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Tesco Global Business Services

   

Added on  2020-10-22

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Global businessGlobalizationIt refers to a process through which businesses expand their operations in other countries. they trade at international level in order to growth and develop. The main aim of companies is to generate large revenues by attracting large number of people and providing goods and services to fulfil their needs. GlobalizationIt refers to a process through which businesses expand their operations in other countries. they trade at international level in order to growth and develop. The main aim of companies is to generate large revenues by attracting large number of people and providing goods and services to fulfil their needs. Concept of global tradeGlobal trade is also known as international trade in which goods and services are transferred between two or more nations. This helps in increasing world economy by creating demand and supply. Trading globally enables consumer to use or consume products or services that are not available in their country. By trading globally every type of goods like cloths, food, groceries, etc. and services like banking, tourism, hospitality, etc. are exchanged. International trade is done in different currencies. It depends between agreements done between nations. Export means selling product in global market and import means buying product from it. they both account for country’s balance of payment. Concept of global tradeGlobal trade is also known as international trade in which goods and services are transferred between two or more nations. This helps in increasing world economy by creating demand and supply. Trading globally enables consumer to use or consume products or services that are not available in their country. By trading globally every type of goods like cloths, food, groceries, etc. and services like banking, tourism, hospitality, etc. are exchanged. International trade is done in different currencies. It depends between agreements done between nations. Export means selling product in global market and import means buying product from it. they both account for country’s balance of payment. Challenges faced by Tesco:-In order to expand operations in different countries businesses has to face many challenges. In similar way, Tesco wants to expand in different countries. They will also have to face challenges which are as follows :-Tax and tariff fees – in many countries there is similar system of export and import. But every country taxation system is different. Tesco may have to follow a long procedure of paying taxes. They might have to pay high fees to government for trading. This may result in putting extra burden on them and increasing expenses. Organization communication Tesco is having stores in almost every continent and many countries. thus, it may be difficult for them to communicate there. For this they might have to install high technological infrastructure in country. also, they have to follow protocols and rules of government. Local competition – Tesco might face local competition in many nations. There are many local retailers who already exists in country. This may impact on their expansion strategy. They might face stiff competition from them. This may be a disadvantage for them. Thus, they need to analyze market condition and competitors existing. Unfamiliar culture- this is most common challenge Tesco can face. their may exist cultural differences between people. Tesco might not know how to interact with people, what is the culture of country, etc. it will restrict them to enter in new market. Challenges faced by Tesco:-In order to expand operations in different countries businesses has to face many challenges. In similar way, Tesco wants to expand in different countries. They will also have to face challenges which are as follows :-Tax and tariff fees – in many countries there is similar system of export and import. But every country taxation system is different. Tesco may have to follow a long procedure of paying taxes. They might have to pay high fees to government for trading. This may result in putting extra burden on them and increasing expenses. Organization communication Tesco is having stores in almost every continent and many countries. thus, it may be difficult for them to communicate there. For this they might have to install high technological infrastructure in country. also, they have to follow protocols and rules of government. Local competition – Tesco might face local competition in many nations. There are many local retailers who already exists in country. This may impact on their expansion strategy. They might face stiff competition from them. This may be a disadvantage for them. Thus, they need to analyze market condition and competitors existing. Unfamiliar culture- this is most common challenge Tesco can face. their may exist cultural differences between people. Tesco might not know how to interact with people, what is the culture of country, etc. it will restrict them to enter in new market. c) trends of business environment business environment refers to external factors in which they operate. They include legal, environment, etc. any change in these impacts on business to a great extent. Thus, it is important to develop effective strategies so that impact can be minimized. Expanding business in different countries results in facing many challenges. Environmental trends – this is major trend that can impact Tesco. in present time countries and government is highly focusing on protecting environment. They have imposed strict rules and regulations for business to trade. Also, in international trade certain environmental policies has to be followed. Tesco operate globally and contribute in CSR. They also have to follow various country rules in which it operates. For example – Brazil is a country which is having diversified natural resources. In recent times, there is high deforestation of Amazon forest, soil erosion, etc. this can impact business growth and development. Als, it may restrict the to use resources.Significance – environment trend enables business to use renewable resources and contribute in CSR. This forces them to protect atmosphere and provide a better environment to society. Also, it gives an insight to them about what is environment situation of country and produces products accordingly. Thus, they have to follow laws and develop strategies on how to protect climate. c) trends of business environment business environment refers to external factors in which they operate. They include legal, environment, etc. any change in these impacts on business to a great extent. Thus, it is important to develop effective strategies so that impact can be minimized. Expanding business in different countries results in facing many challenges. Environmental trends – this is major trend that can impact Tesco. in present time countries and government is highly focusing on protecting environment. They have imposed strict rules and regulations for business to trade. Also, in international trade certain environmental policies has to be followed. Tesco operate globally and contribute in CSR. They also have to follow various country rules in which it operates. For example – Brazil is a country which is having diversified natural resources. In recent times, there is high deforestation of Amazon forest, soil erosion, etc. this can impact business growth and development. Als, it may restrict the to use resources.Significance – environment trend enables business to use renewable resources and contribute in CSR. This forces them to protect atmosphere and provide a better environment to society. Also, it gives an insight to them about what is environment situation of country and produces products accordingly. Thus, they have to follow laws and develop strategies on how to protect climate. b) impact of cultural differences as a challenge there is a great impact on culture while doing international trade. This is because there are certain differences that becomes challenge for business to enter in new market. this effects on growth and development. The differences are described belowCommunication – this is the major difference that can impact in trading globally. It is because different country has different regional language. Communication is important as it helps business to convey their message to people. So, this restricts business to develop strategy to overcome challenge. Thus, it is important for Tesco to understand importance of culture and language.Work place etiquettes – this is another culture difference that impact on organisational culture. It is because the norms, policies, etc. that vary from country to country. Alongside this, etiquettes include policies and procedure, working hours, etc. thus, tesco can also be impacted due to these issues. Organisational structure – it refers to structure of business that shows how authority flows at work place. Each company have their own structure according to country culture. Basically, developing structure depends on social values, status, norms, etc. this gives shapes to hierarchy in organisation. For example – in Japan social norms reflects seniority. This approach is followed that shows seniors must be respected. Tesco has to face these cultural challenges while expansion. It may lead to restrict them to enter in new market. moreover, they have to change their structure and develop new policies and implement at work place. b) impact of cultural differences as a challenge there is a great impact on culture while doing international trade. This is because there are certain differences that becomes challenge for business to enter in new market. this effects on growth and development. The differences are described belowCommunication – this is the major difference that can impact in trading globally. It is because different country has different regional language. Communication is important as it helps business to convey their message to people. So, this restricts business to develop strategy to overcome challenge. Thus, it is important for Tesco to understand importance of culture and language.Work place etiquettes – this is another culture difference that impact on organisational culture. It is because the norms, policies, etc. that vary from country to country. Alongside this, etiquettes include policies and procedure, working hours, etc. thus, tesco can also be impacted due to these issues. Organisational structure – it refers to structure of business that shows how authority flows at work place. Each company have their own structure according to country culture. Basically, developing structure depends on social values, status, norms, etc. this gives shapes to hierarchy in organisation. For example – in Japan social norms reflects seniority. This approach is followed that shows seniors must be respected. Tesco has to face these cultural challenges while expansion. It may lead to restrict them to enter in new market. moreover, they have to change their structure and develop new policies and implement at work place. REFERENCES Books and journalsWirtz, J., Tuzovic, S. and Ehret, M., 2015. Global business services: Increasing specialization and integration of the world economy as drivers of economic growth.Journal of Service Management. 26(4). pp.565-587.Kasemsap, K., 2016. The role of social networking in global business environments. InSocial media and networking: Concepts,methodologies, tools, and applications(pp. 1635-1653). IGI
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