From the choice provided by Brief 304098, the chosen multinational company is Tesco PLC.
Tesco PLC has developed from a UK national grocery retailer into a multinational operation, with investments in stores in Asia (814), central Europe (746 including Ireland) and more recently in the USA (53). The UK still remains their largest enterprise with 2,115 stores and over 280,000 people employed. In total there are over 440,000 people employed world-wide.
Total group sales for fiscal year 2008 were approximately £51,770 million, including £11,800 million from none-food product lines, which illustrates the achievements made in expanding the business beyond their earlier traditional food product line. Group pre-tax profit was £2,803 million for 2008, compared with £2,653 million for 2007, producing a 5.7% increase.
The group is paying attention to environmental conditions going forward, and providing the investment to support this, with the ‘Fresh & Easy’ project an example of their commitment in this direction.
We considered potential new countries that Tesco could consider for future international growth, and Australia has been chosen as a theoretical target, the main reasons being that it is an English speaking country with a western style culture. We also recognised there would of course be competitors to Tesco, traditional national traders in place for many years, offering a similar business model. Three companies were given as competitive examples, viz. Coles Stores, Woolworths and the Franklin Group.
The Report also covers an evaluation as to whether Tesco’s strategies will be adequate to sustain their competitive positioning in the long term, and from the areas evaluated it is fair to suggest that from their record of non-food product expansion into so many different areas they will achieve this objective. Examples of non-food services already in place are; financial services, telecom, fuel retailing, clothing, furniture and more recently legal services, where they seem to be setting a trend, as reporters refer to the 2006 Government Bill introducing relaxation from the traditionally restricted legal services as ‘Tesco law’.
The chosen multinational company for this project is Tesco PLC, which is a very well known British supermarket group that has set up a number of stores and depots in many overseas countries.
During past years in addition to its UK stores Tesco has opened stores in North America, several Asian countries along with a number in central European countries. This paper will also discuss the issues facing Tesco and suggest a new export market for consideration, and supporting the choice with reasons for the selection. We will also consider the environmental and economical issues it faces that may be coincident with, or having a supplementary impact on their plans.