I.B Assignment by Afreen

1
Submitted to: Sir Umar Hanif

Submitted by: Afreen Sarwar
Subject: International Business
Assignment/Case: Tesco PLC: Leveraging
Global Knowledge
Section: BBA Grey (5th)
Submission Date: 17-10-2022
2
1.
The United States and France are more culturally similar to the UK
than are Thailand and South
Korea, yet Tesco failed in the former two and has been highly
successful in the latter two. How
might you explain the difference?
Tesco is a leading retail store of United Kingdom. Globalisation where brought opportunities
for businesses it brought the risk of failure as well. For Tesco being successful in some
countries and facing challenges in other countries is due to a number of reasons some of the
are as below;
Culture:
Business across the border has different challenges. One of the biggest challenge is culture. In
France Tesco failed to mark its success because of language barrier. The consumer in France
faced problems with interface and communication. Moreover the showcasing of British
national flags and signature British products are also the basis of failure in France.
Marketing strategy:
Tesco became successful in Asian markets because the eliminated the major competitors in
Thailand. The venture with a local partner enabled Tesco to get a better understanding of the
market. It made Tesco successful in Thailand, Hungary, and other Asian markets.
• Tesco realizes that business strategies that were successful in the UK would only be
successful if they were given a local flavour. The company learned that it was
important to hire local staff. Also in France, sophisticated and fashionable customers
didn’t like the garments styled in a typically British manner. While in the United
States, Tesco focused on ready meal that required higher spending as compared to
ordering takeout or cooking from scratch. This was a habit in Europe, but not in the
US and unfortunately they attempt to introduce this concept during the recession, when
many people had time and little money.
• (LO2, Learning Outcome: Understanding methods for learning about cultural
environments, AACSB: Multicultural and Diversity Understanding
3
2. In the context of global retailing, describe what you think is meant by

“utilizing the skill and scale
of the Group.”?
For multinational companies it is always a challenge to survive in different countries due to
cultural differences and traditions. Every market has its own drawbacks and opportunities.
Tesco used a very unique approach to overcome the reduction in sales. Bringing workers from
the stores across the border in home country to identify the challenges and weaknesses helped
Tesco. Employees from different backgrounds and ethnicities were brought to United
Kingdom to observe the weak links in Tesco operations . Which performed really well and the
revenue of Tesco increased by 1.2%.
Every country and nation has its own set of values which are very important and has its own
set of skills. We have a few examples
• In Italy winification which is normally called wine making is a skill and people do
work hard to learn the skill.
• In Japan fish mongering is a skill and people pay do a lot of effort to learn the skill.
• Bananas ripping in Thailand is a skill which is considered a tradition.
3. What is the role of global teams in sharing best practices across a

firm’s global operations? What
advice would you give to make the teams more effective?
As this teams came together, their diverse background, perspective, and experiences amble the
business to gain a deeper knowledge of products and services and how to create and de liver
them. Because many of these teams come from diverse cultures, it may be difficult for
individuals to interact with each other. So I might suggest a form of cultural awareness and
sensitivity training to make these teams more effective. (LO2,Learning Outcome: Grasp the
major cause of cultural difference and change. AACSB: Reflective Thinking)
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Global teams:
After globalisation of businesses. The were numerous opportunities for businesses across the
border but it also had challenges as well. That is why multinationals hire employees from
different backgrounds so market strategies cam be designed in accordance with the local
practices
Advise on global operations:

There are a lot of challenges a company faces when they start business globally. Although we
can hire the employees from different countries to get insight of best marketing strategies and
product growth in the specific countries. But still surveys and market spending abilities play a
key role in the success of project in abroad.

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1

Submitted to: Sir Umar Hanif

2. In the context of global retailing, describe what you think is meant by

3. What is the role of global teams in sharing best practices across a

Advise on global operations:

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