Investigating Globalization's Influence on Tesco's Trade and Profits

This research project investigates the influence of globalization on trade across borders and its impact on organizational profitability, specifically focusing on Tesco within the UK retail sector. The study examines the background of globalization, its aims, objectives, and research questions. A literature review explores themes such as globalization trends, cross-border trade contributions, and impacts on growth and profitability. The research employs an inductive approach with an interpretivism philosophy, utilizing a qualitative research type. Data collection involves both primary (survey of Tesco managers) and secondary sources. Data analysis is conducted thematically, employing graphs and charts to interpret the effects of globalization on Tesco's profits. The findings reveal that cross-border sales significantly increase Tesco's profits, with globalization affecting its operations and empowering innovation in products and services. The report concludes with a reflection on the research process and discusses alternative research methodologies.

Research Project

Table of Content
CHAPTER 1: INTRODUCTION AND BACKGROUND:............................................................3
Research background...................................................................................................................3
Research aim and objectives........................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
CHAPTER 3: RESEARCH METHODOLOGY:............................................................................6
CHAPTER 4: DATA ANALYSIS:.................................................................................................8
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................16
Conclusion.................................................................................................................................16
Recommendation.......................................................................................................................16
CHAPTER 5: REFLECTION........................................................................................................18
CHAPTER 6: ALTERNATIVE RESEARCH METHODOLOGY..............................................19
REFERENCES..............................................................................................................................20
APPENDIX....................................................................................................................................22
Questionnaire.............................................................................................................................22

CHAPTER 1: INTRODUCTION AND BACKGROUND:
Topic: To investigate the influence of globalization on trade across borders and organizational
profitability in the context of UK retail sector: A study on Tesco.
Research background
The present research project have been made to present the analysis of the impacts of
globalization over profits of Tesco with identifying the growth factors of globalization on the
business. In the research project research aims, objective and questions have been used from the
research proposal. A research methodology have been presented. The data have been collected
through survey in which questionnaire have been filled by managers of the Tesco to investigate
the effects of globalization on profits of Tesco.
Research aim and objectives
Aim
The aim behind initiating current study is to assess the impact of globalization on trade
across borders and Tesco’s profitability.
Objectives: Referring the above aim following objectives have been drafted:
 To assess the trend of globalization and associated benefits.
 To evaluate the contribution of globalization with respect to Tesco’s cross border
trade practices.
 To investigate the impact of globalization on Tesco’s growth and profitability.
 To recommend effectual strategies to Tesco in relation globalized business
practices.
Research questions
For conducting study in an appropriate manner research questions have been formulated such as:
Q.1 Does globalization facilitate trade across borders in the context of Tesco?
Q.2 How globalization contributes in organizational growth, success and profitability?

CHAPTER 2: LITERATURE REVIEW
The literature review under a research project comprise views, opinion and perception of
different authors and writers over other research topic. For the present research project the LR
have been presented in form of themes which are taken form the research objectives to
investigate the impact of globalization over profitably of Tesco through cross border sales.
Theme 1 Trend of globalization and associated benefits.
According to Beck (2018), globalization implies for the process which is undertaken by
the business units for international influence. In other words, in the globalized now business
units are encouraged to start business operations in overseas market. As per the views Awan
(2016), in the present time the major trend of globalization is related with expansion of the
markets by allowing wider access to the potential market places and more consumers. This
directly have a positive effect on the profits of business as expansion increases sales and this in
turn ensures higher profitability.
On the other hand Steger (2017) presented the view that globalization's major trend is
increasing the sales cross borders and different nations. With proving products as per the demand
and preference of the consumers belonging to different nations the sales revenues are increased
by business organization in order to seek higher profits. Pieterse (2019), stated in the study that
globalization enables firm to enhance profit by getting economies of scale. Moreover, business
unit gets discounts when it operates at large level.
Theme 2 Contribution of globalization on cross border trade practices of business.
According to the opinion of Picciotto, (2017) globalization means to promote trade and
commerce in different countries of the world and melting down the national bordered for trade.
This has increased the opportunities for the business organisation of selling their goods and
services in nations around the world. Sundaram (2018) mentioned in the study that globalization
has increased the integration of the business with other corporation of the world as well. Thus, by
using strategies such as merger, acquisition, joint venture etc firm can trade at global level
successfully.
Conversely, it is stated by Coulibaly, Erbaoand and Mekongcho (2018) that with going
global the business strategies of the organization have been changes immensely as before the
business used to make polices and strategies for selling in one nation but with globalization it has
changed. Croucher (2018) presented that now the business makes strategies and polices for

operating in more than one nation. With the practices of the business have also changes in
context of manufacturing and selling of goods and servings various nations.
Theme 3: Impact of globalization on growth and profitability of business.
In accordance with the opinion of Surugiu and Surugiu (2015) it can be stated that
globalization have a direct impact on the growth of business as going global means to expand
business operation on business in other nation and expansion is a sign of business growth. With
the growth and expansion the profits are sought to raise with a grater pace as compared to the
current profitability rate of the organization.
On the contrary it is stated by Wood,Wrigley and Coe (2016) that with increasing the
global operation through the profits might rise but the cost and expresses of the business shoot to
a higher level which do not ensure the goods profits to a business. It rather shows the risk of
failure and the business can over burdened with higher expenses and lower profits. Bozyk (2019)
identified that globalization enables firm to explore its customer by operating internationally. In
this way, widen customer reach facilitates both maximization of both productivity and
profitability. However, Ashenfelter and et.al., (2018), criticized globalized business environment
on the basis its uncertainty. Moreover, if political, economic, social, technological, legal etc
factors of global business arena are not favorable then it negatively impacts profitability aspects.
Rodrik (2018) said that in the case of globalization company has opportunity to increase
profitability aspect by entering in emerging market. Moreover, one market, in the context of
specific products and services is saturated after some times. In this situation, company has
opportunity to improve financial aspect by selling product or services in the economies where
potential exists.

CHAPTER 3: RESEARCH METHODOLOGY:
Research approach and philosophy:
The research philosophy for the present research project have be chosen as inductive
approach to analyses the impact of globalization on the profits of the Tesco due to engaging in
the cross border trades (Quinlanand et.al., 2019). The research philosophy have been selected as
interpretivism where philosophies have been selected to aid in deriving suitable solution by
laying emphasis on interpreting the qualitative facts through relating the globalization.
Research type:
For the present research project qualitative research type have been selected to conduct
the study on investigating the impact of globalization over profitability of Tesco due to cross
border trade (Flick, 2015).
Data collection:
The data collection for the research project have been done through both primary and
secondary methods. The secondary data have been collected through books, journals and articles
(Kumar, 2019). While, the primary data have been collected through the survey of 20 managers
of Tesco to identify the effect of global sales by Tesco.
Sampling:

The sampling of the present research project have been done through random sampling
and under this non probabilistic technique have been used by the researcher.
Data analysis:
The data have been analyses through thematic manner by using graphs and charts to
investigate the impact of globalization on the profits of Tesco by gathering the views from
managers of the organisation (Smith, 2015).
Cost issue:
The research have been conducted in thematic manner so no use of the any statistical tool
have been done in the present research project such as SPSS. So no much cost have been
incurred on the data analysis. The cost for the research project includes the payment to some of
the sites to collect the data and printing of the research project and internet expenses.
Accessibility issue:
The accessibility issues have been faced by the researcher as non accessibility of the sites
from which data could have been collected (Fletcher, 2017). Moreover, to access some of the
significant site small amount have also been paid and this took a while for the researcher to get
access of the site for collection of the data.
Ethical issues:
The ethical consideration for present research project have been identified as taking
consent from the respondents and filling in consent forms from them (Craneand et.al., 2019). The
research have collected the fresh data from the preponderant after giving them full disclosure
over the research and use of the data so collected.

CHAPTER 4: DATA ANALYSIS:
The data analysis in the research project is the analysis of the data which have been
collected through the respondents. For the present research project data have been collected from
the managers through a questionnaire to know their views and opinion over the research topic of
impacts on the profitability Tesco through cross border sales.
Theme 1: Sales across different nations and increments in the profits of Tesco.
Response Number of respondents
Agree 6
Strongly agree 9
Neutral 1
Disagree 3
Strongly disagree 1
Total 20
Agree Strongly agree Neutral Disagree Strongly disagree
0
1
2
3
4
5
6
7
8
9
6
9
1
3
1

Interpretation:
The above table and graph represent the relation of Cross border sales by Tesco and rise
in its profits. The respondent have given the responses as 9 out of 20 strongly agree with this fact
that with the international sales the profits of the business have increased immensely. 6 of them
stated that they also agree with this statement. This means 75% of the managers of Tesco
believe that the with the cross border sales win different nation the profitability of Tesco have
seen an increment (Wood, Wrigley and Coe, 2016). 1 of the manager was neutral his fact and 3
disagree with this statement while only 1 said to have strong disagreement with this fact. With
this it can be stated that by selling the goods to different nations and going global have a direct
impact of the business of Tesco and this have increased the sales revenues of the organisation
and in turn the profits of the business have also increased to a higher levels.
Theme 2: Effects on the operations of the Tesco through global operations.
Agree Strongly agree Neutral Disagree Strongly disagree
0
1
2
3
4
5
6
7
6
7
3
2 2
Response Number of respondents
Agree 6
Strongly agree 7
Neutral 3
Disagree 2

Strongly disagree 2
Total 20
Interpretation:
From the above table and graph it can be depicted though globalisation the operations of
the Tesco are highly affected. For this 6 of the managers of Tesco stated that they agree with this
statement while 7 of them stated that they have a stronger agreement with this fact. It can be
interpreted that the business operation do changes as per the area and country of operation. The
business strategies must be made by Tesco in accordance to the demand, supply, requirement,
taste and preference of consumer of the receptive nation (Alford and Phillips, 2018). The
ongoing strategies must be made accordance to the psychological reference of the customers. 3
responded did not find this factors relevant over the Tesco. 2-2 of respondents have given
responses as disagree and strongly disagree with the given statement respectively. With this it
can be interpreted that by the cross border sales not only the probability is effected rather the
business operations and activities of Tesco also get effected in both positive and negative
manner. This means that globalization is a driving factor which not only enhances the sales,
revenue and profits of business but also it brings changes in the business operations and
strategies and the decision-making process by considering the different factors affecting
operation of business.
Theme 3: Globalization of Tesco and its empowerment in providing innovation to the
consumers through its products and service.

Yes, to great extent
Yes to moderate level
Yes to lower level
Not at all
0
1
2
3
4
5
6
7
8
9
9
7
3
1
Response Number of respondents
Yes, to great extent 9
Yes to moderate level 7
Yes to lower level 3
Not at all 1
Total 20
Interpretation:
The above tabular and graphical represent defines a relation between globalization and
the empowerment given to Tesco to bring innovation in its products. 9 of the managers stated tat
with going global and selling the products among different nations the business is provided with
more opportunities to innovate its product as per the testes and preference of the local consumers
of a nation. Such as a product can be sold in one country with less spices and same product can
be sold in another nation with more spices and a twist (Hamilton and Webste, 2018). For this
statement 7 of the respondent stated that innovation opportunity is available to Tesco to
moderated level as it deals in the packed products and some of them are sold as it in all the

nations with no changes. Apart form this 3 of them stated that the level of innovation availability
is of lower level and only 1 of them stated there is on scope at all for the business Tesco.
Theme 4: Relation existence between the profit maximization of Tesco and the cross border
sales of its products.
Highly positive
Moderately positive
Moderator negative
Highly negative
0
1
2
3
4
5
6
7
8
9
10
10
8
2
0
Response Number of respondents
Highly positive 10
Moderately positive 8
Moderator negative 2
Highly negative 0
Total 20
Interpretation:
The above table and graph depicts the relation between the profit maximization of Tesco
and the cross border sales of its products. The above statement determined the level of proximity
between the cross border sales and the profit maximization of the Tesco organization. 50% of the
respondent stated that there exit a higher level of positive relation between this two factors. 40%
of them presented the view the relation present is moderately positive. This means that 90% of