Tesco PLC and Globalization: A Study on Business Environment Effects

This report examines the impact of globalization on Tesco PLC, a major UK retailer operating worldwide. The study aims to evaluate how multinational companies affect the business environment of a host country, using South Africa as a case study. It outlines the aims, objectives, and research methodology, including a project management plan with cost, scope, time, communication, quality, and risk assessments. The report details a work breakdown structure with a Gantt chart, employing both qualitative and quantitative research methods. Data collection involves primary and secondary sources, with purposive sampling of Tesco PLC employees. The data analysis includes thematic analysis and the use of charts and tables to find the impact of MNCs on the business environment of host destinations. The report presents findings on employee awareness of globalization measures and the influence of multinational companies on Tesco's business operations. Ethical considerations are also addressed.

Managing a Successful
Business Project

INTRODUCTION
Globalization refers to spread of the products, information, technology and job across the
national borders and cultures. It describes about the presence of the interdependence between
different nations across the globe that fosters free trade. The motives of the globalization are
idealistic and opportunistic while the development of the global market has been counted as
beneficial to the large corporations on the basis of the western world. Globalization helps the
organizations in gaining the competitive edge and gaining higher profitability by reducing the
operating cost. The multinational companies can gain access to the large number of customers.
Globalization of the social, political, legal and the cultural phenomenon is required to be
monitored. The present study is based on Tesco plc, the largest retailer in UK and operates its
business all over the world. This company deals in the grocery and the general merchandise
segment. Furthermore, the study describes the aims, objectives and the research methodology
considered for preparing the project.
LO 1
P1 Aims and Objectives
Background research
The effective expansion of business operations on an international level will help in a
significant deciding of the business activities which will have a important role in deciding the
operations of the organisation. which are carried out for the growth of organisation. The impact
on the business environment will lay deep influence on development and growth of an
organisation like Tesco plc in a country like South Africa.
Aim:
“ To evaluate how Multinational companies affect the business environment of host country like
South Africa. A case study on Tesco PLC.”
Objectives:
 To identify the idea of Globalisation.
 To analyse how multinational companies impacts the business environment within a
country.
 To analyse positive and negative impact of multinational companies on performance of
Tesco Plc.
1

 To suggest recommendations to control and prevent adverse effect of globalisation on
selected retail organisation, Tesco plc.
P2 Project management plan with assessment of cost, scope, time, communication, quality and
risk and resources
A project management plan can be defined as the effective tool or strategy that is
followed by the organisation or researcher to plan and perform the data assessment and
evaluation process with high level of effectiveness. It helps in carrying out research activity with
higher efficiency.
The risk assessment measures performed by the data analyst will look after data
evaluation of different research activity that involves the assessment of different attributes
(Nguyen, 2018). The attributes include the following components:
Cost: This includes the budgeting of all the research processes that will be carried out by
researcher. It includes the cost of purchasing the equipments and carrying out the research
process (Isherwood and Tassabehji, 2016). For the present report, an estimated budget of
£259,500,000 will be required.
Budget
unit/ hrs Costs/ unit/ hrs WBS Level 1 total
Salary of
Project manager
group members
800
1500
£100
£550
£9500
£111000
Handheld devices
Servers
120
3
£650
£4000
£60000
£15000
Installation and
updation of
Licensed software
120 £200 £2000
Testing of
hardware and
software
£58000
2

Equipment for the
project
£4000
Scope: The scope of present data assessment process involves evaluation of operating on
international level with assessment of impact laid by multinational companies on the operations
and business environment (Bartlett, 2017). This will help the researcher to identity the extent of
the globalisation and type of influence it lay on the functionality of a retail business enterprise
(Larson and Chang, 2016).
Time: The time constraints will look after effective period that are taken in context by
researcher to initiate and complete the research process in stipulated time frame. This will
increasing the effectiveness of data assessment process that is been carried out for analysis of
globalisation measures of selected retail enterprise. The current research process, 8 weeks of
time is been taken (Dutta and Bose, 2015).
Communication: In order to carry out effective data assessment process, effective
communication is very important (Cha, Newman and Winch, 2018.). Various interactive
measures like emails, memo's, notices and social media platforms will be used to carry out
communication process. This will help in improving ideas and knowledge of researcher carrying
out the data assessment process (Patanakul, 2015).
Quality: The quality aspect of data assessment measures which are been followed will
include evaluation of the precise data collection and assessment process that will help in suitable
management of the data assessment operations which are followed by researcher to analyse the
impact of globalisation (Thamir and Poulis, 2015).
Risk and Resources: Various risk factors will be looked after by researcher which can
influence the research process and data evaluation measures (Young, 2016). The risk factors like
reluctance of respondents, their turnaround, maintaining the data security and privacy. Besides
this, the researcher will utilize the various resources like newspaper, books, journals, articles etc.
Computers, stationeries and other essential physical resources are also utilized (Palinkas and et.
al., 2015).
3

P3 Work break down structure with Gantt Chart and time frames and stages of completion of
research process.
4

Work Break down Structure
Work breakdown structure can be defined as the graphical representation of the measures
and activities which are carried out by researcher to classify various activities followed within
the organisation. It indicates structure of research activity which is been followed by data analyst
for research process.
5

6

LO 2
7

P4 Carrying out research by applying qualitative and quantitative research methods
Research type
The research is of two types in which quantitative research takes written data that
develops understanding of the individual and find out the way people feel and think. It is
subjective in nature and takes personal judgement into consideration (Polonsky and Waller,
2018). It is used when researcher wants to discover ideas and as a result, it develops initial
understanding. The other type is quantitative research which is used in case the researcher wants
to generate numerical data and hard facts by implementing mathematical technique. This type of
research is objective in nature and results in recommendation of final course of action
(Silverman, 2016).
The researcher will use both data types in which qualitative type will use survey method
in which it will use questionnaire and in quantitative type it will use graphs and charts to find out
the impact of MNC like Tesco Plc on business environment of host destinations (Nohria, 2017).
Research approach and philosophy – There are two types of research approaches that can be
used by the researcher in which inductive approach begins with collecting data that is relevant to
the research topic then look for patterns and develop a theory on that basis (Taylor, 2015). On
the other hand, deductive research take the steps that are followed by inductive approach in
reverse order in which researcher formulate hypothesis, analyze data and draw conclusions.
The researcher will use inductive approach and will gather data and then will draw
conclusions on the basis of that information.
There are two types of research philosophies: Interpretivism and positivism. He
interpretivism approach includes the in depth research of data that is been collected while the
positivism approach includes assessment of available data sources and activities. The research
philosophy used by the researcher is interpretivism as the study will take small samples in depth
and will study them thoroughly (Klausen, 2017).
The inductive approach and interpretivism will help the researcher in finding out how
MNC impact business environment of host destinations.
Data collection – It is the process of collecting information from all the relevant sources to find
out the answer of research problem, test the hypothesis and evaluate the outcomes (Alvesson,
2017). The data can be collected by primary method in which the data which is collected is fresh
and ensure greater level of depth and include methods like questionnaire, survey, interviews etc.
8

and the secondary data deals with the data that is already been collected by other researches on
the form of journal, news article, magazine etc.
The data is collected by both the sources in which the researcher will use questionnaire
method to collect information from the 20 respondents of Tesco plc company (Teherani and et.
al, 2015). In secondary data, the researcher will use journal and books to solve the problem of
research and will find out the impact of MNC like Tesco plc on business environment of host
destinations.
Sampling – The researcher will use purposive sampling techniques which is a type non
probabilistic sample which takes small sample of population that is 20 employees of Tesco plc
company (Purposive sampling, 2018). It is also known as selective sampling. It is useful for the
researcher as it need to reach the targeted sample quickly and this method is fast and quick.
Data analysis – The data analysis of the research will be based on both qualitative and
quantitative analysis in which the qualitative analysis will take thematic analysis considering the
responses of 20 respondents (Flick, 2015). By using quantitative analysis, it will take tables and
charts to analyze the research and both analysis together will help in finding out the impact of
MNC such as Tesco plc on business environment of host destinations.
Ethical consideration: The organisation is ought to look after the proper following of the ethical
considerations and resolution measures which will help in effective planning of research process
(Hillson, 2017). It will help in proper planning of the operations which will help in proper
assessment of the actors which will lead to a significant rise in execution of data assessment
measures. Collecting valid data, storing it in most secure manner and enhancing the sales are
certain measures which will help in effective management of data assessment measures (Yeakley
and Caballero, Hand Held Products Inc, 2016).
LO 3
9

P5 Data analysis
INTERPRETATION
Theme 1: Employees aware about the Globalisation measures carried out by Tesco plc
Q1. Are the employees aware about the Globalisation measures carried out by Tesco plc?
Participants Respondents
Yes 18
No 1
Maybe 1
Interpretation: From the above graph it can be said that 18 out of 20 respondents are aware
about the globalisation measures carried out by Tesco plc. 1 out of 20 were not aware about the
globalisation measures carried by Tesco and similarly said that maybe they are aware about the
globalisation. A research process is being carried out at multinational retail firm, Tesco plc to
evaluate impact of globalisation on business environment. As globalisation is having an impact
on the business as through it export and import become easy. Globalisation will lead to increase
10
18
1
1
Yes
No
Maybe
Illustration 1: Employees aware about the Globalisation measures carried out by Tesco plc

foreign exchange in the country. As Tesco plc is having an impact on business because of
glbalisation.
Theme 2: Multinational companies have a deep influence on business operations of Tesco plc
Q2: Are you agreed to the fact that multinational companies have a deep influence on
business operations of Tesco plc?
Participants Respondents
Yes 15
No 3
Maybe 2
Interpretation: From the above graph it can be concluded that 15 out of 20 respondents are
agreed that multinational companies have a deep influence in business operations of Tesco plc. 3
out of 20 were not agreed with the statement that multinational companies have influence on
Tesco's business operation. 2 out of 20 were said that may be multinational companies is having
an influence on business operation. As research is being performed at multinational retail firm,
Tesco plc that evaluate impact of globalisation on business operation. As multinational
11
Yes
No
Maybe
Illustration 2: Multinational companies influence on business operations of Tesco

companies is having impact on the operation of the business. As from this study it can be said
that multinational companies is operating in various countries so every country is having
different type of business operation.
Theme 3: Globalisation measures which are carried out by the organisation will influence the
overall functionality of a multinational business enterprise
Q3 How can the globalisation measures which are carried out by the organisation will
influence the overall functionality of a multinational business enterprise?
Participants Respondents
Increasing sales 4
Improving customer satisfaction level 2
providing market sustainability 10
All the above 2
12
4
2
10
2
Increasing sales
Improving customer satisfac-
tion level
providing market sustainability
All the above
Illustration 3: globalisation measures carried out by the organisation

Interpretation: From the above graph it can be said that 10 out of 20 respondents were agreed
with the point that providing market sustainability is the measure that is being carried out by the
organisation that will influence the overall functionality of a multinational business enterprise. 4
out of 20 respondents were said that increase in sales is the measure that influence functionality.
2 out of 20 respondents were said that improving customer satisfaction level is the measure that
is being carried out by the organisation will influence functionality of multinational business
enterprise and all the above respectively. Research process carried out to measure the impact of
globalisation on business environment.
Theme 4: Expansion of retail business by Tesco plc on international level covering south Africa
can have risk involved
Q4. Do expansion of retail business by Tesco plc on international level covering business
environment of South Africa have risk involved?
Participants Respondents
Yes 12
No 6
Maybe 2
13

Interpretation: An effective research process is carried out by the researcher to evaluate the
impact laid by multinational enterprises on the business environment of a country. For these
purpose, effective research is carried out by organisation, including 20 respondents. The
effective research process that is been carried out by the organisation indicates that among these
20 respondents, 12 participants agreed to the fact that the expansion of retail business on the
international level in Africa possess certain amount of risk that is been involved. On the other
hand, 6 respondents disagreed to this fact while, remaining 2 were not sure about it. This
indicates that the global level expansion of the operations within South Africa will have certain
risk factors involved.
Theme 5: Employees trained about implementation of globalisation measures followed by
selected retail firm, Tesco plc
Q5 Are the employees trained about implementation of globalisation measures followed by
selected retail firm, Tesco plc?
14
12
6
2
Yes
No
Maybe
Illustration 4: Expansion of retail business by Tesco plc on international level covering south
Africa can have risk involved

Participants Respondents
Yes 14
No 6
Maybe 0
Interpretation:
From the above graph, it can be concluded that out of 20 employees, 14 employees said
yes for providing training and rest of 6 employees said no for the training provided by the
company. None of the employees said maybe for the training. 14 employees are benefited from
the training which improve their working style, working capabilities and working skills. This
lead them to become experts in their work. Those 6 employees who said no are not serious for
their roles and responsibilities for the assign tasks, this lead them to become divert from their
objectives and they don't get any gain from the training.
15
14
6
Yes
No
Maybe
Illustration 5: Employees trained about implementation of globalisation measures

Theme 6: Negative impact does multinational firm like Tesco plc can face while operating in a
foreign business environment of South Africa
Q6. What negative impact does multinational firm like Tesco plc can face while operating
in a foreign business environment of South Africa?
Participants Respondents
Loss of resources 10
Decreased in sales 6
Facing stiff competition 4
Interpretation: An effective research process is carried out the researcher at Tesco plc that is
based on the analysis of impact laid by multinational organisations on the business environment.
This will involve the effective assessment expansion operations which are followed by the Tesco
plc. This involved 20 employees of Tesco plc as respondents out of which about 10 respondents
said that expansion in foreign market may lead to loss in precious resources of organisation. On
16
10
6
4
Loss of resources
Decreased in sales
Facing stiff competition
Illustration 6: Negative impact does multinational firm like Tesco plc can face while
operating in a foreign business environment of South Africa

the other hand, 6 respondents said that it can affect the sales and leads to its decrement while
remaining 4 respondents believe that the organisation is susceptible to face stiff competition.
This assessment elucidates that the expansion of multinational business on international level in
South Africa will help in suitable and effective growth of organisation on a wider scale.
Theme 7: operating in international market can influence the market presence of organisation
Q7 Do you feel that operating in international market can influence the market presence
of organisation?
Participants Respondents
Yes 7
No 7
Maybe 6
Interpretation: An effective research process is carried out by the organisation that will help in
proper evaluation of the impact laid by multinational organisations on the business environment
of a country like South Africa. For this purpose, about 20 respondents participated within the
17
7
7
6
Yes
No
Maybe
Illustration 7: operating in international market can influence the market presence of
organisation

data assessment and interpretation process. Among this 20 participants for the research process,
about 7 respondents believe that operating in the international market will have significant
impact on the market presence of the organisation. In contradiction to it, the other 7 participants
of the research process denied to this fact. On the other hand, the remaining 6 respondents said
that they are not sure about the measures which are carried out by the organisation in a
significant manner. Thus, on the basis of the assessment that is been carried out, this can be said
that functioning on the international level will have a significant influence on the market
presence of the organisation.
Theme 8: Business environment of a country like south Africa can influence growth selected
retail firm like Tesco plc
Q8 Are you agree with the fact that business environment of a country like south Africa
can influence growth selected retail firm like Tesco plc?
Participants Respondents
Yes 13
No 5
Maybe 2
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Interpretation: In order to identify the impact of multinational organisations on the business
environment, a research process is been carried out that includes the proper assessment at Tesco
plc. The research process involves the 20 employees to the retail organisation to be participating
in research process. Out of these 20 respondents, about 13 participants said that the business
environment of a country like South Africa can influence the growth and development of an
organisation like Tesco plc. However, 5 respondents denied to this fact and the remaining 2
participants said that they are not sure about it. Hence, on the basis of the effective research and
data evaluation measures which are carried out this can be said that the business environment of
a country affects the growth and development of the organisation.
P6 Conclusion and recommendation
Conclusion
The above project have been made on the development plan of the Tesco Plc in South
Africa. The research have been carried out to determine the business environmental factors that
influence the operations of Tesco in South Africa under as its expansion. In this research, both
19
13
5
2
Yes
No
Maybe
Illustration 8: Business environment of a country like south Africa can influence growth
selected retail firm like Tesco plc

positive and negative impacts, have been identified which might have significant effect on the
functioning and operation of Tesco in South Africa.
Recommendation:
On the basis of the effective assessment and data evaluation measures which are carried
out by the organisation, this can be said that certain recommendation measures can be followed
out. Some major recommendation for Tesco plc is:
 Following effective market and location research prior to carrying out of the international
expansion measures (Kosecki and Caballero, Hand Held Products Inc, 2016).
 Suitable assessment of local market and customer trends are required to be followed.
 On the initial stage small scale implementation of expansion measures are required to be
practised.
LO 4
P7 Reflection
By using the qualitative techniques in the research study, I have become able to meet all
the aims and the objectives of the research. This project also contributed in my understanding
regarding the research methods and associated results. This in turn helped me in carrying out
further research more effectually. This research study enabled me in knowing about the different
qualitative sampling technique which involve random sampling where the whole population has
been given an equal chance of selecting. I had learned many other things relating to ethical
aspects, reliability and validity bases of the research.
This study is valuable as I have improved my researching and technical skills. Earlier to
this I was not having much knowledge about doing research but now I am able to conduct a
research project in significant manner. Furthermore, now I can handle technologies easily. In
addition, I have realized that my presentation skills are poor, I have to work on it so that I can
present myself in future more effectively. My team working and communication skills have been
improved greatly while working on this research project.
CONCLSUION
From the above study it can be concluded that multinational companies have high
influence over business environment of host countries. The expansion plan can give the company
positive impacts such as increase in the sales, a higher level of consumer satisfaction and
increment in the brand value and equity of the Tesco. The negatives factor that can affect the
20

operation of Tesco have been analysed as incurring higher cost on production and expansion of
business, uncertainties related to demand and consumer preferences along with this the changing
trend is also one of the major factor that might affect the functioning of Tesco. Overall the
research shows that it is feasible for Tesco to expand its business in South Africa.
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APPENDIX
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