Internal organization of Tesco
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Nowadays, business can be characterized as international because of the continuous quick development of markets. It is a fact that markets have become truly competitive by providing many goods and services. International business refers to any kind of business activities that take place across national borders. This definition takes into account both the very small and the very large global company. Also, we should mention that international firms, in comparison to domestic, operate in an environment that it is highly competitive and uncertain and the rules change, depending on the circumstances. Important part of international business environment is national culture which reflects the beliefs, values and norms that a nation share. Usually, those beliefs and norms refer to history, religion, language, geographic location and government that a society has. Additionally, national culture influences the corporate governance, internal organization and business strategies of international companies. The aim of this assignment is to analyse the internal organization of Tesco in United Kingdom and in China and to illustrate how culture and institutions influence the environment of this firm. Company Description of Tesco
Tesco PLC is an international retailer and the largest grocery chain in UK with 470,000 employees and 4,331 stores worldwide. Also, it operates in fourteen markets globally and provides a large amount of food products and non- food products as well as retail services. History of Tesco
The first Tesco Company founded by Jack Cohen in 1932 in the UK. In 1947, Tesco stores began to sell shares on its stock to the public. The most important fact for Tesco happened in 1959 with the first acquisition where Tesco took over more than 350 stores in the UK. In 1968, Tesco built up its first supermarket store in Sussex which was the largest in Europe. The name Tesco PLC changed in 1983 and in 1991 became the biggest petrol retailer in the UK. Finally, the millennium was the year that Tesco launched its e- commerce business and Tesco.com which proved one of the most popular services. Tesco's Economic Growth and Performance
Various information from the official website mention that Tesco has achieved rapid economic development and strong performance the last two decades. The firm's performance enhanced by worldwide acquisitions and by entrance in new markets through Foreign Direct Investments and Joint Ventures. Furthermore, the continually increased number of Tesco stores and its globalization reflect the economic growth. The rise of sales and profits prove that Tesco knows how to be successful. It is important to refer that, although Tesco has expand its operations in many countries, its main interest remains Europe and Asia. Tesco in China showed great performance in 2008/2009, with the rise of both group sales and operating profit (14,9%). Tesco's Corporate Strategy
Corporate strategy is particularly important for multinationals firms because of the relationship that created between customers, suppliers and stakeholders with companies. Trust is a fundamental element in relationships and firms try to behave responsibly. Tesco, according to Coriolis Research (2004), follow two main strategies in order to achieve its purposes. The first has to deal with the phrase "How Tesco sells for less" and the second with the famous "Steering Wheel". As far as concern the first one, Tesco's purpose is to sell more volume through a various range of products and services. This can be achieved with the use of economies of scale which...
References: Nowadays, the continuous quick development of international business can be thought as one of the most important trends that appeared in business environment.
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