International HRM: Analyzing Tesco's Failure in the US Market

This report analyzes the international human resource management (IHRM) practices of Tesco, focusing on its failure in the US market. The report highlights key factors contributing to this failure, including cultural differences, ineffective recruitment strategies, and flawed organizational structures. It explores how Tesco's inability to adapt to the US market, particularly in terms of work culture and customer requirements, led to significant setbacks. The report examines the importance of understanding the differences between domestic and international markets, emphasizing the need for businesses to adapt their HRM practices to local contexts. It concludes that successful international ventures require careful consideration of cultural nuances, effective recruitment, and clear organizational structures to achieve organizational goals. The report references several academic sources to support its analysis.

INTERNATIONAL HUMAN
RESOURCE MANAGEMENT

INTRODUCTION
• International human resource
management is the basis HRM
practice done in order to improve
the organizational productivity.
• But the only difference is that
these are done for domestic as
well as international market.

KEY FACTORS FOR FAILURE IN
GLOBAL MARKET
• Tesco is one of the largest retailer of UK which provide products on the
basis of customer requirements and has high sales.
• But fails to manage its operations in US under the brand name of Fresh&
Easy because of which has to face failures.
• Following are the key difference between domestic and international
market.

CULTURE-
• Work culture is the way in which
organizational activities are done in such a
way that company is able to achieve its
targets.
• US-
Absence of work culture and employees
issues were not solved.

RECRUITMENT-
• It is process of increasing work
productivity of the company by
increasing employee count.
• US-
Part time and unskilled workers
were selected.
• Domestic-

ORGANIZATIONAL STRUCTURE
• It is way in which power is distributed within
organization by which operations can be affected.
• US-
Work structure was absent because of which
employee roles were not clear
• Domestic-
Clear hierarchical structure is present because of
which employees can effectively resolve their issues.

MARKET ANALYSIS
• It is the study of market environment at
which company tend to provide its products
and services to customers.
• US-
Unable to identify the customer
requirements and wrong store locations were
chosen.

CONCLUSION
It is concluded that HRM has to
evaluate the differences in cultures
of domestic location and foreign
location by which it can develop
effective working strategy through
which company can achieve its
organizational goals.

References
• Vetráková, M. and Smerek, L., 2019. Competitiveness of Slovak
enterprises in Central and Eastern European region.
• Anderson, V. and Pereira, V., 2017. 10. IHRD, offshoring and
outsourcing. Handbook of International Human Resource
Development: Context, Processes and People. p.213.
• Anderson, V. and Pereira, V., 2017. IHRD, offshoring and
outsourcing. In Handbook of International Human Resource
Development. Edward Elgar Publishing.