Globalisation and Business Success: Drivers and Challenges for Tesco

This report investigates the impact of globalisation on business success, with a specific focus on Tesco PLC. The introduction defines globalisation and its benefits, emphasizing increased market share, profit, productivity, and brand maximization. The research outlines Tesco's opportunities for expansion in foreign markets. The report explores the rationale, aims, and objectives of the research, including identifying business drivers for international success and assessing related challenges. The literature review delves into globalisation's advantages for companies, including free trade, increased labor migration, and investment. It then examines key business drivers for Tesco, such as demography, technology, and political decisions. The report also addresses issues Tesco faces in global business, including cost management and market expansion strategies. The research methodology discusses research philosophy (pragmatism) and approach (mixed methods), primary and secondary data sources. The report includes a Gantt chart and Work Breakdown Structure (WBS) to illustrate project management aspects. The report concludes with recommendations and a reflection on the research process.

Research

Table of Contents
Topic of the research - “How globalisation can drive business success”........................................3
INTRODUCTION...........................................................................................................................3
Gantt Chart.............................................................................................................................4
Work breakdown structure.....................................................................................................5
LITERATURE REVIEW................................................................................................................6
Globalisation and its benefits to a company...........................................................................6
Main business drivers for Tesco PLC that may lead to success at international level...........7
Issues faced by Tesco PLC in regards to global business drivers..........................................8
RESEARCH METHODOLOGY.....................................................................................................9
DATA ANALYSIS AND INTERPRETATION...........................................................................12
Data interpretation................................................................................................................14
RECOMMENDATION.................................................................................................................25
Alternative research method.................................................................................................26
Reflection.............................................................................................................................26
CONCLUSION..............................................................................................................................27
REFERENCES..............................................................................................................................28

Topic of the research - “How globalisation can drive business success”
INTRODUCTION
Globalisation is defined as process where different economies are integrated. This has
given platform to all companies around the world to trade in foreign countries. Due to
globalisation it has become easier to communicate with foreign countries and establish market
share in those areas. There are different benefits of globalisation to companies such as increase in
market share and profits, increased productivity and maximisation of brand. Companies can
increase their market share and customer base if they work at global level (Brambilla, 2015).
Globalisation provides incentive for different countries gain benefit by increasing competitive
advancement. Various companies are able to experience higher demand for their products and
benefits from economies of scale. This leads to decrease in production cost of the company. The
main benefit of globalisation to companies is that it enables a worldwide access to sources of raw
material. In the present research company which is considered is Tesco which is a leading
supermarket company of UK. This is a multinational groceries and general merchandise retailer
and headquarters of this company are situated in Hertfordshire, England. There is great
opportunity for Tesco to expand in foreign markets. This will help in increasing the market share
and profit that company earns.
Background of research
Globalisation has affected businesses in a positive manner as it has developed various
opportunities to expand business in various countries. Also it has helped to make brand of the
company to be known worldwide. If any company is doing great business in domestic markets,
then it should expand market in other countries also.
Rationale of research
The researcher has chosen this topic as globalisation is a concept that is trending in
market. In today's world, each and every company wants to establish it's business in foreign
countries. This aids in capturing market share of different countries. Gradually this helps in
having a lot of customer base and more profit.
Aim of present investigation is “To identify the impact of business drivers that lead an
organisation to success at global level”. A case on Tesco PLC.
Research Objectives

 To understand the term globalisation and its benefits to a company.
 To identify main business drivers for Tesco PLC that may lead to success at international
level.
 To access the issues faced by Tesco PLC in regards to global business drivers.
Research Questions
 Explain the term globalisation and its benefits to a company.
 What are the main business drivers for Tesco PLC that may lead to success at
international level.
 What issues faced by Tesco PLC in regards to global business drivers.
Gantt Chart
Gantt chart is basically representation of project activities and this was developed by Henry
Gantt in the year 1861. Gantt chart is used in project management and it is the most common and
useful way of explaining activities involved in project completion. The Gantt chart is helpful in
showing project activities or tasks displayed against time. This chart has list of activities on left
side and top of this graph includes time scale (Zajda, 2015). Every activity or task is represented
by bar. The length and position of bar represents start date, duration and end date of the project
activity. The Gantt chart for present report is given below -

Work breakdown structure
WBS is known as dividing of complex projects into manageable and simpler tasks. The
project manager uses this type of tool for simplifying execution of project. The WBS tool is
helpful in dividing large tasks into manageable work chunks which can be easily supervised. In
the WBS figure, scope of project is presented graphically (Oyemomi, Liu, Neaga, and
Alkhuraiji,, 2016). This diagram begins with graphic object which represents the whole project.
The WBS for this project is mentioned below -

LITERATURE REVIEW
Globalisation and its benefits to a company
As per the thoughts of Bendell, (2017), globalisation is a complex issue which is
beneficial for companies in doing their business effectively. Globalisation has lead to increase in
integration and cooperation of various national economies. This consists of national economies
which are becoming increasingly. Globalisation includes various factors such as greater free

trade, large movement of labour, increased capital flows, growth of multinational companies and
increased communication. There are several benefits that a company can have due to
globalisation. Free trade is the way by which countries can exchange resources and goods.
According to this, countries are able to produce goods in which they have comparative
advantage. The increases in labour migration will help in providing employment to large number
of people. Production is also enhanced as goods of company can be produced in ant part of the
world. This helps in enabling opportunity of lower average costs and lower prices for consumers.
Globalisation has enabled increased level of investment and this has made easier for countries to
attract long term as well as short term investment. The investment by multinational companies
plays an important role for improving the economies of developing countries. The developing
countries have to struggle more for competing with developed countries. Developing countries
have different tariff rules and regulations which restricts trading between two countries.
Globalisation helps companies to expand their business at global level and in this way brand's
popularity is enhanced. Globalisation has also enabled the movement of workers from one
country to another easy. This has also helped in having diverse culture in many countries and any
individual can easily settle in different country.
Main business drivers for Tesco PLC that may lead to success at international level
According to the viewpoint of Cavusgil, and Knight, (2015), there are some business
drivers that lead to success of Tesco at international market. These include demography,
technology and political decisions. These factors have major impact on the operations and
functions of business. Demography is defined as size of population of a country in which
company is operating business. When there is a particular economy where there are large number
of employees and workers but it has less physical capital, the country has abundance of labour
but poor capital. In these countries, there is competitive advantage in manufacturing labour
intensive products. Because of the advancement of technology, cost of transportation and
communication has decreased. There will be reduction of costs an other phenomenon like
outsourcing, global value chain and long distance trade. If any company wants to expand it's
business at international market, then it has to face different rules and regulations given by
government. The various political decisions that affects functioning of an organisation are
reducing the barriers of trade in goods, labour, services and capital. Each and every company has
to develop and adopt effective strategy for accomplishing the goals and objectives of the

company in less time. Globalisation is shaped by political decisions for the way in which society
deals with outcomes of globalisation. There are various countries where there are low skilled
labours. Thus it is advisable for the company to analyse which company has most effective
workers and only in these countries business is established.
Issues faced by Tesco PLC in regards to global business drivers
According to the viewpoint of Crane, and Matten, (2016), it is concluded that for every
multinational company it is important for having successful business. For every company which
is operating in global market it is advisable that they must focus on global business drivers. For
having successful business, it is important that the company is following rules and regulations
given by country in which it is operating. Also it is advised that company must start their
business in country in which there are skilled employees and workers. If company starts
operating in countries where there is political instability or where there is no collaboration
among government and people then this will affect the progress of company in that country.
Tesco is known as the world's largest merchant. This company has adopted an aggression foreign
expansion strategy while expanding it's market in different countries like South Korea, US,
China and Eastern Europe. This company manufactures and sources it's products at global
market and it is involved in keeping costs of it's products down. There are substantial cost
cuttings made through handling supply chain in an effective and efficient manner. Tesco has
introduced a point card that is used for collecting data from customers when they use it for
buying items. This helps in building loyalty and developing promotions that aims for particular
customers. By using this technology, Tesco has been successful for creating fair amount of
customers and remaining leader in UK market. The globalisation of market and production of
Tesco plays an important role in development of the company. At the time of expansion, Tesco
was able to capture and benefit from the innovation that has emerged from global subsidiaries.
Because of the interconnectedness of markets, organisational structure and operating skills have
been continuously transformed as this helped in operating and adopting host economies. Tesco
has to transfer knowledge from UK around it's international operations by using intra firm
networks of telecommunications and face to face best practise transmissions. There are various
innovatory practices that are merging within global markets and these have captured through
bottom up processes of learning of organisation.

RESEARCH METHODOLOGY
Research methodology is defined as a necessary part of investigation. This includes all
detailed information about different tools & techniques, methods, approaches are described
which are used in research for gathering, analysing, interpretation the data for finding effective
solutions.
Research philosophy
Research philosophy is basically a phenomenon which deals with the ways where data
relate to a phenomenon is collected, had to be analysed and used in the research work (
Vom Brocke,, Petry, and Gonser, 2016). Whenever a research philosophy is involved it means
formulating and being aware of different beliefs & assumption made in the research work.
Research philosophy forms the most outer layer in a research onion. There are four main types of
Research philosophy:
 Pragmatism: This type includes mixed method designs, including qualitative and
quantitative both type of data.
 Positivism: This believes that there is one thing that is always stable is reality.
Realism: It is another branch of research philosophy. This is closely related to truth and existing
objects in human mind (Díaz, and et. al., 2015).
 Interpretivism: Reality can be interpreted in many different ways but such interpretations
are part of scientific knowledge
Research Approach
 Qualitative approach refers to the approach where research observe and understand the
behaviour of human being and what they think about the particular topic.
Qualitative approach helps the investigator in order to collect accurate and reliable data. The
utilisation of qualitative method helps in enhancing authenticity of research. And, adoption of
quantitative method supports in gathering, analysing and evaluating information obtained from
questionnaire (Olins, 2017). Thus, in the current research, researcher adopted mixed method for
drawing appropriate outcome from research problem.
Primary data
Primary data means first hand data being collected by the researcher to perform the hole
research work. There is a long process through which such type of data is collected. There can be

many different methods for collecting primary data such as questionnaire, observations,
experiments, personal interviews and surveys.
Secondary data
The different sources of collecting data through secondary source includes journals,
websites, articles, government publications and other sources. This is more economical as
compared to primary source. This method has a limitation that researcher sometimes may not get
exact information and this is less reliable. In the current investigation both the primary and
secondary sources of data collection are used by investigator.
Sample Size
Sample size basically means number of respondents selected by the researcher from
whole population size. In this research work there are total of 30 respondents who are selected as
sample size.
Sampling
Sampling is a process where a researcher emphasis on choosing a sample. This sampling
is done because whole population cannot be used for research work, so a particular sample is
selected which is used for further processing and drawing out relevant conclusions (Díaz, and et.
al., 2015). There are many different methods which can be used by researcher such as simple
random sampling, systematic random sampling, stratified random sampling, cluster sampling,
snowball sampling, quota sampling. Every method has its own way of collecting data which can
be used by analyst according to its requirements. In this research work simple random sampling
has been used by the researcher. In this method there is no specific criteria respondents are
selected on a random basis.
Questionnaires: Questionnaires are a set of questions which are prepared by the researcher to
perform their research work (Rossi, Lipsey, and Henry, 2018). There are series of questions
which are prepared in order to evaluate respondents on various aspects and note down their
reaction. Based on that reactions interpretations are done and final conclusions are made.
Questionnaire
Q 1) Do you have any knowledge related to the term 'globalisation'?

a) Yes
b) No
Q 2) As per your views, does globalisation drive success of business?
a) Agree
b) Disagree
Q 3) What are the different advantages of globalisation to business?
a) Quick access to advancement
b) Increase in sales performance
c) Better approach to business opportunities
Q 4) Is it required by Tesco to have strong strategies while working in foreign markets ?
a) Yes
b) No
Q 5) What are different obstacles that Tesco will face while entering into international markets?
a) Large number of competitors
b) Changes in political factors
c) Low attention to local customers
Q 6) As per your views, does globalisation influences performance of business?
a) Yes
b) No
Q 7) According to the above mentioned factors, what is the major obstacle that Tesco has to
face while entering international markets?
a) Ease in access to financial resources
b) Technological factors
c) Access to large market
Q 8) As per your views, is Tesco having effective strategy to expand successful business in

international markets?
a) Yes
b) No
Q 9) According to your views, what are various kinds of resources needed for doing successful
business internationally?
a) Technological resources
b) Financial resources
c) Human resources
Q 10) According to you, what will be the best strategy for Tesco to enter into foreign markets?
a) Joint Ventures
b) Franchisee
Q 11) Provide recommendation for Tesco to work effectively in international markets and
succeed.
DATA ANALYSIS AND INTERPRETATION
Questionnaire
Q 1) Do you have any knowledge related to the term 'globalisation'? Frequency
a) Yes 26
b) No 4
Q 2) As per your views, does globalisation drive success of business? Frequency
a) Agree 27
b) Disagree 3
Q 3) What are the different advantages of globalisation to business? Frequency