Tesco and Globalisation Sample Essay

Tesco and the strategic management

Strategic management is defined as the steps taken by managers with a specific set choice of actions aimed at making sure the organization is pushed to achieve better performance. (Freeman 2010) Tesco as a multinational retailer has subsequently been able to remain in the competitive global market due to its adoption of the latest strategies aimed at attracting its considerably large customer base. (Jenkins & Williamson 2015)

Tesco has been able to carry out its strategic management process in three steps as stated by Perera (2017). It has been able to carefully analyze the market environment by properly giving attention to the macro environment of the business and the microenvironment. It is important to note that the management has applied the PESTLE analysis and Porter’s five forces respectively to ensure their goals are achieved. Carefully analyzing the macro-environment, Tesco has been keen to ensure that factors such as the political factors are not overlooked, in so doing, Tesco provides jobs to students, physically challenged individuals and the elderly with due consideration given to the minimum wage regulations as set out in the United Kingdom laws. Rachapila & Jansirisa (2013) state that this has subsequently helped it in gaining the loyalty and trust of the employees to remain competitive.

Tesco has considered the social changes in the UK as most of the consumers have developed a preference for bulk and one-stop shopping, due to this realization, Tesco has concentrated more on selling non-foodstuffs. With other changes that are due to occur such as the change in demographics, Tesco has put relevant strategies to ensure they are properly addressed. Considering the current advancements in technology, Tesco has become the first company to allow its customers to pay for the goods purchased either in cash or cheques.

To ensure that they are at par with the advancements in technology, Tesco uses technologies such as the Electronic Shelf Labeling, self check out machine and Radio Frequency Identification Other factors such as the environmental considerations, Tesco plans to reduce its carbon emissions by about 50 %, touching on the government legislative factors that have had direct impacts on the overall performance of the company, Tesco has introduced promotion offers and considerably reduced prices of fuel to help facilitate government policies . (Ghani. 2012)

Concerning the microenvironment, Tesco offers high-quality foods at affordable prices to enable them to handle imminent threats from organic shops and other convenience shops that do not offer services like them. Tesco has subsequently used its new entry status into the UK market to help beat its competitors. Tesco has ensured to maintain the high bargaining power of its customers by applying low prices coupled with the online trading facilities to enable them to attract and retain customers. Likewise, Tesco has also made sure to keep the bargaining power of the suppliers low to ensure they do not lose them.

 Tesco and the Globalisation issues

Tesco’s previous attempts of entering the global market were not successful, however, on subsequent attempts, the company was able to successfully venture into the South Korean market. For the start, Tesco started localizing its stores and products with due consideration to the needs and preferences of the customers in the global market. Entering the South Korean market in 1999, Tesco formed a joint venture with Samsung, a venture which subsequently helped Tesco gain a deeper understanding of the market with consequent assistance of identifying the best locations of stores. In South Korea, Tesco began its operations with the identification of Home Plus. In readiness to handle the task of global operations, Tesco began to shelf its local stores here with products according to consumer demands subsequently importing some of its business practices into South Korea.

This saw Tesco grow drastically to emerge as the second-best retailing company in the country. (Coe & Lee 2006) Recently Tesco has been using strategies such as ventures, acquisitions, and Greenfield Investments to enter the international markets. However, Greenfield has resulted in some failures and the company has now resorted to the two.

Tesco decided to venture into the international market because the UK market had reached its maturity hence making it impossible to acquire any growth. In conclusion, the diversification of the businesses is seen as a good strategy that has helped the company to grow, and due to this reason coupled with the increased sales, the general reaction of the workforce can be considered as generally good. ( Inman et al 2014)


Coe, N. M., & Lee, Y. S. (2006). The strategic localization of transnational retailers: The case of Samsung‐Tesco in South Korea. Economic Geography, 82(1), 61-88

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.

Ghani, N. M. A.,. (2012). The Acceptance and the Intention of Online Groceries Shopping in SouthKorea. J. Appl. Environ. Biol. Sci, 6(6S), 29-34.

Inman, M., O’Sullivan, N., & Murton, A. (2014). Unlocking human resource management. Routledge.

Jenkins, W., & Williamson, D. (2015). Strategic management and business analysis. Routledge.

Perera, R. (2017). The PESTLE analysis. Nerdynaut.

Rachapila, T., & Jansirisak, S. (2013). Using Porter’s Five Forces Model for analysing the competitive environment of Thailand’s sweet corn industry. International Journal of Business and Social Research, 3(3), 174-184.



order custom essay paper
Still stressed from student homework?
Get quality assistance from academic writers!

Order your paper today and save 15% with the discount code HITHERE

error: Content is protected !!
You can contact our live agent via WhatsApp! Via +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code HITHERE