Tesco: Global Business, Ethics, and Recommendations

This essay provides a comprehensive analysis of Tesco's global business management. It begins with an introduction to globalization and its impact on businesses, followed by an examination of Tesco's international strategies and the implementation of new technologies like online grocery channels, 'Scan as you shop' systems, and the Clubcard loyalty scheme. The essay delves into the ethical considerations and CSR challenges faced by Tesco, focusing on food safety, data confidentiality, and ethical trading practices. It then offers recommendations for future opportunities, such as expanding into new markets and leveraging digital marketing, while also addressing potential challenges like increased competition and rising raw material costs. The conclusion summarizes the key findings, emphasizing the impact of globalization on Tesco's business and the importance of ethical practices and strategic planning for future success.

Running head: GLOBAL BUSINESS MANAGEMENT AT TESCO
GLOBAL BUSINESS MANAGEMENT AT TESCO
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1GLOBAL BUSINESS MANAGEMENT AT TESCO
1. Introduction
The drive of globalization is responsible for shaping our contemporary world in terms
of business, environment as well as society. Globalization has resulted in effective
connectivity amongst the different organizations of the world to enhance inter-business
processes. Due to the effect of globalization, the people, neighbourhood, cities, regions and
countries are linked via different aspects such as food, culture, music and many more. The
organizations worldwide are blooming with various technological advancements that is
leading to an economic growth in the various countries (Kaiser and Meyer 2016). Apart from
the positive effects, there are negative effects of globalization such as employee turnover and
fluctuation in prices of the products. The assignment will highlight the different aspects of
global business in the organization of ‘Tesco’; discuss the ethical considerations, pressure
from other stakeholders, and recommend solutions for the challenges faced due to the effect
of globalisation.
2. Aspects of Global Business
The organization of Tesco is a reputed leading grocer of the United Kingdom that has
revised their business model to online system to derive customer satisfaction and thus
improve their business processes in this globalized era. The high population density in the
nation led to the promotion of business amongst a wide range of customers who preferred to
shop their groceries online. Tesco grabbed this opportunity to implement an online grocery
channel in their business known as the ‘Tesco Direct’ from where the customers could shop
their groceries through the digital mode (Khan, Habib and Bakar 2018). Tesco also facilitated
its customers with home delivery options that was known as the ‘goods to person’ technology
of picking such that they can get their items delivered at their doorstep without travelling to
the grocery store.

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Tesco has also implemented digitalized in-store experience in their business operating
model that incorporates ‘Scan as you shop’ handheld flexible devices and self-check-out
stations (Heller 2017). With the assistance of these stations, the customers can check out for
themselves from the store without the help from the employees of Tesco. Although this new-
age technology proves to be advantageous because it saves cost and time by incorporating
less number of employees, it has its disadvantages too. There is an increase in the rate of
fraud level due to the less monitoring of the employees of Tesco. Hence, Tesco is
determining way outs such as surveillance cameras and digital receipts to combat this theft
issue.
Tesco has also implemented the ‘Clubcard’ scheme of loyalty that generates a unique
ID for every customer that intends to shop from his or her online grocery store that leads to
the amalgamation of numerous data points from the purchasing customers (Jonah 2018).
Thus, the organization leverages data analytics models and algorithms of big data to predict
the customer choices, the trending products, arrange for discount offers, research the market
trends and many more. Hence, the innovation of technology has led the organization to
expand their business internationally and implement international strategies to meet the
business goals and increase customer base worldwide. The international strategies has not
helped the organization to create beneficial networks amongst business associates but also led
to the sustainable development of the online store.
3. Ethical Considerations and CSR Challenges
The grocery company of Tesco at United Kingdom is bound to follow the ethics of
‘Corporate Social Responsibility (CSR)’ to build up a sustainable and responsible business in
the worldwide market. The organization majorly focuses on the standard of their food
products to attain customer satisfaction and maintain a goodwill of their business in the

3GLOBAL BUSINESS MANAGEMENT AT TESCO
market. The primary measure taken by the organization was to establish a food-safety
management system across their stores and distribution centres to ensure premium quality of
the food items provided by them such that the standards are maintained. They have also
simplified their supply chain process in order to build effective relationships with the farmers
who in turn ensures them about the quality of the materials (Fatricia 2017). The hygienic
conditions of the store, cleanliness of the items and rotation of the food products are carried
out in order to maintain quality of the items till they reaches to the customer’s doorstep.
The heart of the organization of Tesco is the ‘everyday data’ that is generated
regularly from their business processes. Hence, Tesco is bound to maintain confidentiality
about their data and use them in a secured manner in order to develop their business models
and standards. The company incorporates both personal as well as the business data from
their customers and their employees. Hence, it is their duty to protect these data from leakage
and develop customer relationship internationally by gaining their trust (Wood, Wrigley and
Coe 2017). The company has also determined on ethical trading and for that, they only
incorporate with suppliers who share the same core values and serve their customers in an
effective way. They abide by their own business practices and standards such that no issues
occur with their employers. This has helped the organization to acquire long-term
relationships with their suppliers as well as the customers.
4. Recommendations
Future Opportunities
 Being the third largest retailer for groceries and raw food items across the world,
Tesco can offer various discount offers on their items to new attract customers from
different regions around the world.

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 Tesco can develop beneficial international relationships with other brands by
developing strategic partnerships with them and increase their customer base from
various corners of the world (Nguyen et al. 2017).
 Tesco can also take the advantage of new age digital marketing strategies in order to
upgrade their online e-business stores that will spread awareness amongst the
customers about their deals and offers (Siebers 2018).
 To deal with the underperforming stores, Tesco can initiate joint ventures with other
reputed brands that will help them to enhance their business scores and lead to profit-
making opportunities for the organization.
 Due to the effect of globalization, the organization of Tesco can open their stores at
regions where they do not have stores such as the countries of South Korea, Turkey
and Indonesia. This will not only turn out to be profitable but also have a positive
impact on the brand image of the grocery company.
Future Challenges
 Due to the globalization effect, there has been an increase in the competitors, the
major one being Walmart, who equally incorporates the same customer base. Hence,
it will be difficult for the organization to emerge a strong customer base. They will
succeed in retaining their customer if they ensure high maintenance of their product
quality.
 Globalization has led to an increase in the business scope due to availability of
customers and similar organizations in the market. There might be an increase in the
cost of the raw materials and affect the overall profit margin of the business
(Kannaiah and Vinayagamoorthy 2016). The organization can cope up with this
challenge by offering discounts on particular food items in the off-season and increase
an interest amongst the customers about those products.

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 Another major challenge in this age of globalization is to reach out the customers in
the remote areas of the world. Even though the customers can be reached out by the
digital marketing strategies, the transport of the food items in real is a difficult
problem that lowers down the margin rates on products (Malagi 2018). Tesco should
avail for stores in such places to cut down their transport costs and thus lead to an
increase in the number of customers.
5. Conclusion
The impact of globalisation has led to an increase in the economy of the organizations
due to the implementation of various advanced technologies, new international strategies and
effective ways of communication amongst the business associates. The organization of Tesco
has also incorporated new technological trends such as implementing e-business for their
customers. They have also implemented international strategies to expand their business
arena. However, they have also put an effort to improvise their business ethically and are
meeting their business standards by aligning with their compliance. The paper finally
discusses the opportunities and challenges of the business due to globalization and
recommendations are given regarding the same.

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