Report on Global Corporate Strategy: ASDA and Tesco Analysis

This report provides a comprehensive analysis of global corporate strategies, with a specific focus on the retail industry in the UK, particularly examining the strategies employed by ASDA and Tesco. The report begins with an introduction to global strategy and its importance in international business, emphasizing the competitive nature of the UK retail market. It then delves into ASDA's portfolio and analyzes Tesco, including its tagline, USP, market segments, target groups, positioning, and competitors. A detailed PESTLE analysis of Tesco is provided, covering political, economic, social, technological, environmental, and legal factors. The report further explores retail internationalization, highlighting strategic alliances and mergers & acquisitions (M&As) as key strategies for growth and market penetration, using Tesco as a primary example. It discusses the benefits of mergers and acquisitions, and the importance of adapting to market changes. The report concludes with personal reflections on the impact of global retail industry competition.

Global Corporate Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
Q.1 Portfolio of ASDA...............................................................................................................3
Q.2 Retail internationalisation: Strategic alliances, M&As........................................................6
Q.3 Corporate governance, CSR, leadership and competitiveness............................................7
Q.4 Personal reflections on Impact of the global retail industry competition- ...........................11
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Global strategy played a significant in the international business due to various factor. In
order to attain success at the global level it is essential for a companies to make their strategies
effective so that they can attain their targeted goals and objectives in an effective manner. Retail
industry one of the most complex and competitive sector in the UK market. There are large
number of firm's which are operating their business in this market (Whiteman, Walker and
Perego, 2013). There are various tools and techniques which are the part of global corporate
strategies can be used by the business organisation. The present report is based on the ASDA
which is one of the leading retail company in the UK market. They can provide a large number
of products in different segment to its loyal customers. The main purpose of this report is to
determine various global corporate strategies which can help to provide competitive advantage in
the market (Roh, Hong and Min, 2014).
Q.1 Portfolio of TESCO
It is essential for a global company is that to identify various opportunities from the
market so that they can provide a consistent profit in an effective manner. There are various tools
which can be used by the business organisation is to understand their strength, weaknesses,
opportunities and the upcoming threat to its business. So that they can analyses and evaluate its
strength so that they can make their strategies accordingly. In the case of this company which is
one of the multinational grocery and merchandise retail company. Its headquarters are
established in the England and in the UK. There has 6553 stores in the 12 countries (Hahn,
2013). In order to maintain their profitability they required to make and design appropriate and
suitable business strategies so that they can attain their long term targets effectively. TESCO is
the third largest company by profit and ninth biggest retail company by revenues and it provide
the grocery item to their new and existing customers. There are various important aspects of the
firm is given below:
Tag line “Every little helps”
It is the effective tag line of the company in which it focuses on the
satisfaction of the customers. The cited business unit is focused on the
providing high quality grocery items at the lower price which can help to
attract large number of customers. The role of tag line for a global

company having a great significance it can help to show the focal point of
their business and its operations (Farndale and et. al., 2014).
USP This is another significant element for TESCO. Is is related with the
unique selling proposition which can gain the competitive superiority in
the UK and England market. The cited business unit is focused on the
satisfaction of the customers. For this they can be used various tool and
methods of promotion. These tools can be advertising, print media,
electronic media and social media. For example, TESCO can used
various advertising tools such as print, broadcast and digital etc. In order
to promote firm's products and its brand in an effective manner. Apart
from that they can also conduct feedback through such channels and
communicate with them. So that they can improve their services and
product performance in the near future (Kuratko, Hornsby and Hayton,
2015).
Segment They provide all segmented products in to different types of categories
which can help to satisfy their customers in an effective manner.
Target group The role of target group is played a prominent role in the success for each
and every business organisation. In the context of cited firm their target
group is upper and middle income families in order to sale their products.
Positioning The United Kingdom is one of the cheapest market destination due to
large number of competitors. Therefore, the company provides the
quality products and services to their customers at the appropriate rate.
Competitors The largest competitor of the TESCO is ASDA and other Aldi, Waitrose
etc.
The Pestle analysis of TESCO are listed below:
Political Factor The government of UK imposes several taxes on the corporations. This
impacts negatively for the company as most of the revenue goes in
fulfilling the various taxes. The political instability also affects badly on

the TESCO. As different government has different policies for tax
induction (Linnenluecke and Griffiths, 2013).
Economic factor This company effectively expand their business in approx all over the
world and this results in improving the economic growth of the enterprise.
The TESCO becomes a recognizable brand and hence establishes a strong
bond of trust with the consumers.
Social factor The social factors like life style, taste, etc. influence both positively as
well as negatively to the corporation because the life style changes as the
time passes. The community has different taste according to the age group
of the population. So, the TESCO has to develop new and innovative
products and services as per the need and wants of the customers.
Technological
factors
The information technologies has been increased drastically influences
positively to the working of the company . The communication between
the employees and the clients of the company is improved by using the
new techniques like social media, video conferencing, messaging, etc. The
mobile technologies have also been developed. One third of the tasks are
performed by the smartphones today.
Environmental
factors
The environment effects the TESCO positively as it provides the higher
sustainability of the environment. The aim of the company is to take the
measures for protecting the business environment. The environmental
conditions or temperatures might be negatively influences the ventures as
sometimes there is very hot in the summer season causing the loss of
consumers interaction (Arevalo and et. al., 2013).
Legal factors The legal factors like safety regulations, tax policies, employment laws,
etc. affects the TESCO negatively. The law can affect the company
different products and services. In case of the agricultural products the
UK governments provides the different policies for the needs of
agriculture.

As per the annual report of the company the cited business organisation is required to focused to
improve business performance. For example, they needs to improve to use divestment strategies
which can help to save their money and increase firm's profit and revenue in the near future
which is the core objectives for each and every business organisation (Coe, Lai and Wójcik,
2014).
Q.2 Retail internationalisation: Strategic alliances, M&As
When two or more business organisation are meet together for the specific purpose is
known as strategic alliance. It is the part of market strategies which can help to provide
competitive advantages in the market. In the strategic alliance, these parties are involving to any
specific business with each other in an effective manner. The role of strategic alliances in to the
global corporate strategies having a great significance. In other words, it is one of the business
strategy where two parties make a separate business in order to gain mutual benefit. In the
context of TESCO, it is essential for them is to make such strategies which can provide long term
growth and development for their business. Apart from that, it is also important for increasing
profitability and productivity of the company. There are various countries which not allowed to
an foreign company to fully operate their business (Du, Swaen, Lindgreen and Sen, 2013).
Therefore, in such situation the cited business organisation can be used such corporate strategies
to make their business successful in the near future. Tesco is the popular company which is
effective for achieving the goals and objectives through the different corporate strategies in
which it helps in the contraction of business services. The main aim of this organisation is the
produce quality products and services to their customers. Today, internet and online business is
growing drastically, which required the cited business unit to make contact and agreement with
them so that they can attain their desired gaols and objectives in an effective manner. Apart from
that there are various online marketing service provide which can be make strategic alliance by
the TESCO so that they can promote their products and services and create awareness in an
effective manner (Zeschky, Winterhalter and Gassmann, 2014). There are various methods for
the strategic alliance which can be used by the TESCO as given below:
Merger: This is one of the most usable strategy for expanding the business. In this process two or
more companies can merge with each other and can establish a new business in the market place
(). It is the best way to maintain market share which helps to focused on the target market and

make their business profitable. For example, a business which having large number of resources
but they are unable to meet the future challenges. And another firm which growth rate is quite
good they can merge each other. Such kind of arrangements are benefited for both companies
and can help to compete in the market. Due to tough competition in the UK market the cited
business lose their market share. In order to maintain their business they can identify new market
like India and China where the middle class income is quite enough to make profitable for the
company (Knudsen, 2013). There are various small business in the China which can be merged
with TESCO and make profit in the long run. Through merger at the global level, it having
various advantages which is given below:
Through such practices they can penetrate the market in an effective manner. For
example, if UK company can merge with Chines firm they having two market and large number
of customer which can help to provide more good opportunities in an effective manner.
Acquisition: This is another tools which is used by the business unit for their strategies alliance
strategies. It is essential for a large corporation is to make changes in their business so that they
can provide a consistent growth in the long run. In this strategies a large business can acquire to
another firm which can create an effective PESTEL analysis of Tesco image in the public. For
example, there are various small and medium enterprises which can be acquired by the company.
Cost cutter which is a small business and conduct their business operation in the United
Kingdom. TESCO having large financial resources which can be used to acquired such
organisations which can provide competitive advantages as compare to its rival business units
(Huang, 2013). With the help of both strategies it having various advantages which as given
below:
there is one of the advantage which is related to concentration of different activities in
which every partners are able to match their capabilities with the different activities.
Merger and acquisition in all terms are legal in the United Kingdom so that both firm can make
their agreements legally and follow the guidelines and rules of the government effectively. At
present time TESCO is having 6553 stores in 2017 across in the UK with the help of new stores
they can expand its area of operations which can provide more customer reach.
Further, it also develop new innovations and technology in their products and services for
their customers. With the help to merger and acquisition it can provide tax relaxation to the
company which can save their money. In addition, with the help of merger and acquisition a

business firm can develop their core competencies in an effective manner. A core competencies
is the unique capabilities which is related with the product, process and people and with the help
of such capabilities they can acquire competitive advantages (Smith, 2014)
Q.3 Corporate governance, CSR, leadership and competitiveness
It is process in which top management decides rules and regulations that are to be follwed
and promote fair pratice in organisation. Needs of all stakeholders are considered keeping
objectives of firm in mind. Generally top executives decides polices regarding governance but
sometime shareholders are get involve in this process.
Corporate social responsibility- A business can not be done without using the natural
resources and soceity because of which it has a responsibility towards the soceity. It it always
considered that in doing business companies has done a lot of damage to nature and still they are
hurting resources of earth but as it is argued that to produce some product something has to taken
from society so as damage control firms are promoting the concept CSR. In this program they
are investing in natural resources and keeping focus on sustainabile development. This
responsibility can be assigned to employees according to their position and earning. Keeping
environment clean and reducing the pollution are issues that are golablly supported by many
companies gradually they should take more responsibility in these issues (Hamel and Prahalad,
2013).

Data Analyses- As corporate social responsibilities BHS has decided reduce their waste for
increasing the productivity of company. BHS has 1 percent share in the overall market and 49%
customers of BHS surveyed in the M&S. They have taken an important decicion in field of
sustainable development that in future they are going to goods which will affordable by most of
population. Another significant decision is taken in terms of checking pollution that they are
going to reduce emission from transportation by 60 percent (Marquis and Qian, 2013). They are
going to support farmers and their communities and will make them a sustainabile resources raw
material. A big decision in terms of leakage has been taken that they are going to reduce their
leakages by 8 percent.
Illustration 1: CSR target of BHS

Belief is the core of a company and BHS has three important belief, first is great service to their
customers and create trustin them. Second is to respect every individual and consider them as
team member. Third is no compromise with excellence and the best version of the compamy
them become (Alam Choudhury and Nurul Alam, 2013).
Leadership- It gives company a goal and a path to acheive it with proper plan. It includes a very
important part which is power of hiring and firing, it is necessary to place right person atb right
jon because if they are not used according to their potential than they will remain unstasfied from
the work which will reduce their productivity. Motivating the workers on weekly or mothly basis
is significant and solving their problems in no time is also necessary as they expect a lot fron a
leader. On many occasion a leader has to take tuff decision in hard time which is an important
parts of his job and can never be ignored (What Is a Business Strategy. An Overview. 2016).
Planning and organising the resources is another part of this job and it involves key decision
making. Controlling the organisation is something that can be considered as core of the job as if
a leader loses his control than chaos will be the end result. In case of passing the position it
should be done gradually and smoothly so new leader should not face any problems in future
(Farndale and et. al., 2014).
Competitiveness- In every industry their is a lot of competition. It can be of any type from
product to pricing or even for table leader. To suvive in this situation a company have to reduce
their manufacturing cost and enhance their profit margin which involve focusing on different
part of various process. In todays trend firms have to do a lot of new innovations and deliver
Illustration 2: Benefits of CSR at BHS

them as soon as possible as daily new competitors are rising and some old companies are
winding up. To remain in market firms has to launch new products in consistent manner and do
proper marketind about them. Quality of items should never be comprised as one low quality
product impact the whole of organisation so this should always be avoided. Providing services
before and after purchasing can give some extra edge on other players (Hahn, 2013).
Q.4 Personal reflections on Impact of the global retail industry competition-
On the basis of above description i understnad various apsctes which can help to
understand the global retain industry in an effective manner. The BHS is the retail company
which provide the different products like, home products, entertainmnets and furnitures etc.
There are two types of the impacts which includes negative and positive impacts of the the
company. The positive influences can impacts the people positively and the negative impacts
will influence negatively to the people.In recent trend their is a big war between global retail
players as new player are emerging and domestic player are also pestel analysis of tescogetting
organized. Its result is high competition as customer have many choice, in companies but in
terms of product also (Roh, Hong and Min, , 2014). In this era strategic alliance is necessary,
specially in global competition, so different firms are doing many tie in many part of the global
market. These kind of alliance has some advantages like it helps in finding new market and add
more products to their stores which enhances their brand name, brand value and brand
awareness. Supplementary services can be transferred to the partner and company can focus on
core activities. But it can be difficult to find a trustworthy partner as every firm wants to grow
and to do that they can do some damage to their partner (Whiteman, Walker and Perego, 2013).
Data that is given by alliance can be unreliable and if company make policies according to it than
they can suffer huge loss in future. In a case of tie up image of two firms are attached together so
if partner is commiting some mistake than name of Global firm will also damage globally.
CONCLUSION
As per this research report, global corporates strategy help to achieve goals and
objectives of the company at national and international level. Company's managers are spend
their business at the international level of spread their business and build a brand image in the
whole world and there are using many methods and strategies to achieve the decided goals and
objectives of the corporate business. Global corporate strategy help to develop business in the

effective manner at national and internal level. This covers global, international and
multinational strategies and methods to increase their production and level of profits. Its help to
expand their business at international level and achieve decided objectives and goals of the
business. Global strategy through at the global level all person are easy to know about that
company and make trust on that. On the other hand, global strategy including in global and
multinational strategy and methods to achieve the goals and objectives of the company.