Research Project: Tesco's Business Strategies in International Markets

This research project investigates the business strategies employed by Tesco for its international market expansion. It begins with an introduction outlining the background of Tesco, its global presence, and the rationale for studying its expansion strategies. The project aims to assess the business strategies that contribute to Tesco's international growth, identify specific strategies used, and recommend a strategic framework for future expansion. The literature review explores business strategy development models and theories, strategies associated with international expansion, and strategies that can be applied by Tesco. The methodology section details the research design, data collection methods (likely including questionnaires), and data analysis techniques. The data analysis and discussion section presents findings, likely derived from the questionnaires and secondary research, on various themes related to Tesco's strategies. The project concludes with recommendations for Tesco's future international expansion and provides a comprehensive overview of Tesco's journey into international markets.

RESEARCH PROJECT
(How a business strategy should be developed to expand a
business in an international market)

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................5
Background of the study.........................................................................................................5
Research aim and objectives..................................................................................................6
Research questions.................................................................................................................7
Rationale of the study.............................................................................................................7
Significance of the study........................................................................................................8
Structure of dissertation..........................................................................................................8
CHAPTER 2: LITERATURE REVIEW.......................................................................................10
Theme 1: Understanding of business strategy in context of development models and theories.
..............................................................................................................................................10
Theme 2: Strategies assessment and associated with business expansion in international
market...................................................................................................................................12
Theme 3: Identification of the strategies that can be used by company for business expansion
at global level.......................................................................................................................13
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................16
Research design....................................................................................................................16
Research type........................................................................................................................16
Research approach................................................................................................................17
Research philosophy.............................................................................................................17
Data collection......................................................................................................................17
Sampling...............................................................................................................................18

Data Analysis........................................................................................................................18
Research limitation...............................................................................................................19
Ethical consideration............................................................................................................19
Reliability of data and Validity of analysis..........................................................................19
CHAPTER 4: DATA ANALYSIS AND DISCUSSION..............................................................21
Theme 1: Maximum number of managers are working for around 15 to 20 years in Tesco plc.
..............................................................................................................................................21
Theme 2: Business strategy development leads to strategic planning, formulation of
organization goal, communication and development of strategy.........................................22
Theme 3: Strongly agreed, Tesco have strong opportunities of expanding its business in
international markets............................................................................................................24
Theme 4: Target market, is the best suitable method to be explored by Tesco...................25
Theme 5: New products at lower prices, is a better option to attract consumer at international
market...................................................................................................................................26
Theme 6: Strongly agreed, Tesco is required to develop new product line in order to launch its
products in international market beyond its current global operations................................28
Theme 7: Strongly agreed, internal and external market condition influence the business
development strategy to expand international market..........................................................29
Theme 8: Business model design, is the most effective business strategy for development of
business.................................................................................................................................30
Theme 9: Market expansion and Franchising are effective strategies associated with business
expansion in international market........................................................................................32
Theme 10: Expansion of business by penetrating new market, is an effective strategy used by
Tesco for business expansion at global level.......................................................................33
Theme 11: Challenges faced by the company at the time of business strategy development.34

Theme 12: Effective recommended strategic framework to Tesco for business expansion.35
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................36
Conclusion:...........................................................................................................................36
Recommendation..................................................................................................................38
REFERENCES..............................................................................................................................42
APPENDIX....................................................................................................................................44
QUESTIONNAIRE..............................................................................................................44

Topic: To evaluate business strategies associated with the expansion of business in an
international market: A study on Tesco.
CHAPTER 1: INTRODUCTION
Background of the study
Tesco Plc is one of the leading retail chain in the world with having its operations at
international level. As a leading erectile the group have 450,000 employees and it serves millions
of consumers every week at its physical and online stores. The company was established in 1919
and from there itself it has become a market shell. The Tesco plc have a code of business which
states that each and every employee is a family. Tesco is a leading retail chain which is mainly
indulged in selling the groceries and general merchandise to millions of consumers. Tesco was
founded in 1919 by Jack Cohen as a group of market stalls. The Tesco name first appeared in
1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials
with the first two letters of his surname, and the first Tesco shop opened in 1931 in Burnt Oak,
Barnet. The business expanded rapidly, and by 1939 it had over 100 Tesco shops across the
country. Tesco is listed on the London Stock Exchange and is a constituent of the FTSE 100
Index.
Tesco is operating in the market from last century its been 100 years from the formation
of Tesco and it has expanded its operation to many countries of the world. In the time span of
100 years the organization have gone global have managed to survive for a whole century and
maintain a leading position for a long time (Tesco Plc, 2019). At present Tesco operates in 11
countries and that too successfully in developed nations of the world such as USA, UAE, Dubai.
For taking the business global is not easy and this required formulation of international
expansion strategies and follow the same to expand the business and operate successfully. The
international expansion strategies of Tesco have one leading and important factor which
resuspending to the needs and sensitivity of the local expectations in other nations. This means
that one of the main factor of international expansion strata of Tesco includes dealing with the
local markets by entering into joint ventures with the local parters. This gives the organization an
entry to an established markets and it is provided with a strong consumer base.

For the entering into a new market one of the essential requirement is formation of a
significant and correct strategy to enter a market. This requires researching the markets and the
need, demand of the markets, the policy framework and legal obligations. The availability of
distribution channels, consumer base, market segment, funds availability, these are certain
factors which must be evaluated in advance before entering into a market. On the basis of this
research Tesco makes its international expansion strategy before entering into an international
market. In the present research project a detail discussion over the business strategies adopted by
Tesco for expanding in the international market have been analysed. This means that Tesco
enters the international markets with a signifiant business strategy which assist it n establishing a
new branch for the business as well as expand the business operation to other nations as well.
Although Tesco is third largest retailer in world after wal mart and Carrefoue and it has 80% of
the sales along from UK. The international expansion by Tesco have been started in year
business from past 20-22 years only, before that it is used to operate in UK only. Now half of the
sales is contributed by the international operations and it is now present in more than a dozen
nations of the world.
In the present research project the initiation is done through making the research proposal
where the aims and objectives for the research topic of evaluation of the business strategies for
the international expansion of Tesco are formulated. On the basis of the research objective
research questions are frames and the themes for presenting the literature review are abstracted.
In the proposal the literature review contain the views and opinions of different authors and
scholars over theories themes made from the research topic. The research methodologies define
the structure of the research and the way in which data will be collected and then analysers for
researching effective outcomes in the issues defined in the research topic. The data collection
methods will be defined and on the basis of data collection techniques the data analysis and
evaluation methods will be selected. In the present research project conclusion and
recommendation are made after evaluation of the data so collected the findings and results over
the research topic of investigating the effective business strategies for Tesco to enter the
internation trade and commerce.
Research aim and objectives
Aim

The aim behind conducting present study is to assess business strategies that positively
contributes in Tesco’s expansion pertaining to international market.
Objectives
Referring above aim following objectives have been drafted such as:
 To develop understanding about business strategy development models and theories.
 To assess strategies associated with business expansion in international market.
 To identify strategies that can be used by Tesco for business expansion at global level.
 To recommend competent strategic framework to Tesco for business expansion.
Research questions
How a business strategy should be developed to expand a business in an international market
Rationale of the study
The present research project is conducted on evaluating the business strategies which can
be used by Tesco to expand its business in internation markets. The research have been
conducted in determining the business strategies for expatiation which can be used and adopted
by Tesco for going global and enhance its business operation to other nations as well. The reason
for selection of this research topic is that one of the major trend in the expansion strategies for
the businesses in the present time is going global and start to operate and sale in the other nation.
The research have made a detailed research over this subject and have chosen this topic
deliberately as this is one of the leading trends for the business organisation as part of their
expansion plan. In this regard the main thing is that companies are required to considered is
selection of a significant, effective and correct strategy, model and theories for going global or to
increase international operation. The reason behind selection of Tesco company is that it is
currently operating in 11 countries only and this business is at third number amongst the retail
chain of the world. So this is considered as the company over which the research have been
based on. Also, the researcher of the view that Tesco can expand its business in other nations as
well with effect expansion strategies and models and can research to number one position among
others retain chain around the globe.

Significance of the study
The present study and its findings are highly significant for the companies operating at
global level and wishes to explore business operations internationally. In addition to this, it also
provides Tesco with effectual framework regarding business strategy that can be used for
expansion purpose. Along with this, concerned study will also offer framework to scholars who
wish to conduct study on this topic and assists in developing hypothesis as well for further
evaluation. The significance of the resent research project have been identifies for the future
research who are conducting the research in the direction of elevating the business strategies for
globalization of Tesco as this study can provide them a base to start their research and it can act
as a significance source to bas their research on. Also this research project can be useful for the
academic writers as well as they can find significant matters over their assignments and
researches for their project and the researches.
Structure of dissertation
Chapter 1: Introduction
First chapter of dissertation includes background and significance of the study. It also
contains research aim and objectives on which whole study is based.
Chapter 2: Literature review
This chapter of dissertation is highly significant under which secondary sources such as
book, journals and scholarly articles related to business strategy development will be evaluated.
Such brief thesis gives input in analysing gathered data set effectually.
Chapter 3: Research methodology
In this, research tools and techniques will be mentioned such as type, approach,
philosophy, data collection and analysis method. Hence, it clearly presents tools which will be
used for determining suitable solution from the concerned issue.
Chapter 4: Data analysis and findings
Under this chapter, data set gathered through primary sources will be evaluated and
analysed referring brief thesis prepared in literature review section. In addition, this, for
presenting better view of issue or problem graphs will be added.

Chapter 5: Conclusion and recommendations
Final chapter of dissertation includes summary of the findings derived through primary
and secondary data set evaluation. Further, in this, recommendation to Tesco will also be given
in relation to business strategy development for expansion in international market.

CHAPTER 2: LITERATURE REVIEW
Theme 1: Understanding of business strategy in context of development models and theories.
As per the Kotler and et.al., (2015) views of to go global and increase the international
transfection, Tesco is required to adopt significant strategies, model and Theories of
development and expansion in order to have successful business expansion. The process of the
business model design is a part of the business strategy which required innovation in the way
organization operates. The business model of a business is referred as business logic at the
strategic level. The business expansion models are implemented at the operational level of the
business. There are different forms of models and strategies available for a business through
which it can go international and enters the global markets as a part of its business expansion
plan. This includes various strategies of business expansion such as setting up branch in other
nation, or entering in to a joint venture or a strategic alliance, licensing or franchising its work in
other nation (Crane, Matten and Spence, 2019). With one of these expansion strategies a
business can enter into the market place of another business and it can start to exist and operate
in the international markets. There are various strategies which is used by the business to expand
their business into large scale but the major aspect is related to employee’s motivation and
guidance through which they cannot cut off its crucial employees at the time of expansion. There
are more chances to manage their internal working so that they can plan and implement the
procedure in better way.
Tidd and Bessant (2018) criticised that in international level many countries implement
strict norms to enter other companies to bring their business in international market. Such
countries never allow other companies to expand their business in that country as they didn't
want to share their economy to earn more profits to other countries. In such cases they impose
strict rules to companies regarding importing and exporting of goods and other services in global
market. They only focus on generating the economy of the country and also resource by dealing
in more products within nations (Falkner, 2017). This enhances their stability and reputation in
the market and also enhances their own economy in the country. The expansion of companies in
context of licensing causing major impact as every person can misuse the brand name of the
company by selling their products at low price or reducing the quality of the products to earn
more.

Pucciarelli and Kaplan (2016) examined that in context of business expansion franchising
is the best method to expand their business into international market and earn enhances their
brand name among the customers for longer period. In such case company provides franchisee to
other person in relation to various terms and condition and also keep some amount of share of
profits through which they earned by selling their products in that country. Franchising always
bring their business to grow at international market and also it provides more chances to people
to get profits by establishing their business and maintaining their livelihood. By taking
franchising of any renowned brand name, the franchisor had to less promote their business into
market as they already carry a strong brand image in the market and due to such expansion it
results in gaining more profits to the business (Marano, Tashman and Kostova, 2017). Franchisor
of having all the written document regarding the terms and condition of the franchising
agreement to use the brand name of the companies in right purpose and also they cannot misuse
such name for their own benefits or any personal use. The terms and condition are to be fairs for
both the parties and also the profits sharing ratio is to be clearly mentioned so that there is clear
agreement between the franchisor and franchisee.
Bendell (2017) argued that by expanding their business through providing franchising
sometime results in having the negative impact in the company and also there are more chances
to disclose the trade secret and working of the company. The design of their products and their
supplier are also to be share so that they can deal their products in the market but there are more
chances of resulting in infringement of trademarks and copyright. Usually franchisor to take
some royalty changes from the franchisee by lending their brand name in the market in such
cases it causes impact of franchisee as they had to lend some royalties amount to franchisor by
franchising there business in international Market. In case of fraud commit by any party it
directly affects their goodwill and reputation of company, so in this case lending franchising
rights are more risky business in recent times. In case of franchisee they had to follow such terms
and condition which are imposed by the franchisor and also they had to sell or deal in such
product which are guided by the franchisor. This is the most negative impact if they engaged or
dealing in franchising business.

Theme 2: Strategies assessment and associated with business expansion in international
market.
According to Charles Jr, Schmidheiny and Watts (2017) stated that the strategies which is
used by company in resultant of expansion of their business activities are relating to franchising
their business in international level so that they can diversify their product and services in global
market and earn more business through such techniques and method. Product diversification is
the major part of every company to stable their business so that they can target the customers
through such products by imposing various plans and procedure to attract them for longer
growth. Company carry a brand name in the market thus, there products are largely in
demanding and also attracted by the customers to fulfil their needs and wants for longer terms. In
such case they had to expand their product and bring new and innovative change in the existing
products which that customer always feel the better taste and also there old products results in
new products with same pricing and quality (Porter and Kramer, 2019). Market expansion is also
one of the major strategies which is to be assessed by the company to expand their business in
international global market. With this market segment they can make proper planning and also
implement such planning in better way to bring their products in the market so that they can
target the particular customers towards such product. It results in enhancing their own sales
values and also they can motivate their employees to achieve more production and gain more
profits by increasing their goodwill in market.
Burns (2016) viewed that If the company promote their products by targeting the market
it results in causing lot of wastages of the products. As the taste of the customer are changing and
due to changes in taste it results in less demand of that product which affects the business of the
company at large scale. Various factors are to be kept in mind while producing such product, In
cases of such products which is especially designed for the women but it promotes on such
county where there is less demand of such product it results in wastages of products and also
company suffer huge looses in their internal working (Sekaran and Bougie, 2016). As to bring
products in the market they had to work a lot to examine the needs and demands of the customers
and their expectation of such product in the mark let. In such cases if there is lack of interests of
customer in such products it affects their brand name in the market.
Boyd and et.al, (2017) suggested that online marketing is also one of the useful strategy
which is to be assessed easily and also get better results in the business expansion. As there are