The Impact of Globalization on Tesco's Retail Industry: A Study

This research project investigates the multifaceted impact of globalization on Tesco, a prominent international retail company. The study begins with an introduction that outlines the research background, rationale, aim, and objectives, along with relevant research questions. A thorough literature review explores recent globalization trends, the advantages of global business operations, challenges faced by firms, and strategies for combating barriers in the retail industry. The methodology section details the research type, approach, philosophy, design, sampling techniques, data collection methods, and data analysis processes. The research outcomes, reflection, and recommendations for alternative research methodologies are then presented. The report concludes with a reflection, recommendations, and a comprehensive conclusion, supported by a detailed list of references and an annexure. The research aims to determine how globalization drives success in the retail industry, using Tesco as a case study, and addresses key objectives such as identifying globalization trends, evaluating the benefits of global operations, analyzing challenges, and recommending strategies to overcome barriers.

RESEARCH PROJECT

Table Of Contents
TOPIC:.............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Research Background.............................................................................................................3
RATIONALE.........................................................................................................................3
Aim and Objectives................................................................................................................4
Aim:........................................................................................................................................4
Objectives:..............................................................................................................................4
Research Questions................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Recent trends of globalization................................................................................................5
Advantages of being a global business...................................................................................5
Challenges faced by the firms due to globalization................................................................7
Combating barriers of globalization in retail industry...........................................................7
RESEARCH METHODOLOGY ....................................................................................................8
Research Type........................................................................................................................8
Research approach..................................................................................................................9
Research Philosophy..............................................................................................................9
Research Design ..................................................................................................................10
Sampling...............................................................................................................................10
Collecting Data:....................................................................................................................11
Analysis of Data ..................................................................................................................11
Data analysis and interpretations...................................................................................................12
RESEARCH OUTCOMES, REFLECTION & RECOMMENDATION FOR ALTERNATIVE
RESEARCH METHODOLOGY...................................................................................................24
REFLECTION......................................................................................................................24
RECOMMENDATION........................................................................................................25
CONCLUSION..............................................................................................................................26
REFERENCES .............................................................................................................................27
ANNEXURE..................................................................................................................................29

TOPIC:
INTRODUCTION
Research Background
Globalization is the movement of human beings, goods, and services across different
countries. However, this mobility is managed in an integrated manner. Similarly, it could be
view as a strategy to open the worldwide economic system as well as the connected growth in
international trade (Flick, 2015). As a result, whilst the countries that have been formerly close to
overseas investment and exchange have now burnt behind boundaries. Moreover, Globalization
objectives are exalted, in addition to opportunistic, however the development of a global market
has benefited massive businesses based inside the Western world. Further, its impact stays
intermingled for employees, cultures, and small corporations around the world, in each advanced
and rising international locations. However, due to globalisation, companies are able to sell
products and services to large number of people worldwide.
Furthermore, the advancement in technology help the customer to purchase products
online which directly increases the revenue and profits of the company. On the flip side,
globalisation help to interconnect the economies of different countries by exchanging product
and services internationally (Cuervo‐Cazurra and et.al., 2017). However, the research report will
highlight the impact of globalisation on Tesco which is international retail industry that provide
variety of products and services like groceries, clothing, electronics, toys, furniture, financial
services etc. Furthermore, it's far the 3rd biggest store within the world measured by way of
gross revenues and ninth largest merchandiser in the global measured via incomes and it owns
retail stores in seven countries across Asia and Europe, and is the market leader of food market
inside the UK, Ireland, Hungary and Thailand. However, due to globalisation Tesco have
expanded its operations in all over the world with operations in 11 major countries of the world.
Furthermore, Tesco have introduced petrol stations, metros, superstores, online shopping etc.,
further, they have also opened new banks and telecom companies in UK (Kumar, 2019).
RATIONALE
This research is conducted on globalisation and how it impacts the retail industry because
due to globalisation technological advancement has been enhanced which have provided
opportunity for the companies to expand their operations and provide wide variety of products

and services. Further, it has given opportunity to customers to purchase products online at
affordable prices which is convenient and flexible for them, thus this increases the sales and
earnings of the companies. Moreover, due to globalisation, international trade between different
countries and the companies operating there have been increases which eventually enhances the
economy of the world by developing employment opportunities in all over the world which
increases the spending power of people by which they fulfil their necessities and enhances their
living standard (Mackey and Gass, 2015).
Aim and Objectives
Aim:
“To determine how globalisation can drive the companies to achieve success in retail
industry. A study on Tesco”.
Objectives:
 To identify the recent trends of globalisation in business environment.
 To evaluate the advantage of being a global organisation in retail industry.
 To analyse the challenges face by the firms with the emergence of globalisation.
 To recommend how organisation can combat the barriers of globalisation in retail
industry.
Research Questions
11 What are the ways to identify the recent trends of globalisation in business environment?11 What are the advantages of being a global organisation in retail industry?11 What are the challenges face by the firms with emergence of globalisation?11 What are the recommendations through which organisations can combat the barriers of
globalisation in retail industry.

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LITERATURE REVIEW
The literature review is a technique which is used by the researchers and the scholars
gather and discuss about the information relating to the topic on which the literature review is
being carried on.
Recent trends of globalization
In words of McCusker and Gunaydin, (2015), globalization has become an emerging and
recent trends. This is so because in recent competitive world all the companies have to earn
profits and grow and for this, each and every company wants to have large market and consumer
share. For this, the companies go for global trade or international trade. According to Quinlan
and et.al., (2019), globalization is defined as the trade which is done between two companies but
with different geographical boundaries, that is with other country's company. The latest trend in
globalization is that because of globalization new and latest technology are coming in countries
which helps the companies and the country to grow and develop. With the trade between two
distant countries, they also share the latest technological advancement that one country has with
another country. But Silverman, ed., (2016), states that because of global business the level of
competition has increased and this has reduced the quality of work and also the quality of
products or the services produced by company. This is because of the reason that all companies
can do anything either positive or negative to beat competition and to stand out of all the
competitors. Also, there is another recent trend like the changes in the labour market. This is
because of the reason that due to globalization company operating in one country can also
operate in other country. This helps the company in starting operations in those countries where
the labour cost is very low and this will benefit the company by lowering the cost of the
company.
Advantages of being a global business
Doing business at global or international level is very beneficial and advantageous for the
company as well as for development of the country as well. For instance, in context of Tesco ,
major advantage that company has got is is that it has able to increase the market share and
level of customer base to large extent. Also, the other benefit of hiring and recruiting new and
advance talent from the other countries has been gained by Tesco. On the other hand, in views of
Smith, ed., (2015), another major benefit of doing a global business is that it creates a chance for
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development of the economic condition of country as well. This is because of the reason that due
to global or international business many new foreign investment opportunities have been evolved
like investing in foreign countries' equity companies, foreign debt and many other options. Also,
there is more increase in the foreign direct investment which increases level of economy. In the
words of Taylor, Bogdan and DeVault, (2015), other than these, another benefit of being global
is to learn and explore new culture and societies. This helps the country in developing knowledge
regarding new cultures, values, beliefs, attitudes of the new society's and cultures. Also in
opinion of Coulibaly, Erbao and Mekongcho, (2018), another benefit is it helps the business in
increasing the sales of the company because if the market share will increase then automatically
it will increase the sales and profits (Global business advantages and disadvantages. 2019). For
example. In relation to Tesco , there has been been significant increase in sales and profit of an
organisation after expansion of business in international market. As per the opinion of Njoku,
(2018) increase in the capability of an enterprise to attract more number of customers is
considered to be as one of the main advantage of being a global business. However , it has been
argued by other authors as well as researcher that being a global business , an enterprise can
diversify its customer base as well as increase its revenue streams. According to the perception
of Grimalda, Buchan and Brewer, (2018)., the main benefit of being a global business is that ,
firm can develop strong relationship with domestic enterprises. These business partners can help
organisation in increasing the firms global infrastructure.
As per the views of author Aggarwal, (2019) the company going to take business in
global market get assess to large pool of customers. As the product and services offered by the
company needs to be success in the international markets. The company have the advantage to
create new customer. The company even have the advantage of getting talented and skilled
employees from the global markets. The company is able to hire employees which were not
available in the domestic country with the unique skill requirement in the employee. As the
employee have unique mindset and skills which helps the company to achieve its major goal.
As per the views of author Leimgruber, (2018) the company which is expanding its
business in international markets have the advantage of exposure to foreign investments. As it is
beneficial for the company which are already known in the market and have reputation in the
global markets. The company doing business in global markets has advantages to mix and learn
new culture by getting access to the information of new places and understanding people with
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different perceptions. The firm is able to analyse the the needs of domestic customers more
precisely. Which will help the company to increases its goodwill and enjoy the prestiges for
being an international firm. As the investors and business partner will think more highly of the
company presence in the international as well as domestic market. In global markets the
company has another advantages to diversify its product and services which will help the
company to generate more revenue.
Challenges faced by the firms due to globalization
In words of Faghih, (2019), with the benefits, there are also some challenges which
company has to face while doing global business. The major challenge is that every country has
its own set of laws, rules and regulation which the companies doing business has to follow on
any condition. This becomes cumbersome for companies because they have to follow strict rules
and regulations of other country along with following the rules and regulations of local country
as well. Contradictory, in the views of Merriam and Grenier, eds., (2019), the another major
drawback of doing international or the global business is that it may face problem due to foreign
exchange rate fluctuations. This is because of the reason that both countries uses different
currencies and exchange rate of these currencies keeps on changing which creates a problem at
the time of conducting business. In the words of Dawson, (2019), another major challenge is the
increase in competition level because due to globalization all the companies in every country is a
competitor of one another because of which there is cut throat competition. According to the
opinion of Nikolova, Kuporov and Rodionov, 2015., globalisation has given rise to stiff
competition because of which many of organisation in retail industry is facing issue in
concentrating on core business activities that further has adverse effect on the performance. It
has been critique by other researchers that controlling the costs and maintaining the profit is the
key challenge which is faced by firm in retail sector because of globalisation (Pieterse, 2018).
Combating barriers of globalization in retail industry
In words of Bernard, (2017), there are many barriers which hampers the process of
globalization. The major barrier is cultural barrier. These barriers can be overcome or combated
by doing a thorough study and analysis of all the factors and elements of that country with whom
business is going to be carried on. This is because of the reason that if country before doing
business with another country knows beforehand all the system and processes of doing business
within that country then it will become much easier to do business. On the other hand, in the
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opinion of Alvesson and Sköldberg, (2017), another barrier is technological barrier. This barrier
can be overcome by hiring a person who has in depth knowledge relating to technological aspect.
That person will study the technological part of the country where the new business is going to
be established and will let the company know and adapt to the new technologies beforehand and
gain knowledge before going for new business. In the views of DuBrin, (2015), another major
barrier is the legal barrier which can br removed or eradicated by hiring a person who is fully
knowledgeable and expert person who can handle all the legal issues in any country and deal
with the legal structure of any country. The person must be able to handle any contingent
situation if occurs contingently.
RESEARCH METHODOLOGY
Research Type
There are two types of research method namely qualitative and quantitative research
methods. Qualitative research is related to interview, questionnaire, realistic technique to its
matter which means qualitative researchers look at matters of their natural parameters, trying to
make experience of, or understand, theory in terms of the content people convey to them. On the
other hand, quantitative research gathers records in a numerical structure which can be placed
into categories, or can be ranked, or measured in dimensions.
For conducting the research on globalization affecting the success of the business the
researcher has used qualitative research so that questionnaire is raised to get the accurate results.
This is because of the reason that this type of research helps in getting the in depth knowledge of
the research topic and to gain complete knowledge of the topic (Harding, 2018).
Research onion : It basically highlights the phases which researcher is required to undergo
while developing an effective methodology. In research onion there are number of layers. The
layers are categorised into six segments these are research approach, philosophy, strategy,
choices, time horizons.
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Research approach
There are three types of approaches which are inclusive of inductive, deductive and
abductive wherein, inductive research recognized as inductive reasoning, begins with the
observations and hypothesis that are projected toward the end of the research system because of
observations. On the other hand, deductive research takes the process defined in advance for
inductive studies and opposite their order further, they start with a social hypothesis that they
find persuasive after which check its implications with record (Kumar,2019).
However, the scholar for carrying on the present study has used inductive approach as this
method aims to identify the actual information gathered that allows identifying styles and
similarities to construct a theory.
Research Philosophy
It undertakes two types of philosophy through which study can be conducted namely:
Positivism and Interpretitvism. Positivism correspond that simplest actual knowledge received
through statement, such as dimension. Further, in positivism the function of the researcher is
constrained to record collection and interpretation in a verifiable pattern (Krugman, 2017). On
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the other hand, Interpretivism, additionally known as interpretivist includes researchers to
understand factors of the study, for that reason Interpretivism incorporate human interest right
into the research. Therefore, interpretive researchers anticipate that admittance to reality is most
effective through social buildings consisting of language, attention, shared meanings, and units.
For continuing with the research on globalization influencing success of business the
research has used interpretivism. This is because of the reason that this philosophy aims at
concentrating on meaning and may use a different method with a purpose to replicate specific
components of the difficulty.
Research Design
In this method, it carries two types of design in research methodology such as:
Experimental and Descriptive. Experimental research design studies primary method undertakes
to research general aspects and to take a look at the connection among one variable and
otherwise. However, it is a scientific approach to investigate in which the researcher manipulates
one or extra variables, and controls and measures any change in different variables. On the other
hand, Descriptive research is a specific technique which entails in defining the behaviour of a
content without determining it in any way.
For the completion of the research the scholar has made use of descriptive research design.
It is majorly because of the reason that this design helps the researcher to conduct study by
considering large number of populations for reaching the outcomes (Palinkas and et.al., 2015).
Sampling
This method mainly concluded with two types of sampling namely; probabilistic
sampling and non-probabilistic wherein, probabilistic Sampling is a technique wherein sample
from a larger populace are selected which will based on the theory of opportunity. On the other
hand, Non-probability sampling means a collection of sampling strategies that assist researchers
to select units from a populace that they're inquisitive about analysing (Potrafke, 2015).
However, for continuing with the present research, the researcher has used non
probabilistic method wherein random sampling method is used for choosing the samples. This is
because of the reason that under this method every respondent of the whole population has equal
chance of getting selected as a sample.
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Collecting Data:
Data is to be collected through two methods which encompasses of primary method and
secondary method. In primary research is conducted with the help of original data for example
surveys. In respective of secondary data, it collected on the basis of various information that is
already be collected by some other person (Taylor, Bogdan and DeVault, 2015). The researcher
has used both the method wherein in primary method, survey is conducted by preferring the
questionnaire and secondary methods is conducted with a purpose to write literature review.
Analysis of Data
It carries two methods namely qualitative and quantitative methods in which qualitative
research is used to conduct in-depth study of subject matter based on natural overview whereas
quantitative research is collected to develop numeral data based on mathematical techniques
(Muth and et.al., 2015). For the present research the data analysis is done on qualitative basis
sonly. This is because of the reason that the quantitative data is much more beneficial as it gets
the fact clear with the quantitative analysis.
Gantt Chart:
Task Mode Task Name Duration Start Finish Predecessors
Auto
Schedule
d
Research proposal
preparation 10 wks Thu 5/9/19 Wed 7/17/19
Auto
Schedule
d
Approval of proposal 2 wks Thu 7/18/19 Wed 7/31/19 1
Auto
Schedule
d
Introduction of study,
aims and objectives 1 wk Thu 8/1/19 Wed 8/7/19 2
Auto
Schedule
d
Literature review 2 wks Thu 8/1/19 Wed 8/14/19 1,2
Auto
Schedule
d
Research methodology 3 wks Thu 8/1/19 Wed 8/21/19 2
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Schedule
d
Analysis of gathered
data 1 wk Thu 8/22/19 Wed 8/28/19 5
Auto
Schedule
Interpret the data 2 wks Thu 8/29/19 Wed 9/11/19 6
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d
Auto
Schedule
d
Conclusion and
recommendations 1 wk Thu 9/12/19 Wed 9/18/19 7
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Schedule
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Writing the first draft 1 wk Thu 9/19/19 Wed 9/25/19 8
Auto
Schedule
d
Final draft and
submission 2 wks Mon 9/30/19 Fri 10/11/19 9
Data analysis and interpretations
QUESTIONNAIRE
Name of company:
Name of questioner:
Age:
Gender:
1.Are you aware about the recent trends of globalisation?
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