Analysing TESCO PLC: Globalisation, Business Strategies, and Success

This research project investigates the impact of globalisation on business success, using TESCO PLC as a comprehensive case study. The introduction highlights the transformative effects of globalisation, emphasizing its role in connecting countries and facilitating cross-border transactions, particularly in the 19th century. The study examines Tesco's journey, from initial challenges in international markets to strategic adaptations, including product customization and effective outsourcing. The research aims to understand how globalisation drives business success, focusing on Tesco's strategies and the benefits derived from it. Objectives include understanding globalisation, identifying challenges, determining success factors, and examining Tesco's benefits. The project includes a Gantt chart and work breakdown structure for project management. The literature review explores globalisation's concept, challenges, Tesco's success factors (such as cost leadership and customer-centric strategies), and the benefits of global expansion. The findings highlight the importance of adapting to cultural differences and the influence of political and economic factors. The research methodology combines primary research through questionnaires with secondary research from articles and online sources, using SPSS and Excel for data analysis. This research provides valuable insights into how businesses like Tesco leverage globalisation for growth and success, providing a deep understanding of the benefits, challenges, and strategies involved.

Research Project

Topic of the research “To understand how globalisation can drive business
success” A case study on TESCO PLC.
Introduction
Revolution took place around in 19th century where there were advances made in
communication and transportation industry. When there is interaction taking place among
different countries and cross border transactions are also there then it is considered as
globalisation. It is not a new concept and many countries have been part of it since a long time.
A complete transformation happens in case of Globalisation, it is actually responsible in
converting a world into single community.
It is a multidimensional and unifying process. Changing technology also is very helpful
in process of Globalisation, such as digital media is also playing very important part in
Globalisation. All countries of world are benefited from it, especially countries which are less
developed or are in stage of developing are more benefited as globalisation helps these countries
in economic development and growth of GDP. Globalisation helps companies to also become
more cost effective, improving their infrastructure, accessing to advanced technology, and many
other related benefits.
This report is based on Tesco, a British company mainly dealing in general merchandise
& groceries. It headquarter are located in England in UK. It is ranked third in world amongst all
retailers in terms of gross revenue generated and is also ranked at ninth position in terms of
revenue earned. There are many subsidiaries of this company such as Tesco bank, Tesco mobile
etc. Globalisation has impacted Tesco, in such a manner that they can access to diverse market of
world including their domestic country. Early experience of Tesco, in Globalization was not
much profitable but after this tesco realized what mistakes they are making in their products that
they are not able to succeed in international markets(Boussebaa, 2015).
So, they started doing some changes and customizing their products in accordance to
requirements of citizens of other countries. Then Tesco started capturing international markets
and at this point benefits of Globalisation started to benefit this company. This is a research
report which includes various aspects and in way tesco has planned its operation and functions

to implement globalisation as a strategy for expansion and growth of their business. Tesco has
used techniques of outsourcing and productivity very effectively in their operations across globe.
Research Aim
The aim of the research is “To understand how can globalisation drive business success”
A case study on TESCO PLC.
Research Objectives
 To understand the concept of globalization.
 To identify challenges of globalisation.
 To determine various factors which influences success of TESCO.
 To examine different benefits of globalisation towards TESCO.
Research Question
 What do you understand by the concept of globalization?
 What are the main challenges of globalisation?
 How different factors which influences success of TESCO?
 What are the main benefits of globalisation for TESCO?
Rationale for the research
Topic of this research is such that it will help in analysing what globalisation basically
denotes to. Each company wants to expand and at same time expect growth of their business.
Globalization in recent years have been a very widely accepted phenomenon which could help
companies in achieving their overall objectives(Kneebone, 2018). This project is based on this
objective and it will help in analysing benefits of globalisation for Tesco.
Gantt Chart and work Breakdown Structure
Gantt Chart: Gantt chart is an instrument which is utilized in cognitive content of information
with the assistance of a bar diagram. It has two basic parts time and actions of projection. This
chart was developed in year 1910 by Henry Gantt(Georgiadis and Mehl, 2016). A relationship
can be accepted between time and action utilising this chart. Anyone can easily lay down
program of a project exploitation this chart. Below mentioned is the Gantt chart used in this
project:

Work break down structure: It is also a framework which is used to break the work into
smaller structures or units. This helps in effective management of these small structures. A
hierarchical structure is formed using this tool(Telò, 2016).
Literature review
Concept of globalization.
Accordant to viewpoint of Sigler and Wachsmuth. Globalisation deals with
interdependence of countries on each other. There are many benefits of globalisation; in today's
changing world when every company is developing it is very difficult to gain a competitive
advantage. This is a tool which has been responsible for transforming world as one and unifying
all the countries. This involves sharing of benefits and risks together, which means a company
can more benefits when has a presence in a foreign country. Flow and exchange of ideas, goods,
technologies, capital, human resource is there in globalisation. Developments and innovations

taking place in primary marketplace has been one of essential characteristic of Globalisation.
Volatility in markets has been a risk associated with Globalisation. It has increased
interconnectedness between business, people and cultures between different countries. Efforts
are done so that barriers across countries can be minimized and there are no hindrances in overall
process of Globalization. There are many problems which countries are facing which are solved
through globalisation, such as there are generation of employment opportunities which helps
countries in reducing the level of unemployment.
Identify challenges of globalisation.
According to Sven Oliver Muller, it is agreed that globalisation has lot of advantages but
then also there are many challenges of globalisation which are versed all over the world. Such as,
every nation has there own values and culture and when internationalisation takes place there is
interaction and transaction of such cultures & values of various nations. This acts as barrier
sometimes, because there is difficulty faced in understanding and adapting to it. Also, there are
inequalities between countries as every country differs in form of their economic structure,
which could lead to occurrence of some conflicts. Job mobility is also a factor which is acting as
a challenge of Globalisation, especially when there is movement taking place from developing
countries to more developed countries. Loss of job is also, a factor which is acts as a
disadvantage for citizen of that country.
Various factors which influences success of TESCO
As per views of Laborde and Ronzoni, 2016. Tesco is a leading brand of grocery industry in UK.
In recent years it has able to get a distinct position in market. Tesco has followed a cost
leadership strategy, in which it provides competition to other brands in terms of cost at which
they are offering their products. This make people prefer their products in comparison with other
brands offering same category of products. Tesco has been able to secure a goodwill and brand
image for their consumers in term of quality also which it is providing in it goods. Tesco is a
company who is a customer centric brand; they want to maximize satisfaction level of their
customers, as they want customer loyalty as their tool to expand their markets. This company
analyses market then makes strategies as they want to operate in the market for long term. One of
factors which are influencing success of Tesco is presence across different part of world. This
increases its reach to their prospective customers and also widens their area of operations. Tesco

gets a competitive advantage, as it is able to provide products which are better in quality and
affordable in price for their customers. This helps them in providing price based competition to
its competitors.
Benefits of globalisation towards TESCO.
According to Georgiadis and Mehl, globalisation as process has many benefits and it has
prove beneficial for all companies who have been part of this process. Tesco has also been able
to get several advantages from this activity. Such as, they are capable to get cost advantage when
this company is able to utilise resources of other countries, this help them in reducing their cost
of production and they are capable to offer goods at better cost to their customers (Colen and
Swinnen, 2016). Tesco will also be able to approach larger customer base this increases market
for companies and their profitability. Integration of different economies take place in the process
of globalisation, this acts a big advantage for companies. Tesco has been successfully able to
expand itself in nations such as South Korea, Europe, china and US. It has adopted a strategy
where they source their goods globally, at same time they make purchases in large quantities.
They also do research of their target customers to analyse and forecast their requirement in
accordance to that they believe in formation of their respective strategies.
Tesco has also successfully established consumer loyalty programs, and inform several
promotional channels to get attention to increased customer base. They have always aimed in
becoming a leader in markets of UK, for this they have even started products under their own
label. Globalisation has played a very significant part in making Tesco biggest retailer in Britain,
and also as a one of largest multinational corporation. They also have 12 subsidiaries located in
different part of world. Company has also used innovation as a strategy to enter foreign markets,
to do offer something different as to what they they are already offering in their home country.
They have been able to transfer and share their information, knowledge and resources with their
different subsidiaries across borders. Currently, Tesco has a presence in 13 countries which helps
them to have access to more than 3 billion prospective and present purchasers. Outsourcing is
also Tesco largest capability which they are utilising to spread out themselves crosswise nations.
Globalisation has actually helped Tesco to cater necessities of about 54% of world's population.
Findings: Hence from research on globalization by selecting Tesco to understand the concept it
was found that; Globalization basically helps one to see world as one platform and not divided

between countries, as all different barriers like geographical, political, social, economic are
reduced and there is exchange of culture which actually takes place. The main challenge found as
a barrier of globalization are some political barriers which are created by government of
countries regarding entry of companies from other countries; this is also a challenge for an
organisation if they are thinking to spread out in that nation. When people start preferring
international products then there are increased challenges for companies already present in the
host country.
Some of the influencing factors found include relationship with other countries, political barriers,
economic policies, restrictions on foreign countries and subsidy given by government on loans.
These factors are able to impact the success of the company from the context of Globalization.
The various benefits found were cost advantage, huge market and supportive government of
Europe; which supports Tesco for its great success.
Research methodology
There are many different types of business decisions which have to be taken by the
researcher or for achievement of some objectives a research is conducted by researcher. This
process or methodology is commonly known as research methodology. This process includes
research, surveys, interviews and other techniques are included in this process. It includes
present and past both types of information. There are different approaches to a research
methodology such as it can be quantitative or qualitative depending upon requirements of the
research objective and aims (Asongu and De Moor, 2017).
For this research project different methodology has been adopted; primary research has
been done through questionnaire; rest of the data has been collected on the basis of secondary
research such as new articles, journals, magazines and online sources. Some tools like SPSS and
data analysis tools of excel has been used to reach at the conclusion and do analytics for Anova
two factor analysis and convert Nominal data into value through SPSS tool.
Research philosophy: Research philosophy deals with source of information. It is
basically a belief that how information is gathered, it is determined and then suggestions are
drawn from it. This is an activity of alteration which takes place while an investigation is
initiated and then its verifiable are accomplished.
Quantitative Approach: In this method, information is evaluated or valuation is done in
form of numbers. This type of data is involves measurement of of a data by using numbers.

Numerical comparisons are also done and then statistical inferences are drawn using that
collected data.
Qualitative Approach: This method is utilised to interpret human behaviour from
respondents perspective. Observation and personal interviews are mostly used in this form of
data. Data is collected and then statistical analysis is is done of that collected information.
In this research project the researcher use qualitative method of research because with the
help of it, the investigator can get deep information about the specific topic. This method focus
on words rather than number and they seek to unearth the opinions, thoughts and feelings of
respondents. It is most commonly used to assist inform new conceptions, theories etc.
Data collection: It is an activity or process of gathering information and collecting data
so that investigator can use this information for the completion of this research project.
Primary data: Investigator gathers data from a primary source and not from any extant
sources then that information is advised as primary data. It involved first hand information hcuih
is pure in nature and be used by others before. Methods of collecting this form of data is
interview, observation, surveys etc. size of sample also a factor which influences the decision of
selecting a particular source (Rupert and Smith, 2016).
Secondary data: when data is not originally collected by researcher but is gathered from
any available source that is termed as data being collected from a secondary source. This data
can be in any form quantitative and also qualitative depending upon the requirement of research.
Various sources from where secondary data can be collected is interviews, newspapers, journals,
government publications. Any of these sources can be used depending upon the type of
information required and availability of a source.
In this report we have utilised both primary and secondary source of data collection. In primary
source we have used questionnaire as a way of collecting data and in secondary method views of
various authors have been considered by the researcher. In this research project, the investigator
use primary method of data collection in which the person use questionnaire to collect first hand
infoemtion.
Sampling: Sampling is a representative of whole population, which possess same
features as of original population. This is used as it is not possible for researcher to use large size
of data so a sample is chosen using various methods of sampling such as random sampling, quota
sampling, stratified random sampling and many other different methods (Wright, 2016). In this

investigation projection, the individual use simple random sampling method because there is no
specific criteria to chose sample size.
Sample size: Sample size is the number of representatives taken by investigator, as
representative of whole set of data. In this investigation project there are total of 40 responders
considered. These respondents are the employees of Tesco and customers who will help in
providing effective information about the research. They are aware about the research outcomes
by written report and presentation.
Questionnaire: There are certain questions which are designed by investigator, to collect
information from respondents.

Questionnaire
Q1) Do you understand the concept of globalisation ?
a) Yes
b) No
Q2) According to your opinion, expanding business at international level can increase the
sale of TESCO?
a) Yes
b) No
Q3) Does management of TESCO requires new innovative strategy for establishing their
business at international level?
a) Agree
b) Disagree
Q4) Which is best suitable strategy that can be adopted by TESCO for entering into
global market?
a) Franchising the brand
b) Direct exporting
c) Joint Ventures
Q5) What are main benefits which TESCO company can grab after setting their business
operations at global level?
a) Improving productivity and profitability
b) Increase in Market share
c) Maximise the sales
d) customer engagement.
Q6) According to you, What are the main challenges which TESCO organisation is facing