INTERNATIONAL BUSINESS- TESCO

International Business

International business

Introduction

In 2007 November Tesco open its first store in US in California by the name of fresh and easy, and today it has more than 168 stores in United States, despite the higher losses in 2010/11, the overall business remains on-track to break-even towards the end of the 2012/13 financial year although losses rose 13 per cent to £186m ($303m) in the year to February but in my opinion Tesco should continue their operations in United states as In today's world where entrepreneurship and owning your own business is considered as the latest fashion to acquire wealth and status we see a lot of new businesses launching every month and every year but only few of them are able to maintain their position in the cutthroat competition and rivalry. Maintenance of the success of the business totally depends on the strategies a business owner adopts to operate it and strategies are the nub that decides the success or failure of an organization. The basic objective of this paper is to analyze TESCO that why it should continue its operations in United States.

About Tesco

Tesco came into existence in 1919. It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. Tesco is involved in grocery and general merchandising retailing. Tesco is considered on number three largest retailer in the world if we gauge its position in terms of revenue. First store of Tesco started its operation in 1929. Tesco is one of the companies that are listed in London Stock Exchange (Matthew, 2007).

Analysis of Tesco

In order to know the current situation or state of any organization it is vital to perform SWOT analysis of that organization. SWOT analysis of an organization can provide a clear picture of an organization, and it can aid in erasing any ambiguity to predict the current condition of the organization.

SWOT analysis of Tesco

SWOT analysis of an organization reveals strengths, weaknesses, opportunities and threats that an organization deals with. With the help, of analysis of strengths and opportunities one can predict how positively an organization is performing and by having a look at weaknesses and threats one can anticipate how negative organization's response is towards the threats. Similarly, SWOT analysis of Tesco would aid in predicting the current state of Tesco. Following is the SWOT analysis of Tesco:

SWOT of Tesco

Strengths

Financially Sound Group, so losses of US can be set off from UK's profit.

High return on investment

Online presence

Strong-brand image

Focus on product affordability

Extensive know-how of the retail industry

Skilled top management

Weaknesses

Heavy debts

Recalling of product due to low quality

Opportunities

Prospects of international growth

Threats

Fall of overseas return

Threat of existing competitors such as Wal-Mart and others

International expansion

Worldwide recession

Intense competition in the domestic market

Detraction created by small retailers

Strategies that are making Tesco a success story

Following are the strategies that Tesco has adopted and these are the strategies with the help of which Tesco has gained such a tremendous response by its customers. Following are the strategies that other organizations can follow if they deal with such a ...