INTERNATIONAL ECONOMIC ENVIRONMENT

International Economic Environment

International Economic Environment

Introduction

Introduction

This study aims to expand the scope of our knowledge through exploring the related information about international economic environment. In this study we have studies Telco in relation to macro and Micro economic analysis.

Tesco is considered as one of the leading organisation in food retailing industry in Ireland and UK. Tesco operates around 2715 outlets in the country. The net income of Tesco is approximately £2,655 million all these figures are according to the FY2011. Tesco on the whole has more than 440,000 employees all over the world. In 2009 the company owned 2300 stores and the company has grown tremendously in two years. There are some subsidiaries owned by Tesco like Tesco Ireland limited: Tesco personal finance and Tesco Store limited. These are the core business lines as well (Carmody, 2011, pp. 23-27).

Discussion

Background of the Company

Tesco carries out its operation in Europe, US and Asia. Tesco bank conducts its business operations in United Kingdom. The company is also involved in other online services. The online channel of Tesco such as wwwe.tesco.com and Tesco direct offer retail services. Grocery Retail services are offered via website of Tesco i.e. www.tesco.com whereas, the general electronic appliances, merchandising and clothing products are provided thorough Tesco direct.

The Tesco stores and Phone shops operated through Tesco Telecom across UK. However, Tesco telecom also controls Tesco Mobile which is the, network of virtual mobile in UK, Ireland and Slovakia. The company also operates in the business of international calling card. Moreover, the company has been involved in the business of dunnhumby that offer consumer an insight of market related study. Moreover, dunnhumby also supports the Tesco Clubcard. Likewise, these services are also offered to the external clients. Recently Tesco operates in the food retail sub-industry, 95% of revenues generated through their food products. Their main competitors are Wal-Mart, Sainsbury's, Morrison's, Safeway, and Whole.

Tesco has the only competitive advantage related to the pricing strategy. The products that are offered in the store are ordinary products. The increase in income of the consumer in UK has led them not to go for bargaining. These consumers now look for good quality products. So as to cater these variations in demands of the consumer, a decision has been taken by Tesco to close down a number of its stores in order to focus on super stores for providing good quality products. The capitalization of Tesco as per July 2008 was 34.85 billion and the turnover of the company was 80 Billion Euros in the same year. In the beginning, Tesco was specialized in the trade of beverages and food, however, later on the company expanded its business segments like clothing, telecommunication, electronic appliances, health dental plans, car insurance services, and home insurance and funding services. Tesco conducts its business as a separate entity in its business segments on the other hand, it is significant for the company to have a competitive marketing plan in order to make the most of existing business ...