A Study of Tesco's International Market Performance

Desklib provides past papers and solved assignments for students. This project analyzes Tesco's global business success.

RESEARCH PROJECT
ASSESS HOW GLOBALIZATION COULD DRIVE BUSINESS SUCCESS FOR TESCO

Table of Contents
INTRODUCTION............................................................................................................................. 3
RESEARCH TITLE.........................................................................................................................3
AIM............................................................................................................................................ 3
OBJECTIVE.................................................................................................................................. 3
RATIONALE OF THE RESEARCH..................................................................................................3
LITERATURE REVIEW......................................................................................................................5
RESEARCH METHODOLOGY........................................................................................................... 8
RESEARCH TIME PLAN..................................................................................................................10
REFERENCES.................................................................................................................................11
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INTRODUCTION
RESEARCH TITLE
“Assess how globalization could drive business success for Tesco”
AIM
This research project aims to assess how the process of globalisation is helping Tesco grow and
gain success in different markets of the world.
OBJECTIVE
 To identify the most important factors which contribute to the overseas success of
Tesco
 To identify the primary benefits to Tesco when it expands its operations in a foreign
market.
 To understand high different factors in the home country makes an impact on the
decision making of Tesco.
RATIONALE OF THE RESEARCH
The chosen topic for this research is the assessment of the factors which are driving the success
of Tesco in international markets. This factor is important to be explored because all the major
companies of the world are functioning globally and not only big but smaller companies are also
aiming to expand their operations in overseas markets. This research will help in identifying the
most important factors which help in establishing a company with foreign origin in the home
market of a country (Taylor et al., 2015). By understanding the probable reason behind the
success of Tesco, The Company can use these factors to further increase the business prospects
of the company in the newer markets of the world.
The cultural aspect of the country where Tesco is aiming to expand plays an important role in
the success of a company. Tesco got brilliant success in the Asian markets, but in the USA the
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company was not able to perform according to the expectations. What are the reasons for the
failure of the company, why the customers of America did not like the idea of Tesco and what
are the reasons the company became successful in the Asian markets By analysing these reason
the company can improve its decision-making process and make the products and services of
the company more suitable according to the needs of the local customers (Chawla and Sodhi,
2011). this research will try to find out the perspective of the employees and managers of Tesco
to understand how better coordination can be made in a foreign market and what are the most
important things to be considered while making an expansion plan in a new market.
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LITERATURE REVIEW
According to Castells (2010) globalisation process is driving the success of Tesco because it
provides an understanding of different markets. Tesco can use this knowledge to improve the
quality of products and services. Emerging economies of Asian countries are providing new
opportunities for business to Tesco. Due to the globalisation process, the free movement of
labour has become possible due to which Tesco can hire talented individuals for every corner of
the world. Locker and Kienzler (2013) have a view that many countries of the world have
opened their economy for multinational companies due to which they can experience the
culture and language of other countries. Tesco benefits from this process as it can learn new
insights into the consumer decision-making process.
According to Mangan et al., (2106) for Tesco the globalisation process is important because the
retail market in the UK has become highly saturated due to heavy competition provided by the
companies like Sainsbury and ASDA, with opening up of the new market due to globalisation,
the company can explore new opportunities in different markets of the world. While expanding
in foreign countries it is important to study the cultural and personal preferences of the
customers, it is not always possible to translate the exact business model of one country
everywhere.
Qureshi (2011) state that digital technologies have played an important role in the globalisation
process, the central management of Tesco has been able to communicate with the managers at
the local level with the help of different communication mediums and the process of managing
these businesses at a global level has become much more convenient. Kuruvilla and
Ranganathan (2010) added that the company can also use these digital channels to make a
better connect with the customers. Tesco used different social media platforms such as
Facebook, Twitter and Instagram to market its product and services, these mediums of
advertising are cost-efficient and ensure a wider reach of the message. These digital channels
allow Tesco to easily maintain relationships with the customers in a global environment. The
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opportunity for Tesco in emerging economies like China and India is strong because these
markets have good acceptance for foreign countries.
According to Potrafke (2015) due to high competition in the home market, Tesco has expanded
in different countries of the world, but it is necessary to carefully assess the demands,
regulations, customer tastes and the specific culture of the country before launching full-
fledged operations. The marketing team of Tesco does deep research on all these factors to
ensure the smooth operation of the company in a foreign market. Siddiqui (2012) has a view
that the language, colour and symbols used in the marketing process also need to be moulded
according to the culture and tastes of the local customer to create a better connect with the
consumers. To have a better understanding of the cultural aspects of a country it is better to
use local managerial talent which will handle the workforce better and provide many useful
insights on the consumer preference and buying behaviour in a specific region.
Lee and Carter (2010) explained that expanding the operations of Tesco in developing countries
is beneficial for the business as these countries offer favourable trade policies to the
multinational companies like Tesco. The cost of labour is also much less as compared to the UK.
The company can also hire the most talented professionals from these countries and can
become more innovative in the business. Siddiqui (2012) has a view that the emerging
economies of the world are achieving high growth rate due to which the level of disposable
income of the people is quite high. Higher disposable income allows people to spend more and
Tesco is experiencing a high amount of sales in these countries. The people with medium
income level are registering the highest growth in the income level and these are the target
customers for Tesco. The company designs its marketing campaigns to create a demand in
these targeted customers. Offers and discount are also used to increase customer interaction
with the company.
Locker and Kienzler (2013) have a view that the local distribution network to ensure effective
delivery of services is also an important part of the global operation of the company. Tesco uses
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the most sophisticated Logistic solution to transport products from one country to another. The
development of digital technologies like GPS is useful in the transportation function of the
company also; the company can use the GPS facility to track the exact location of the
consignments. These modern mediums of transportation have reduced the time of delivery of
goods which reduces the cost of refrigerating the food items. The transportation at the local
level, warehouse management and procurement facilities have become more fast and reliable
and the international companies can use these services to provide better facilities to the
customers and reduce the time of delivery.
Kuruvilla and Ranganathan (2010) added that the major economies of the world are becoming
more global than ever and a number of brands like IKEA, Microsoft and Facebook have achieved
a brilliant success in the markets all over the world. The retail segment is also able to achieve
high growth rate because the customer choice has become more standardised and retail
companies can sell such products which have similar demands in different markets. Locker and
Kienzler (2013) explained that the saturation in the western economies is one of the strongest
reasons why major retail companies of the world choose to become global. But it is not an easy
road for Tesco to enter in these foreign markets and get successful. Tesco entered the US
market with high hopes but it was not able to earn decent profits in this region of the world. It
proves that understanding the local interests, tastes and culture is very important before
entering a new market.
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RESEARCH METHODOLOGY
RESEARCH APPROACH
This research project will follow a mixed approach in which both qualitative and quantitative
data will be used. The qualitative research is collected to understand the reason, opinion and
motivation of the people with the help of different data collection techniques like Interview,
questionnaire and focus groups. The qualitative technique of collecting the data focuses on the
opinion, views and ideas of the respondents. Generally, the sample size for the qualitative
analysis is small in size so that a detailed discussion with the target respondents can be done.
On the other hand, the quantitative approach of data collection focuses on quantifying the data
so that it can be used to draw logical conclusions (Kumar, 2019). This method of data collection
is much more structured when compared with the qualitative method. A range of data
collection techniques such as online surveys, paper surveys, mobile surveys and personal
interviews are used to gather quantitative data.
MAIN RESEARCH TECHNIQUES
A questionnaire is the primary research techniques which will be used in the current research
project. The questions asked in this questionnaire will be prepared according to the aims and
objectives of the research (Banister et al. 2011). These questionnaires will be shared with the
respondents through different online mediums and the participants can send their filled entries
through different online mediums. In addition, a detailed literature review will also be prepared
for analysing the problem. This literature review is a summarised record of previous
observations, books, journals and research papers which are available on the internet. This
literature review will help in understanding the topic more effectively and improve decision
making.
SUGGESTED DATA COLLECTION PROCEDURES
The data collection method of questionnaire and literature review has a number of pitfalls
which need to be taken care of. The data collected with the help of a literature review should
be up-to-date. In books and journals often very old data is given which has no relevance in the
current case study, therefore, the researchers should ensure that the most recent data should
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be used for the research. In addition, the views and the opinions of the respondents may be
used due to their personal thought and orientation (Choy, 2014.). The accuracy and reliability of
the data are also necessary to be ascertained so that the right data is collected for the research.
ANALYTICAL TECHNIQUES INTENDED TO BE USED
In the current research, the analysis of the data will be done by arranging this data in the form
of a pie chart and bar graphs. Arranging the data in such a manner facilitates the easy analysis
of the data collected and the managers can reach up to a logical conclusion in minimum
possible time (Feilzer, 2010).
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RESEARCH TIME PLAN
TIME SCALE ACTIVITIES TO BE DONE WORK PROGRESS
WEEK 1 IDENTIFYING THE AIMS AND
OBJECTIVE FOR CONDUCTING
THE RESEARCH
ACCOMPLISHED
WEEK 2 FINALISING THE METHODS OF
DATA COLLECTION TO BE USED
FOR THE RESEARCH
PROPOSAL PREPARED
WEEK 3
WEEK 4 COMPLETING THE
QUESTIONNAIRE AND THE
LITERATURE REVIEW
TO BE DONE
WEEK 5
WEEK 6
WEEK 7
DATA ANALYSIS
WEEK 8
WEEK 9 FINDINGS AND DISCUSSIONS
WEEK 10
The detailed time plan of the research project is shown in the chart given above; the whole
project will take a time of 10 weeks to be completed. In the first weak, the intended aims and
the objectives for the research will be finalised. While preparing these aims ad objective,
SMART goal methodology is followed, this methodology asserts that the goals of the research
should be time-bound, specific, measurable and realistic. In the next two weeks, the data
collection methods which are going to be used in the research are finalised. The fourth, fifth
and sixth week will be used to conduct the questionnaire and prepare a review of the literature.
These data collection method will provide a range of data which will be used for the decision
making. In the next two weeks, the data collected will be represented in the form of pie charts
and bar graphs so that managers can understand the responses of the survey participants in a
holistic manner. In the last two weeks, a discussion will be done on the findings of the research.
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REFERENCES
1. Banister, P., Bunn, G., Burman, E., & Daniels, J., 2011. Qualitative Methods In
Psychology: A Research Guide. London: McGraw-Hill International.
2. Castells, M., 2010. Globalisation, networking, urbanisation: Reflections on the spatial
dynamics of the information age. Urban Studies, 47(13), pp.2737-2745.
3. Chawla, D. and Sodhi, N., 2011. Research methodology: Concepts and cases. Vikas
Publishing House.
4. Choy, L.T., 2014. The strengths and weaknesses of research methodology: Comparison
and complimentary between qualitative and quantitative approaches. IOSR Journal of
Humanities and Social Science, 19(4), pp.99-104.
5. Feilzer, M. Y., 2010. Doing mixed methods research pragmatically: Implications for the
rediscovery of pragmatism as a research paradigm. Journal of Mixed Methods Research,
4(1), pp.6-16
6. Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage
Publications Limited
7. Kuruvilla, S. and Ranganathan, A., 2010. Globalisation and outsourcing: confronting new
human resource challenges in India's business process outsourcing industry. Industrial
Relations Journal, 41(2), pp.136-153.
8. Lee, K. and Carter, S., 2011. Global marketing management. Strategic Direction, 27(1).
9. Locker, K.O. and Kienzler, D.S., 2013. Business and administrative communication.
McGraw-Hill.
10. Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
11. Potrafke, N., 2015. The evidence on globalisation. The World Economy, 38(3), pp.509-
552.
12. Qureshi, S., 2011. Globalization in development: Do information and communication
technologies really matter?
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13. Siddiqui, K., 2012. Developing countries' experience with neoliberalism and
globalisation. Research in Applied Economics, 4(4), p.12.
14. Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research
methods: A guidebook and resource. John Wiley & Sons.
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