Globalization and Tesco: International Expansion and Challenges

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Globalisation

Brief Explanation of proposed research
Tesco is an international TNC that has offices and stores throughout the world. It holds over 800
international stores with more than 10 billion pounds of sales. It made a profit of 2.25 Billion
pounds, and it marks the Tesco will soon expand its business in the US. Tesco first created the
foreign store in the year 1990 and hence it is the globalization sign. After that, it is creating more
stores in several countries across the world. It gains more money and is developing the business
to increase the size and expand the actual shops in the super markets (Kolodko, 2018). Tesco
faced problems in Japan for Japan’s hypermarket culture. The research report is based on the
globalization strategies of the UK based organization, Tesco.
Aim and Objectives of the proposed research
Aim:
The aim of the globalization of Tesco that is our proposed research is to increase sales and
expand their business across the world.
Objectives:
 To increase international trade and develop the status of several underdeveloped nations
 To bring the market close
 To build up a strong society for protecting the civil rights and humanitarian issues
 To resolve the cultural, environmental and political issues across the organization
Scope and limitations of the proposed research
Tesco sources the goods globally and purchases great volumes that help it in keeping it in
keeping the product cost low. Handling the supply chain effectively makes cost-cuttings
substantially. Tesco introduced points card for collecting customer data when they purchase an
item. Tesco operates over 6,784 stores across the world, engages more than 500,000 employees
and provides figures for estimating the business size (Michie, 2019). Tesco also offers subsidiary
online services and is the largest company in the market of UK that operates under the Express,
Extra, Metro and Superstore. The earlier experiences of Tesco were not so good, and Tesco
started to restrict the merchandises and stores as per the worldwide industry. The joint venture

helps Tesco in attaining an in-depth understanding of the market and helps it in finding the best
store locations. The organization, Tesco started to confine the store according to the customer
likings and brought various international practices (Perraton, 2015). Globalization of product, as
well as markets, has an important role in making Tesco the largest retailer.
Cost considerations and resources related to the proposed research
Tesco is a multinational corporation that becomes the largest retailer of UK. 65% of its operation
takes place outside the UK with its 12 international subsidiaries. Tesco is capable of capturing
and benefitting from the industrial innovation that emerges from the international subsidiaries.
The organizational structure of Tesco and its operating skills are transforming continuously for
the interconnection of the market. Tesco has gained knowledge and information from UK for the
international operations that use intra organizational communication networks and face-to-face
practice transmissions taking place face-to-face (McCann, 2016). Innovatory practices emerge in
the international subsidiaries, which are captured from the bottom-up learning processes.
Project plan, Gantt chart
Activity Start Date Duration End Date
Deciding on the research topic 7/11/2019 1 7/12/2019
Drawing the aims and objectives 7/12/2019 3 7/15/2019
Literature review 7/15/2019 2 7/17/2019
Deciding on the methodology of the research 7/17/2019 1 7/18/2019
Collecting the primary data 7/18/2019 6 7/24/2019
Analyzing the collected data 7/24/2019 2 7/26/2019
Deciding the outcomes and the recommendations 7/26/2019 2 7/28/2019
Documenting 7/28/2019 2 7/30/2019
Submitting the final report 7/30/2019 1 7/31/2019

Table 1: WBS
(Source: Created by Learner)
Gantt chart
Figure 1: Gantt chart
(Source: Created by Learner)
Risk register and mitigation methods
Risks:
Vague objectives: The objectives of globalization are not always clear and rarely communicate
with the involved people.
Restriction of flexibility: Flexibility is restricted at many times in a joint venture.

Equal-involvement: Equal pay is possible but sharing the same involvement, and the same
responsibilities are extremely unlikely.
Great imbalance: There is an imbalance of assets, expertise and investment.
Clash of cultures: There is a clash in management styles and cultures that affect in poor
integration and co-operation.
Mitigation methods:
New expertise: Starting globalization provides the organization with the opportunity of gaining
new expertise (Blanchflower, 2015). The market becomes an easier way of understanding short-
term partnership.
Accessing better resources: Globalization gives the organization access to better resources like
specialized staffs, technology etc.
Exiting a joint venture: Joint venture offers the organization a creative way of escaping the non-
core businesses in the timeline of consolidation and divestiture.
Conclusion
Globalization influences all the manufacturing levels in diverse behaviors. Globalization makes a
market available in the main industries while the demand takes the importance of sustainability
over the disadvantage of reasonableness. The business gets advantage from globalization since
the businesses get the chance of selecting business zones where the market is suitable, but it can
lead to redundancy in trained employees residing in the countries with a better standard of living.
Globalization is an advantage for tertiary trades where the corporations sell services on the
international marketplace. For the interconnected market, companies achieve increased revenue
opportunity from global sales.

References
McCann, P., 2016. The UK regional-national economic problem: Geography, globalisation and
governance. Routledge.
Perraton, J., 2015. Globalisation and the UK Economy since the 1990s. In The British Growth
Crisis (pp. 242-260). Palgrave Macmillan, London.
Michie, J., 2019. The Handbook of Globalisation: introduction and overview. In The Handbook
of Globalisation, Third Edition. Edward Elgar Publishing.
Kolodko, G.W., 2018. Emerging market economies: Globalization and development. Routledge.
Blanchflower, D.G., 2015. As good as it gets? The UK labour market in recession and
recovery. National institute economic review, 231(1), pp.F76-F80.