Tesco PLC's Global Expansion Strategy and its Challenges

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RESEARCH PROPOSAL
THE IMPACT OF GLOBALIZATION IN THE BUSINESS OPERATIONS OF TESCO PLC
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INTRODUCTION
The effects of the globalization have increased with the notion of people to go with the flow of
the globalization not even at a single place but throughout the globe. In terms of the businesses
operating in the world, the major effects are experienced by them as the financial conditions,
popularity, negative impacts, raise or increase in the market share and value can be seen on a
business performing the operation in diverse locations of the world. So, for acknowledging this,
one of the best example of Tesco Plc., which is working in more than 40 countries and reaching
new milestones continuously with the advent of new facilities, technologies, support of people
and most importantly globalisation. So, this study to understand the effects of globalisation,
Tesco has been selected and further details are presented below.
TOPIC
THE IMPACT OF GLOBALIZATION IN THE BUSINESS OPERATIONS OF TESCO PLC
AIM
The motive of the research is to determine the impact of the globalisation on the business
activities of Tesco Plc.
OBJECTIVES
The present research study will be based on the following research objectives:
 To identify the effectiveness of globalization on the business operations and practices of
Tesco Plc
 To critically access the pros and cons of globalization on the business of Tesco
 To assess the development and growth of Tesco in this increasing globalization
 To provide some ways through which Tesco can enhance the benefits and overcome
from the challenges
LITERATURE REVIEW
INTRODUCTION
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According to UNESCO (2019), in the event that environmental change is the significant thing
technique inside the basic world affecting on supportable advancement, at that point
globalization is the parallel methodology in the human world, developing every plausibility for,
and hindrances to, feasible advancement. According to Zhang (2017) globalization is the
proceeded with a methodology that is connecting individuals, neighbourhoods, urban areas,
territories and worldwide areas way more eagerly by and large that they have ever been sooner
than. This has brought about our lives being interlaced with people in all parts of the division
through the nourishment people devour, the dress they put on, the track they notice to, the
data society get and the suggestions they save. While globalization won't be fresh out of the
plastic new technique, it has quickened quickly thinking about that World War II and are effects
affecting people, the earth, societies, national governments, financial improvement and human
great being in universal areas everywhere throughout the world (Hanson, et al. 2016). A
significant number of those effects are fundamental; anyway, there are a few concerns as well.
In terms of businesses, the effects of Globalisation are; a raised challenge which is brought
about by utilizing additional outside subsidizing streaming to nations, re-enactment which takes
into consideration organizations to enter markets from which they when blocked, more
noteworthy consideration and responses to buyer needs in light of the fact that the buyer is
presently extremely specific on such necessities as charming, administration and cost. While it
upgrades the economies of scale by utilizing advancing crosswise over numerous landmasses
exchange can get economies of huge scale development (Lund and Manyika, 2016). This makes
them extremely forceful. Adaptability inside the territories can be an improvement as among
the cutting-edge creation strategies and fix arrangements can likewise be apportioned near
anyplace. This considers to them accomplish some incredible advantages of low evaluated work
and diverse asset costs and raised mergers and joint endeavours enabling passage to more
noteworthy markets and related rate points of interest.
RELATEDNESS OF GLOBALISATION AND TESCO
Tesco is a retail giant of most of the emerging and developed markets of the world with its
thousands of products, quality services, market share, popularity and worthful value to
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customers for their spends (Robson and Pitt, 2018). Tesco is a large multinational retail industry
leader with over 6500 stores, presence on online platforms, support of 400,000+ employees
around the world and its sustainable practices in over 40 countries of the world. The effects of
globalization have made Tesco a retail giant and a leader and majorly helped it in enhancing the
operations all over the world (Ismail, 2017). With the help of Globalisation, an article published
on The Telegram (2013) stated that people are stunned and pushed with the guide of the
aptitudes that the venture had clearly made progress in worldwide markets as different as
Poland, Ireland, South Korea and Thailand.
After Tesco developed to turn into the most significant nourishment retailer inside the UK in
1995, Sir Terry and his administration workforce had focused on worldwide control (Shaw and
Sharma, 2017). The undertaking developed to turn into a market boss in parts of Asia of
Japanese Europe, which expedited Tesco to trust it may flourish in us with its new
contemporary and helpful venture. Be that as it may, six years on from Tesco's entrance into
the U.S., the health of the association's overall organizations looks rather extraordinary (Wood,
et al. 2016). Underneath Philip Clarke, who supplanted Sir Terry in 2010, Tesco has surrender
Japan and us, the last at an expense of more than £1bn, and, perhaps more worryingly for
purchasers, has now uncovered each single positively one of Tesco's last worldwide
associations has fallen into deals decay.
In the 26 weeks to August 24, each of the 9 of Tesco's abroad markets recorded a fall in like-for-
like income. This fused a 12.8pc drop in Turkey, a 6.9pc fall in the Czech Republic, a four.7pc
decrease in Thailand, and a 3.7pc fall in South Korea (Robson and Pitt, 2018). This alleged
exchanging income Asia fell 12.4pc and benefits in Europe drooped 68pc. To an exact degree,
Clarke and Tesco have furthermore been unfortunate (Papasolomou, et al., 2016). The retailer's
business in South Korea, which is its greatest outer the unified kingdom, has been experiencing
govt limiting Sunday exchanging hours for huge associations, while shops in Hungary have
needed to manage a 2.5pc quandary charge on their income. In any case, there are currently
inquiries concerning whether Tesco picked the correct procedure in its abroad markets. For
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delineation, does it have an excessive number of out-of-city hypermarkets in Europe?
Furthermore, how can it intend to rival the development of decrease chains?
BENEFITS AND DRAWBACKS OF GLOBALISATION TO TESCO
Globalisation has forces the companies to go beyond their limits and make better results not
only for them as well as for the people or the stakeholders they have in their business. In terms
of globalisation and its relationship with the Tesco, the company has gained a great market
value all around the world and hence there is a need to continue gaining the positive results
from the increasing globalisation (Vu, 2016). This has raised the value of the company in the
markets, enhanced the sales and profits to the company, presence of the company in several
demographic locations etc. While in terms of some drawbacks, Tesco is facing some loyalty
issues from its employees, lack of skilled and experienced labour, infrastructure and resource
usage concerns at some places etc. Overall, it can be stated that the advent of emerging ways
of globalisation throughout the globe has put major changes in the running operations of the
companies like Tesco and they have gained many benefits from it but in future they should
conduct their business with more precision and effectiveness so that they can continue gaining
advantage of the globalisation and at the same time, help in overcoming from the challenges
within (Vu, 2016).
METHODOLOGY
Every research will have to be conducted on a particular research model which is derived with
reference to the Sunder’s Research Onion Model in which this study will be conducted through
both the primary as well as secondary data collected from the research papers, journals,
researches, articles or news while in terms of primary data, a small scale questionnaire survey
will be conducted to get that. As a matter of fact, a well-defined research methodology will help
in acquiring and accomplishing the desired outcomes for the motive of the research. Moreover,
the utilisation of both the primary as well as secondary data will be done because of the reason
that it might be helpful in availing the ideal results for the case (Silverman, 2016).
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In addition to this, it is planned to use qualitative research philosophy as it involves the primary
data to acknowledge the best possible results for the designed study. Overall, the research
methodology will be focused primarily in order to make the study more suitable for the future
usage by others and understand the benefits and harms of globalisation for the growing
economies, companies and people. But, in this, no personal data will be shared with others and
hence will be kept secured with priority basis with proper research ethics and consents from
the people who are asked the questions.
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TIMELINE
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Idea Generation and
Research planning
Literature review
Providing consent form
for conducting Survey
Collection of the Data
Analysing the responses
Evaluation of the Data
Research Conclusion
and Recommendations
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REFERENCES
Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.
Ismail, I.N., 2017. The Roles of Corporate Governance and its Influances on Risk and
Performance: Tesco Plc.
Lund, S. and Manyika, J., 2016. How digital trade is transforming globalisation. by International
Centre for Trade and Sustainable Development (ICTSD) 7 Chemin de Balexert, 1219 Geneva,
Switzerland Tel:+ 41 22 917 8492–E-mail: ictsd@ ictsd. ch–Website: www. ictsd. org Publisher
and Chief Executive: Ricardo Meléndez-Ortiz World Economic Forum 91-93 route de la Capite,
1223 Cologny/Geneva, Switzerland Tel:+ 41 22 869 1212–E-mail: contact@ weforum. org–
Website: www. weforum. org Co-Publisher and Managing Director: Richard Samans.
Papasolomou, I., Crowther, D. and Capaldi, N., 2016. Cause-related marketing: Doing good for
your company and your cause. The Ashgate Research Companion to Corporate Social
Responsibility, p.387.
Robson, K. and Pitt, L., 2018. Tesco in South Korea: Strategic Localization. SAGE Publications:
SAGE Business Cases Originals.
Shaw, C. and Sharma, N., 2017. How healthy is your company?. Property Journal, p.10.
Silverman, D. ed., 2016. Qualitative research. Sage.
The Telegraph, 2013. Is Tesco's dream of building an international empire unravelling?, [online]
available at https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/
10349392/Is-Tescos-dream-of-building-an-international-empire-unravelling.html last accessed
on 10 May 2019.
UNESCO, 2019. GLOBALISATION, [online] available at
http://www.unesco.org/education/tlsf/mods/theme_c/mod18.html last accessed on 10 May
2019.
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Vu, M., 2016. IS THE BALANCED SCORECARD USEFUL IN A COMPETITIVE INDUSTRY?: Using
Tesco PLC as a case study in the UK grocery retail industry.
Wood, S., Wrigley, N. and Coe, N.M., 2016. Capital discipline and financial market relations in
retail globalization: insights from the case of Tesco plc. Journal of Economic Geography, 17(1),
pp.31-57.
Zhang, J., 2017. 9 Globalisation and the transformation of multinational enterprises. China and
the World Economy: Transition and Challenges.
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