BUS114: Effective Entry Strategies for Global Market Expansion - Tesco

This research proposal investigates the effective entry strategies adopted by multinational companies, focusing on Tesco's approach to global market expansion and sustainability. It aims to identify the importance of expanding business in the global market, the specific entry strategies employed by Tesco, and the challenges faced during international expansion and competition. The proposal includes a literature review covering the benefits of global expansion, effective strategies such as setting company goals, conducting market research, and recruiting local talent, as well as challenges like cultural differences and managing global teams. The research methodology section outlines the planned approach for data collection and analysis to address the research questions. Desklib provides access to this assignment and many other solved assignments for students.

Research Proposal
(To identify the effective entry strategies
adopted by multinational companies for
expanding there business operation and
sustaining in global market)

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of the chosen topic..................................................................................................3
Background of the chosen organisation......................................................................................3
Research aim...............................................................................................................................4
Research objective......................................................................................................................4
Research question........................................................................................................................4
Research rational.........................................................................................................................4
LITERATURE REVIEW................................................................................................................6
What is the importance of expanding business in global market?..............................................6
What are the effective entry strategies adopted by Tesco for expanding there business
operation and sustaining in global market?.................................................................................7
What are the challenges faced by Tesco while entry into global market and dealing with
international competitor?............................................................................................................8
RESEARCH METHODOLOGY.....................................................................................................9
BUDGET ......................................................................................................................................11
REFERENCES..............................................................................................................................12
Books and journal ....................................................................................................................12

INTRODUCTION
Background of the chosen topic
A multinational company is an organisation which produces their goods and service in
one nation other than its home country. In recent time were competition is so it is very important
to gain market share and for this organisation is thinking of expanding their oversea market.
Internationalisation helps in enhancing their business operation and using diversifies resources in
order to gain competitive advantages. With the adoption of globalising business organisation are
gaining various advantages in order to improve their brand image and develop their company.
Globalization has changes the way of business work and enhance the economy of the nation.
Various activity among the economic nation is changed as trade between nation has expanded,
open supply chain, providing access resources etc (Ponte, 2019). With international expenses
company try to gain more market as well as decrease cost of production and manufacturing.
There are various ways through which company can entry into the foreign market which are
Indirect exporting, licensing, joint venture, direct investment, merger or acquisition and many
more. Companies adopt the effective entry strategy in order to produce standardise product and
service to gain efficiency. In this report information will be gather to identify the various entry
strategies which can be adopted by the multinational company for expanding their business
operation (Luo and Tung, 2018).
Background of the chosen organisation
For undertaking the investigation the chosen organisation is Tesco. Tesco is a British
multinational company which was founded in the year 1919 by Jack Cohen. It's headquarter is
located in Welwyn Garden, England. Tesco is one of the Leading grocery store in united
kingdom and operates their business in five countries which are Ireland, Hungary, Czech
republic and Slovakia. The company has enough market share in the united kingdom and now
they are extending their business in international market in order to gain more market cap for
their goods and services (Osano, 2019.Wu and Vahlne, 2020). Their are so many brands under
Tesco which are Jack's, one shop, Marko and Premier. Tesco diversified their business operation
so that they can grow and Sustain in international market. Some of the products that is offer by
Tesco is Supermarket grocery store, Hyper market, Superstore and Convenience shop.
Expanding in international market will help them to gain more success worldwide.

Research topic
To identify the effective entry strategies adopted by multinational companies for expanding their
business operation and sustaining in global market.
Research aim
To identify the effective entry strategies adopted by multinational companies for expanding there
business operation and sustaining in global market: A study on Tesco
Research objective
 To identifying the importance of expanding business in global market
 To identify the effective entry strategies adopted by Tesco for expanding there business
operation and sustaining in global market
 to discern the challenges faced by Tesco while entry into global market and dealing with
international competitor
Research question
 What is the importance of expanding business in global market?
 What are the effective entry strategies adopted by Tesco for expanding there business
operation and sustaining in global market?
 What are the challenges faced by Tesco while entry into global market and dealing with
international competitor?
Research rational
The main purpose to conduct the above investigation is to acquire a detailed insight about
the importance of international expansion. This research will also highlight the various
challenges that would be faced by company while going for international expansion and all
strategy which will be adopted by company to deal with the competitors. The current
investigation is also has great interest in me as it will develop my knowledge about the various
entry mode to go for international expansion. This report will also helps me in fluffing two vital
objective which are personal and professional. In respect to the personal objective the current
investigation will develop my academic skill on the topic as well as enhance my knowledge
regarding various method used in investigation to complete the research in more systematic
manner. Through this research various skills will also develop in me which are communication

skills, analytical skill, data gathering skill , project management skills and many more. On the
other hand with respect to professional aim this investigation will develop my future career in
more sound manner by knowing the various jobs available while going for international
expansion (D'Amato, Veijonaho and Toppinen, 2020). Another professional objective that is
gained by this investigation is developing the professional skills by enhancing the knowledge
regarding the globalisation. This research will also helps in telling the modes which I will be
used when I will be a manager in any multinational company. Thus the current investigation is
quite significant to attain the dual objective that is personal and professional in more effective
and efficient manner.

LITERATURE REVIEW
What is the importance of expanding business in global market?
According to (Gössling, Scott and Hall, 2018), In today's global economy most the of
companies are interested in establishing their business operations in the foreign markets for
attaining more market share and customer base. Expanding the business in the global market
plays a very essential role as it offers several benefits to the company which helps in gaining
more growth and productivity which are explained below:
 Attracting new customers – Expanding business operations globally helps the company
in attracting new customers with the new products and services (Deng and Zhang, 2018).
A large and diverse customer base provides more market share which helps in gaining
competitive advantage in the international market.
 Increases profitability – When business gain high profitability in the local market they
try to expand their business in the international market for gaining popularity and growth
opportunities. Expansion of business in the global market offers the company a chance to
explore and identify the market for gaining million of customers in order to increase the
sales of the company.
 Access to higher talent – Another benefit that the company gain at the time of
expanding business operations is to get access to much higher talented employees.
Recruiting international talent can bring several advantages in the company which
includes advanced skills related to language and diverse educational backgrounds.
 Improve reputation of companies – One of the main reason companies choose to
expand their business operations in the international market is because of offering reliable
services to the international clients. A good global reputation and image of the company
helps in attracting new customers in a market where competitor company do not exist.
 Saves cost – Expanding operations of the business internationally helps the company in
saving money and their operational costs (Mian and Sufi, 2018). Companies normally
found its advantageous to move some of the manufacturing operations to different
markets because it helps the company gaining cheap labour cost and more reasonable
talent.

Expanding business globally is important for the company in order to gain more share in the
international market and to gain more customers for increasing profitability and productivity.
What are the effective entry strategies adopted by Tesco for expanding there business operation
and sustaining in global market?
According to (Colacicco, 2018), Global expansion is considered as one of the best ways
to acquire new markets, hire world class experts and set goals and objectives for achieving long
term success in the international market. But without a strong and effective strategy no business
can earn market growth and profitability in the international market and can result in extra costs,
wasted resources and delays. There are several types of strategies that Tesco adopts for
expanding its business operations in the international market which are explained below:
 Set effective company goals – Before expanding the business operations in the
international market it is important for the company to set clear goals and objectives for
better team direction for achieving high success and growth (Shin, Kim and Kim, 2020).
Setting proper goals and aims by Tesco helps the company in understanding where the
vision and mission is meeting the global expansion.
 Market research – Once Tesco sets their company goals and understand where it fit in
the global expansion, the company need to do a through market research into different
markets for attaining better growth and development. This helps the company in
identifying opportunities and threats in the market before starting spending money in
order to execute expansion strategy.
 Recruit best local talent – Recruiting local talent can helps in making expansion
globally easy and simpler and more cost effective for the company (Schlegelmilch,
2022). If the target market is very different linguistically and culturally from the existing
markets than local talent of Tesco helps in gaining more growth and productivity in the
competitive market. Having talented staff helps the company in tapping into new
markets, benefit of local language skills, saving money, gaining trust in the local market
and leveraging present business networks and contacts.
It is very important for the company to adopt strategies which helps in gaining more market
share and profitability in the international market for increased growth and more customers in the
international market.

What are the challenges faced by Tesco while entry into global market and dealing with
international competitor?
According to (Kenny, 2021), Entering into global market helps the company in gaining
more growth and productivity but also possess several challenges which creates problems while
expanding business operations. Tesco faces various challenges while expanding its operations
globally which are explained below:
 Difference in cultures – Each country has its own language, culture which makes it
policies and regulations different and this is considered as a major challenge for Tesco.
Culture includes arts, holidays foods, traditions and social norms which are followed by a
specific group of people and for this the company needs to learn and enrich the
knowledge about different cultures for doing business effectively (FERNIE, 2018).
 Managing teams globally – Another challenge of expanding business internationally is
about managing employees existing in all over the world. Tesco needs to account for
different language barriers, time zones, cultural differences and varying technology levels
reliance and access. To build strong and effective working relationship among global
team, facilitates regular check-ins by using video conferences for better interaction.
 Choosing modes of entering market – Choosing into new markets is all about strong
and effective networks for targetting right market for the sale of products and services
(Kollarova, 2020). Tesco follows right practices in order to reach the right ambassadors
for promoting product and service in the international market. For implementing online
services the company needs to get in touch with the right target market to gain right
people in the right place which involves good analysis of data and a strong digital
strategy for marketing.
By addressing these challenges will help the company in overcoming issues faced by the
company while expanding business operations in the international market for achieving good
brand image and high growth for increasing productivity and profitability.

RESEARCH METHODOLOGY
It is the chapter that provides certain research methods for the collection of information in
a systematic and proper way. In these methods are selected as per the requirement of proposed
investigation. This is the section that follows Saunders research onion framework so that
researcher could follow certain steps and attain research aim and objectives. The whole
investigation depends upon the selection and usage of research methods because they are directly
related to the accomplishment of defined objectives and aim (Eisend and Kuss 2019).
Research Philosophy: It is the research method that provides certain beliefs and
principles for the systematic evaluation of gathered information. This philosophy is mainly
categorised into two important kinds which are: positivism and interpretivism philosophy.
Researcher will select positivism philosophy so that gathered numerical piece of information
could be analysed in the shorter period of time. The main benefit of positivism philosophy is that
it helps in the procedure of analysing and comparing numerical piece of information.
Research Approach: The other significant research method is research approach which
gives certain principles so that assembled data could be analysed and examined. The approach is
mainly divided into two forms which are: inductive and deductive approach. Investigator will use
deductive approach so that gathered measurable data could be examined and evaluated. The main
advantage of deductive approach is that it helps in explaining casual relationships between
variables and concepts (Daniel, Kumar and Omar, 2018). The other benefit of this approach is
that it assists in generalising research findings to a particular extent.
Research Strategy: It is the method of research that accommodates investigator to collect
relevant and reliable information. This involves several kinds which include action research,
survey, case study, observation, interview etc. Investigator will select survey as the research
strategy because it accommodates in the collection of numerical and primary data in a systematic
manner. The major advantages of using survey strategy is that it assists in less time consuming as
well as less expensive. It also facilitates in allowing clarification and getting higher response
rates. Under survey, investigator will use questionnaire as an instrument for the accumulation of
numerical data as well as primary data.
Research Instrument: In the present investigation researcher will use questionnaire as an
instrument because it helps in the accumulation of numerical and first-hand information in a
precise manner. The major advantage of the questionnaire instrument is that it carries out

statistical figures and facts. Basically, this is the instrument which includes certain close-ended
questions that assist in the accumulation of views and opinions of selected number of
respondents (Lai, 2018).
Research Choice: It is the other research method which accommodates in the selection
and identification of kind of information needed for attaining objectives. This is classified into
two significant kinds that are: qualitative and quantitative research choice. Investigator will
select quantitative choice because it facilitates in the collection of statistical facts and figures in
relation to the chosen topic in the defined time duration. The main advantage of quantitative
choice is that it gives information with appropriate accuracy and objectivity (Davidavičienė,
2018). It is quite concrete, shows statistical relationships which assist researcher to overlook
broader relationships and themes. Hence, this kind of investigation is fully solely dependent
upon numbers and create bigger picture for the accomplishment of the investigation.
Data Collection: It is the method of research which helps in the accumulation of
appropriate and relevant piece of information as per the requirement of investigation. This is the
method which gives two significant forms which are: primary and secondary data collection
method. Researcher will choose primary method of data collection so that raw information could
be assembled in a systematic way. Under primary method, researcher will consider questionnaire
as the source to collect first-hand information. The main benefit with the primary method is that
it facilitates in the collection of information directly from the source. On the other hand,
researcher will choose secondary data collection method with the motive of assembling second-
hand information (Whicher, Philbin and Aronson, 2018). This method is quite appropriate when
researcher has shorter period of time and has very limited budget. This method gives secondary
sources such as books, journals, articles, newspapers, publications etc. Therefore, primary and
secondary method of data collection assist investigator to carry out combination of information
so that pre-defined objectives could be met and achieved.
Sampling: The other significant research method is sampling and this is the kind of
method that assists in the selection of right number of respondents. This is categorised into two
main forms which include: probability and non-probability sampling. Researcher will select
probability sampling because it accommodates investigator to select large number of respondents
in the limited period of time (Shields, 2019). Random sampling method is also followed by
investigator so that particular criteria is not set while selecting participants. 20 managers will be

selected by researcher from TESCO so that they can provide accurate information about the
strategies used by organisation for entering into global and new market. Therefore, sampling
method assists researcher to include human participants for effective and efficient investigation.
Time Horizon: Time refers to the component that assists investigator to complete
investigation with appropriate time interval. This is categorised into two forms that are: cross-
sectional and longitudinal time horizon. Researcher will select cross-sectional time horizon so
that pre-defined objectives could be attained in real-time situation. Therefore, it is necessary to
divide activities in smaller tasks with relevant time in a significant way.
Ethical Consideration: Ethics are quite significant while carrying out investigation in an
ethical and honest manner. Researcher will tale informed consent from the selected organisation
so that they can give information without any hesitation. Researcher will also focus on not
harming respondents while collecting information from them (Iovino and Tsitsianis, 2020).
Investigator will give option to every selected respondent about withdrawal of their participation
at any time. Researcher will make sure that confidential information about the respondents
remain confidential so that they can share their views and opinions regarding the topic.
BUDGET
A budget is one of the vital element which helps in predicting the cost what will be
incurred while completing the research in more effective manner. In the above research the cost
that will be incurred is € 150. The cost will be spend in various activity to gain aim and objective
in appropriate manner. The first cost that will be incurred is transportation cost and the amount
which will be spend is € 30. Another cost is on data collection and analysis cost which is € 100
and in last €20 will be incurred in stationer item which are paper, pen and many more.

REFERENCES
Books and journal
Colacicco, G., 2018. Entry modes decisions: walmart in South Korea (Doctoral dissertation).
D'Amato, D., Veijonaho, S. and Toppinen, A., 2020. Towards sustainability? Forest-based
circular bioeconomy business models in Finnish SMEs. Forest policy and
economics. 110. p.101848.
Daniel, B., Kumar, V. and Omar, N., 2018. Postgraduate conception of research methodology:
implications for learning and teaching. International Journal of Research & Method in
Education. 41(2). pp.220-236.
Davidavičienė, V., 2018. Research Methodology: An Introduction. In Modernizing the
Academic Teaching and Research Environment (pp. 1-23). Springer, Cham.
Deng, P. and Zhang, S., 2018. Institutional quality and internationalization of emerging market
firms: Focusing on Chinese SMEs. Journal of Business Research, 92. pp.279-289.
Eisend, M. and Kuss, A., 2019. Research methodology in marketing. Cham, Switzerland:
Springer International Publishing.
FERNIE, J., 2018. 03 The alization retail internation-supply of the chain. Logistics and Retail
Management: Emerging Issues and New Challenges in the Retail Supply Chain. p.65.
Gössling, S., Scott, D. and Hall, C.M., 2018. Global trends in length of stay: implications for
destination management and climate change. Journal of sustainable tourism, 26(12).
pp.2087-2101.
Iovino, F. and Tsitsianis, N., 2020. The methodology of the research. In Changes in European
Energy Markets. Emerald Publishing Limited.
Kenny, B., 2021. Walmart and labor conditions in South Africa: Local retailing, contract labor,
and union challenges. In Walmart in the Global South (pp. 64-86). University of Texas
Press.
Kollarova, D., 2020. Globalisation and its impact on the creation of sustainable points of
purchase. In SHS Web of Conferences (Vol. 74, p. 04011). EDP Sciences.
Lai, P.C., 2018. Research methodology for novelty technology. JISTEM-Journal of Information
Systems and Technology Management. 15.
Luo, Y. and Tung, R.L., 2018. A general theory of springboard MNEs. Journal of International
Business Studies. 49(2). pp.129-152.
Mian, A. and Sufi, A., 2018. Finance and business cycles: The credit-driven household demand
channel. Journal of Economic Perspectives, 32(3). pp.31-58.
Osano, H.M., 2019. Global expansion of SMEs: role of global market strategy for Kenyan
SMEs. Journal of Innovation and Entrepreneurship. 8(1). pp.1-31.
Ponte, S., 2019. Business, power and sustainability in a world of global value chains.
Bloomsbury Publishing.
Schlegelmilch, B.B., 2022. Selecting and Entering Global Markets. In Global Marketing
Strategy (pp. 51-81). Springer, Cham.
Shields, M., 2019. Research Methodology and Statistical Methods. Scientific e-Resources.
Shin, S., Kim, H. and Kim, W., 2020. Transnational corporations’ localization strategies via
retail attributes: Focus on Chinese Market. Journal of Retailing and Consumer
Services, 55. p.102088.