Essay Business Analysis of Tesco

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Globalization involves a variety of links expanding and tightening a web of political, economic and cultural inter-connections. Most attention has been devoted to merchandise trade as it has had the most immediate (or most visible) consequences, but capital, in and of itself, has come to play an arguably even larger role than the trade in material goods. Human movements also link previously separate communities. Finally, there is the cultural connection. All the individual data would indicate that we are undergoing a process of compression of international time and space and an intensification of international relations. The separation of production and consumption that is the heart of modern capitalism appears to have
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Geographical diversification
4. Product longevity
(Paul Gibbs, 1992)
It is extremely important to understand the direction and the stability of the environment that we try to get in. This environment consists of socio-cultural, political, economical, legal and government traits.
Awareness of social and cultural norms has helped major multinational companies such as Coca-Cola, IBM, Marlboro and Pepsi succeed in being recognized as truly international brands. (Paul Gibbs, 1992)
In this assignment, we aim to investigate in which extent an organisation must appreciate cultural differences before entering a market.
For that, we chose Tesco a very well established multinational company. Our goal is to expand Tesco’s operations in Greece.


Tesco is one of Britain’s leading food retailers and has 586 stores. From 1992, Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit.
Tesco has 164500 shareholders and its profit is about 505 million pounds after the tax has been deducted. Fifty per cent of its profit is distributed to the shareholders as dividends and the rest is held back for investment in stores and improving services for the customers.
Tesco’s group capital expenditure is 841 million pounds. This was mostly ploughed back into

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