Research Project Assignment - Globalisation
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Added on 2020-10-22
Research Project Assignment - Globalisation
Added on 2020-10-22
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RESEARCH PROJECT
TABLE OF CONTENTSTOPIC:.............................................................................................................................................1INTRODUCTION...........................................................................................................................1Research Background..................................................................................................................1Aims and Objectives...................................................................................................................1Aims:...........................................................................................................................................1Objectives:...................................................................................................................................1Rationale.....................................................................................................................................2LITERATURE REVIEW................................................................................................................2Strategies of businesses to enter in developing market...............................................................2Benefits of globalisation to expand business in emerging market..............................................3Challenges which are faced by businesses to enter in emerging economies..............................4Recommendation on easy mode of entering in developing market............................................4REFERENCES................................................................................................................................6RESEARCH METHODOLOGY.....................................................................................................7DATA ANALYSIS AND INTERPRETATION.............................................................................7RECOMMENDATION...................................................................................................................7REFLECTION.................................................................................................................................7CONCLUSION................................................................................................................................7
INTRODUCTIONResearch BackgroundGlobalisation is the process by which businesses or other organisation developinternational influence or start operating on an international scale. Globalisation is the spread ofproducts, technology, information and jobs across national borders and cultures. The world isevolving and with it trade and businesses are undergoing a huge change. After globalisation ithas becomes easy and effective for organisation to transfer the goods and services from onecountry to another (Mowforth and Munt, 2015). With the rising competition it has becomescritical part of success for the company to enter in the international market. There are variousentry modes such as direct exporting, franchising, licensing, international joint venture, mergerand acquisition and others. Emerging market is the known as emerging economies of developingcountries which currently investing in more productive capacity. Leaders of such countries wantsto develop quality of life for their people because of which they are creating rapid industrializingand also adopting free market or mixed economy. In this present research, researcher will use various techniques and methods to identifystrategies employed by Retail businesses to enter in emerging market with context of Tesco.Tesco is one of the biggest retail sector in UK and the growth of company is seen afterglobalisation. TITLEStrategies employed by retail businesses to enter in emerging market.RESEARCH QUESTIONS1.What are the strategies of businesses to enter in developing market?2.How globalisation provides benefits to expand business in emerging market?3.What are the challenges which faced by entities for entering in emerging economies?4.What are the ways to get easy mode of entering in emerging market?RESEARCH OBJECTIVES AND AIMSAims:“To identify strategies employed by Retail businesses to enter in emerging market withcontext of Tesco”.
Objectives:To determine the strategies of businesses to enter in developing marketTo ascertain benefits of globalisation to expand business in emerging marketTo articulate challenges which are faced by businesses to enter in emerging economiesTo provide recommendation on easy mode of entering in developing market.RationaleThere have been extensive researcher done on entry strategies employed by business toenter in the global market. The reason for selecting this topic is that it is the current issue in thebusiness environment as businesses are thinking over to expand the business in global market.So, researcher has gain understanding of several entry modes along with the challenges faced bybusiness in global market. In addition to this, academic interest of researcher is another reasonfor choosing the topic as researcher has improved in writing research paper and study has alsohelped in eliminating gaps for writing literature which helps in establishing career in writingresearch paper with long term perspective. Further, This study has also help existing users inorder to conduct research on same line of study.LITERATURE REVIEWStrategies of businesses to enter in developing market.According to the Thompson, Strickland and Gamble, (2015) there are variety of ways inwhich a company can enter a foreign market. No one market entry strategy works for all globalmarkets. No one market entry strategy work for all international market. There are various waysthat influence the choice of entry strategies such as tariff rates, laws and legislation,transportation and marketing cost and many others. Marquis and Raynard, (2015) said that, directexporting is one of the best way to enter in the global market and sell goods and services in themarket as through direct exporting company could cover larger market base and huge amount ofprofit. Noe and et.al., (2017) argued that direct exporting requires more time, money and energyfor basic start of export business. After globalisation it has becomes quite easy to choose thestrategies and enter into emerging market. As per the findings of Banerjee, (2017) licensing and franchising is another strategy ofbusiness as it is relatively well-informed arrangements where an organization transfer the right touse the goods and service of any other company. Whereas, franchising is one of the best way toexpand the business in the market as it is rapid expansion strategy of globalisation. Chaffey and
Ellis-Chadwick, (2019) argued that, franchising is rapid expansion but it includes very largerinitial cost to invest in the business and the risk are always certain in this strategy as if businesswill not able to achieve success in the market or not able to continue than all the investment willbe in heavy loss. As per the views of Marquis and Raynard, (2015) joint venture and partnership are alsoone of the wonderful strategy to enter into emerging market. Organization used to enter in theemerging market by doing joint venture business and partnership. In both these entry modes,profit, loss and risk are shared among partners. For example, Tesco has joint venture businesswith Dunnhumby in China. Impact of Globalisation on TescoAccording to the ------------, The globalisation strategies of Tesco and its successful forayinto the South Korean market. Tesco is one the largest retailers in the world, Tesco's initialexperiences with globalisation were not successful. However, afterwards Tesco started localisingits stores and products as per the needs and preferences of the consumers in global markets. Inthe year 1999, Tesco has entered South Korea by forming a joint venture with a well establishedlocal retailer - Samsung. The joint venture helped Tesco acquire an in-depth knowledge of themarket and also helped it acquires the best store locations. --------------- said that, Tesco beganoperating in the country under the well established 'Home Plus' banner. Tesco localised its storesaccording to the preferences of the Korean consumers and brought some of its global bestpractices into the country. The company's operations grew rapidly in South Korea and it emergedas the second largest retailer in the country.Benefits of globalisation to expand business in emerging market.As per the views of Noe and et.al., (2017) emerging counties are the economies which areemerging developing nations that present a visible opportunity to business. Globalisation hasmade the transfer of goods, technologies, services, labour very easier that has generated manyopportunities for businesses to expand the business in the another country. Surugiu and Surugiu,(2015) said that after globalisation India and China are considered as one of the biggest emergingmarkets. IT is because there are ample of opportunities available for the businesses liketechnological advancement, cheap labour access to capital and many others. Anand, (2015)stated that, globalisation has drastically changed the competitive marketplace as it has raises the
productivity of emerging market. In addition to this, globalisation has made it very easier for theorganisations to begin the business and start competing in the market. As per the Gugler, (2017) technological advancement is also one of the biggest advantageof globalisation to expand the business in emerging market. As globalisation has lead to transferof technologies from one place to another or from nation to nation. For example, china is one ofthe fastest growing technology in the world. So, organisation seems a great advantage for thecompany to gain the advantage of technology and improve the productivity and profitability ofthe company. Challenges which are faced by businesses to enter in emerging economies.As per the Marquis and Raynard, (2016) it is true that when companies enter intoemerging market, they faced various dissimilarities political, economic, cultural and legalenvironment. Organisations have to first understand the all these macro environmental factorsbefore start getting business in emerging market. Organisations have to hire experts to track theimpacts as well as to understand these factors. Meyer and Peng, (2016) said that, inadequatecorporate governance, lack of enforcement of intellectual property right and corruption are themost common challenges faced by the organisations in emerging market. In addition to this, it isalso fact that management and leadership practices in home country will be suitable or work inthe another country. So it is very important to analyse and understand the management practicessuitable in emerging countries. Hamann and et.al., (2017) stressed that developing business operation at global level isimportant for any firm to expand their business and earn significant profits. But to conductsuccessful business managers must have to carefully understand target market in emergingeconomies. Thus, it is another challenging that organisation faced when start operating inemerging market. In emerging market because of several investments, customers are highlydemanding so it is very challenging for organisation to understand the needs and expectations ofcustomers. Wilson and Wilson, (2017) stated that, rising value of currency and cost are anotherfactor that will squeeze the profitability of the company. Organisations have to deal with thischallenge also in order to achieve the greatest strength of the company in emerging market. Recommendation on easy mode of entering in developing market.As per the Hollender and et.al., (2017) direct exporting is one of the easy mode ofentering in developing market as it the rapid expansion strategy to enter in the developing market
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