RISK ASSESSMENT

Risk Assessment





STRATEGIC BUSINESS UNITS (SBU'S) AND RISK ASSESSMENT

Introduction

Implementation of the strategy and business units plays an important role in ensuring the long-term health of the company, as well as defines the capabilities and performance to penetrate new markets (including both geographical and product markets-based). One example of a large international company is undergoing of the current business development, particularly at international level is of Tesco Plc, United Kingdom, which in recent decades has been expanded to markets in Europe, North America and Asia with success. This extension, including businesses, corporate culture, organizational structure and financial performance of companies address all aspects of the company. Tesco's most recent expansion in the United States, California in late 2007, provides an excellent opportunity to explore its business development and strategy of international expansion in detail and the analysis of strengths, weaknesses and potential success or failure of these business strategies.

Company background

Jack Cohen (Tesco, 2008)-Tesco Plc (TSCO. L) In 1919. After enlargement in each of the market in the UK, including developing new formats store for small areas (Tesco Metro) and the format of the supermarket (Tesco extra), a new line of products such as electronics and home goods and environmentally aware range of food products, the company began to expand internationally (Tesco, 2008). The first time in 1995 Tesco opened shop in Hungary (Tesco, 2008). Poland, the Czech Republic, Slovakia, Northern Ireland, the Republic of Ireland, Taiwan, Thailand, and South Korea followed this initial development in the 1990s (Tesco, 2008). Tesco Today serves a total of twelve international markets as well as all parts of the United Kingdom (Tesco, 2008 pp: 122).

Organizational Structure

Organizational structure is the way in which people and jobs are located inside the Organization to assist Organizations in achieving its objectives and carry out its tasks (called Hosted who & called Hosted who 2005: 252). A typical organizational structures include the hierarchal structure of the strategic business units and simple structure; However, the type of organizational structure selected will change not only depending on the industry and the company, but the host country in which the company was founded (called Hosted who & called Hosted who, 251). Organizational structure is a critical factor for success in a global organization, called Hosted who & called Hosted who (2005: 253); However, it can also be one of the most complex of business development strategies for the transition.

Tesco has chosen to pursue strategic business units (SBU) in all areas of its work in order to maximize the competitiveness in the individual market areas. According to Meckler (2002-49) AS will cover ... strategic framework; the size and scope of operations; Strategic direction; products or services sold and delivered; the quality of services and images; product/service brand identification and image; The line width of the product/service; functions performed by the company; distribution outlets; Client market worked; geographic market worked; property; and financial goals. (Cohen 2008, pp: 152)

Approaches to Risk Assessment

Contemporary approaches to risk assessment at Tesco have been heavily influenced by ...