Report On International Management Strategy Of TESCO

INTERNATIONAL
MANAGEMENT

EXECUTIVE SUMMARY
The report is based on the international management strategy of Tesco to expand its
business in the areas of Australian market. It has been summarised that the foreign business of
Tesco should understand and evaluate the information of the factors that are directly and
indirectly linked with their ability to earn revenues and profits from the concerned areas. The set
of factors include political, economical and cultural factors that are the most effective and
impacting elements of the country and needs to be consider by the company.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
COMPANY BACKGROUND – TESCO PLC ..............................................................................1
INTRODUCTION – AUSTRALIA.................................................................................................1
POLITICAL & LEGAL ANALYSIS..............................................................................................2
ECONOMIC ANALYSIS...............................................................................................................3
CULTURE ANALYSIS..................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International management is a kind of process that generally consists of some strategic
activities and functions which help a business to expand its market in the concerned areas. It is
essential that the management team of concerned business should follow and implement each
and every function effectively in order to gain desired profits (Griffin and Pustay, 2012). The
report is providing information about structuring of international management strategies. It
includes understanding of factors that are highly essential and linked with the process of making
international plan.
COMPANY BACKGROUND – TESCO PLC
Tesco PLC is one of the leading grocery companies which offer high range of products
and general merchandise goods in international market. Cited company is a British Multinational
firm that has its headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom.
It is the the third largest retailer in international sector in terms of making profits as well as
second biggest retailer in the world for earning revenues. The business of cited company has
expanded their 3,000+ stores in various countries within six formats. Asia and Europe is the
main grocery market for Tesco which helps them in gaining high market share of 30.2%.
Specified company has established their business in 12 more countries by the year2015. This
proves that expanding the business in the foreign markets help company in gaining high of
benefits and revenues which improves their investment power and overall development.
INTRODUCTION – AUSTRALIA
Australia is situated in between India and Pacific Ocean with a group of small and big
islands which is having great natural habitats and species that attracts a lot of visitors and
tourists. The capital of cited country is Sydney and list of major cities includes Brisbane,
Melbourne, Perth and Adelaide. Rising population and spending abilities of nation’s residents
have helped many companies to start their business in the Australian market. However, Australia
is a developed country which is also ranked among the top ten wealthiest countries in the world.
Australia is positioned at 12th place in the list of nations with largest economy. Moreover, it is
popular for being as the world's fifth country which has highest per capita income. All this
allows the nation to maintain their position of second highest human development index in the
1