(M2) Compare the Challenges to Selected Business Activities Within a Selected Organisation, in Two Different Economic Environments

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(M2) Compare the challenges to selected business activities within a selected organisation, in two different economic environments. It is very common in large businesses to expand abroad but there are a lot of factors to be considered when planning to start operation in a different country as countries differ depending on their background, policies, infrastructure and stability. In this report I will compare the challenges to business activities within Tesco Plc. In two different economic environments: China and UK. I have chosen China and UK as two contrasting countries and my chosen business is Tesco Plc., a large retail store in the UK. China is the 2nd most populated country in the world and is the largest economy in the wold in…show more content…
If expanding a business into operating in China, one is provided with a lot of opportunities but there are also a number of issues and challenges a business might have to face, some of which are: Poor transport infrastructure - China’s road network is a barrier to business operations such as Tesco Due to a lot of people in china owning cars this been the cause for their notoriously long traffic jams the picture to the right is a 30 lane traffic jam on the Chinese national highway in Beijing which what Tesco use to transport their goods throughout china. and has been holding industry back which is a challenge that Tesco would come across with if deciding to expand in China as it would make imports into China much more difficult, time and cost consuming although Chinese government has made it a priority to improve the country’s infrastructure and has pledged to build 14km of new roads.in the nearer future till then Tesco could continue to expand in the UK as it has a good transport infrastructure which decreases the hassle and expenses for the organisation. On the other hand, looking at the infrastructure in England, the infrastructure in the UK is rather very good as they have excellent road conditions, much organised train and tube transport so therefore Tesco has to adapt to the conditions in China. Inflation - Inflation in China has reached 1.6%. The Chinese government are likely to raise interest rates in
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