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BTEC Business Level 3 - Unit 5 - International Business - Learning Aim E - D* standard - Tesco used for business context - 3rd / Final Report for Unit 5 €12,32
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BTEC Business Level 3 - Unit 5 - International Business - Learning Aim E - D* standard - Tesco used for business context - 3rd / Final Report for Unit 5
BTEC Business Level 3 - Unit 5 - International Business - Learning Aim E - D* standard - Tesco used for business context - 3rd / Final Report for Unit 5
This is the 3rd and final report as part of Unit 5 - International Business.
Title: The strategic and operational approaches used by Tesco t...
Examine the strategic
and operati onal
approaches to
developing
internati onal trade
1
, Examine the strategic and operational approaches to developing International trade
Learning Aim E - The strategic and operational approaches used by Tesco to developing international
trade
Tesco is a successful multinational organisation that has used certain strategies to conduct
international trade successfully. In this report I will be undertaking in-depth research into the
strategies Tesco have used to successfully enter international environments. I will also be looking
into any failed ventures abroad so that I can fully evaluate Tesco’s success internationally.
International History
Before looking into the strategic and operational approaches used by Tesco to develop international
trade we have to understand their journey to international trade and where they currently trade.
Their first international venture was back in 1995 when they expanded stores into ‘Central Europe
with stores opening in Hungary.’1. They then continued to grow and expand from there with stores
in: Czech Republic, Slovakia, Poland, Ireland, Thailand, Malaysia and India by 2007. Today they are
operating internationally in the following countries:
UK
France
India
Malaysia
Czech Republic
Hungary
Japan
Turkey
Thailand
Taiwan
Ireland
Poland
Slovakia
South Korea
China
Strategies used to operate internationally
There are eight different strategies that organisations can use to enter international markets. These
are: Subsidiary businesses, joint venture, partnership, agencies, licensing to business, franchising,
subcontracting and outsourcing.
A subsidiary is when the business is owned by a parent company as the parent company owns 50%
or more shares. Although they are owned by a parent company the subsidiary has its own liabilities
and operates in its own rights. This means that the subsidiary can operate in a different country to
the parent company but must follow the laws of the country they operate in. For example, One Stop
and Dobbie’s Garden Centres are subsidiaries of Tesco as Tesco is the majority shareholder. Until
2016 Giraffe and Harris + Hoole were also subsidiaries of Tesco. Another example of subsidiary
2
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