PRESENTATION NAME Guide to assessment task 1 Cross-border strategy report Course Coordinator: Dr Wayne Graham The task The purpose: This task provides an opportunity for you to identify and analyse an...

Analysis of a cross-border strategy
Cross-border strategy
    Analysis of a cross-border strategy
    August 16
2018
    
Student Name:
University Name:
    
Executive Summary
Tesco is the second large retailing organization in the whole world and presently operates in almost 6000 stores globally. In cu
ent years, Tesco as well as its chief supermarket competitors have been criticized for abusing their monopoly status, in addition, contributing to few major environmental and social issues that are cu
ently plaguing society. These comprise the use of small agriculturalists in the UK and around the globe, and the acceleration of industrial single plantation alternatives, which have low wages and few labour rights; almost all other retailers are weakening. This report analysis Tesco as an organization as well as proposes a potential market for its extension in Indian market. This report highlights how Tesco has responded to international or global pressures in competing internationally. Analysis of cross-border strategy, performance of Tesco competing in foreign market is also discussed in this report.
Contents
List of Figures    4
1.    Introduction    5
2.    Company Background of Tesco    5
3.    Internal analysis of Tesco    6
3.1 Value chain analysis    6
Inbound Logistics    6
3.2    VRIO Analysis    8
4. External analysis of Indian online retailing or Supermarket industry    9
4.1 CAGE    9
4.1.1 Cultural distance    9
4.1.2 Administrative distance    10
4.1.3 Geographic distance    10
4.1.4 Economic distance    10
4.2 Porter’s five competitive forces analysis    11
Entry of Competitors    11
Threat of Substitute    11
Bargaining Power of Buyers    12
Bargaining Power of Sellers    12
Intensity of Rivalry    12
4.3 Porter’s generic strategies    13
5. Conclusion and Recommendations    14
References    14
List of Figures
Fig 1: Value chain analysis Tesco...............................................................................................4
Fig 2: Benchmarking analysis.....................................................................................................9
1. Introduction
The primary objective of international companies is to increase market share, profits and income. They typically attain these goals by introducing new markets and introducing novel products into existing markets. The ability of an organization to make it effective depends on its thorough understanding of a particular geographic or product market. In evaluating alternative foreign markets, businesses should consider different factors together with cu
ent and possible size of market and level of competition will confront its political and legal environment as well as socio-cultural aspects that influence the company's operations and performance may affect. The initial step in the foreign market choice is to determine the market capacity. Many of the publications registered in the "Building Global Skills" make available data on GDP, population, GDP per capita, public infrastructure as well as ownership of goods, for example, cars and television. The decisions companies make from this information often depends on positioning their products comparatively to their competitors. To determine the competitive environment, it must determine the size and numbers of companies that already compete in the market determine their relative market share, distribution and pricing strategies and their relative strengths and weaknesses, collectively or individually.
2. Company Background of Tesco
Tesco was originated in 1924 by the John Edward Cohen was originally a market stall dealer in East End of London. Tesco Stores Limited was established in 1932. Tesco is no longer dominant as it used to be, but it is still the UK's largest retailer and one of the world's largest retailers. Tesco, the UK's largest, the most gainful supermarket chain is darling of a city. Nevertheless, behind the Tesco Extra outside the “one under one roof” or behind the fascia of the high street Tesco Metro is a ruthless £1 billion operation (Adewuyi, 2016).
3. Internal analysis of Tesco
3.1 Value chain analysis
Fig 1: Value chain analysis Tesco
Image Source: ivoryresearch.com
Inbound Logistics
The cost leadership strategy management of the organization Tesco's is reflected in its streamlined and resilient incoming logistics capabilities. The company utilizes its prominent market position as well as range of economies as key negotiating power to attain low costs for the suppliers. Specialists also emphasized their order systems, approved supplier lists, and ongoing process upgrades to improve the efficiency and effectiveness of the company's incoming logistics business (Amat and Manini, 2017).
Operations Management
Tesco has been praised by several chain management criticizers because it effectively utilizes IT systems and promotes the low-cost leadership approach of company.According to the Tesco (2010), the corporation plans to invest more than £ 76 million through its Tesco Digital program to simplify its operations, the firm's third generation ERP solution. Thanks to the launch of system, the company attained a profit growth of 550 million pounds in 2009 alone. The company-wide ERP system also helps minimize stock holdings within the company.
Outbound Logistics
Tesco is a leader in offline and online food retailing thanks to its resourceful and efficient outbound logistics (Asad, 2012). The organization has improved a variety of store types as well as formats that can achieve supreme customer exposure in strategic locations.
Marketing and Sales
Loyalties plans, for example, Tesco Club card are being presented through developments in IT which prevent consumers from moving to the opponents. Tesco launched a green lifestyle program that advises consumers on environmental glitches, together with how to decrease ca
on footprint plus food waste while preparing meals.
Services
Tesco has always been...