Tesco's Global Business: Challenges, Strategies, and Market Entry

This report delves into the concept of global businesses, highlighting the operational and managerial challenges faced by companies like Tesco in the international market. The report identifies key challenges such as organizational structure, international strategies, foreign regulations, economic and financial issues, environmental problems, language and cultural differences, political risks, technological advancements, local competition, and labor exploitation. Furthermore, the report proposes strategic plans for entering new global markets, including mergers and acquisitions, and joint ventures. The analysis emphasizes the importance of identifying the best markets and developing unique strategies to succeed in a competitive global environment. The report concludes by underscoring the impact of global businesses on overall productivity and growth, and emphasizes the need for effective market entry plans to navigate the complexities of international trade. The report is a valuable resource for students seeking to understand the intricacies of global business and is available on Desklib, which provides past papers and solved assignments.

GLOBAL BUSINESSES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1 Concept of international business........................................................................................1
2 Operational and managerial challenges of global business.................................................1
3. Plan for entering into international market.........................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Global businesses refer to international commercial trade where many companies doing
their business around the world, they get exchange products and services terminated with large
distance which goes back a long term period. According to this process organizations operate
many facilities like distribution centers and mill etc. in many states or countries across the world.
Tesco is a British international groceries and all-purpose merchandise retailer, who placed their
headquarters in Hertfordshire, UK etc. Thus, for its high performance work in business areas
they build their third position in retail market (Peng, 2016). This report explains the concept of
global business and operational and managerial challenges which has to face by global
businesses. It will also make plan for entering into new global market.
TASK
1 Concept of international business
Global business specifically refers to international commercialism. Organizations which
are doing their business across the world are called global businesses. This process is held by
supplying their products and services to other countries within having long distance (Wirtz,
Tuzovic and Ehret, 2015). It defines as economic and firm activity which takes place around
various countries. International business is very important because it builds the image in market
place and also helps to improve their position in business world. It has an opportunity for
company to expand their business and make it stronger and successful better than its competitors.
Global business activity is reflected when organization spread their production function in other
state or has opened some other factories and supplier in the Europe, U.S. etc. Exchange of
services and products among individuals and enterprises in many countries define the function of
international business. It was the fastest or advanced way to grow in global trade market. Tesco
is a retailer company they provide their goods and services to people in all over the world. They
successfully expand their business in international market by making good groceries' product.
This will increase its profitability and success in business world.
2 Operational and managerial challenges of global business
Teco is very famous company in the world; they operate their businesses in many
countries like Ireland, Hungary, and Thailand etc. they need to expand their business in more at
international level, where they faced many challenges in this process (Amankwah-Amoah,
2016). Expanding company services means to reach new customers or clients and potentially
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encourage profit. There are some challenges which they faced in operating their business on
global level. Global organization structure: Tesco has faced different international organization
structure which impact on its profitability and growth. According to this stage teco need
an effective team in the place where they placed their business, because they can help at
the situation of competitive global environment. They need to identified the overall
structure of international business and then make their plans and strategies which they
can use in the process of establishing business functions in country. This is the first
challenged which they have to face in this activity.
 International strategies and planning challenge: this is the second situation that they
have to face. Thus, when Tesco need to expand their business at global level, there are
some different plans and strategy which other global businesses already have. This might
be impact on their profitability and growth of business and also affect its management
structure as well. Foreign regulations and laws: this is the third challenge that tesco face in condition
where they want to spread their grocery business. Thus, company face many challenges,
in foreign countries they made different laws and regulations in business world. Every
organization needs to follow this rule for making or establishing their business in that
state or country (Sarasvathy, and et.al., 2014). Governments make some trade policies
which directly impact on Tesco productivity and success. Such which challenges that
they are face like: different tax rules or trading regulations, etc. thus, under the law tesco
also need effective workforce which is another difficult situation. Economical and financial challenges: tesco need to expand their business but fund is
the biggest barrier in this process. They need to arrange funds to run their service
facilities for making its business more successful and powerful in global market. They
also have faced some economical challenge which affects its growth and profit. Thus,
exchange price is the most difficult situation in the process of increasing businesses. Environmental problems: it was a huge risk and challenging condition for tesco to run
their company in internal business world. Climate changes directly affect its profit
margin and function functions. Many global companies had faced this situation since
long term period. Air and water pollution or heavy rain fall is the reasons in practices of
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grow tesco business at global level. According to environmental changes company cannot
make success in trading activity. Earthquake and flood also increase challenge in this
process. Language and different culture: Tesco want to expand their grocery services and goods
across the world or at international businesses market. At this stage they face a lot of
challenges or barriers which affects its company productivity and growth. Culture and
language is the biggest issue, like South Africa is a different country they have some
different language and culture which make difficulty for company who want to establish
their products facilities at that place. Firm cannot understand their way of toughing and
values. Thus, at this they do not give them proper services and facilities. Related with
culture stage it includes people behaviors and habits or preferences of customers without
any understand of these points company can’t make its products for people. Without
communication any organization does not run their business activity successfully. Political challenges or risks: Political instability and uncertainly changes is a huge risk
which Tesco face in its business because it do not have any specific time it can be
modified according to the condition and situation of economy. It directly impact on
company success and productivity. It was the biggest dare in the process of establishing
business with the same goods but in new place. Technology progress: to run business successfully any organization need to used new
and different technologies which impact on their business growth. It was the biggest
challenged that has to be faced by many companies. In current international market they
used various techniques and business strategies which make barriers for Tesco. Local competition: local companies have their own strategies and plans which have
affect Tesco productivity. Local competitor’s organizations are the biggest challenge
which has to be faced by company. Local firms already have the knowledge about rules
and regulations of their country which help them to beat the other new entries. Labor exploitation risks: workers are the most important part of business growth. They
can help organization in increasing their profit margin. It has one of the biggest dare that
decrease the firm growth and make barrier in its growth.
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3. Plan for entering into international market
Thus, to enter in new global market Tesco need to make their effective plans which
increase their business profit and success against to its competitors in global businesses
(Chetty, Ojala, and Leppäaho, 2015). International market entry plan:
 Merger & acquisitions: it defines as merging of organizations. This process is
held between two companies which has equal partners in every stage of
business function and activity. Both opinions are very important in making any
decisions to run firm perfectly. Merger and acquisitions are the major facets of
corporate business world. Tesco need to merge their business with the other
company which already has established their business in international market
this will make Tesco business more powerful.
 Joint venture: joint venture is the process where two companies will take
partnership agreement among themselves (Killing, 2017). Tesco make its
business partnership they both invest money equally in taking some new
projects or task. According to this process both organizations stay distinct from
each other but performed their work with together on one specific project to
succeed and try.
 Identify best market for business: to enter on global market tesco need to
identify the best business where they can establish their own business services
and grocery products. The want to make research in marketplace through this
process they can easily enter in international businesses world.
Thus, for entering in global market or to expand their business function in all over the
world tesco need to make their own and strategies which is different and unique to its
competitors which help in conflict situations, that teco faced in competitive
environment.
CONCLUSION
In this report it has been concluded that global businesses has impact on the overall process
of business productivity and growth. This present report explains the whole concept of
international business that increases company profit and success. Thus, to expand products
and services in global market or to set the position in international businesses World,
Company has to face different challenges that might be decrease its productivity and
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profitability. To grow firm production and expand business services they need to make entry
plan which help company in making success when they want to get entered in international
marketplace.
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REFERENCES
Books and Journals
Amankwah-Amoah, J., 2016. Global business and emerging economies: Towards a new
perspective on the effects of e-waste. Technological Forecasting and Social Change.105. pp.20-
26.
Cavusgil, S.T., and et.al., 2014. International business. Pearson Australia.
Chetty, S., Ojala, A. and Leppäaho, T., 2015. Effectuation and foreign market entry of
entrepreneurial firms. European Journal of Marketing. 49(9/10). pp.1436-1459.
Killing, J.P., 2017. How to make a global joint venture work. In International Business (pp. 321-
328). Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1). pp.23-34.
Peng, M.W., 2016. Global business. Cengage Learning.
Sarasvathy, S., and et.al., 2014. An effectual approach to international entrepreneurship:
Overlaps, challenges, and provocative possibilities. Entrepreneurship Theory and
Practice. 38(1). pp.71-93.
Wirtz, 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.
Zander, I., McDougall-Covin, P. and Rose, E.L., 2015. Born globals and international business:
Evolution of a field of research. Journal of International Business Studies. 46(1). pp.27-35.
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