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business level 3- unit 5 international business- assignment 1
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Assignment 1- Unit 5international business
14.11.23
Assignment 1
Why trade internationally?
, Why BMW and Tesco trade internationally
Introduction
This report has been written by the local chamber of commerce to look at why a company
may wish to trade internationally. This report will be explaining why two contrasting
businesses, BMW and Tesco choose to trade internationally. It will be analysing the
advantages, disadvantages and barriers of both companies trading internationally. This
report will be looking into the challenges and benefits of trading internationally. This will be
done by using secondary research that has been collected.
Section 1- P1, P2, M1
P1- why BMW and Tesco operate in contrasting international markets
Tesco:
Tesco, which is a private sector business but public limited company, was founded by Jack
Cohen: an English grocer in 1919, in Hackney east London. Soon later, in 1929 North London
he opened the first Tesco store. He was inspired to open Tesco after he came back from war
and set up a market stall to sell groceries. As of 2023, Tesco has 345,000 employees and
over 30 million customers. There are over 5000 Tesco stores in the UK. By 2035, Tesco
hopes to stop using plastic and encourage more sustainable diets. The name comes from
the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from
Jack's surname (1 Tesco.) Tesco, the 102-year-old supermarket that dominates British retail,
has set out plans for its operations to hit a net-zero carbon target by 2035 through using
renewable energy, cutting plastic, and encouraging more sustainable diets (2 pmtoday.)
Tesco's purpose is to provide high quality products for all their customers to keep them
satisfied and to keep their reputation on top.
Reasons for trading internationally:
I will be explaining 4 different reasons on why Tesco trades internationally. The first reason
is diversification increasing market share. Tesco has a low-cost strategy that creates an
increase in its market share. In order for Tesco to increase its market share and attract more
customers, they offer a range of worldwide products by diversifying its products. For
example, the Asian food aisle at Tesco has a variety of food and drinks that Tesco offers to
its customers not only does this attract more customers but it creates loyal customers.
Market leadership is another reason why Tesco trade internationally. This helps Tesco
increase brand recognition and make them more well known to both customers and
competitors worldwide. This is why Tesco expands its stores in order to make them
maintain their marker lead and become number one retailer. This helps them maintain
market lead within the retail industry.
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