An Investigation: Globalization's Impact on Tesco Plc's Business

This research project delves into the impact of globalization on the business operations of Tesco Plc, a leading multinational retailer. The study begins with an overview of globalization, defining it as the integration of individuals, organizations, and governments worldwide, and highlighting its influence on business, particularly in the competitive retail sector. The research focuses on Tesco Plc, examining its history, global operations, and strategic objectives. The project aims to analyze the concept of globalization and its benefits for Tesco, identify emerging economies for brand development, assess current global requirements, and suggest improvements for global operations. The methodology includes a literature review exploring globalization's impact on business, Tesco's expansion strategies, and the benefits of free trade and competition. The project also formulates research questions and objectives to guide the investigation into globalization's effects on Tesco's market reach, profitability, and operational framework, providing a comprehensive analysis of the company's global strategies and challenges.

RESEARCH PROJECT

TITLE:
“An Investigation into the impact of globalization on business operations". A Case of
Tesco Plc.
CHAPTER 1: INTRODUCTION
Overview of the Research
Globalization is determined as an effective procedure of fundamental interaction and
integration among individuals, organization or government across the globe. Globalization is
also considered as a changes in the world where an individual is moving away from self
contained countries and towards a more integrated world (Yu and Ramanathan, 2012).
Globalization is a wider term which stand for the global consolidation of international trade,
finance, information technology and culture. Governing norms are created to open economic
system domestically as well as worldwide to boost up the evolution in undeveloped countries and
raise standards of living for their people. Thus these policies have designed an international free
market which is effective in providing benefits to international business firms in the western
world to the element of smaller business, common people and culture. Globalization has a direct
influence of the transaction of an organization, thus in this contemporary business era rivalry
among competitors is on its peak and organizational concerns are centered on enhnacing their
operations at global level in respect to enhancing its performance and operations. On a business
level, globalization has a huge impact on an firms product life cycle and the balance sheet of the
firm. In UK, retail is the most developing sector that has a vast impact on the economic growth
of the country. the major motive of retail sector is to fulfilling the basic desires and preferences
of people at global commercial centre in respect to developing benefits for firm as well as for
economic development. Tesco Plc is the chosen organization for this specific report and it is the
biggest British multinational company which operates in grocery and general merchandising
retailer (Wood, Wrigley and Coe, 2016). The potential motive of the firm is to creating
awareness about their offerings at global level in respect to maintain high brand image at
domestic as well as international market.
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Background of the Research
Globalization is a crucial concept that has become the major aspect in business life during
the last few decades. This element impacts the economy, organizational life, social group and
environment in assorted manner, and almost all organizations have been impacted through the
changes that are occurs in globalization. These alteration are mainly connected to developing
competition and the rapid changes of technology and data transfer. Globalization has
considerable, a huge impact on the operations and function of an organization (Ndhlovu, 2012).
Globalized operations of a small as well as large business enterprises helps in enhancing the
market reach of firm, however it create benefits in attainment of higher growth and competitive
edge within the commercial center. Tesco Plc is a well known and largest retail organization.
Which operated its business operations all over the globe. The company was established in the
year of 1919 by the significant efforts of Jack Cohen who is known as the group of market stalls.
The headquarter of the firm is in Welwyn Garden City, Hertfordshire, England, United
Kingdom. The company mainly offers high quality grocery and general merchandising services
with the help of their outlets and stores. The significant aim of the firm is to conduct globalized
operations for the purpose of attaining high profits and revenue. Customers are considered to be
the primary concern of an organization and Tesco Plc is widely focused on using gaining the
attention of people at global level through enhancing its offering and operations at wide scale.
Reason for Choosing the Topic
The investigation into practical action is based on the influence of globalization on the
organizational activities or operations. Globalization is considered as a wide area of study which
performs effective role in developing the operations and function of a business in efficacious
way. The potential reason for choosing the study is to developing the knowledge base of
individual in the domain of the significance of globalization and its importance for business
growth. The present area of study helps in providing a significant detail in regards to the the
essential elements of globalization within the business operations and its various benefits which
has a huge influence on the profitability of the firm (Miozzo, Yamin and Ghauri, 2012). Thus a
deep analysis on the specified area helps an individual in enhancing their knowledge base and
develop their skills to determining the aspects of globalization in respect to conduct international
operations for an organization. Another reason for conducting the research is to develop a
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theoretical frame work which helps the people in analyzing the consequences of globalization
and its influence on the business operations at large level.
Reason for choosing the Research
The chosen area of study is depend on the detailed investigation of the impact of
globalization on business operations. globalization is an important aspect which plays effective
role in developing the business operations of the firm at large scale. This is a wide area of study
which provides a an appropriate knowledge and idea about the specified concept which helps an
individual in enhancing their knowledge and ability. The major reason behind conducting the
research the personal interest of the investigator as the the proper study is done the by researcher
for the purpose of enhancement of its personal interest in the area of globalization. the present
research work will also provides helps a learner in developing the skills and knowledge in the
terms of globalization and its influence on the business activities of an organization at global
level (Maon and Lindgreen, 2015). In today's modern and competitive era it is required for each
individual to have suitable knowledge in respect to the aspect of globalization and its influence
on the business operations of small or large organizations at global scale. The present conducted
research is effective in providing a significant idea and knowledge about the terms of
globalization and this create value for an individual to enhance their knowledge base and ability
so that their future goals and objectives can be attained in positive manner.
Research Aim
This is the primary aspect of each research project, the significant aim of the research is
to create measurable and testable research aim which gradually adding to the collection of human
knowledge. Research aim is also considered as a predetermined broad statements of desired
results and outcomes, or the general intentions of the specified area of study, which 'represents a
picture' of the research project in viable manner. The major goal of the desired study is “An
Investigation into the impact of globalization on business operations". A Case of Tesco Plc.
Research Objectives
A research objective is a broad, aphoristic and declarative argument which gives an
appropriate path to the researcher to investigate the variables in effective manner (Manning,
2013). This is also an essential aspect of introduction section as in this the aim of the research is
explained in different statements for the purpose of analysing the target of research in effective
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manner. This part is interlinked with the aim of the research and gives appropriate direction to
section of literature. The necessary objectives of this research are evaluated as under:
 To analyse the concept of globalisation and how its benefits to Tesco Plc
 To identify emerging economies for brand development by Tesco Plc
 To assess the current global requirement for Tesco Plc.
 To suggest how Tesco can improve its global operations.
Research Questions
 What is the concept of globalisation and its benefits to Tesco Plc?
 How to determine the current global requirement for Tesco Plc?
 How to identify emerging economies for brand development for Tesco Plc?
 What are the suggestions for development techniques for improving operational
framework in Tesco Plc?
Time Scale
This is the most essential aspect of research investigation as it plays effective role in
completion of the research within the given time duration (Lasserre, 2017). During the
implementation of the research the major obligation of the researcher is to create a suitable time
frame in which all research elements are mentioned as per the precedence of the exploration
task, so that proper execution can be made. At the time of conducting a research project a
specified duration of time is mention in which it is necessary for the investigator to complete the
research work in systematic manner, thus time scale helps the investigator in completion of the
research as per the given time frame.
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Chapter 2: Literature Review
It is also an another imperative part of the investigation work. Literature review is
considered as a critical analysis of the published sources or a theoretical frame work on a
specified area of study. It is a clear and concise assessment of the literature and gives a summary,
classification, comparison and evaluation on a particular area of study. This section is completely
based on the research questions that covers the aim and objectives of the exploration work. In
this portion of the investigation data is collected by secondary origins like books, journals,
newspaper, online sites etc. Along with this past research projects are also effective in providing
relevant and reliable information on the basis of which an appropriate theoretical framework is
created (Križan and et. al., 2016). In this part a brief evaluation is done on the basis of the
opinion of different writers and authors who are having befitting knowledge and idea about the
nominative area of study.
The concept of globalisation and its benefits to Tesco Plc.
Globalization is a vast concept which refers as the process of integration and interaction
among individual, business and governments at world wide level. in the other word globalisation
is also outlined as the worldwide integration of the global trade, investment, information
technology and cultures. the process of globalisation has a direct influence on the situation,
culture, political system, economic development and prosperity and it also has a huge impact on
the physical well being of humans in societies across the world. In this modern business
environment competition among industries are increasingly high and the major need of each
commercial enterprise is to attain higher competitive edge by spread out their business
operations at global level. Globalisation is considered as a patterned advance through that local
markets, humanities, and beliefs have become confederative with the help of a globe-spanning
system of human action and commerce (Kadar, Moise and Colomba, 2014). The aspect of
globalisation is mainly applied by the organisation to refer the implicitly economic process. As
per the views expressed by Tejvan Pettinger, 2017, Globalisation of commercial centre refers to
the procedure of integrated and fusion of the people global markets into a sole commercial
centre. Tesco Plc is the worlds largest and popular retailer and it followed an assertive overseas
strategy for business expansion into US, South Korea, Eastern Europe and China. The company
has concern on enlarging its offerings and serve its products and services globally for the
purpose of enhancing its market reach in context of attaining high profitability and growth. As a
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large chain of supermarket Tesco dominates the commercial centre with 25% of share, which
make it as a monopoly market. The company has become highly successful by its effective
marketing strategies, appropriate inventory management and good location of outlets. The
potential motive of Tesco is to become the worlds largest retail brand in order to fulfilling the
needs and desires of an individual at global level. The company has attain various benefits by the
globalisation in which some are described as under: Free Movement of Labour: Globalisation helps Tesco in encouraging customers and
producers to attaining benefits from the deeper categorisation of labour or economies of
scale. Free Trade: The company is also attain higher benefits from the flexible movement of
labour among different geographical areas. Globalisation helps Tesco in saving extra cost
of trade across the different boundaries, which create benefits on enhancing the
profitability of firm (Hines, 2012). Greater Competition: High range of profitability can be gain by the Tesco, with the help
of sharing information, ideas, skills and advance technologies across the globe. In today's
commercial business environment competition is on its peak within the market place and
globalised operations helps Tesco in providing high competition to their rivals through
attaining high profitability with the help of high market reach. Increased economies of scale: Globalisation also creates value in developing the brand
image of firm within the commercial trade an this helps the firm in facing challenges in
regards to the climate change, wealth or inequality of income.
The current global requirement for Tesco Plc.
Now a day's globalization is reasoned as the most important term which plays vast
function in each in maturation and development of the small and large business organisation.
Tesco is the UK's biggest retailer super market which struggling to find a new avenues in respect
to attaining higher profitability on interior ground. Store are no thirstier acute on the wide
supermarket which Tesco has finished to evolve, so it was involuntary to compose off £804m of
geographical area assets and acknowledge which closely fractional of its long-famed line of
growth land was now surplus to needed. In previous decade the profit margin of Tesco is around
8.3% in the UK and the company was widely concern on beginning of its local comfort outlets
and tested to invite shoppers back to its largest stores with damage in prices that cuts and
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investment in warmer, brighter interiors. In the modern business era the level of completion is on
its peak and the major concern area of Tesco Plc is to become the most popular brand through
satisfying the needs and wants of buyers at global level. The company is focused on analysing
the trend of market so that appropriate quality can be offered to their important buyers in respect
to retain them for wide operations of business. Tesco is operating at global level and for
maintaining its position and brand image different requirements are there in which some are
described as below:
Skilled Workforce: This considered as the primary requirement of an organisation. It is essential
for a small as well as wide business concern to maintain its workforces in respect to operate its
business functions at global level (Fleming, 2012). As a well reputed company Tesco Plc is
focused on maintaining its workforce in order to effectively managing the operations of the firm.
The human resource department of the Tesco is significantly concern on analysing the internal as
well as external requirement of workforces and hire well educated and skilled people in respect
to maintaining the appropriate flow of work forces so that activities can be implemented in well
planned and systematic manner.
Advancement in Technology: It is also an essential aspect which is required to be considered by
business organisations in respect to maintaining the trading operations of an organisation in
appropriate way. In this modern world digitization has a vast effect on the trading operations and
functions of the firm in effective manner. In the changing trend of technologies it is required for
Tesco Plc to implement highly advanced tools and technologies in respect to maintaining the
production function of the firm so that appropriate services can be offered to the potential
customers. Advance tools and technique like social media, internet, high tech machinery etc. are
required to be execute by Tesco. these sources are also effective in implementing good
relationship with customers at global level.
The potential emerging economies for brand development for Tesco Plc.
As per the views expressed by John A. Quelch, 2010, Emerging economies is considered
as a country which has different characteristics of developed market, but is not able to satisfy the
standard to be termed as a developed economies. Emerging economies is also known as
emerging market or developing countries. emerging economies are considered as the countries
that are investing in a more productive capacity in respect to matching the level of developed
countries. UK retailer Tesco was a very powerful penetrating foreign market which has high
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