International Business Operations Assignment 2022

Running head: INTERNATIONAL BUSINESS OPERATIONS
INTERNATIONAL BUSINESS OPERATIONS
Name of the Student
Name of the University
Author Note

ORGANZIATIONAL INTERFERENCE AND MANAGEMENT1
Q1 You can choose any international company, who has faced any one of the country risks:
political, economic, operational or competitive, in the last 12 months in one of the following
regions: 1) South America, 2) Africa, 3) Central Asia, and 4) Middle East. Identify, analyses and
manage the risk as if you were employed as a consultant by your chosen company. Any risk
management technique which has already been adopted and utilized by the chosen company will
NOT be accepted in your answer.
Tesco is a supermarket giant which is known for operating in UK as well as in many
other countries globally. The company is known for dealing with British Multinational groceries
and general merchandise retailer with more than 115 countries all over the world. The largest
store is located in UK taking a market share of more than 84% of the overall profit earned by the
company from the global areas. The South African Government of the country has recently
affected the performance of the company as well as the revenue earning of the company in terms
of production and promotion in terms of goods and services.
The government has recently adopted various types of tax measures that has affected
Tesco according to the author Andersson, Jordahl and Josephson, (2019). In the year 2018 the
African Government increased the VAT rate from 17.5% to 20% with the aim of increasing the
government revenue from the giant companies. The increase in the VAT rate will be lowering
down the spending power of the customers. According to the author Penton and Hammerschlag
(2019) the negative impact of the sales figure is affecting the growth of the company in South
Africa. It can be recommended that the company should try to build in new policies which will
be responding to such threat and risk faced by the company in the present date. The company
should try to introduce policies and launch campaign like brand new healthy food range

ORGANZIATIONAL INTERFERENCE AND MANAGEMENT2
Regarding the economic risk it can be said that the company has been facing various
types of economic risk in Africa and its surrounding areas. The African economy is known for
showing negative signs of recovery from the financial crises after analyzing the lower rate of
economic growth in various areas of the country. According to the author Penton and
Hammerschlag (2019) the main reason for facing the risk is that there are various types of
employees who are known for working on a low wage rate. This is a big problem for the
company as because with this issue the company might be able to face various types of economic
issues. It can be recommended that the company should try to bring in low priced good and
commodities which will fit into the hands of the low income customers in the country. It will
help the company to recover from the economic recession it has been suffering from.
The company is also known for facing various types of operational related issued in
South Africa as because here the company has to pay huge amount of money to the wholesaler
and as well as other resource locators in the business. Therefore it leads to higher cost of
operations in the manufacturing business for the long term. With the risk regarding operations it
can be said that the company should try involve in getting low operational cost saving
techniques. In order to minimize the excess operational cost incurred by the company in the
present date.
The risk management technique which can be sued by the company in order to maintain
the risk and mitigate them are avoiding the risk as well as retaining it in order to get rid of the
risk for a long term. The company can try to avoid the risk so as by taking care of its operations
in the specific market as well as maintain the factors responsible for maintaining it. The company
can try to make various types of strategies in order to form a board and discuss regarding the
outcomes of risk and try to manage them effectively.