Globalization's Impact on Tesco's Business Success: A Case Study

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How globalization can drive to business success- A case
study of Tesco
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Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.2. Research Objectives..............................................................................................................4
1.3. Research Questions...............................................................................................................4
1.4. Rationale of the research......................................................................................................4
1.5. Significance of the study......................................................................................................4
Chapter 2: Literature Review...........................................................................................................6
2.1 Conceptual framework...........................................................................................................6
2.2 Overview of globalisation in context of business..................................................................6
2.3 Driving forces of globalisation..............................................................................................7
2.4 Impact of globalisation on retail market................................................................................8
2.5 Impact of globalisation on business sustainability................................................................9
2.6 Challenges faced by businesses due to globalisation............................................................9
2.7 Literature gap.......................................................................................................................10
Chapter 3: Methodology................................................................................................................11
3.1. Research Approach.............................................................................................................11
3.2. Research design..................................................................................................................11
3.3. Research philosophy...........................................................................................................11
3.4. Data collection method.......................................................................................................12
3.5. Data collection tool.............................................................................................................12
3.6. Sample size and technique..................................................................................................12
3.7. Data analysis tool................................................................................................................13
3.8. Limitations of the study......................................................................................................13
3.9. Ethical consideration..........................................................................................................13
3.10. Timeline............................................................................................................................14
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References......................................................................................................................................16
Appendices....................................................................................................................................18
Appendix 1: Proposal form........................................................................................................18
Appendix 2: Ethical form..........................................................................................................22
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Chapter 1: Introduction
1.1. Aim
The aim of the study is to assess the impact of globalisation on success of a business in context
of Tesco
1.2. Research Objectives
 To evaluate the theoretical framework of globalisation in terms of success of business
 To identify the driving forces of globalisation which leads to business success of Tesco
 To assess the effect of globalisation on business success of Tesco
 To figure out the challenges faced by Tesco in globalised market
1.3. Research Questions
1. What is the theoretical framework of globalisation in terms of business success?
2. What are the forces of globalisation which has been leading to success of Tesco?
3. How effective is globalisation on business success of Tesco?
4. What are the challenges faced by Tesco in globalised market?
1.4. Rationale of the research
The advent of globalisation has influenced the business on greater scale as companies are able to
provide better products and services to ample of consumers in both domestic and foreign
countries. Globalisation has allowed a firm to provide advanced products and services to
consumers. Since the growth of business has been taking into place with the help of globalisation
due to this reason, the aspect of globalisation in business success have been taken into
consideration in this study. Globalisation has influenced the business operation of Tesco due to
which the company has been able to provide best possible commodities and services to
consumers in the market. Due to emergence of globalisation Tesco has also been facing several
challenges in both domestic and foreign countries. Some of these challenges are existence of
tough competitors, increased expenses and different demands of macro-environmental factors
such as political, social, technological, and economical and many others.
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1.5. Significance of the study
This research project is going to explain the overall concept of globalisation in context of
business success. This is going to help the researcher to upgrade their knowledge and skill about
the significance of globalisation. Moreover, the study going to present it the different ways
through which globalisation has been helping Tesco to succeed and grow in globalised market.
Through this information, the researcher is going to you understand the different drivers of
globalisation which has been helping the company to grow and develop in both national and
international market. In supplementary to this, in this research project, various challenges that
has been faced by Tesco due to globalisation is also going to be identified. This is going to
provide the view about the negative effect of globalisation on the company.
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Chapter 2: Literature Review
2.1 Conceptual framework
Figure 1: Conceptual framework
(Source: Developed by the researcher)
2.2 Overview of globalisation in context of business
Globalisation is referred to as a provision for carrying out cross border business. This has helped
to grow the economic integration along with the interdependence of the countries worldwide.
The benefits associated with globalisation have helped in internationalisation of the companies
leading them to increase their volume substantially along with diverse types of transactions not
only in goods and services but also in capital. Globalisation is a platform that enables rapid
dissemination as well as products, new technology and associated knowledge among the nations
irrespective of the origin. As globalisation has freed the companies from the imprisonment of
conducting business only within the premises of a respective country, so it has led to the fall of
the trade barriers and augmentation of the global trade (Cavusgil et al., 2014). This, in turn, has
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snatched away the luxury of the companies to stick to their assumption that it the success story of
the company related to the domestic market will lead to long term profitability. Therefore, the
companies are rapidly entering into the Global markets as the share of the domestic market is
under in men's tread from foreign competition.
According to the study conducted by Orbie (2016), globalisation has induced dramatic changes
in the marketplace. It has led to liberalization of the world trade along with capital markets.
However, other than emerging global markets for labour, goods, financial capital and services,
globalisation has led to the convergence of the consumer's demand throughout the world.
Moreover, the technological support has resulted in volumising the transactions of the
international business. As a result of this, the global market had been witnessing two crucial
effects. One of the effects is the availability of market opportunity, while the other one is market
threat.
2.3 Driving forces of globalisation
Entrance of the business into a new market due to globalisation is the result of a number of
factors. Such factors include changes in technological development, and international business
climate and so on. As per the study conducted by Ristovska and Ristovska (2014) the
globalisation trend associated with unifying as well as socializing the worldwide communities
has opened the doors for Global Business. In addition to this, the formation of trade agreements
along with groups like NAFTA and European Union has augmented the market opportunities for
the companies by uniting number of nations into a single market. In this scenario, the two most
crucial aspects that have played the lead role are progressive reduction of trade barriers and
active involvement of most governments in making foreign Investments. These two had further
facilitated opening of new dimension for the international market.
The next essential driver that had facilitated border free business is the extensive development in
technologies associated with communication. This has enabled the ideas along with information
through borders of the country. Henceforth, it has led to the introduction of consumers to the
goods from the worldwide (Brondoni, 2014). In this aspect, internet and networking head help
the smaller companies to compete at a global extent. This has also led to Enhancement in the
business networks irrespective of the physical location of both the seller as well as the buyer. In
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addition to this, the companies are becoming more and more interested in joining the global
strategies due to the legacy to achieve competitive advantage, especially in the foreign market.
The scope of competition in international market is immense and growing at a faster rate.
However, also provide many opportunities to the companies to display their innovativeness and
earn reputation. According to the study conducted by, Ristovska and Ristovska (2014) the
organisations tend to improve their competitive position by suppressing the competitors or with
the help of premature intrusion within the premises of the competitor’s domestic market. This, in
turn, leads to destabilization for the separation of the development of the competitor.
2.4 Impact of globalisation on retail market
The study conducted by Godley and Hang (2012), revealed the way globalisation had evolved
the international retailing. As per the study, a survey of British Overseas retailers between the
time periods of 1900 to 1960 head provided a number of evidences that displayed International
retailing activity during the phase of globalisation. According to the study, the
internationalisation of the retailing market was the result of the input of non-retailers rather than
the multinationals. It was confirmed that the format of the department store along with the retail
innovation was diffused with the aid of indigenous entrepreneurs. The entrepreneurs receive the
motivation for doing so by the rapidly growing demand that the global scale for the western
fashion and their dresses. Further, the study conducted by Gonazalez and Waley (2013) have
stated that globalisation has been affecting the retail market significantly. As a result of
globalisation, remarkable alterations in the business environment have been marked by various
scholars that has led to the transformation in the business contacts as well as marketing activities
of firms across the globe. In order to achieve superior performance in the marketing process, the
forms are becoming more and more aware of the importance of managing relationships with the
Associates, consumers, parties involved in the value chain and so on. This has led to a trend
where the firms are engaged in building cooperation among them. This is in accordance to the
two important theoretical perspectives. One is the transaction cost economics, while the other is
Classical industrial organisation. Henceforth, based on two theoretical frameworks it has been
concluded that with the help of cooperative arrangements, which include strategic alliances, it is
possible for the firms to have an alternative offer in managing the effects of globalisation. This
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also leads to attainment of superior performance by reducing the extent of competition along
with expanding the strategic capabilities of the firm.
2.5 Impact of globalisation on business sustainability
In lieu to the study conducted by Adams (2014), globalisation has rendered power in the hands
of a few companies and has made them powerful even more than some National governments.
Henceforth it had made easier for companies to take advantage and exploit the natural resources
and cheap labour. This has resulted in serious issues related to the natural environment,
biodiversity and even to human health. All these are the reasons of pollution caused during the
operational processes of those companies. So, it is vital to check the practices of huge forms in
order to divert their activities towards sustainability. In the context Ferro et al., (2017) had
conducted a study to determine the efforts of the company towards attaining sustainable business
practices by taking into consideration the stakeholders of the organisation and the networks
associated with the business. The study clearly implicated that stakeholders play an important
role along with their environment in influencing the sustainability practices of the organisation.
Introspect to the immigration of individuals from the underdeveloped countries to the rapidly
growing economics is one of the important facets of internationalisation. For the study conducted
by Kleibert (2015), globalisation has played an important role in resolving the issues associated
with unemployment. This has also resulted in imparting sustainability to the business operations.
In this aspect, the most important inclusions of international business can be accounted to
economical as well as cultural policies. It has been observed that most of the immigration takes
place from Middle Eastern communities, which on the other side have resulted in the
sustainability of the human capital.
2.6 Challenges faced by businesses due to globalisation
Globalisation has improved the business practices to a wider extent. However, it is associated
with certain challenges, which are essential to be overcome. One such is the pro-activeness retail
companies towards their corporate social responsibility. CSR has gained tremendous momentum
throughout the world as the consumers’ community are found to be more inclined towards those
companies who have adapted to the policies associated with CSR. It has been analysed by most
researchers that company who are able to abide by the CSR policies are able to gain superior
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performances. Henceforth, it can be said that CSR is the demand of the market along with the
society. According to the study conducted by Carrero and Valor (2012), the retail sector is
considered the largest and the strategic sector of the global economy. The distinguishing feature
of the retailers from other factors is their position with respect to the supply chain and their
impact on the growth of the consumption rate. All these factors have resulted in greater demand
for the CSR activities by the retailers. This leaves the platform for the ethical activities to be
followed by the retailers, which is found to be a major concern on their part. It has made
essential that the company needs to offer their brands taking into consideration social as well as
environmental attributes. This is also vital from the point of view of customer loyalty. As the
success story of a company depends on the consumers. With the advent of competitiveness due
to globalisation, it has further increased the necessity to follow the CSR norms. As per the
knowledge gathered from the work of Park et al. (2017) CSR is the complete package that deals
with legal, ethical as well as philanthropic responsibilities associated with the company for the
welfare of the society. The study confirms that the ethical standards of a company along with the
congruency associated between the values of the consumers with the company's CSR goal is vital
in shaping the consumer loyalty in the perspective of the Retail Industry. Thus, it is very crucial
for all the companies associated with retail sector to formulate the policies as per the CSR
requirements. In this regard, it is also crucial the company needs to monitor its practices
regularly in order to ensure that all its operations are ethical in nature.
2.7 Literature gap
Globalisation is a current and hot topic that most researches are dealing with. However, the
wider concept related to the impact of globalisation in affecting the business operation lack
detailing. Further, the impact of globalisation varies tremendously from region to region
depending upon the perspective of the consumers and the culture of the nations. However, due to
lack of time as well as resources it is not possible to text mine thoroughly. Moreover, no such
literature exists that has taken into consideration all the vital factors. Since, globalisation has
allowed border free business operation so it is crucial to know the influential role of every factor
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Chapter 3: Methodology
3.1. Research Approach
The research approach has been segregated into two type’s including inductive and deductive
approach respectively. The deductive approach is all about gathering factual information through
personal observation. On the other hand, Gass and Mackey (2013) mentioned in their study that
the inductive approach is the collection of data based on assumptions. For this research study,
the researcher is going to select a deductive research approach as it is going to explain the
essentials of globalisation concerning the business of Tesco. Another reason for selecting this
research approach is that deductive approach deals with collecting the information in less time,
as well as the researcher, can assimilate the data independently (Kumar, 2019). Due to this
reason, the researcher is going to collect the quantity information in fewer spans of time. It is
going to become easy for the researcher to analyse the current scenario of globalisation effects
on the company.
3.2. Research design
Research design is of three forms namely explanatory, exploratory and descriptive design.
Explanatory research design is all about explaining the gathered information without
understanding its essentials. As per the view of Ledford and Gast (2018), exploratory research
design deals with the exploration of gathered information through forming a hypothesis. The
chances of collecting the data through this Research Design are most probably irrelevant. On the
other side, descriptive design deals with the gathering of data through an in-depth study from
secondary sources. In this research study, the researcher is going to choose a descriptive research
design as it will help the researcher to know the existence of globalisation and its effect on
business in the past decades.
3.3. Research philosophy
For this research paper, the researcher is going to select positivism philosophy as it helps in
collecting information based on the observations and reliable facts. Further, this philosophy also
helps to collect information with a statistical point of view. The researcher is not going to select
interpretative and realism philosophy because both philosophies are not relevant for this research
study (Mackey and Gass, 2015). The reason behind this is that realism philosophy deals
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emphasize on assimilating the data in the context of the scientific approach that presents the
reality of truth. On the other hand, interpretivism philosophy presents the comparison between
social and human factor due to which the presence of assumption based on human and social
factor is more which can result in the collection of irrelevant information.
3.4. Data collection method
Primary and secondary methods of data collection are two types of data collection method. The
primary method is related to the collection of the information and Facts that has never been
collected by another researcher. It is also called the collection of raw data by a researcher for a
particular research topic. The other side, secondary data collection method is all about
assimilation of data through secondary sources such as old research papers, journals, research
articles that have been published before (Bresler and Stake, 2017). This research method is also
known as a collection of the researched data collection method. Here, the researcher is going to
focus on adopting a primary research method as it is going to help the researcher to acknowledge
the present condition of Tesco due to globalisation. Moreover, with the help of this research
method, the researcher will also able to know the perspective of working members on the effects
of globalisation on their performance and achievements in the business.
3.5. Data collection tool
For this research study, the researcher will select two data collection tools namely interview and
survey. With the help of the interview, the researcher is going to collect qualitative information.
On the other hand, through a survey, the researcher will able to collect quantitative data. In the
survey, the researcher will provide a close-ended questionnaire to the participants on the other
hand for interview purpose the participants will be provided open-ended questionnaire so that
they can provide their perception in a proper format.
3.6. Sample size and technique
For the interview purpose, the researcher is going to choose 100 participants for a survey, using a
random sampling method. These participants will is employees of Tesco working in different
departments such as HR, Marketing, Finance, and production. On the other side, for the
interview, the researcher will select 2 respondents belonging to Tesco. One manager will belong
to the Marketing department and the other one manager will be from production department of
Tesco. Further, for the interview purpose, the researcher will use purposive sampling method.
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