Challenges Faced by Tesco in China: A Cultural Perspective

This report discusses the cultural challenges faced by Tesco in establishing business in China using Hofstede's Cultural Dimension Theory. The report highlights the challenges faced by the company in establishing business in China and recommends ways to cope up with these challenges.

International Business
Communications

Table of Contents
 INTRODUCTION
 MAIN BODY
 CULTURAL CHALLENGES THAT ARE LIKELY TO BE FACED BY TESCO IN
CHINA
 RECOMMENDATION
 CONCLUSION
 REFERENCES

INTRODUCTION
 The communication practice that exist between two countries is defined as international
business communication (IBC). Good IBC is required for maintaining complicated
business deals between the nations concerned.
 Tesco is Britain based MNC headquartered in England and dealing in retail
business related to groceries and general merchandise. It is the 3rd largest retailer in terms
of gross margin earnings.
 The report will highlight the various challenges faced by the company in
establishing the business in China by using Hofstede's Cultural Dimension Theory.
Recommendations to cope up the cultural challenges will be outlined through the report.

CULTURAL CHALLENGES THAT ARE LIKELY
TO BE FACED BY TESCO IN CHINA
 The cultural challenges faced by the Tesco can be described and better understood by
Hofstede's Cultural Dimensions Theory. This theory enables the corporate to understand
the dissimilarities existing between the cultures of two countries. The effects on the
setting up of business by Tesco in China are as follows:
 Power And Distance
 Collectivism Vs. Individualism
 Uncertainty Avoidance Index
 Femininity Vs. Masculinity
 Short-term Vs. Long-Term Orientation
 Restraint Vs. Indulgence

RECOMMENDATION
 The company should try to reduce the power distance in China. This can be done by
following an organizational cultural that has decentralized decision-making
responsibilities and encourages the participation of employees through participative style
of management.
 The company is recommended to follow an approach that aligns the individual goals of
the employees with the overall organizational goal.

CONCLUSION
 The report has identified the various cultural challenges that will be faced by Tesco in
business setting in China. The report has discussed the recommendations that can help
the company.

REFERENCES
 Aggarwal, R. and Zhan, F., 2018. Course design considerations in international business
education. Journal of Teaching in International Business. 29(4). pp.267-271.
 Beugelsdijk, S. and Welzel, C., 2018. Dimensions and dynamics of national culture:
Synthesizing Hofstede with Inglehart. Journal of cross-cultural psychology. 49(10).
pp.1469-1505.
 Talalova, L. and Werthschulte, D. K., 2020. Adapting two cultures (a glance through the
Hofstede's cultural dimensions model). In FUNCTIONAL ASPECTS OF
INTERCULTURAL COMMUNICATION. TRANSLATION AND INTERPRETING
ISSUES (pp. 12-18).