GLOBALISATION / TESCO

Globalisation / Tesco



Executive Summary

This Report analyzes a new world economic order that deepens the globalization of the economy and increase the role of international economic institutions, and highlights a number of structural features. Have multinational corporations , which is one of the most important features of the phenomenon of globalization or economic system of contemporary many of the qualities and attributes that distinguish them and determined their role and their impact on the global economic system, and most important of these qualities: 1 large size: Featuring companies enormity of size and represents the entities of an economic giant, and indicators indication of this, the size of capital investments and the size and diversity of production and sales figures and revenues to be achieved, and marketing networks owned by, and the size of spending on research and development, as well as their organizational structures and efficiency of their administration.

It also focuses on Tesco i.e. is currently the UK's largest Supermarket chain and the market leading food retailer in the country with the core purpose to create value for customers and thus earn their loyalty. It is the largest British retailer by both global sales and domestic market share, with profits exceeding £3 billion, and the third largest global retailer based on revenue, behind Wal-Mart and Carrefour.

Politically, the credit crunch may lead to higher numbers of unemployment.  As one of the largest and fastest growing retailers more jobs will be available with TESCO therefore helping to reduce the levels of unemployment.  A PESTLE analysis is therefore useful in keeping TESCO up to date with their environmental surroundings, for example, realizing in advance that we were heading for a recession would have helped them to plan ahead. Whilst one of Tesco's competitive advantages at present relates to their overwhelming physical presence, there are issues about TESCO driving out the competition from other retailers.  There are policies as well as laws and regulations governing monopolies and competition which would be identified though a PESTLE analysis.  This is potentially one of the main issues that Tesco's are faced with.  Protecting consumers and ensuring that entrepreneurs have the opportunity to compete in the market economy are important within consumer law.  Due to the current state of the economy, many small businesses are failing and many unable to enter the market.  A PESTLE analysis helps to assess where location wise there is a demand for expansion.  The situation is in no way being assisted by the ever expanding Tesco's chains of store. 

Table of Content

Item A- Role of MNE in Globalisation Process5

Introduction5

Role of Multinationals Enterprises in Globalisation Process6

Conclusion13

ITEM B- TESCO15

Introduction15

Performance of The Firm And Its Internationalisation15

PEST Analysis of Tesco19

Political Issues19

Economic Issues20

Socio-Cultural Issues20

Technological Issues21

Environmental Analysis22

Conclusion24

References27

Item A- Role of MNE in Globalisation Process

Introduction

During recent times there is no debate, discussion, chat or article of economy in which no talk of globalization, globalization and world economy occurs. All these words are expressions that seek to define a seemingly new phenomenon: the way that today's capitalism has ...