Examining M&A's Impact on Tesco's Customer Base and Sales Performance

This research proposal examines the impact of mergers and acquisitions (M&A) as a global market entry mode on retail firms, specifically focusing on Tesco. The study aims to assess how M&A influences Tesco's customer base and sales performance within the context of globalization. The proposal outlines the research questions, which explore the benefits and drawbacks of M&A as an entry mode and its effects on Tesco's sales and customer base. The rationale emphasizes the significance of understanding how globalization and M&A facilitate trade and business growth. The literature review covers globalization, various market entry modes like franchising, joint ventures, and M&A, and their impacts on business expansion and sales. The methodology section details a qualitative research approach with an inductive research approach and interpretivism philosophy, using surveys and secondary data analysis. A timeline spanning 12 months is provided, outlining key activities from topic selection to final submission. The proposal concludes that franchising enables global operations and the research will answer the questions through data collection and analysis.

RESEARCH PROPOSAL

TABLE OF CONTENTS
Background of the study.........................................................................................................3
Research aim and objectives .................................................................................................3
Research questions ................................................................................................................3
Rationale of the study.............................................................................................................4
Significance of the study .......................................................................................................4
Literature Review ..................................................................................................................4
Research methodology .........................................................................................................5
Timeline .................................................................................................................................6
CONCLUSION .........................................................................................................................7
REFERENCES...........................................................................................................................7

Topic: “To examine the impact of Merger & acquisition, as a global market entry mode, on
retail sector firms in terms of customer base enhancement and sales performance: A study
on Tesco”.
Background of the study
In the present era, globalization is recognized as a phenomenon which in turn
increases economic integration among nations to a great extent. It facilitates movement of
people, ideas, social customs and product across the regional or national boundaries. From
the perspective of economic growth and development globalization strategy proves to be
more fruitful (Giddens, 2018). Hence, after globalization, it becomes easy for business
entities to explore their operations internationally and thereby attain benefits from the same.
In this context, joint venture, franchising, mergers etc are the modes which firm can
undertake for operating globally. The present report is based on Tesco which offers wide
range of retail products or services to the customers at affordable prices. In this, report will
provide deeper insight about the extent to which M&A, as a market entry mode, enhances
revenue, Further, it will also shed light on the methodology which helps in analyzing the
impact of M&A on customer base enhancement. Such concerned proposal also presents time
period within which research will be completed.
Research aim and objectives
Aim: The aim behind conducting present study is to assess the influence of M&A
strategy on Tesco in the context of customer base and sales enhancement.
Objectives
 To understand and evaluate M&A as a market entry mode or strategy.
 To investigate the contribution of globalization in the context of trade across borders.
 To ascertain the influence of M&A on sales revenue of Tesco.
 To recommend ways to Tesco pertaining to improving trade practices across borders
via several global market entry modes available.
Research questions
Referring aim and objectives of the study following questions have been drafted by
the scholar:

Q.1 What are the benefits and drawbacks of M&A as entry mode?
Q.2 What is the extent to which M&A affects sales and customer base of Tesco?
Rationale of the study
The rationale behind conducting present study is to assess the extent to which
globalization facilitates trade across the borders and helps in increasing both customer base as
well as sales (Kruesi, Kim and Hemmington, 2017). Hence, focus is placed on analyzing the
level to which M&A helps in increasing both sales and customer base. Such topic is
considered as an issue because business entities face difficulty in assessing market entry
mode which in turn proves to be more suitable. Hence, through the means of thematic
analysis such research could shed light on the level to which customer base and sales can be
increased by undertaking M&A as a market entry mode.
Significance of the study
The present study pertaining to the impact of globalization on business performance is
significant to a great extent. This will help other researchers in conducting study more
effectually pertaining to the topic of globalization and market entry modes pertaining to
international level. In addition to this, such investigation will also assists Tesco in developing
strategies through which it can attain benefits from globalization.
Literature Review
According to the views of Beck (2018), globalization implies for the process by which
businesses or other firms operate at global level. It represents global integration of trade,
investment, information technology and culture. In the context of open economies,
government policies are designed at both domestic and global level for boosting development
in the developing countries. Adeola, Boso and Adeniji (2018) presented in their study that
after globalization it becomes easy for the firm to carry out business activities internationally.
Hence, there are several entry modes which can be employed by the firms for operating
globally such as franchising, joint ventures, mergers and acquisition. In accordance with
Ayden, Demirbag and Tatoglu (2018), merger and acquisition may be served as a strategy
which business units undertake for exploring operations and functions at global. By acquiring
or purchasing business of leading companies business can be expanded at global level. It is
recognized as the most effectual global market entry method which in turn enables firm to
generate high sales. Tao and et.al.,(2017) presented that when company operates at wide level
and it gets high economies of scale. This in turn enables firm to generate high sales by

offering products to the customers at suitable or competitive prices. However, Adeola, Boso
and Adeniji (2018) argued that, M&A is highly time intensive process which in turn limits its
significance to a great extent. Ayden, Demirbag and Tatoglu (2018) assessed in their study
that M&A is the cost effectual mode of global expansion which helps in increasing customer
base to a great extent. Moreover, through M&A business unit gets opportunity to serve large
number of customers and thereby increases the concerned base. As per Wanke, Maredza and
Gupta (2017) In the case of M&A as market entry mode business units enjoy marketing
support to the significant level. Thus, it can be presented that impact of M&S as a global
market entry mode is positive on the performance of business units.
Research methodology
Research type: Qualitative and quantitative are the main two research types which can
be used by the scholar as per the nature of study. In the context of current study, to analyze
the impact of globalization and franchising on customer base of Tesco qualitative research
type will be selected. Hence, by placing emphasis on qualitative aspects such as
globalization, trade across borders etc research aim will be obtained.
Research approach: There are mainly two research approaches such as inductive and
deductive which can be selected by the researcher. For assessing the impact of globalization
on Tesco, inductive research approach will be employed. On the basis of such aspect,
emphasis will be placed on the development of new theoretical framework.
Research philosophy: Interpretivism and positivism are the main two philosophies
which researcher undertake for the purpose of evaluation. In this, as per the qualitative
research type, interpretivism philosophy will be used. According to such aspect, qualitative
aspects will be evaluated referring existing theoretical framework.
Data collection: For addressing research questions prominently data will be gathered
by the scholar from both primary and secondary sources. Thus, for primary data collection,
survey will be conducted by the researcher on 20 manager of Tesco. Hence, with the help of
questionnaire, which contains both open and close ended questions, primary data will be
collected. Further, researcher will also make evaluation of books, journals and scholarly
articles related to globalization for meeting objectives.
Sampling: For the purpose of survey researcher is required to select appropriate
sample by taking into account either probabilistic or non-probabilistic technique. Hence, for

making evaluation of globalization impact on the sales and customer base 20 managers of
Tesco will be selected using purposive sampling technique.
Data analysis: Thematic analysis will be done by the researcher for assessing the
impact of franchising on the performance of Tesco. Hence, according to the questionnaire
themes will be prepared and supported with graphical presentation.
Ethical consideration: For meeting ethical aspects, consent form will be sent to and
filled by the respondents. Along with this, reference list will be added and citation done by
the researcher for complying with ethics.
Research limitations: Time and money is recognized as constraint which in turn
affects study to some extent. Due to the time limitation survey will be conducted on 20
managers of Tesco. Hence, purposive sampling technique will help in avoiding such
limitation. Further, SPSS is not used by the researcher due to
Timeline
For carrying out researcher within the suitable period following timeline will be
considered or undertaken:
Activities /
Months
1 2 3 4 5 6 7 8 9 10 11 12
Identification
and selection of
topic
Drafting
proposal for
initiating study
Designing
research aim
and objectives
Evaluation of
books, journals
and articles for
the
development of
brief thesis
Identification
and selection of
research tools
and techniques
Preparing
questionnaire

by including
both open and
close ended
questions
Sending
questionnaire
to the
respondents
selected and
thereby
collection of
primary data
Primary data
arrangement in
the structured
format
Doing
discussion as
per the brief
thesis prepared
Concluding
findings and
giving
recommendatio
ns
Doing
formatting of
the fie
Getting
feedbacks and
doing
modifications
accordingly
Final
submission
CONCLUSION
By summing up this proposal, it can be concluded that franchising mode enables firm
to carry out activities globally and thereby get desired level of outcome or success. It can be
seen in the report that for addressing such research problem qualitative research technique
will be employed by the scholar. Besides this, it can be inferred that through collecting data
from survey research questions will be answered.

REFERENCES
Books and Journals
Adeola, O., Boso, N. and Adeniji, J., 2018. Bridging Institutional Distance: An Emerging
Market Entry Strategy for Multinational Enterprises. In Emerging Issues in Global
Marketing (pp. 205-230). Springer, Cham.
Ayden, Y., Demirbag, M. and Tatoglu, E., 2018. Market Entry Strategies of Turkish MNEs.
In Turkish Multinationals (pp. 127-168). Palgrave Macmillan, Cham.
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Dimitrija, K., Cappa, F. and Pinelli, M., 2018. Institutional Quality Differences and The
Performance Effect Of Merger and Acquisitions on Rival firms. In EURAM
CONFERENCE. Euram.
Giddens, A., 2018. Globalization. In Sociology of Globalization(pp. 19-26). Routledge.
Kruesi, M., Kim, P. B. and Hemmington, N., 2017. Evaluating foreign market entry mode
theories from a hotel industry perspective. International Journal of Hospitality
Management. 62. pp.88-100.
Tao, F. and et.al., 2017. Do cross-border mergers and acquisitions increase short-term market
performance? The case of Chinese firms. International Business Review. 26(1). pp.189-
202.
Wanke, P., Maredza, A. and Gupta, R., 2017. Merger and acquisitions in South African
banking: A network DEA model. Research in International Business and Finance. 41.
pp.362-376.
Madanog Research on Franchising. p.377.