Tesco's International Expansion in Spain: An HR Perspective

Desklib provides past papers and solved assignments for students. This project analyzes Tesco's HR strategies for successful expansion in Spain.

MANAGING A SUCCESSFUL A BUSINESS
PROJECT

Contents
EXECUTIVE SUMMARY...................................................................................................................4
INTRODUCTION............................................................................................................................. 5
TASK 1............................................................................................................................................ 6
LO 1................................................................................................................................................ 6
P1 PROJECT AIMS AND OBJECTIVES...........................................................................................6
P2 PROJECT MANAGEMENT PLAN.............................................................................................7
PROJECT DEFINITION............................................................................................................. 7
PROJECT STRATEGY................................................................................................................7
PROJECT SCOPE......................................................................................................................7
PROJECT COST AND TIME...................................................................................................... 7
COMMUNICATION PLAN........................................................................................................8
RESOURCES INVOLVED.......................................................................................................... 9
RISKS ASSOCIATED................................................................................................................. 9
QUALITY MANAGEMENT......................................................................................................10
SMART GOALS......................................................................................................................10
P3 WBS AND GANTT CHART.....................................................................................................11
LO2............................................................................................................................................... 13
P4 RESEARCH METHODOLOGY................................................................................................ 13
LITERATURE REVIEW............................................................................................................13
QUESTIONNAIRE AND SURVEY.............................................................................................14
LO 3.............................................................................................................................................. 18
P5 ANALYSIS OF THE RESEARCH AND DATA.............................................................................18

P6 CONCLUSION AND RECOMMENDATIONS...........................................................................19
P7- REFLECT ON OWN LEARNING AND PERFORMANCE + PROJECT LOGBOOK........................20
PROJECT LOGBOOK..............................................................................................................21
TASK 2.......................................................................................................................................... 24
REFERENCES.................................................................................................................................36

EXECUTIVE SUMMARY
The study covers the company Tesco and its international operations in the host country which
is Spain. The company’s strategy to improve the HR department and upscale the recruitment,
hiring and selection process which can leverage Tesco’s brand image and improve its business
operations in the host country is covered in the study. The research is carried out with the help
of qualitative research which is the literature review and also the quantitative research which
includes questionnaire and surveys. The data analysis is done to draw important conclusions
supporting the study. Finally, some recommendations for the study for its improvement are
given at the end of the study (Etgar and Rachman-Moore, 2010).

INTRODUCTION
The globalization has impacted the economies on a large scale enabling the multinational
companies to expand to more and more new regions to increase their presence. Also, HR
activities are crucial for the companies and multinationals must conduct a review of their HR
practices to see how their organization conducting business activities have. HR has the task of
holding together the company and managing its employees to better produce the outcome and
output of the company. The HR practices of Tesco are analysed to gauge the success of the firm
in Spain which is the host country where Tesco plans to advance. The recruitment, selection
and training practices are assessed in the context of Spain (Wood et al., 2016).
Tesco is a British multinational company that sells groceries all across the UK and other
merchandise. Tesco is the third largest retailer in the world measured by gross revenue. The
company has stores in 7 countries across Asia and Europe. In the UK, it is the leader in the
market where it has a market share of 28.4%. The company was founded in 1919 by Jack Cohen
as a group of market stalls. Tesco has even diversified into areas such as eh retailing of books,
electronics, clothing, petrol, toys, furniture, financial services and telecom.

TASK 1
LO 1
While working for the research firm McLeod and Partners, I was a Research Assistant have
carried out this research on Tesco to review its impact on HR recruitments, selection and
training to get a competitive edge over other rivals in Spain where Tesco plans to expand.
P1 PROJECT AIMS AND OBJECTIVES
The aims and objectives of this study are concerned regarding the HR activities used by Tesco in
expanding its services in the host country which is Spain. Spain has other stores for grocery like
Mercadona, Aldi and Lidl among others so Tesco has quite some competition over there. How
will Tesco as a company better itself with the help of its HR management and recruitment plan
to expand sales and services in Spain is discussed in the study (Gollnhofer and Turkina, 2015).
The aims and objectives of the study are as follows-
 Expansion of Tesco in Spain as a new territory for expanding business
 Managing of HR policies to align with that of practising policies of Spain
 To enhance the recruitment, selection and training of employees to meet international
standards
 To create a competitive advantage over the leading grocery store of Spain, Mercadona
These are the aims and objectives of the research which are accomplished in the course of the
study. The study of Tesco gives thoughtful insight into its HR policies and practices followed by
the company.

P2 PROJECT MANAGEMENT PLAN
PROJECT DEFINITION
The project is defined as the set of actionable sequences created to achieve the desired target
within the given resources and time. The project of Tesco’s expansion in Spain is of viable
concern as Tesco has no stores in Spain and the culture and business operations of Spain are
not studied and known at present. The project is to set up a new store for Tesco in Spain and to
get a competitive advantage over the local store Mercadona which is the top store among
consumers for getting groceries (Zhao, 2014).
PROJECT STRATEGY
The strategy for the project is that the HR has to be maintained and equipped with the best
knowledge about the local culture so that they are able to attract customers and also by giving
excellent quality as compared to other rivals. The strategy is to make use of best HR policies
and practices to get a competitive advantage over Mercadona which is the leading local grocery
store in Spain. Tesco’s expansion in Spain can be a great source of revenue as Spain is a
developing economy and the stores in Spain can fetch great revenue (Ilonen et al., 2011).
PROJECT SCOPE
The scope of the project is immense as Tesco has a presence in all major countries with thriving
economies. Spain is also a growing economy where the business is expanding and many MNC's
are setting up base in Spain to cater to their audience. The economy of Spain is on the rise
where employment is increasing among the youth. People have more disposable income and
due to the ease of grocery shopping, people prefer going to supermarkets and buying their
stuff. Hence project scope is huge for Tesco in Spain (Burt, 2010).
PROJECT COST AND TIME
The cost required by Tesco to analyse its recruitment, selection and training employees and to
better its HR activities will be approximately 100 million Euros as the employees have to be
trained appropriately to compete with the leading brand Mercadona. The employees also have
to be trained to get a competitive advantage over other brands operating in the Spanish

market. The time that will be taken for the study to complete is approximately 10 months
(Gollnhofer and Turkina, 2015).
COMMUNICATION PLAN
The communication plan is the plan by which the communication within the project will
happen. The communication plan has to be set effectively so that communication does not
become a barrier in the completion of the project. The communication is to be carried out
between managers, employees, HR managers and the new applicants who want to join in the
new store in Spain (Cairns et al., 2010).
Stakeholder Information Method Time of
frequency
Sender
Senior
management
The hiring
process, number
of applicants
needed
Meetings Within next
week
R&D unit
Investors Investors
communicate
with the
management
about the
investment
Documentation
and meeting
Within a month Project co-
coordinators
Employees Employees have
to be trained
according to the
Spanish market
conditions
Memo,
meetings, email
Daily Basis Management
New applicants Hiring, selection
and training
processes
Interviews and
written tests
Monthly HR Department

RESOURCES INVOLVED
The resources that will be spent on the company are the time and appropriate managers who
will guide the project to its completion. The resources required will also be the monetary assets
and resources of the company like procurement of raw materials, establishing stores,
conducting training sessions with new employees and studying the buying and behaviour
pattern in Spain to create the store accordingly and use the HR resources and skills which are
best suited to the company.
RISKS ASSOCIATED
In any project, there are a number of risks associated. The risks include failure risks that may
cause the company to fail even after deliberate attempts. Other risks include not finding the
appropriate new applicants and employees to work for Tesco. The risk of the project not
completing on time is also an issue that concerns Tesco's success in Spain. The competitors
coming up with new strategies and plans may also challenge Tesco as a start-up company in
Spain.
Risk ID Risk
Statement
Probability Impact Score Response
Scope Quality Schedule Cos
t
1. Change in
policy
0.2 03 0.9 0.2 0.1 0.076 Implementation
of the change
2. Time delay
risks
0.7 0.5 0.2 0.4 0.7 0.043 Faster
operations
3. Operational
risks
0.3 0.1 0.5 0.9 0.4 0.0957 HR support
4 Technological
risks
0.8 0.6 0.6 0.4 0.2 0.039 Implying the
latest technical
skills

QUALITY MANAGEMENT
Tesco is famous for its quality of goods, products and services which are of world class and
procured from the best sources. The grocery items, fruits and vegetables are of the best quality
and seasoned so that they reach fresh to the consumer. The quality of the services is also great
as the company delivers the orders of clients at home. Tesco pays a lot of attention to the
quality of goods whether perishable or non-perishable so that it retains its competitive edge in
the market.
SMART GOALS
The smart goals are those goals which are created to create such goals which are specific,
measurable, agreed upon, realistic and time-based. Tesco should create these goals so that its
project to hire and train the new employees meets the international standards and are
competent to work with Tesco. The goal is to reach the objectives on time and to conduct the
research successfully so that Tesco is able to successfully operate its store in Spain and has
qualified talent who can run the store effectively according to standards of Tesco.

P3 WBS AND GANTT CHART
This is the Work Breakdown Structure of the study. The WBS is an important tool to sort the
way into smaller components so that the work becomes easier to achieve. The WBS structure
for Tesco is created to effectively manage the study and to divide the work into achievable
components to make the research easier (Wood and Reynolds, 2011).
Another important way of arranging the data is to create a Gantt chart which divides the work
into regular intervals of time. This char is helpful to arrange the data according to the time
needed for each to complete. The Gantt chart for Tesco shows the process of completion of
activities of the research inappropriate time (Kotabe and Helsen, 2014).
IMPACT OF GLOBALIZATION
ON TESCO
ESTABLISHING AIMS AND
OBJECTIVES
Developing aims and
objectives
Smart Goals
Worling on aims and
objectives
PRIMARY RESEARCH
Data Collection
Literature Review
Qualitative Research
SECONDARY RESEARCH
Questionnaire (Survey)
Data Collection
Quantitative Analysis
CONCLUSION AND
RECOMMENDATIONS
Evaluation
Findings
Implications

Activities Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Brainstorming of
ideas and
selecting a variety
of shoes
Preparing aims
and objectives
Identifying
primary and
secondary data
Meta-analysis
Qualitative
analysis
Quantitative data
analysis
Implementing the
final product
Recommendation
s
Evaluation
This is the Gantt chart for Tesco to follow its business activities at the stated time. The
appropriate time is set to complete all the activities and also the Gantt chart provides a clear
picture of the tasks to be completed.