This research paper will discuss the facts and impacts of globalisation on Tesco with the benefits and drawback of global business environment on the business operation. The primary data will be collected under the Ethical issuessurvey research strategy for the completion of the research paper.
,Table of Contents
Chapter 1. Introduction
1.1 Background
1.2 Rationale
1.4 Research aim and objectives
Chapter 2. Literature Review
Chapter 3. Research Methodology
3.1 Advantages of self-administered questionnaire
3.2 Disadvantages of self-administered questionnaire
Chapter 4. Methodology Explanation
4.1 Sampling
4.2 Primary data collection instrument
4.3 Data collection administration
4.4 Data analysis approach
4.5 Ethical issues relevant to the research
Chapter 5- Results
Chapter 6- Conclusions and Recommendations
Conclusions
Recommendations
Chapter 7- Reflections
References
Annex 1
Annex 2
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,Chapter 1. Introduction
1.1 Background
Tesco as a business organisation should look for expansion opportunities in Romania. The local
market cannot provide diversified opportunities for the benefits and profitability however,
industries organisations are looking for new opportunities to expand and develop the
reputation from the global market (McIntosh and Pontius, 2015). Tesco is the third largest
retailer in the world and it has expanded across Asia and Europe and has a market share of
around 28.4% in the UK (The Telegraph, 2019). The global business environment carries the
factors exogenous to the sectors and the home environment of the organisation in the market
affecting and influencing the decision making of the organisation on capabilities and resources.
Tesco has experienced the positive and negative ways of handling the operation while entering
into the new and emerging markets under the global business environment. Managing the
operation in the global market is hard enough for Tesco as they have seen the benefits and the
limitations while dealing with different social and legal factors in the markets under the global
environment. This research paper will discuss the facts and impacts of globalisation on Tesco
with the benefits and drawback of global business environment on the business operation. The
primary data will be collected under the survey research strategy for the completion of the
research paper.
1.2 Rationale
The expansion towards the new market demands the flexible culture and the tolerable
management while increasing the changes and the challenges towards the new venture or the
new entry (Rugman and Collinson, 2012). Thus, the business industry would evaluate how much
change or challenges it can face in the new market. Many researchers have been looking for
ways of dealing with the global business environment. Tesco has been dealing with the global
environment since the company expanded its business outside the UK. Not every time the
company necessarily developed the profitability, due to the uncertain mistake in the UK, the
company had to apologise to the customers through advertisement which reminded the
company about the harshness of the global market (Haerifar, 2015). Now, Tesco is looking for
3
, expansion in Romania. For the data collection, the researcher will ask potential customers of
the market. The primary data will be collected through questionnaire method while using the
close-ended questions. The researcher will identify and discuss the market data of the
Romanian market whether it will provide the options for Tesco or not and how the company
will manage its strategic positioning? This will be a good market for Tesco to enter as Romania
has over 19.5 million residents and in 2018 through tourism the country generated over $5.2
billion. This proves that the market in Romania is wide spread which is proven through tourism
and the local residents. The Romanian market GDP is dropping due to taxes however the
private consumption growth and the raising wages are still staying strong, “the economic boom
that began in Romania in 2017 eased in 2018. Real GDP growth eased from 7 % in 2017 to 4.3%
annualised in the first three quarters of 2018”. From the graph below we can see that the
private consumption which includes food and retail is strong and has increased rapidly since
2014 and is predicated to increase further in 2019 and 2020 as GDP is expected to drop.
Tesco in the past have tried to expand into different markets like USA by launching its Fresh and
Easy in 2007. Tesco failed to make a success of this as the market research was poor and this
cost them £1.2 billion. “The supermarket group booked a loss of 1.2 billion pounds for the U.S.
misadventure, which helped send net profit for the year down 96% to 120 million
pounds”(Gannett 2018). The main reason for this misfortunate loss was due to the lack of
market research as the original research was conducted in 2004/5 and “Fresh & Easy opened in
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