Evaluating Globalisation's Role in TESCO's Business Success: A Report

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This report examines the influence of globalisation on business success, using TESCO as a case study. It begins with an overview of globalisation, its benefits, and the company's background, including its aims, objectives, and research questions. The literature review defines globalisation and identifies key components for business growth, such as behavioral traits and external factors. The report highlights benefits like increased consumer base and business opportunities, while also acknowledging drawbacks. The methodology outlines research approaches, data collection methods (primary and secondary), and data analysis techniques (qualitative). The report then presents research outcomes and offers recommendations for alternative methodologies. In conclusion, the report provides insights into how TESCO can leverage globalisation to enhance its market position and achieve sustainable growth.
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Research Project
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Table of Contents
Tittle: How globalisation can drive business success......................................................................3
INTRODUCTION...........................................................................................................................3
Overview and Background of study............................................................................................3
Research aims..............................................................................................................................4
Research Objectives:...................................................................................................................4
Research Questions.....................................................................................................................4
Rational of Study.........................................................................................................................5
LITERATURE REVIEW................................................................................................................5
Concept of Globalisation.............................................................................................................5
Main components to improve business growth...........................................................................6
Benefits of Globalisation Concept..............................................................................................7
Major drawbacks of Globalisation..............................................................................................7
RESEARCH METHODOLOGY.....................................................................................................7
DATA ANALYSIS AND INTERRETATIONS.............................................................................9
RESEARCH OUTCOME..............................................................................................................13
REFLECTION AND RECOMMENDATION FOR ALTERNATIVE RESEARCH
MTHODOLOGY...........................................................................................................................14
CONCLUSION..............................................................................................................................15
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Tittle: How globalisation can drive business success
INTRODUCTION
Overview and Background of study
Globalisation is a wide concept that consist of social, political and economical
interaction and interrelation of goods and services that are done across cultural and cultural
boundaries. It helps in increasing effective flow of ideas and knowledge related to culture and
individuals. Globalisation benefits in creating numerous employment opportunities and helps an
organisation to expand their global business (Noe and et. al., 2017). Concept of globalisation
effectively benefits a country to gradually raise their employment effectiveness and improve
standard of living of an individual by enhancing their purchasing power. Along with this,
organisations can effectively gain more consumer base by expanding their area of services.
Present case study has been conducted in TESCO plc which is a British multinational company
performs their business operation in retailing sector. Company was founded in the year 1919 and
headquartered in AL7 1 GA, England. TESCO is one of the large scale companies who have
estimated number of 6,569 shops. Company run their operations in more than 11 countries
through a medium of Hyper store, supermarket, convenience shop and superstore. Main aim of
company is to manufacture high quality products by raise share in global market. In context with
this, management of company has decided to formulate a research on basic concept of
globalisation as to increase their bid at international market.
In relation to this, certain objectives of research are conducted in order to prepare
research. It will aid researcher to to conduct their research in best effective way for TESCO. In
addition to this, researcher can also make themselves aware about issues and benefits of
globalisation, and various other factors that influence them in many different ways. In this
regard, aims and objectives of TESCO research on globalisation are mentioned:
Research aims
“To evaluate the influence of globalisation in enhancing business growth of large scale
company” A Case Study of TESCO.
Research Objectives:
To understand concept of globalisation
To identify different components which helps TESCO in improving its business growth.
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To analyse benefits of globalisation which are gained by TESCO.
Research Questions
Define globalisation concept?
What are main the components that will aid TESCO to improve their business growth?
What are the benefits of globalisation concept for TESCO?
Rational of Study
Main objective of this present research for TESCO is to maximise their overall rate of
profitability and raise their quality of operational activities in an international platform. In
addition with this, major purpose of TESCO is to analyse number of individuals who are aware
about company and their perceptions related to company. In context with academic, this research
will effectively benefit in maximising scope of leaner in order to increase level of their skills. In
addition to this, academic learner will able to find different types of future growth opportunities
in order to stimulate their career growth. In relation with researcher primary motive of an
investigator is to increase their overall base of knowledge about TESCO company and stimulate
their operational activities in best effective way at international platform. It will benefit
researcher to maximise their career opportunities and perform suitable role within similar
organisation as per according to their special expertise.
LITERATURE REVIEW
Concept of Globalisation
As per according to the thought of Saeidi, (2015) globalisation is basically a interrelation
of different types of product and services in between different types of countries. In this concept
interchanging of business products, economies, people and government are done for a common
purpose that is to achieve more development opportunities. Globalisation include exchanging of
consumer demand as per according to current basic trend of market, consumer and nation in
order to earn more profitability by expanding their area of services. This will aid organisations to
perform their work in a single market and utilize raw material form different locations as per
their requirement. Globalisation effectively bring developmental merger in society, culture,
people, service, information, technology and capital. In addition to this, it can be said that
globalisation is a broad factor that helps in improving and raising living standards of individuals
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across the world. In addition with this, stated concept helps in supporting companies to execute
their functions in such a way that can effectively increase their base of financial profitability and
evaluate many developmental opportunities. Along with this, it also aid companies to stimulate
their overall growth in native as well as in international market.
Moreover, globalisation creates an environment in which individuals have raise their
expectations level in order to get more options and substitute products as to satisfy their
expectations and needs in best effective way (Kang, Alejandro and Groza, 2015). It influence
organisations to bring more options in innovative way in a marketplace as to effectively remain
in competition and acquire more market shares and consumer support. In order to grab more
attention of consumers, companies are require to offer high quality products at low price. This
strategy will help companies of a large scale to offer more innovative products at international
platform. Organisations also can influence consumers of many different locations and encourage
their buying interests so to increase their sense of loyalty towards organisation and sustain their
business for long duration of time. This can be seen with the example of TESCO. Company
have strong brand image at international platform but still organisation management team
effectively take feedbacks from their consumers at a regular interval of time which will benefit
them to make necessary modifications in their products as per according to consumer
perceptions. This evaluation help companies to acquire more developmental opportunities and
improve their brand image among consumers that may got damaged due to past incidents.
Main components to improve business growth
According to the view of Taylor (2017), it has been evaluated that, there are different
types of factors that effectively contributes in growth prospects of an organisation. It is certain
that business organisations perform their activities in order to gain more profitability along with
ensuring ling run sustainability. As per the analysation it has been said that there are different
types of influential factor that affect organisation growth which is briefly described:
Behaviour and Personal trait of company:
This factor focuses on a behavioural style of a leader who is leading a company. For
instance, individuals and employees capabilities of TESCO benefits company in effectively
leading company. In this leader utilize different types of resources to accomplish aims and
objectives of company in best possible way (Dijkman and et. al., 2015).
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External factors:
External factors include factors like, economic environment, political culture, cultural
environment that affect functioning of company (Surugiu and Surugiu, 2015). Therefore, by
adopting effective strategies and tools TESCO can overcome negative impact of these factors
and perform their functions in favourable way.
Benefits of Globalisation Concept
As per according to the view of Stenning, (2016)it has been evaluated that globalisation
benefits large business organisations to perform their business functions effectively and analyse
various developmental opportunities as to stimulate their growth and become more successful in
a marketplace. For example, well established company dealing in clothing retail sector gain
various opportunities with this concept of globalisation. Mentioned below there are some certain
benefits of globalisation concept for TESCO:
Increase in number of consumers:
Globalisation effectively benefits organisations to expand their operations and raise their
number of consumers. With the help of concept of globalisation TESCO can reach out as many
possible consumers and raise overall profitability rate of company.
Enhancement of business opportunities:
It is one of the most effective benefit that aid TESCO to expand their business
opportunities in a international platform (Hotho, 2015). Along with this, company can raise
numerous opportunities to perform their operations in any desired country. And enhance their
rate of productivity and profitability.
Major drawbacks of Globalisation
As per according to the view of Macchion, Danese and Vinelli, (2015)it has been
evaluated that globalisation provide different types of opportunities top organisations in order to
expand their operations. In this is a threat, as it creates a situation of diversity in culture in
domestic and international market. For example, TESCO is one of the leading multinational
company in UK. Therefore, it is necessary for the company to provide proper training to their
employees while expanding their business operations in many different locations. It is important
for them to educate their employees on the ground of values, tradition, practices and norms. This
will effectively help them to perform their business and acquire more profitability (Stenning,
2016).
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RESEARCH METHODOLOGY
Research Methodology is a systematic and analytical way which is utilized to collect specific
data in relation to a particular topic. With the help of this method researcher can effectively
apply certain tools and techniques in order to acquire knowledge on a specific topic (Surugiu
and Surugiu, 2015). By utilizing this method, researcher can effectively collect most reliable and
authenticate data for their research:
Research Approach: It is a specific set and rules with the help of which researcher can able to
conduct their research on a particular topic as per according to procedures and plans. There are
mainly two types of research approaches mentioned below:
Inductive approach: This approach is helpful in conducting research in qualitative way in
this mode research is done by taking advantage of theories.
Deductive approach: It is a process which is mainly visa versa of inductive approach.
This method is taking by researcher to conduct quantitative mode of research.
Data Collection: Data collection is a mode with the help of which researcher can effectively
able to group related data in relation to a specific topic this will benefit them to acquire related
and authenticate data. There are mainly two types of data collection method mentioned below
with the the help of which researcher can conduct their work in effective way:
Primary Method: In this form of data sampling method, researcher can take advantage of
questionnaire, surveys, observations, interview to collect data and information in a proper given
given time frame. This will aid researcher to collect required data in authenticate form.
Secondary Method: It is a method in which data is collected by using articles, blogs, new
papers, online web sites and other books (Grayson and Hodges, 2017). With the help of which
researcher can effectively able to collect referenced and authenticated data.
Researcher in present report is using secondary form of data collecting method in order to
conduct their research in proper form.
Data analysis: It is a formative process in which aid an researcher to effectively inspect,
transform and clean their data in a final out put. There are mainly two form of data analysis
which can aid researcher to complete their research:
Qualitative: It is method with the help of which researcher can effectively able to
accomplish their research in a theoretical manner. It will benefit researcher to complete their
research in time effective and cost saving method.
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Quantitative: In this mode of data collection, informations are collected in the form of
mathematical and statistical way. In benefits researcher to give a clear set of review for a
particular topic. It is a time taking process and require a huge cost (Netland, 2016).
In order to accomplish research in best effective way, researcher is taking advantage of
qualitative mode to achieve their set targets in theoretical manner. This method is time saving
way with the help of which researcher is able to collect their required data in less time manner.
Data Sampling: There are mainly two form of data sampling method namely, probabilistic and
probabilistic. In order to complete research in effective way researcher is taking advantage of
probabilistic sampling method which is also termed as random sampling method (Berger and et.
al., 2015). In present research there are overall number of 30 respondents.
DATA ANALYSIS AND INTERRETATIONS
QUESTIONNAIRE
1) Do you know about the concept of Globalisation?
Yes
No
2) What factors mostly affect the TESCO Ltd. during expansion of its business?
Fluctuation in taxation rate
Changes in technologies
3) What are the beneficial outcomes received by TESCO Plc. After expansion of business at
global level?
Increase in existing customer base
Increasing profitability
Enhancing global market position
4) Does the TESCO Plc requires to raise additional funds for successfully expansion at
global level?
Yes
No
5) Does globalisation makes positive impact on the net profitability of Tesco Plc?
Agree
Disagree
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6) What are the limitations that restricts TESCO Plc to expand its business at global level?
Different cultures
Language barrier
Recruiting skilled staff
7) Who are the potential customers of TESCO Plc?
Higher income group
Middle income group
Lower income group
Theme 1: Concept of Globalisation
Q1) Are you aware with Globalisation concept? Frequency
a) Yes 22
b) No 8
Interpretation:
As per the above graph, it has been interpreted that, globalisation is a formative process
which allow different types of business organisations to exchange their products and services at a
global market and gain more developmental opportunities. Globalisation aid different types of
organisations to manufacture and sell their products and services at various different market in
any country. After the analysation of above graph, 22 out of 30 respondents are aware with the
concept of globalisation because it helps in building effective relationship between different
countries. Whereas, 8 out of 30 responsive are unaware with the concept of globalisation as they
are not properly aware about new and innovative technology.
Theme 2: Major factors that affect globalisation
Q2) Describe some of the major factor that affect functioning of company Frequency
a) Fluctuation in rate of taxations 14
b) Change in technology 16
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Interpretation:
Globalisation put their impact on an organisation in both negative and positive way. It
provides them so many benefits to raise their profitability and productivity. While on the other
hand, there are so many factors that affect globalisation a hamper functioning of a company in
many different ways. As per the above mentioned graph it has been evaluated that, 14 out of 30
respondents believes that fluctuations in tax rates is one the factor that affect organisation while,
16 out 30 said that change in the technology acts a major factor that affect a company
functioning and hamper its growth.
Theme 3: Globalisation concept benefits for TESCO
Q3) What are the main benefits of globalisation for TESCO? Frequency
a) Increase in consumer base 8
b) Maximisation in profitability 9
c) Raise in global market position 13
Interpretation:
Globalisation allows an organisation to expand their business operations in more than
countries and perform their activities while utilizing resources in cost effective manner from
other countries. In context with this, as per the above mentioned graph it has been evaluated that,
8 out of 30 respondents believes that globalisation benefits TESCO by increasing their consumer
base while, 9 out of 30 respondents said that globalisation benefits organisation by raising their
overall rate of profitability. Whereas, 13 out of 30 respondents said that main benefit that
TESCO gained with the concept of globalisation is increase in their global market position.
Theme 4: Requirement of additional funds for TESCO expansion
Q4) Is there is a requirement for TESCO to add their capital in order to
maximise their business at global level?
Frequency
a) Yes 25
b) No 5
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Interpretation:
Globalisation is way in which interaction of people and countries takes place through a
medium of goods and services. In order to conduct business operations in smooth and effective
and make their international trade easier there is requirement to so many things in this context as
per the above mentioned graph it has been seen that 25 out of 30 respondents are in the favour of
the fact that, in order to expand their business at global level TESCO need additional
requirement of funds. While 5 out of 30 are not in the favour of the fact that TESCO need more
fund for their expansion as they believes company can perform their activities in global market
with their existing fund and remained capital.
Theme 5: Impact of globalisation on net profitability of TESCO?
a) Agree 22
b) Disagree 8
Interpretation:
Globalisation allows hassle free movements of goods and services in all around the
world. It results in increasing growth that lead towards high rate of per capita incomes and aid so
many poor countries to achieve high phase economic growth. As per the above mentioned graph,
it has been evaluated that, 22 out of 30 respondents believes that globalisation have impacted on
TESCO net profitability as it opens up more capital markets for company and aid them to seek
cost-reducing innovations. While on the other hand, 8 out of 30 respondents disagree with the
fact that globalisation impact TESCO profitability as it raises a chance of vulnerability to
external and economic shocks.
Theme 6: Limitations that restricts TESCO for their expansion
Q6: What are the major limitations that restricts TESCO plc to expand
their business operations at international level
Frequency
a) Different cultures 7
b) Language barriers 15
c) Recruiting skilled staff 8
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Interpretation:
Globalisation is a wide concept that offers various types of advantages of organisations
to expand their area of services in order to gain more advancements and profitability. As per the
above mentioned graph, it has been evaluated that there are different types of barriers that
restricts TESCO to maximise their business operational at international level. As per according
to the graph, 7 out of 30 respondents believes that variations in culture is one of the limitation
that restrict TESCO to expand their area of functioning. Whereas, 15 out of 30 respondents
believes that differentiation in language acts as an one of the most important factors which
hamper TESCO growth perspectives while expending their business operations. On the other
hand, 8 out of 30 co defendants states that recruiting skilled staff acts a strict restrictions that
creates numerous obstacles in the path of TESCO to expand their operations in international
market.
Theme 7: Potential consumers of TESCO
Q7: Who are the potential customers of TESCO plc? Frequency
Higher income group 10
Middle income group 11
Lower income group 9
Interpretation:
As per the above mentioned graph, it has been analysed that globalisation is a process
through which different types of organisations can effectively raise their profitability by
exchanging their products and services in different locations. As per graph, it has been evaluated
that 10 out of 30 respondents are those individuals who comes in TESCO higher income group
potential consumers. While, 11 out of 30 costumes comes in the range of TESCO middle income
group as company offer their different set of products and services in affordable range. On the
other hand, 9 out of 10 respondents comes in the portion of TESCO lower income group as it is
yet for TESCO to reach out economic zones of lower income level.
RESEARCH OUTCOME
As per the above conducted research of TESCO, it has been evaluated that globalisation
benefits an organisation to maximise their growth in order to gain more developmental
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