Benefits and Drawbacks of a Global Business Environment for Tesco

This research report delves into the benefits and drawbacks of a global business environment, with a specific focus on Tesco. The report begins with an introduction outlining the research's background, rationale, and significance, followed by a literature review that defines the global business environment and explores its advantages, such as improved market share, reduced production costs, and enhanced cultural diversity, while also examining drawbacks like increased competition and time zone challenges. The methodology section details the research approach, data collection methods, and ethical considerations. The findings, presented in the data analysis and interpretation section, are then synthesized to provide a comprehensive conclusion and recommendations for Tesco. The report aims to enhance understanding of global business operations and provide insights for companies seeking international expansion, offering a valuable resource for students on Desklib.

Research Project

Table of Contents
Topic: “The benefits and drawbacks of a global business environment”........................................3
CHAPTER 1: INTRODUCTION....................................................................................................3
Overview and background of research...................................................................................3
Rationale of the research........................................................................................................3
Significance of research.........................................................................................................4
Gantt chart..............................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
Concept of global business environment................................................................................6
Benefits of global business environment ...............................................................................7
Drawbacks of global business environment ..........................................................................8
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................9
Research Philosophy..............................................................................................................9
Research approaches............................................................................................................10
Data collection......................................................................................................................12
Sampling methods................................................................................................................12
Ethical consideration............................................................................................................13
CHAPTER 4: DATA ANALYSIS AND INTERPRETATIONS...................................................1
Research outcome..........................................................................................................................11
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................11
Recommendation..................................................................................................................11
Reflection.............................................................................................................................11
Conclusion............................................................................................................................12
REFERENCES..............................................................................................................................14
..............................................................................................................................................15

Topic: “The benefits and drawbacks of a global business environment”
CHAPTER 1: INTRODUCTION
Overview and background of research
Global business environment is considered as the environment which is influenced by all
the internal as well as external factors that affects operational activities of business in
international market. It is observed that whenever any country operates its business in different
countries then management team that specific company have to analyse all the factors such as
technology, culture, political, social, regulatory tax, legal etc. in order to take right decisions. It
also improves operational activities of company's at international level and maximises their
sustainability level. It also helps business organisation's in identifying different opportunities
which are available at market place (Schaltegger and Burritt, 2017). This present research is
based on TESCO, a well known retailer of United Kingdom. This company was established in
1919 by Jack Cohen. In context to present research report, it contains information about the main
concept of Global business environment and how large scale companies like TESCO uses this
concept in enhancing their business growth effectively. For this, aims and objectives have been
prepared by the researcher to determine benefits of this concept. Along with this, it will also
provide information of drawbacks and issues of global business environment which impacts
negatively on the business growth of organisation. In this research, investigator will use many
kind of methodology and approaches in order grab relevant information from various sources so
that proper outcome can be carried out from this information.
Rationale of the research
The main purpose of conducting this research is to enhance knowledge on the concept of
global business environment properly so that companies who are operating their business at
international can use this information and maximise probability ratio. This research will also aid
large scale company in understanding drawbacks of global expansion and finding out certain
ways by which they can minimise impact these drawbacks. In addition to this, this will also help
researcher in improving their skills as while conducting this research they will perform many
activities which will ultimately groom them. This enhancement of knowledge and skill will be
beneficial for researcher in conducting much better research in future. In addition to this, this
will also help researcher in improving their skills as while conducting this research they will

perform many activities which will ultimately groom them. The research will also be helpful for
TESCO, with this research its management team can improve policies and working procedure
that will improve performance of TESCO. It will also allow employees in improving their
knowledge through which they can perform their work in effective manner. As a result, it will
contribute in the growth of TESCO. This enhancement of knowledge and skill will be beneficial
for researcher in conducting much better research in future.
Significance of research
This research is important for TESCO as it will help this company in identifying major
issues which might be faced by this company at the time of global expansion. It will also help
company in improving its operational activities at international market and maximising its
business growth
Research Aim
“To identify benefits and drawbacks of a Global business environment” A case study on
TESCO.
Research Objectives:
 To determine concept of Global business environment.
 To identify benefits of Global business of global business environment for TESCO.
 To evaluate main drawback of global business environment for TESCO.
Research Questions
 Describe about the concept of Global business environment.
 What are the benefits of Global business of global business environment for TESCO?
 What are the main drawback of global business environment for TESCO?
Gantt chart
Gantt chart is a graphical illustration of the sequence of processes that are used to
complete a particular task. It helps to plan, coordinate and perform different tasks within a
specific interval of time. One of the biggest advantage of Gantt chart is that we get to know all
information about tasks performed at a single place (Shenkar, Luo and Chi, 2014). Moreover,
their are two axis in the representation of it, the horizontal axis denotes the time span which can
be in hours, weeks, months, years depending on the time given to do the task. Vertical axis
denotes the different activities used to achieve the goal.

CHAPTER 2: LITERATURE REVIEW
Concept of global business environment
As per the thoughts of Falkner, (2017) it has been analysed that global business
environment refers to the environment in which organisation considers various of factor of other
countries before taking right decisions for them. The author have further said that main objective
of these companies it to take right decision which contributes in enhancing its profitability ratio.
It can be said that numerous factors like social, political, economical, environmental and
technological factors are influencing decision making process large scale organisation. It has
been further analysed that it is essential for organisation who are expanding their business at
international market or they are already operating their business in other countries to firstly
evaluate market place (Klepac and Berg, 2019). This will help companies in identifying risky
factors, upcoming opportunities, changing trend, changing expectation of customers etc. As a
result, by knowing all of this information organisation can easily find out solution for risks and
can also maximise their profitability ratio.

On the basis of viewpoint of Murray, Skene and Haynes, (2017), it can be said that
concept of global business environment contains advantage and drawbacks for companies which
might affect its business growth. It has been further analysed that if organisation which performs
their business activities at international scale are aware about its concept then they can easily
sustain there and generate maximum level of revenue. This also helps companies in formulating
right business strategies by which they will contribute in enhancing their command over
customers. As a result, it will maximise satisfaction level of customers and contribute in
enhancing their profitability ratio at market place. For instance: TESCO was initially having its
stores in England, United Kingdom only. But, with the changing time this company has
expanded its business in many other country. This have provide them opportunity to get garb all
possible options which are available at market place. As a result, by grabbing these options this
company directly maximise its market share within the same industry. In context of TESCO,
globalisation have provided numerous of benefits to the company which have equally
contributed in its success. With the same manner some of the main benefits of globalisation are
improves market share, reduction production cost, enhance diverse culture at workplace and
enhances business productivity.
Benefits of global business environment
According to the viewpoint of Lasserre, (2017), it has been evaluated that by business
organisation can gain various kinds of benefits by globalising its business. It directly improves
number of opportunities for the companies as they are now able to grab opportunities which are
available at international market place. Some of the main benefits of globalisation are defined as
below:
Improves market share: Global expansion of business simply increases market share of
organisations as they are now able to access more customers at new market place. For instance:
TESCO was initially having its stores in England, United Kingdom only. But, with the changing
time this company has expanded its business in many other country. This have provide them
opportunity to get garb all possible options which are available at market place. As a result, by
grabbing these options this company directly maximise its market share within the same
industry.
Reduction production cost: Globalisation have helped companies in every manner
belonging to each industry. It has been analysed that by organisation can easily reduce their

production cost by transferring their production unit to low wage nations as they can hire cheap
labour their and execute their manufacturing without facing much financial troubles. Thus, it can
be said that it reduces expenses of company which ultimately minimises production cost of
organisation (What Are the Advantages of International Trade, 2018).
Enhance diverse culture at workplace: Another benefit of global business environment
states that whenever any organisation expands its business at international level then they
embraces diverse culture at workplace (Meyer, 2014). This brings different opportunities for
organisation at workplace only as they gets ideas from internal staff only. Along with this, they
also gets help in grabbing knowledge about taste and preferences of different culture people.
This helps them out in succeeding at international market place.
Enhances business productivity: Globalisation has allowed businesses in getting access
of advance technology. This accessibility has helped companies in improving their business
performances as they are using hi tech technologies. As a result, it improves productivity of
companies because they are now taking help of technology. This directly enhances productivity
of company which also gives to them in terms of reducing production cost. Along with this, it
can be said that machines of advance technology are also helpful in minimising rejection rate
(Shenkar, Luo and Chi, 2014).
As per the above specified different benefits of global business environment. It can be
said that improvement in the market share is seen as the main benefit which contributes in
enhancement of sustainability of the company.
Drawbacks of global business environment
As per the viewpoint of Alon and Herath, (2014) it has been identified that when any
company enters into international market place then it does not only provides them benefits. But,
the process of globalisation also includes many disadvantages. It can be said that at initial stage
they are not able to analyse these drawbacks due to lack of information about new and possible
business risk which might be faced by during expansion. According to the observation of
Cavusgil, (2014), it has been evaluated that these benefits of globalisation can take lots of time
to get visible to the company. This demotivate organisation as they think they thought of
expansion was not fruitful and it has impacted negatively on its growth. Apart from this, there
are number of drawback of global business environment which are defined as below:

Increases competition: The main drawback of Global business environment is that it
enhances competition at market place. It can be said that now a days, every organisation is
planning to expand its business at international scale for approaching maximum number of
people in order to maximising its profitability ratio. But, this thought has directly or indirectly
increased competition at market place. As a result, huge level of competition ultimately reduces
profitability ratio of company.
Initiates time issues:Another disadvantage of Global business environment emphasis on
highlighting timing issues. This is because of different time zone, it can be said that it is the
major issue which have been faced by companies operating at global scale. It has been analysed
that it is difficult for the company's to communicate to their employees at one time as their time
zone are different ( Aguilera and Crespi-Cladera, 2016). As a result, they are not able to
formulate right strategy which will help them out in maximising their profitability ratio.
Lack of knowledge of new market: Whenever any company expands its business in a
new country then it is really difficult for them survive. This is because they do not have much
knowledge about that new market and taste & preferences of its local people. It creates difficulty
for marketing team in performing their job responsibility as it is not possible for them to
formulate right strategy without having much knowledge about market conditions.
CHAPTER 3: RESEARCH METHODOLOGY
Research Philosophy
Research Philosophy is a belief about the way in which data phenomenon should be
gathered, used and analysed. This is a important part of research methodology, Research
philosophy is divided in to two types: “Positivism and interpretivism”, These approaches decide
which approach should be adopted by the researcher or which is derived from research questions.
In short research philosophy which explains about the researcher's view regarding the world.
Positivism: It is based on the research methodology which is used in science. Positivistic
approaches are founded on a belief of human behaviour that should be conducted in the same
way as study conducted in natural science (Boyd and et. al., 2017). There is a belief where
people give response, identifies and describes using rational, or systematic processes. This
approach depends on quantifiable observation that lead to statistical analysis.

Interpretivism: Interpretivism also known as interpretivist which involves researchers to
interpret elements of the study, so Interpretivism integrates in to a human study. This is
associated with philosophical position of idealism.
Strength: The main strength of this method is that it provides in depth knowledge to
learner from where best outcome can be attained. Along with this, the method includes
qualitative data which provides true and valid outcome towards the research topic as it includes
information based on human perception.
Weakness: The main drawback of this method is that only relies upon subjective
knowledge. Along with this, this philosophy is less reliable in comparison of positivism
philosophy as many a times it is not representative.
In this present research, investigator have selected Interpretivism because this is a
beneficiary approach that usually focus on study and various methods which reflect different
aspects of issues in research philosophy.
Research approaches
Research approach is a plan and procedure which consist the steps of method of data
collection or analyse and interpretation. Research approaches are of two types that is inductive
and deductive. Both of them are defined as below:
Inductive Approach:- Inductive approach start with the theories and end of the research
process as a result of observation. This approach involves search for pattern & development of
explanations.
Deductive Approach:- Deductive research approach means developing a hypothesis
based on existing theories and design a research strategy to hypothesis test. In other words it
means reasoning from the particular to the general. It has a possibility to explain relationship
between concepts and variables.
Qualitative Research: It is defined as a market research method that focuses on
obtaining data such as meaning, concept, definitions, symbols, characteristics and description of
things. It helps in understanding the behaviour and perception of target people with reference to
a particular topic (Goetsch and Davis, 2014). A popular method of qualitative research is the
case study which determine 'Purposive Sample' to better understand a detailed, context and
preference for depth. This research allows in collecting data that helps to explore how decision
are made & provide detailed inside. It analyse text documents which is useful for this research.

Strength: Provides In depth information on respective cases. It also provides flexibility
research process. Along with this, it also enables data to be gathered in the natural method so that
true outcome can be attained in effective manner. It has also been analysed that this method
emphasises on small groups that reduces cost of overall research in comparison of the
quantitative research method.
Weakness: It is a time consuming process and becomes complicated for investigator to
resolve whole case within the provided time frame. Along with this, it can be said that
interpretation which are done by researcher can be biased as it includes perception of researcher.
This method is also considered as the time consuming method as it takes huge time in gathering
information from the chosen respondents.
Quantitative Research: It is described as a systemic investigation of method by
gathering quantifiable data or mathematical techniques. It helps in collecting information from
existing and potential customers by using sampling method and online surveys. It is mostly
conducted in social sciences using the statistical method to collect the data from research study.
Quantitative research provide fundamental connection between empirical and mathematical
expression of quantitative relationships (Junior, Best and Cotter, 2014). Quantitative method can
be used to verification of hypothesis. In this research researcher can easily maintain the accuracy
of results and large variety of respondents when selection of random using.
In the current investigation, qualitative research method has been adopted by researcher
in order to attain valid outcome based on human perception. Another reason for choosing this
method is that it is feasible with less amount too in order to conduct the investigation with
reliable outcome.

Data collection
Data collection is a process of gathering information on variables of interest, research
questions, test hypothesis and evaluate the outcomes. There are two types of data collection
methods that is primary and secondary by which researches collects required informations. Both
of the these methods are described as below:
Primary method: In this method of data collection, researcher mainly gathers
information directly from the chosen respondent in order to collect authentic information on
specific topic. It is time consuming method as researcher do not want to compromise with the
relevancy of the information (Meihami and Meihami, 2014). Under this, information is gathered
by using different sources like Questionnaire, interview, field trial, surveys, observation etc.
Secondary method: Under this method, investigator collects information from already
existing researches or published data. It can be said that secondary method of data collection is
mainly adopted by researcher to meet project deadline as they can easily get required information
from past records. This also helps them in completing their own research within provided time
frame with authenticity. Secondary sources of data collection includes books, journals, past
research, news paper articles, online sources, published data etc.
In this research, investigator have used both the primary as well as secondary method of
data collection in order to collect authentic information within the provided time frame. In
primary method investigator have chosen questionnaire as it supports in gathering maximum
information from the respondents in the concise and manageable method. On the other hand, in
secondary method books, journals, online articles are used by researcher so that authentic
information can be collected in provided time frame.
Sampling methods
Sampling method is a procedure for selecting sample members from a whole population.
There are three commonly sampling methods named as Simple random sampling, Cluster
sampling, and Stratified sampling. In research term sample is a group of people taken from a
larger population for measurement. Sampling method generalise the findings from the research
sample to whole population (Hashem and et. al., 2015). In this present research, investigator
have chosen 40 respondents as the sample among whole population in order to understand their
views on the specific topic. The sample respondents are close stakeholders of the company that is
employees, customers, shareholders, creditors etc.