International Marketing & Business



International Marketing & Business

Company Overview

In this paper, we will consider the present scenario of U.K Tesco and its expansion plan for the future. There are a number of factors which should be considered in this regards and, therefore, it is important to establish an applicable strategic business plan for the development of the business. The company also plans to expand it profit margin and clarity of total profits to 5%. I have selected Russian market for planned international expansion target of the company. This plans aim to control a significant market share in reatil industry of Russia. However, it is important to first analyze the current industry position, and then incorporate a strategic business plan.

The company

The company that I have chosen to conduct strategic analysis is Tesco. Tesco PLC (Public, LON: TSCO) is an international seller. The company is engaged in retail and related activities in the United Kingdom, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Japan, China, and the United States. The company also provides retail banking and insurance services through its subsidiary of Tesco Personal Finance PLC (formerly Tesco Personal Finance Group Limited) (FPT). The company has two business segments, retail and financial services. Services of retail channels include online shopping company, tesco.com and Tesco Direct, Telecommunications, Tesco Personal Finance (TPF), and business consumer research (Conner, 1993).

Today it is the third largest global retailer based on revenue, behind Wal-Mart and French Carrefour, but the second largest based on profit, ahead of Carrefour. In 1919, Tesco Plc was established by Jack Cohen, by utilizing the bonus which he achieved for his services in the World War I army. Then in 1924, he purchased a tea consignment from the company TE Stock well. He decided to put the initial three alphabets of TE Stock well, and the initials of his name Cohen collectively to name his brand 'TESCO'. In 1929 Cohen opened the very first Tesco store in Edgware, London. Originally, Cohen's formulated the strategy of "Piling it high, selling it cheap"(Tipples, 2002).

Product & service

Products

Services

Brands

Food

General merchandise

Electrical goods

Clothing

Household goods

Home furnishings

Petrol

Online sale of products

Telecommunication services

Financial services

Pharmacy services

Broadband internet services

Cherokee

F&F

Healthy Living

Value

Tesco standard

Finest

Tesco

Industry Analysis: Pestel Framework

Political Factors

Tesco is functioning well and providing services with its stores all around the world. For the legislations of employment, the government promotes retailers to supply a blend of job openings from low paying stretchy and locally-based jobs to centrally-located, skilled and high paying jobs in order to meet the needs of the students, working parents and senior citizens. Being an innately local and labor concentrated sector, Tesco realizes that selling has a huge impact on people and the jobs factors. It often hires students, aged and disabled people at lower wages, and in an industry with characteristically soaring staff revenue, these employees proffer a higher level of allegiance and consequently symbolize sought-after workforce (McTaggart, 2006).

Economic Factors

Fiscal aspects are of apprehension to Tesco, as they are probable to pressure costs, prices, profits and ...