Report on Tesco's Strategies for Emerging Market Business Expansion

This report examines Tesco's strategies for entering emerging markets. The research, based on a survey of senior managers, explores various entry modes, including direct exporting, franchising, mergers, and joint ventures. Key findings indicate a preference for direct exporting and franchising as optimal strategies for maximizing profitability and rapid expansion. The report also emphasizes the importance of expert consultation to mitigate risks and navigate the complexities of emerging markets. Furthermore, the analysis highlights the significance of understanding cultural nuances and addressing challenges such as high competition and market volatility. The recommendations suggest leveraging direct exporting, franchising, and expert advice to facilitate successful business expansion in these dynamic environments. The report also recommends Tesco to hire experts for accessing the external environment of the country and other challenges that they might be faced doing business in global business.

Strategies employed by
retail businesses to enter in
emerging market.
RESEARCH PROJECT

Theme 1: Maximum Managers knows the term
globalisation.
PARTICULARS SENIOR MANAGERS
Yes 18
May be 5

Theme 2: Rapid growth is the one of the benefit to
operate in emerging market economy.
PARTICULARS SENIOR MANAGERS
Less-than-avaerage per capital income 5
Rapid growth 11
High market volatility 4
Less mature capital markets 5

Theme 3: Corruption with failure of economic progress
is the main challenge to operate in emerging market.
PARTICULARS SENIOR MANAGERS
Market volatility 5
its dependence on commodity
exports
6
Corruption with failure of
economic progress
11
none of the above 3

Theme 4: China is the best emerging market to
expand the business.
PARTICULARS SENIOR MANAGERS
India 10
China 12
Brazil 3
None of the above 0

Theme 5: Direct Exporting is the best entry mode for
business expansion.
PARTICULARS SENIOR MANAGERS
Direct Exporting 8
Franchising 7
Merger & Acquisition 5
Joint Venture 5

Theme 6: Globalisation is the factor which leads
business in achieving growth and opportunities.
PARTICULARS SENIOR MANAGERS
Strongly Agree 9
Agree 4
Neutral 2
Strongly Disagree 7

Theme 7: High competition and Cultural nuance are
the challenges faced by Tesco in global market.
PARTICULARS SENIOR MANAGERS
Cultural nuance 8
Political marketing 5
Mastering marketing 4
High competition 8

Theme 8: Maximum managers are interested in
providing suggestions to Tesco.
PARTICULARS SENIOR MANAGERS
If yes --------- 17
If no--------- 6

RECOMMENDATION
From the above research, researcher has founded the recommendations for Tesco on easy mode
of entering in developing market are as follows-
 The best option for Tesco for easy mode of entry is to enter through direct exporting. Direct
exporting is the best way to maximise the profitability of the business as well as it is fasted
mode of expansion in the emerging market.
 Furthermore, researcher also suggested that Franchising is another best option for Tesco to
expand the business in emerging market as the capital requirements is also less as franchisor
provide the capital to open the outlet. The growth and development of business is also very
fasts in franchising option because the risk is limited.
 Other than that, researcher also recommend that, Tesco should take advised from experts for
selecting the best suitable option to take effective entry in the emerging market. So that, the
risk of failure of business is also reduced to the great extent.
 Scholar also suggested that Tesco could also hire experts so that they get help in accessing
the external environment of the country and other challenges that they might be faced doing
business in global business.

THANK YOU