also means that in which
way company motivates the desires of the customer for increasing the demand of their product.
 According to the UK culture senior citizens has the responsibility for motivate the young
generations and also teach them right and wrong activities. In context to TESCO,
management must follow these systems and according to that top level maintain good

relation with lower level employees. It leads to enhancing their self confidence in their
job.
 According to Mexico culture male have more preference for taking any type of decision.
In context to TESCO, management must divide their powers to employees for reducing
this type of problems.
Uncertainty avoidance – It refers to in which way organization reduce the uncertainty problems
which create threat for company (Rasyid and Nasution, 2022). Because these types of threats are
unpredictable and uncontrollable for TESCO which create high financial loss.
 In UK according to the culture the is necessary for TESCO management that they
facilitate effective training to employees. Because with help of effective training
employees easily understand that in which way handle the unexpected situations easily.
 According to the Mexico culture it is necessary for management that they must facilitate
more powers and wages to the senior level officers. Because with help of these strategy
responsibilities are mostly done by higher authorities and monitored the employee’s
performance easily.
Long term orientation – It means that in which way organization create links with employees
positively in the aspect of past, present and future. Because these links are highly essential for
maintain good relation with workers for long period.
 In UK long term relations or the values are highly considered between people. In context
to TESCO, management must analyse the performance of existing and new employees.
It is useful for maintaining the trust of employees for long time
 In Mexico according to their culture good relations are maintained effectively. In context
to TESCO, management must be managing the work load effectively for maintain good
coordination in long run.
Indulgence – It refers to in which extent people are able to control their desires for buying the
product or services.
 According to UK culture customers have value for their products and due to this reason
desires are not easily increased. In context to TESCO, management must facilitate
efficient and reliable equipment’s and resources to employees for maintaining their
satisfaction level in long run.

Due to mail domination system the decision are made by male for buying the product and it
increased the desires of customers (Tredinnick and Laybats, 2018).
 In context of TESCO, it is necessary for management that they must give more
preference to male employee in their organization in the aspect of wage and seniority. It
is helpful to maintain effective coordination with employees for run their functions
smoothly.
Critical evaluation of cultural sensitivity when doing business in the selected country supported
by relevant examples
Cultural sensitivity refers to create awareness of that particular place in the aspects of
various culture and traditions. In this method various positive and negative impacts are also
faced by the organization. The reason for occurring this type of impact TESCO did not analyse
the current culture and traditions of Mexico effectively. The impact which are faced by the
organization due cultural sensitivity are described below -
 Language – In Mexico mostly speaking in Spanish language and it is the local language
of that state. It means that in international business conversation is very important for
employees in organization (Turow and Couldry, 2018). Because language is one of the
factor which highly effect the conversation between employee and customer in negative
manner which includes misunderstanding of company product. Due to this reason it is
necessary for management that they must facilitate knowledge about their product and
services to employees for increasing their sale easily.
 Culture and beliefs – It means that in Mexico people have various belief and religion
which includes Nahuas. Mayas and so on. All these culture is an international festival in
Mexico during these festival various cousins are also organized through Mexico people.
Due to this reason it is necessary for management that they must adapt these cultures and
then according to that they must facilitate leave all employees. It leads to decrease their
workload within organization.
Analysis of different communication barriers experienced by foreign businesses in the selected
country supported by different examples when relevant
Communication barriers basically refers to the interference or the gap between the
producer and customers. And the main reason for occurring this problem are sending wrong

information to customers which leads to decrease the productivity of organization. The barriers
which are occurred in communication are described below -
 Language barrier – It refers to facing difficulties for understanding language of other
country or state (Wan, Gu and Ni, 2020). Due to this difficulty employee faced lot of
problems for doing their job and also for and also for handling the customers. Due to
problem in language employees are not able to describe the company’s product in front of
customers. In context to TESCO, it is necessary for management that they must provide
effective guidance and instruction to employees about language of Mexico. It leads to
enhance their productivity and work efficiency within the organization.
 Cultural difference – It basically refers to the various cultures and traditions which was
maintained by the Mexico. Due to various cultural differences employees faced various
challenges for surviving their life in various aspects such as adapting new lifestyle,
developing new food habits and so on. In context to Tesco it is important for management
that they must follow the culture of Mexico effectively. Then according to that they must
initiate effective work culture in their organization. It leads to increase their confidence in
their job for achieving company’s success for long duration.
Provide appropriate communication strategies and other relevant recommendations to enable the
company to succeed in the selected developing country
Communication strategies is a method or tool which is used by organization for achieving
their organizational, goals, vision and objectives for long term. The strategies which are utilized
by company are described below -
 Training and Development – Training and development is a process where the internal
skills, talent and confident of the employees are highly developed. This development is
highly essential for employees for doing the work smartly in less time. With the help of
proper training employee easily understand the work culture of company in Mexico. In
context to TESCO, management facilitate various case studies, assignments etc. to
workers at the time of training. It helpful for understanding various cultures, belief and
languages which leads to increase their potentiality for doing their job successfully.
 Effective communication – It means maintaining good coordination between employees
within the organization for running the activities internationally in effective manner. In
context to TESCO management must adapt particular language which is used by people

of Mexico Yu, Y., (Zhang and Huo, 2019). Due to this it is necessary for management
that they must appoint those employees who know the language of Mexico. It leads to
enhance the organizational profit and financial stability for long time. For increasing the
financial stability of TESCO employees played the major role in aspect providing full
effort in their job.
Recommendations –
From the evaluation above information the strategy which is suggested for tesco for
overcoming this problem is effective communication. It means effective communication played
the major role for employees for understanding the various cultures of Mexico when the
employees are working there. Good communication also helped to motivate workers for doing
their job effectively. For maintain the communication effectively TESCO also facilitating the
various financial benefits in the form of increments, bonus and so on. All these elements helped
employees to increase their productivity in long run.

CONCLUSION
After the analysis of above information, it is concluded that international business is a
very important concept for organization to run their operational functions smoothly. Due to
availability of wide range natural resources such as zinc, lead, copper and natural gas in Mexico
the business of the TESCO are easily increased. With help of maintaining effective
communication of the employees the satisfaction level of customers is easily maintained for long
time. Because at that time consumers received the best quality and reliable products and services.

REFERENCES
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