Tesco International Management
INDEX: Page:
Index 1
Introduction 2
Question 1: YIP’s drivers of globalisation framework 3-9 • Market 5 • Cost 6-7 • Government 8 • Competitive 9
Question 2: Thailand / Korea / Japan 10-16 • Entry Strategy 11 • Brand Management 12-14 • Politics/ Economy 15-16
Question 3: Fresh & Easy Neighbourhood Markets 17-23 • Macro Assessment 18-20 o Risk in foreign markets 18-19 o Economic Recession 19 o Infrastructure 19 o Socio-cultural 20 • Micro Assessment 21-23
Question 4: Tesco US – Porters Diamond 24-27 • Factor Conditions 24 • Home Demand Conditions 25 • Related & Supporting Industries 25 • Firm Strategy, Industry Structure & Rivalry 26-27
Question 5: PESTEL analysis 28-38 • Political 29-31 • Economic 32-33 • Socio-cultural 34-35 • Technological 36 • Environmental 37 • Legal 38
Conclusion:
Appendix (if applicable)
Bibliography: 39
1. Identify the reasons behind Tesco’s internationalisation strategy and evaluate Tesco’s international expansion in the context of YIP’s “drivers of globalisation” framework
Tesco’s internationalization strategy was both proactive and reactive. In 1997 Tesco was the third largest retailer in England but quickly surpassed its rivals Marks and Spencer’s and Sainsbury’s with a business 5-6 times their value by 2010. – Terry Leahy (1. The Art of management Tesco Economist Interview, 2012)
One of the key drivers of this success was the development of big data to drive big growth. Terry Leahy copied the idea from a co-op in Manchester who had developed a primitive membership scheme. By the time of implementation technology was sophisticated enough to handle and make
Index 1
Introduction 2
Question 1: YIP’s drivers of globalisation framework 3-9 • Market 5 • Cost 6-7 • Government 8 • Competitive 9
Question 2: Thailand / Korea / Japan 10-16 • Entry Strategy 11 • Brand Management 12-14 • Politics/ Economy 15-16
Question 3: Fresh & Easy Neighbourhood Markets 17-23 • Macro Assessment 18-20 o Risk in foreign markets 18-19 o Economic Recession 19 o Infrastructure 19 o Socio-cultural 20 • Micro Assessment 21-23
Question 4: Tesco US – Porters Diamond 24-27 • Factor Conditions 24 • Home Demand Conditions 25 • Related & Supporting Industries 25 • Firm Strategy, Industry Structure & Rivalry 26-27
Question 5: PESTEL analysis 28-38 • Political 29-31 • Economic 32-33 • Socio-cultural 34-35 • Technological 36 • Environmental 37 • Legal 38
Conclusion:
Appendix (if applicable)
Bibliography: 39
1. Identify the reasons behind Tesco’s internationalisation strategy and evaluate Tesco’s international expansion in the context of YIP’s “drivers of globalisation” framework
Tesco’s internationalization strategy was both proactive and reactive. In 1997 Tesco was the third largest retailer in England but quickly surpassed its rivals Marks and Spencer’s and Sainsbury’s with a business 5-6 times their value by 2010. – Terry Leahy (1. The Art of management Tesco Economist Interview, 2012)
One of the key drivers of this success was the development of big data to drive big growth. Terry Leahy copied the idea from a co-op in Manchester who had developed a primitive membership scheme. By the time of implementation technology was sophisticated enough to handle and make
Bibliography: Lowe, M. S., Wrigley, N. (2010) The “continuously morphing” retail TNC during market entry: Interpreting Tesco 's expansion into the United States. Economic Geography, 86, 381-408. Yip, George S. (1992), Total Global Strategy : Upper Saddle River, NJ: Prentice-Hall. 2. Chaoyang, Ching-Wei Ho and Temperley, John (2009) ‘Tesco’s market entry in Taiwan:consumer experiences in the UK and Taiwan compared’, The retail digest, pp24-29 3 4. Girod, Stephane J.G and Rugman, Alan. M (2005) ‘Regional business networks and the multi-national retail sector’, Long range planning journal, vol. 38, pp 335-357