Strategic Report: Tesco's International Expansion into India

This report provides a comprehensive analysis of Tesco's decision to expand its retail operations into the Indian market. It explores the reasons behind this international expansion, including India's favorable economic conditions and the potential for revenue generation. The report examines various strategic choices available to Tesco, such as Porter's Five Forces and the marketing mix 4P's, and evaluates the selected entry methods, including exporting, licensing/franchising, joint ventures, and direct investment. Furthermore, it identifies potential organizational and managerial problems that Tesco may face in the new international environment, such as decreased performance levels and communication barriers, and offers strategic advice to mitigate these challenges. The report concludes by emphasizing the importance of adapting to local market conditions and implementing effective communication strategies for successful business expansion in India. Desklib offers a wide array of solved assignments and past papers for students seeking additional resources.

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Table of content
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Reasons for parent company’s international expansion...........................................................................3
Possible strategic choices available to the parent company.....................................................................4
Reasons for choice of location for the subsidiary....................................................................................6
Strategic methods of entry and the possible consequences......................................................................6
Potential organizational and managerial problems for the subsidiary operating in the new international
environment.............................................................................................................................................7
Evaluation of strategic advice for the subsidiary to reduce the problems................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES............................................................................................................................................9

INTRODUCTION
Business expansion in international market is mainly refers to activity where organization
management decide to develop higher efficiency in business activities and revenue generate with
new opportunities expansion. It requires strategic approaches, methods, identification of external
activities, which product services has potential to reach and connect audience and influence
revenues and many more aspects important (Ahmad and et.al., 2020). Tesco retail industry is all
above retail industry in UK. It provides their services in multiple counties and their major
product and services includes clothing, grocery, electronics, internet services, books, furniture
and many more. It has so many stores and supermarket for product selling and it decides to
expand their business activities in India. This study will provide information about reason of why
this country is good appr0ch for new opportunity development, strategic approaches application,
business development strategy, organization overall activities and external forces evaluation for
efficiency expansion in business activities.
MAIN BODY
Reasons for parent company’s international expansion
Organization mainly decide to influence their business activities in international market
for grow business, expansion of new opportunities, influence revenue, increase business
efficiency, interact with new audience and many more (Habel and et.al., 2020). Tesco industry
develop continues practices for business effective expansion in multiple countries and it already
develop their business set-up in so many country. It decides to expand their business in India
because their market experts and international market research evaluate that their economic
condition is good and its beneficial for revenue generate.
Business expansion: Company decide to develop their business in India because if their
effective economic performance and from the identification of their market effectiveness and
their people has potential to invest money on their product and services.
Historical business performance: Tesco has great position in retail sectors in UK market and
many more market where they expand their business because it believes in provide quality

services. And when it decides to expand their business activities in other country they identified
that they have good position so its easier to achieve and connect with audience and influence
revenue because of enough resources availability (Ge, Dollar and Yu, 2020).
Product and services: Food, grocery, clothing, electronic, internet services, kids items, financial
services from their bank facilities, petrol, books and many more product and services retail from
their stores or online application. Because it evaluates that survives in continues innovative
market area its essential to engage online product selling and for marketing activity.
.
Market share: It has great position in market and in the retail industry it consider as leader of
retail business because it has great amount of market share which over 28.56%. So it has good
position in market and from last few years this business reaches more success with continues
new application development.
Competitive position: Tesco organization senior management and market research experts
continuously implement innovative activities which makes higher efficiency in business
performance and survives in the competitive market, they mainly applies marketing 4P’s
strategic approach which provide idea to which product and services has potential to generate
revenues, pricing decision according to customer purchasing power evaluation, place where they
decide to situate their business activities and last one promotional activity which directly
influence revenues with effective ,manner (Liu, Lee and Lee, 2020). Application of product
promotion is major essential term because without consideration of this aspect people not have
clear idea about new product. Tesco decide to expand their business activity in India because
their audience has potential to buying this goods and services.
Possible strategic choices available to the parent company
Tesco MNC industry uses different strategic approaches for identification of their
potential that they can highly influence their business activities with application of different
business approaches are as follows.
 Porter’s five force strategic approach

Competition in the industry: Firstly business expansion in different are require identification
of competitive industry. Business establishment in India its essential to evaluate and identified
their other retail industry which also provide clothing, grocery product because this company
mainly consider top decide that they mainly provide clothing and grocery products in India
market (Ibodullaevich and Bahromovna, 2020).
Potential of new entrants into the industry: Different product with good pricing on the basis
of market trend is very effective term and it influence and generates higher revenue. Tesco is
retail industry so they mainly applies B2B concept they buying product and services from other
manufacturing or supplier which provide product on their stores because of revenues generate
and this company has repudiated name.
Power of suppliers: Its essential maintain good relation with supplies because it influence
performance of overall business activities at market place. Tesco industry has responsibility to
find suppliers and they have implement export activity and find effective supplier of products.
Power of customers: One of the major strategic approaches for business expansion in different
place, because customer has power that they can positively influence business activities in
market place and they have power to generate positive attraction development to audience.
Knowledge about this concept is essential that business implements strategic approach for and
engage right product pricing decision for customer behavior effectiveness development.
Threat of substitute products: Organization which provide similar kind of products and
services is biggest challenges aspects but from the evaluation of other companies which also
provide similar kind of products its easier to develop new and innovative things engagement
within business practices effectiveness. Application of this technique is very effective approach
because it has potential to increase business efficiency.
 Marketing mix 4P’s
Product Price
 Strategic decision development for
new market requires major
 Next is pricing decision which is very
essential when UK successful

consideration which is product
decision because development or this
approach is the only option to
generate other decisions.
 Tesco industry provides various
range of products and services, but it
decide that they provide grocery
products and clothing products
because these products mainly
requires in daily basis and people
develop higher focuses on it.
 It decide they exporting their existing
products and services in different
area.
organization decide to expand their
business activities in different place.
Evaluate and identified their
economic consideration then on the
basis of evaluation they have to
decide product pricing.
 Development of pricing decision is
very effective approach but it only
properly develop when business
decide right price according to their
audience purchasing power. Tesco
Company decides that they develop
lower price on the basis of India
rupee values.
Place Promotion
 Decision about place is not an easier
because when organization decide to
expand their business activities they
have develop concern on that the
country and the area has potential
their economy has at good position
so people buy their products and
services or not.
 Next one its also essential that
customer behavior, their perception
identification. Tesco Firstly develop
market research and evaluate
 One of the most essential term of
marketing and business performance
improvement strategic approach
because it has potential to reach
customer attraction wit effective
pattern.
Company has responsibility to connect
people attraction towards with the business
so idea about this term its important term
that organization implement effective
approach like they decide to use for their
product promotion like digital marketing,

multiple factors and then it decide to
expand their business activities.
social media marketing, email, mobile phone
and many more (Zahra, 2021). Because on
the basis of recent market trend people
mainly connect with this terms.
 This company has great position in
UK market so it gives good market
share as well. Knowledge about this
company shares value people highly
influence and attract to buying their
product and services and its useful
approach for product promotional
purpose as well.
Reasons for choice of location for the subsidiary
Business expansion in other country major reason is to influence new opportunities and
generate revenue. Tesco industry management concern that business expansion in India market
is suitable and sustainable approach because their people attract with new products with good
price and their people has different buying power and they continuously believes in buying
different and innovative products.
From the research things mainly identified that their economy is good so they can expand money
on product with without any argument. They mainly decide to provide clothing and grocery
which is great term because their audience mainly attract with things type of products and
survives which mainly provide different quality and new fashionable items (González-Torres,
and et.al., 2021). Also, before decide to expand they analyze external factors evaluation as well
because India country has stable government policies, so its important to develop research about
different factors as well.

Furthermore, India audience has welcoming nature because they know that expansion of
new industry provide employment and they attract with new products. India people has great
nature and they consider that this particular brand from foreign country they getting more
influence by it. But they have to consider different pricing strategy in India because their people
have very different income and buying activity from UK.
Strategic methods of entry and the possible consequences
Application of strategic approaches and practices is best option for idea development
about which techniques has power to influence business activities (Abu Zayyad and et.al., 2021).
Tesco organization has responsibility to follows and implements approaches for powerful
business development in India. Applications of different busiensn new markjet entrests strategy
pay major roles to provide clarity about effective busienssn expansion are as follows,
Exporting: Knowledge about product exporting activity is important strategic approach it
provide facilities of product exporting. Tesco decide to serves their business products in India so
they have to evaluate proper idea about India transportation charge because of product
availability consideration.
Licensing/Franchising: Organization development in different place requires legal licensing
which provide by government policies application. And franchising refers to develop similar
name of product and services and different place with same price with similar product and
service. Same brand development in different market is good approach because audience already
has some idea about it as well (Shams and et.al., 2021).
Joint Ventures: This one is more effective approach for many problem solution and influence
business activities with proper manner because connect with other company which also provide
similar product and engage organization which has great name so it directly influence business
performance.
Direct Investment: This term is not highly useful but when company has repudiated name and
people has some idea about company activities so they can effectively engage and influence
organization activities with effective manner application of this approach makes higher
efficiency in business but the major things which individual has to consider when they decide to

direct investment they have to use technological tools for product advertising and develop
knowledge about business services (Madsen and Ulhøi, 2021).
Potential organizational and managerial problems for the subsidiary operating in the new
international environment
Decreased performance levels: Firstly when business decides to expand their activities sin
different place they have to face many challenges because people not directly believe in new
products. Idea about this term Tesco organization has responsibility to implementing activities
for business selling and promoting business activities with effective manner.
Lack of communication: One of the most challenging tasks for great position development of
business in different country. Other country people when they decide to development business
and when they have no idea about their language they will not properly communicate and
express their feeling and thoughts (Milsom and et.al., 2021). Knowledge about this term its
essential that use some activity like they engage practice like hire individual who has great idea
about both language so they can translate requirements with effective manner. Indian people use
multiple languages and the major language they prefer which Hindi so its import that they have
to provide their information.
Poor teamwork: New business development I different place requires effective teamwork but its
not easier to connect with different place people, development of impressive connection with
them and many more. Teamwork development is not an easier approach which requires proper
communication; individual has to applies good skills for work successfully complete and many
more.
Pressure to perform: Other organization performance generate many problem because so many
people who decide to expands their business at international market or at different place they
mention clear activities and planning which products they have to engage for organization
culture benefits development (Husnain and et.al., 2021). Tesco organization mainly provide
grocery and clothing products in India so they have higher pressure because individual country
has their manufacturing and they provide this product with good amount so its higher pressure on
new subsidiary for improvement.

Absence of structure: Planning of business structure is easier but implementation of proper
structure is not an easier concept it requires consideration and application of various aspects
approaches and methods which follows by every individual employee who performing task for
business.
Time management: UK timing and India timing has difference but it not complex task. This
term is all above refers to employee management when business set their planning and provide
guidance to employee that they have to complete this specific task within in month if they not
performing task it directly impacts on their performance (Haddoud, Jones and Newbery, 2021).
Also, multiple organization implement this approach for identification of that organization has
power and they can properly survives in different market place, audience develop attraction
towards with their activities or not.
External environment factor affects on business expansion
Political factor Economic factor Social factor
It mainly develops by
government policies and it
includes for this organization
is to identify transportation
activity of product and which
terminology they have to
engage in product selling
activity. Tesco easily evaluate
government policy because
India has stable political
aspects.
It mainly includes interest
rates and labors salary
determination. Tesco has to
determine economic factors
like they have to set proper
labors wages and interest rates
charge from audience. It
requires proper decision-
making activity for right
economic factors
establishment with good
practices.
One of the most essential
factors which directly
influence overall business
performance. Its important to
create sustainable activity and
include various factors and
complete demand with idea
development from people.
Because different country and
different place ahs their
different culture, social
believes, values, emotions,
perspectives and many more.
This factor easily evaluate
with the helps for their
cultural activities and

audience activities knowing.
Technological factor Environmental factor Legal factor
Expansion of new
opportunities within business
requires proper identification
of technological factors
because it requires
consideration of activities
which has great sense to
resolve many issues with idea
development throughout the
utilization of digital
technological application.
Survives and good position
development for long term in
different place mainly require
uses of technological tools for
higher efficiency
development.
Unwanted weather and
unconditional situation
influence business activities
and it control effective selling
and product promotional
activities as well. So it directly
impacts on revenue generate.
India country has so many
different weather and
unwanted situation so
knowledge about this activity
they have to develop set-up of
business Knowing about this
aspects.
This aspect mainly prepares
by government rules and
regulation for labors rights,
business employee rights,
fixed working hours and many
more. Consideration about this
term individual organization
has to know countries rules
and regulation for higher
efficiency development and
audience attraction influence
Evaluation of strategic advice for the subsidiary to reduce the problems
Formation of Separate Boards for Subsidiaries: Company decides to expand their business
activity they have multiple responsibilities to resolve problem with effective manner. But the
things is its not easier that which problems affects business activity, how to resolve it and many
more aspects and proper identification of many aspects which has power to resolve issues and
problems.

Subsidiaries are all above concept which refers to that business provide government authority to
that they also provide this products and services in their business (Tabares and et.al., 2021).
Tesco mainly consider providing their services throughout the different business and also form
their individual stirs or technological application which is great term to generate revenue and it’s
useful for promotional and selling purpose.
Foster a mutually beneficial parent-subsidiary relationship: Continues practices involve
from parent subsidiary which ahs potential ton resolve issues and they have skills to manage
multiple aspects within impressive manner. Application of right and sustainable things can helps
to find better process for refusing business products. Extra practices engagement with proper
manner to find best solution and manually provide best and reliable solutions. From the better
efficiency development in product selling at different price its impotent to take helps from other
small business which directly sell their products. Tesco develop different subsidiaries in multiple
countries and they decide to
Ensure consistent, quality subsidiary information with entity management technology:
Application of new approaches is the best option to resolve much issue and it determines
to provide best facilities on the basis or requirement of new technological aspects. Utilization of
technological aspects provides best solution and it increases business values with positive
manner. Because it gives information of other company’s activities which things they mainly
engage and which pricing decision they take for higher selling and many more aspects are easier
to know from this. Tesco has to implement new technological advancement in their business
activities for knowing about various aspects with effective pattern and it gives best and
sustainable idea to new decision-making process.
CONCLUSION
It has been summarized form the above reflective study that multinational corporation
industry develop continues practices for their business effectiveness development in different