Research Project: Tesco's Strategies for Emerging Market Entry

This research project examines the strategies employed by Tesco, a major UK-based multinational retailer, to enter emerging markets. The introduction highlights the importance of adapting business models to gain a competitive edge in a globalized environment, particularly within emerging markets. The report includes a case study on Tesco, detailing its background, research aims, objectives, and research questions. The research aims to study the various strategies that Tesco could employ to enter emerging markets, identifying the challenges faced while operating internationally. A literature review explores the concept of emerging markets, various market entry strategies (including direct export, franchising, joint ventures, mergers, and acquisitions), and the challenges faced by multinational corporations in these markets, such as language and cultural barriers, legal issues, and local competition. The research methodology section outlines the use of primary (questionnaires, surveys, interviews) and secondary data, and the use of qualitative research methods. The report concludes with a Gantt chart and references, providing a comprehensive overview of Tesco's approach to emerging markets.

Research Project

Table of Contents
TOPIC .............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
REFERENCES................................................................................................................................5

TOPIC
“ The different strategies employed by businesses to enter emerging markets”. A Case
Study on Tesco.
INTRODUCTION
The present day business model becomes unpredictable or challenging which requires a
series of innovation and modification especially at strategic level in order to adopt best
positioning inside competing market. However, the concept of emerging market plays a
significant role which enable an organisation to gain competitive advantage without any
hindrances in trading goods or services at global level (Ambos and Håkanson, 2014). Emerging
market is relate with those countries that are striving to become advanced countries and are
specifically on a more economically in terms of fiscal transparency, production for obtaining
profit maximisation. Henceforth, it assist firm to examine current or upcoming trend or
opportunities which empower firm to attain increased level of productivity as well as help them
to obtain sustainable profitableness in an improved manner. This report is based on Tesco, which
is one of the branded retailer in UK and it is incorporated in the year of 1919. This study
involves research proposal which contains objectives, aim and research methodology in order to
bring best outcome in an improves way.
Background of the company
Tesco is one of the biggest and reputed multinational retail company headquartered in
UK, London. It deliver wide range of products and services in the form of hypermarket,
supermarket, superstore, convenience shop ad serve across the globe. Tesco manage its
functional area in democratic style but at time it also implies autocratic leadership style that
enable them to accomplish their task in a effective way. However, as Tesco operates its business
function in globalised way it undergoes with several internal and external business environment
threat which directly influence over its proficiency ratio. Recently, Tesco applies different
strategies to enter into new geographical regions as it takes an initiative to form joint venture
agreement with foreign companies i.e. Samsung which help them to enter in South Korean
marketplace. Moreover, Tesco makes an effort to enter into Indian market by franchising with
Trent, the retail ,section of Tata Group that assist firm to strengthen its profit margin rate in a
better way.
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Research Aim:
“To study the various strategies that could be employed by TESCO to enter emerging
markets”.
Research Objective
 To study the concept of emerging markets.
 To identify the different strategies that TESCO could employ to enter in emerging
markets.
 To examine the challenges faced by TESCO while operating at international level.
Research Questions:
 What is the concept of emerging markets?
 What are the different strategies that TESCO could employ to enter in emerging markets?
 What are the challenges faced by TESCO while operating at international level?
Rationale
The present study is based on various kinds of strategies which help an estabilishments to
get into into rising market for enhancing its brand value within an industry. The current scenario
of retailing industry or any sector contains intense level of competition and rivalry which directly
impact over system decision making capability as well on its brand image. However, this is the
reason which empower the researcher to adopt this topic so that they can be able to determine
several sort of techniques or strategies which lead company to enlarge its business function or
operation at global pace. Additionally, acquiring this concept help establishment to examine
growth opportunities for maximising the profit with an optimal utilisation of resources in an
effective way (Buckley, Elia and Kafouros, 2014).
Literature Review
To study the concept of emerging markets.
According to Ali. M. Kutan, 2014, Emerging markets are referred as low income
countries that undergoes huge development through economic liberalization and acceptance of
free market policies in order to enhance the firm's profitability rate at international level. In
addition to this, it empower establishment to increase their market share or size in an amended
way as it provide enormous opportunities which lead them to acquire growth and development
(Emerging Market and Global Economy, 2014). Henceforth, for obtain sustainable profitability,
emerging market helps organisation to achieve the same without any obstacles. As per the views
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of Prachi Juneja, 2019, globalisation is related to those aspect which encompasses different
causes, routes, outcomes of transnational and transcultural without any border barrier. On the
other hand, in the views of Sagnik Guha, 2017, Globalisation is a related with political agenda
which empower the nation, country or world to encourage multinational corporation for
maintaining unparalleled competition in order to gain competitive advantage in an innovative
manner (Globalization and the State, 2017).
To identify the different strategies that TESCO could employ to enter in emerging markets.
As per the views of Naseem Jeewa, 2019, In present scenario of marketplace, irrespective
of size and the field of act of establishment, their participation in international business becomes
a state not only for the enhance profit margin but also for the survival of firm within competing
industry (Strategies to Enter a New Foreign Market, 2019). There are various ways for
companies to enter into global market which is categorised and analysed on the basis of
penetration strategies or international principles like direct export, franchising, acquisition,
merger, joint ventures etc. Since economic growth contains various growth rates in various
markets, change of introduction methods into markets allows a firm to acquire benefit of
important development within marketplace to commencement lower growth rates on another. In
the views of Nicolas A. Pologeorgis, 2019, The existing scenario of business environment is
highly competitive and challenging which companies adopts to enter into internation market such
as joint venture, franchising, acquisition, merger, integration, liquidation and so on. In addition
to this, each of the strategies contain its own set of roles and regulation, policies which influence
firm's decision making and profit margin ratio. Moreover, all these strategies has its own benefits
and risks which may impose difficulty in acquiring new geographical regions in terms of
products or service. Whereas, George. N, 2105, signifies that in current marketplace, there are
enormous option for companies to enter into international market and each of its varies from
each other in every aspects for obtaining profit maximisation within stipulated period of time.
There will number of factors which impact choice of strategies including tariff rate, degree of
adoption, transportation cost, marketing and many more for accomplishing the goal in a better
way (MARKET ENTRY STRATEGIES, 2019). According to the Sean Silverthorne, 2010, Each
and every country seeks for enlarging their market division by making use of different types of
market entry strategies which poses huge obstacles as well as beneficial for establishments.
Moreover, choice of international strategies is wholly dependent on company's resources,
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commitment and degree of risk that influence firm's proficiency and decision making potentiality
in accomplishing pre determined goal in an efficacious and expeditious way.
To examine the challenges faced by TESCO while operating at international level.
In the views of Katie Reynolds, 2017, Although the concept of emerging market or
globalisation plays a significant role yet it impose huge complexities or challenges over
organisation in achieving their task within desired period of time. However, as multinational
companies takes an initiative do business or trade in new global markets, they may come across
with several challenges which influence negatively over its decision making process. Thus, some
of the issues are organisational structure, leadership, acquiring advanced technology, adopting
public relation and many more (Biggest Challenges of International Business, 2017). Therefore,
to cope with all upcoming competition an organisation requires to examines the industry
situation in order to utilize best strategic conclusion which lead them to get perspective within
industry as well as to advantage competitiveness benefit in an advanced mode. AS per
TradeGecko, 2017, for obtaining sustainable profitability, companies seeks for enhancing its
market share or size in a better way but at the same time globalisation impose huge difficulties
into firm in operating at globalised level. Some of the challenges are language and cultural
barrier, legal issues, local competition, government legislation and so on which reduces the brand
value of organisation within existing market (Overcoming 5 top challenges of international
expansion, 2017). In the views of S. Jaideep, 2015, the concept of international marketing is not
an easy task or aspect as it impose large number of issues and challenges over firm's
productivity. Some of the challenges are tariff barrier, administrative policies, political
instability, economic factor and many more which restrict various multinational companies to
survive within competitive industry for longer period of time. Therefore, proper selecting and
implementation of decision enable company to improve its overall performance and profitability
ratio in a better manner.
Research Gap
Research gap is refer to those aspect in which investigator identifies missing or
insufficient information which restrict researcher to attain appropriate conclusion or decision
making. Research gap in this project mainly related with the relationship between globalisation
and its impact on business success. This gap helps researcher to complete research project in
systematic manner. In regard of this project, researcher emphasis on various strategies which is
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required to enter into emerging or international market in order to gain sustainable profitability in
a better manner.
Research methodology:
It is regarded as one of the significant element while conducting research as it is concern
the technique or process for collecting data which allow an investigator to analyse or evaluate
particular study's validity and reliability within existing marketplace. The different types for
gathering data are as follows:
Primary: It is relate with those type of information which no one has complied or
published in a forum and presented to public and thus it is termed at first hand data. However, to
complete this project, surveyor make use of several primary data sources i.e. questionnaire,
surveys, interview for obtaining authentic substance with better manner (Fox and Alldred, 2015).
Secondary: Under this method, data are collected from various publications, articles,
journals which is already done by researcher. In regard of this project, an investigator utilise
several publications, articles, magazine for achieving the task in a prescribed time frame.
Qualitative and quantitative
Qualitative research is also refer as exploratory which is utilised to obtain an
apprehension of fundamental reasons, opinions and motivations in order to insights complex
issues for providing better decisions. On the contrary quantitative research is related with
generating numerical data or figures for determining values, opinions, behaviours with an intent
of rendering hypothesis of particular phenomena (Hah and Freeman, 2014). Hence, in relation to
this report, an investigator implies qualitative research method as it help them to acquire deeper
understanding of specific topic as well as aid them to bring out effectual outcome.
Sample size: It is refer to the process in which researcher choose a set of respondents from the
larger population for gathering information in an efficacious way. However, for this project
investigator applies random sampling method which offer them to gain accurate and relevant
information for enhancing the quality of report. Thus, in context of report, researcher choose 20
respondents from the wider range of population.
Gantt Chart
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Work Break Down Structure:
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REFERENCES
Books and Journals
Ambos, B. and Håkanson, L., 2014. The concept of distance in international management
research. Journal of International Management. 20(1). pp.1-7.
Buckley, P. J., Elia, S. and Kafouros, M., 2014. Acquisitions by emerging market multinationals:
Implications for firm performance. Journal of World Business. 49(4). pp.611-632.
Fox, N. J. and Alldred, P., 2015. New materialist social inquiry: Designs, methods and the
research-assemblage. International Journal of Social Research Methodology. 18(4).
pp.399-414.
Hah, K. and Freeman, S., 2014. Multinational enterprise subsidiaries and their CSR: A
conceptual framework of the management of CSR in smaller emerging economies.
Journal of business ethics. 122(1). pp.125-136.
Hyett, N., Kenny, A. and Dickson-Swift, V., 2014. Methodology or method? A critical review of
qualitative case study reports. International journal of qualitative studies on health and
well-being. 9(1). p.23606.
Luo, Y. and Zhang, H., 2016. Emerging market MNEs: Qualitative review and theoretical
directions. Journal of International Management. 22(4). pp.333-350.
Nölke, A and et.al., 2015. Domestic structures, foreign economic policies and global economic
order: Implications from the rise of large emerging economies. European journal of
international relations. 21(3). pp.538-567.
Wang, S. L and et.al., 2014. Autonomy delegation to foreign subsidiaries: An enabling
mechanism for emerging-market multinationals. Journal of International Business
Studies. 45(2). pp.111-130.
Online
Emerging Market and Global Economy, 2014.[Online] Available Through;
<https://www.sciencedirect.com/science/article/pii/B9780124115491000405>
Strategies to Enter a New Foreign Market, 2019 .[Online] Available Through;
<https://www.bubblestranslation.com/8-strategies-to-enter-a-new-foreign-market/>
Biggest Challenges of International Business, 2017.[Online] Available Through;
<https://www.hult.edu/blog/international-business-challenges/>
Globalization and the State, 2017.[Online].Available
Through;<http://www.inquiriesjournal.com/articles/1550/globalization-and-the-state-
assessing-the-decline-of-the-westphalian-state-in-a-globalizing-world>
MARKET ENTRY STRATEGIES, 2019.[Online].Available
Through;<http://www.tradestart.ca/market-entry-strategies>
Overcoming 5 top challenges of international expansion, 2017.[Online].Available
Through;<https://www.tradegecko.com/blog/small-business-growth/overcoming-5-top-
challenges-of-international-expansion>
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Research Proposal Form
Student Name: ______________________ Student ID:
____________
Centre Name: _____________________
Tutor: ________________ Date:
___________________
Unit: ____________________
Proposed Title: ______________________________________________
Section One: Title, objective, responsibilities
Title or working title of the research project (in the form of a question, objective or hypothesis)
The different strategies employed by businesses to enter emerging markets”. A Case Study on Tesco.
Research objectives (e.g what is the question you want to answer? What do you want to learn how
to do? What do you want to find out?):
 To study the concept of emerging markets.
 To identify the different strategies that TESCO could employ to enter in emerging markets.
 To examine the challenges faced by TESCO while operating at international level.
Section Two: Reasons for choosing this research project
Reasons for choosing the project (e.g links to other subjects you are studying, personal interest,
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future plans, knowledge/skills you want to improve, why the topic is important):
The main reason behind selecting this resrech is to investgate the various benefits and challenges which
companies undergoes while entering into global level as it help an organisation to expand tehir market
size or share in an effective way. Additionally, conducting this resrech, assit an invesigator to improve
their skill and knowledge in order to implemnet best strategic decsion for an enrichmnet of project
quality.
Section Three: Literature sources searched
Use of key literature sources to support your research question, objective or hypothesis:
Emerging Market and Global Economy, 2014.[Online] Available Through;
<https://www.sciencedirect.com/science/article/pii/B9780124115491000405>
Strategies to Enter a New Foreign Market, 2019 .[Online] Available Through;
<https://www.bubblestranslation.com/8-strategies-to-enter-a-new-foreign-market/>
Biggest Challenges of International Business, 2017.[Online] Available Through;
<https://www.hult.edu/blog/international-business-challenges/>
Section Four: Activities and timescales
Activities to be carried out during the research project (e.g research,
development and analysis of ideas, writing, data collection, numerical
analysis, tutor meetings, production of final outcome, evaluation, writing
the report):
How long this will
take:
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