HE05762 Unit 11 Research Project: Tesco Plc and Globalisation Impact

This research project investigates the multifaceted impact of globalisation on the financial functions of Tesco Plc, a leading multinational grocery retailer. The study begins with an introduction and literature review, exploring the interconnectedness of global markets and the specific challenges and opportunities globalization presents to Tesco. It examines the company's expansion strategies, risk management, and financial performance in the context of international operations. The research further delves into the benefits of globalisation for Tesco, such as increased market reach, access to resources, and enhanced competitiveness. Conversely, it analyzes the financial failures Tesco has faced, attributing them to economic issues, changing consumer behavior, and intense competition. The methodology section outlines the research approach, employing the research onion framework to guide the investigation. The project's findings offer valuable insights into how Tesco navigates the complexities of the global market and provides strategic recommendations for enhancing financial performance in an increasingly interconnected world. The conclusion synthesizes the key findings, emphasizing the critical role of globalization in shaping Tesco's financial landscape.

Research Project

Table of Contents
TITLE:.............................................................................................................................................1
Introduction......................................................................................................................................1
Literature Review.............................................................................................................................4
Research Methodology....................................................................................................................8
Data Analysis and Interpretation...................................................................................................12
Recommendation...........................................................................................................................23
Reflection.......................................................................................................................................24
Conclusion ..................................................................................................................................25
References .....................................................................................................................................26
Appendix 1:....................................................................................................................................28
Appendix 2 ....................................................................................................................................31

TITLE:
“ The impact of globalisation upon financial functions of Tesco Plc.”
Introduction
Overview of the research
Globalisation is a continuous process which include linking people, cities, countries
together. It is concerned with expanding business by entering into the different economy and
using domestic resources as well as international resources. Globalisation can be seen very
much in the financial market like money, insurance, commodity market etc. sports and
entertainment sectors are also coming under the globalisation. This research is talking about the
impact of globalisation on financial functions of Tesco Plc and some of the impact which
company facing are managing risk globally. When company is serving internationally it has to
manage risk of different markets which broadens the firm's burden. Other than this, globalisation
also increases the financial responsibilities of the company and they has to arrange more funds
for dealing in different countries with variety of customers. With the help of globalisation
financial market is interconnected in many ways which is helping the financial functions like on-
line transactions, movement of capital etc. to process very easily and fast. Globalisation has
bring twist in the financial functions by enhancing the dispersion of income and also contributing
is financial growth (Stage and Manning, 2015).
Background of the research
This research is conducted with help of the company called Tesco Plc, it is a UK based
multinational groceries store and is also deal in general merchandise. It has its headquarter in
England and serving all over the world, Tesco is the third largest retailer in the world. This
company has expanded globally and diversified their product areas like books, electronics,
furniture, clothing, toys, petrol, financial services, telecom etc. This company will further help in
conducting the research on “The impact of globalisation in financial functions of Tesco Plc”.
There are different factors in the market which act as the reason of financial failures of the
company. One of them are economic issues in any country like inflation rate of the economy as
well as the rate of currency (Tight, 2016). Other than this, customer's brand switching habits are
also the reason for financial failure of the organisation because when buyers shift from brand, it
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impact the company a lot by reducing its sales and by declining its profitability. For
example,Tesco has faced financial failure after its expansion in Japan which leads company to
face heavier loss. The main reason behind its failure is economical issues that prevailing in
country which affected the purchasing behaviour of customer and leads to increase in brand
switching (McNabb, 2015).
Aim
The main aim of research project is to analyse and examine the impact of globalisation on
Tesco Plc.
Objectives
 To analyse the impact on globalisation on financial activities and operation of Tesco.
 To analyse the benefits of globalisation to Tesco Plc.
 To evaluate the financial failure if it all Tesco Plc.
Research questions
 What are the impacts of globalisation upon financial functions of Tesco Plc.?
 What are the advantages and disadvantages of financial impact on Tesco Plc.?
 How does globalisation influence the financial activities of Tesco Plc.?
Rationale of the research
Reason for choosing this research topic is to analyse the impact globalisation in financial
functions of Tesco Plc, It is a grocery and merchandise company. Main reason for choosing this
organisation to work on the financial section of internationally working companies. It is
multinational company in terms of outlets as well as revenue. Company is providing employment
opportunities to many unemployed people in world and it is also contributing the in economy
financially. Personal reason for conducting this research is to improve the skills like data
analysis, data interpretation, literature review and many other skills of the investigator.
Significance of the research
Importance of conducting this research is that it will help in determining the impact of
globalisation on the financial functions of the organisation working at international level so that
corrective actions can be take to improve these functions. It is also important for finding out the
benefits of globalisation on the business as well as on the economy to take its advantages . Other
than this, research is also important to find out the influence of globalisation on financial
activities performed by the company (Krippendorff, 2018).
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Literature Review
Literature review is the type of paper which researcher uses of analysing the previous
study on particular topic.
The impact on globalisation on financial activities and operation of Tesco.
According to Eswar S. Prasad, Kenneth Rogoff, Shang-Jin Wei, and M. Ayan Kose,
(2003), financial globalisation is the combined concept of increasing linkage through cross
border financial flow. Globalisation has increased the risk management properties in the market
because Tesco is working internationally in different countries it has to have some risk
management tool to reduce it and sustain in the market. It is affecting financial activities of
Tesco by producing new financial products globally (Capello and Perucca, 2015). According to
the Authors internalisation has increased the supervision for international financial infrastructure
in return to it, number of specialised cross border clearing has been taken place.
According to the Bianchi and Civelli, (2015), International reporting standard are made to
support the company to its financial performance strong , as per the authors investments and
capital allocation has been increased, help the company is mobilizing and pool the savings.
Authors want to say that globalisation is bringing higher level of financial developments other
than this it is best method to improve the financial supervision all around the world which in
return improve the corporate governance. Capitals can easily flow in the world, domestic savings
of the Tesco can be invested in the international market with the expectation that it can get the
better return. It provide improved techniques of savings to the company. Some of the financial
activities of the Tesco are purchase of raw material and making budgets of every activities they
will going to perform. Globalisation gives a positive impact to the company in purchasing raw
materials because organisation can get cheap material from the market as well as they can get
local labour for the production purpose. For example if a company plan to globalise
internationally its financial activities will get impacted as it have to arrange financial resources
from their personal savings or from the financial institutions. These savings after that invested in
the globalised plan to run the activities and to achieve the goals of the organisation as well as to
increase its profitability and productivity.
The benefits of globalisation to Tesco Plc.
According to William C. Dudley, (2017), Globalisation has different meaning to every
person. William is focusing on the globalisation in the context of its role in international
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economic integration and economic development. As per the author, it is promoting living of
standard of people internationally by providing them job opportunities which is helping the
individual to earn their basic living. Tesco Plc is working globally and enhancing standard of
living in people. Other than this globalisation is providing support to industries that are facing
challenges like less competitiveness in the market.
As per the point of view Cahnmann-Taylor and Siegesmund, (2017), With the help of
globalisation Tesco Plc has become third largest retailer in the world, it has created its own level
of competitiveness for their competitors. Tesco is also getting benefits like employees of the
company are able to learn new skills and techniques to perform a task in different countries. It is
adding to their knowledge to play the jobs well. William wants to say that globalisation is
affecting the long run productivity of the company (Bianchi and Civelli, 2015). There are some
benefits of open trade like it provide company a larger platform to work, specialised
opportunities, better technology which provide a faster transmission.
As per Tejvan Pettinger, (2017), Globalisation is a process of cooperation and
interconnection of different national economies. According to Tejvan, globalisation is providing
greater movement of labour, growth of multi-national companies. , greater free trade, good
communication and better transportation. Globalisation is providing Tesco Plc a specialised way
of production in different parts of the world, which in return reducing the cost of the products.
Company's investment is also increasing as well as the country's long & short term investment
has become very easy. For example when any company plan to expand their business by opting
globalisation, they open their new units in other countries. This help the organisation to attract
the customers and increase their consumer base. As result to this, company will get more profit.
The financial failure if it all Tesco Plc.
According to Zoltan ban, (2015), globalisation is the is a process of entering into the new
market to expand the business. As per the Author, there are so many reasons because of which
Tesco Plc faces financial failures. Economic issues are the major reason because of which
company's financial activities get fail. Situations like inflation causes a lot of trouble for the
organisations working internationally because change in one can affect the entire performance of
the company. For example if UK's inflation rate is increasing it will decline the purchasing
power of the customers and as a result organisation's sale will get decline. This situation will
lower the revenue of the organisation because of which they will not be able to mange their
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expenses and as a result, prices of products get increased. As per the author, another reasons for
financial failure are customer's brand switching habits, this affect the sales of the company. For
example when a customer switch from one company to other it reduces the profits and sale of the
particular brand (Hartas, 2015).
According to the Capello and Perucca, (2015), Customers switch because they have the
proper information about the products available ion the market and prices each brand is offering.
Competition is another reason for the financial failure in any business firm. Wen competition is
very high it make difficult for the company to survive in the market. Organisations start spending
more on their promotions and advertisements which add to the company's expenses more and
more and as a result it may face problem of burden of debt or bankruptcy which lower downs
the image of the company. When a company fail to survive in the market it is very difficult for
them to plan their finance again because no banks and institutions get ready to provide financial
support to the failed company.
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Research Methodology
Research is refers to the process of systematic evaluation about a particular issues or
topic in order to present some fact or figures regarding a specific problem. In order to conduct
this investigation several tools & techniques are used by researcher that help in gathering,
evaluating and interpreting the investigated information to produce accurate and positive
outcome (Tight, 2016). The tools and technique used within the research are usually explained
within the research methodology section which are explained below with the help of research
onion framework:
Research Philosophy:- It is defined as the concept which provide information regarding
source through which data will be gathered and arranged in systematic manner. Research
philosophies are of three types i.e. interpretivism, pragmatist and positivism. For conducting this
investigation, interpretivism philosophy will be used that help in getting subjective knowledge
about current research topic (Stage and Manning, 2015). With the help of this strategies could be
acknowledge easier that are to be consider for performing research effectively.
Research approach:- This is consider to be one of the most crucial aspect of research
methodology and it is classified within two different tools such as deductive and inductive
research approach. In deductive approach basically hypothesis are created on the bases of
existing theory and then research strategies are formed to test those hypothesis as per the
collected information (McNabb, 2015). On the other side inductive approach is concerned with
the process of creating a new theory that are emergent from the gathered data. In this report
inductive approach will be used as it is based on qualitative data which is basically used to
gathered the information over this topic.
Time Horizon:- Time is considered as one the most crucial factor that must be consider
by a researcher while conducting investigation. This help in executing task in appropriate time
period by distributing required time for completion of each task. For this Gnatt is used i.e. a
graphical representation of several task as well as activities performed within a particular
research along with the time taken by them (Krippendorff, 2018). In addition to this it also
support in adjusting the activities in sequential manner so that objectives can be achieved in
effective manner. Current research requires around 9 weeks in its completion (Gray and Malins,
2016).
Activities and Time scale
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Particulars Tasks Duration Start time
Research project
planning and
scheduling
Objectives and Literature review of
research project
05 days 14-Jan-19
Conclude and summarise the
research project into a good form
03 days 17-Jan-19
Data collection
methods analysis
Research sampling 02 days 20-Jan-19
Choosing appropriate tools and
techniques
04 days 26-Jan-19
Explore qualitative research 05 days 02-Feb-19
Explore quantitative research 02 days 05-Feb-19
Numerical data
analysis
Choosing numerical data tools 02 days 10-Feb-19
Examining via tolls and techniques 07 days 14-Feb-19
Conclude the findings 05 days 20-Feb-19
Concluding research
recommendations
04 days 22-Feb-19
Outcome of the
report
Concluding the research 05 days 25-Feb-19
Preparation of the project and
submission to tutor
10 days 05-Mar-19
Collecting feedback and analysis of
the feedback
04 days 10-Mar-19
Presentation of the research 02 days 15-Mar-19
Gantt chart
Task name Duration week 1 week 2 week 3 week 4 week 5 week 6 week 7 week 8 week 9
Objectives and Literature review
of research project 12 days
Research sampling 6 days
Choosing appropriate tools and
techniques 13 days
Explore qualitative research 18 days
Explore quantitative research 12 days
Choosing numerical data tools 6 days
Presentation of research 2 days
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Research Methods:- In order to conduct a research effectively specific format is used by
considering some tools and technique so that data can be gathered in effective and most relevant
manner. There are basically two type of research methods such as qualitative and quantitative
methods. Qualitative research method is the one which information is gathered in theoretical
manner in order to represent the gathered information in more detailed and understandable
manner (Hartas, 2015). On the other side qualitative method is one in which information
gathered in numerical fact and figures in order to represent the statical evidence of particular
topic. For conducting this investigation qualitative method will be used as it help in developing a
theoretical base with considering a detailed investigation to provide appropriate results.
Data source:- It is defined as the process of collecting information over a particular
research topic so that data must be collected in a manner that help in accomplishing the objective
behind conducting the research. Data collection methods are of two type primary and secondary
data source. Primary data refers to the information which are freshly collected that has not yet
been gathered by any person previously. Sources for primary data are questionnaire, interview,
survey etc. On the other side secondary data refers to the one in which data gathered from the
already published articles and for collecting data sources like online articles, journals, books etc.
are used (Flick, 2018). This research is based on both primary as well as secondary data where
primary information will be gathered with the help of questionnaire and secondary information
will be gathered through literature review.
Research design:- It is also a crucial part of investigation which act as a blue print of
research and help in directing over the conduction of research actions in effective manner. There
are basically three type of research designs named as exploratory, descriptive and experimental
research design. In current report descriptive research design will be used because it is one of the
most essential tool used for performing qualitative research as it provide a descriptive analysis on
particular study.
Research sampling:- This section put more emphasis toward the selecting a sample size
that is replicate from the original population. There are basically two methods of data sampling
such as probabilistic and non-probabilistic (Faulkner, 2016). In order to conduct the present
investigation, random sampling method has been used from the non-probabilistic section for the
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accumulation of information (Faulkner, 2016). In order to perform this investigation sample size
of 40 respondents has been taken.
Research ethics:- While conducting its investigation, researcher must comply with some
ethical norms such as it must not present the personal and confidential information of the
participant in front of others without their will. In addition to this it must also try to provide
accurate information about concern topic or organisation and should not manipulate the
information to make research more attractive.
Research limitations:- Major limitation during conduction of research was that time
provided for investigation was very limited in which it is not possible to gather large amount of
information. In addition to this budget provided for research was also limited which restrict in
gathering more amount of data.
Research reliability and validity:- The reliability and validity of research is ensured
throughout the investigation and for this questionnaire will be used which provide realistic as
well as reliable information over particular research topic. On the other side for collecting
secondary data published article has been used which are more authenticated sources which
provide valid information.
Research budget:- In order to conduct research effectively there is a requirement of some
resources such as internet connection, computer, allowance expenses etc. so that information can
be gathered in effective manner (Flick, 2018). For this the estimated budget has been fixed up-to
£650 (Cahnmann-Taylor and Siegesmund, 2017).
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