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

International competitiveness: Even when the TESCO is doing its business in its own country, other international competitors or international or doing the same business could affect its operation or marketing. For example the Wall-Mart, which is doing the similar business, could impact its sale. If the competition given by WALL Mart is tough then it would be difficult for TESCO to operate there

Advantages of Doing Business in China: As mentioned previously, there are many organizations around the whole world that perform their business in China. They do business in China due to the fact that China has a reliable market. It is also expected that the organizations doing business in China will continue to grow. Some advantages of doing business in China are that it is a major emerging market around the world. Also there are a lot of opportunities for organizations to invest in China for a longer period of time due to expanding of technology and

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

In times of fast progress, in terms of economic development and globalisation, many multinational companies are extending their business overseas. One of those many firms is Tesco. This report will elaborate more about how Tesco failed in America when it encountered cultural and economic differences.

Tesco has expanded into many other countries over the years, but as the “BRICS” economies are becoming increasingly attractive, an opportunity to venture into these economies seemed to be a ‘rising star’ for Tesco. Tesco’s ‘eye on the prize’ meant that they took their eyes off what made them successful in the first place- their UK stores. Ultimately, expansion into China, India and Thailand has left what was their ‘cash cow’ UK stores to currently become their ‘problem child’. Losing focus on their original investments meant that they “slipped behind in terms of stores, service and innovation.” http://www.bbc.co.uk/news/magazine-17767565 In addition to their struggles to maintain the success of their UK stores, focus on China, Thailand and India had a massive impact on their competitors such as Asda, Sainsbury’s, Lidl and Aldi. During the time that Tesco focused on the new move, it was an opportunity for its competitors to steal Tesco’s 30% market share – Sainsbury’s brought in “By Sainsbury’s” and Asda brought in “Chosen By You”. When Tesco realised their mistake and focused their attention on their UK stores, they invested in the “Big Price Drop Flop” but the £500m campaign only damaged their branding image, as customers thought the quality of their products had dropped. It was a clear step by step process for Tesco losing its place

In the few recent years, China has replaced United State to become the world largest economy. This Economic situation has opened an enormous number of opportunities for most industries to expand their operation from domestic market to international market. Shanghai, which is the China’s largest commercial and industrial city, focuses on 6 major industries which are information technology, automobile, large-scale electromechanical equipment, petrochemicals, heavy manufacturing and biopharmaceutical products (http://en.people.cn/200207/20/eng20020720_100055.shtml). With the virtually unlimited well-educated labour resources and the unique international location, Shanghai is

Evaluate the impact of changes in the economic environment on a selected business – D1

British grocery and general merchandise retailer Tesco PLC had announced they were to depart from their international operations within Japan and the United States markets, Tesco had stated that they were to end of such operations due it being unprofitable (Reuters, 2013). This paper seeks out to critically analyse and address the factors which had led to Tesco’s failure in the Japanese and United States market. To aid in justifying the influences in Tesco’s departure relevant international business literature will be evaluated for the suggested reasons for the exit. Furthermore, Part (B) of the paper seeks out to discuss the management of transnational businesses , a range of theories concerning the internationalisation of firms will be compared and contrasted, for instance the explanations presented by Vernon, Johnson and Dunning will aid towards the reasons for the internationalisation process of emerging market multinationals.

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

The situation for new entrants was very complex in china; acquisition of cities took much longer than in developed countries. Starting a new business in china was not a rapid process. Making relationships between channels was a slow process, because manufacturers, distributors, and other actors preferred to negotiate with people who they knew before, in china personal relationships are quite important in businesses. Some factors that influenced this process were

1. The most significant challenge to business success you see in this rapidly changing global economy;

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

Government drivers – In both its Home market and international markets, Tesco had to mitigate the governmental pressure, ranging from UK government’s department for environment, food and rural affairs to governments of East Asia. However governmental pressure has contributed to the evolution of Tesco’s business model. Even when its exit from Taiwan was based on asset swap model with its competitor Carrefour, it had favorable policies (expect Slovakia). Low trade barriers & compatible marketing regulations in the newly open markets allowed them to integrate the local community.

Political & Legal environment: The political system of a country is an important part of a companies marco-environment. ‘Who governs the country?’ ‘What does the government follow?’ and ‘What legal regulations follow from these policies?’. The most important factors a company is subject to are policy uncertainty, macro instability, and tax rates. Considering China is a country in transition all of the above factors are subject to change, to a degree substantially larger than it is in stable developed countries. We have recently seen changes happening in China on all of the above factors. One example is the new regulations regarding copying, which turned out in favor of Starbucks. However, what will happen in the (near) future is hard to tell. Whatever happens though, Starbucks will be subject to the consequences, whether positive or negative.

International business today has exceeded more than any person has ever thought it would, countries are doing more trading and importing now than ever. International business can affect everyone, from small business owners to big companies all over the world. A country that comes to mind that does a lot of international business is the United Kingdom (UK). This paper will include the following: the background of the country, economic environment, government policies, international economic integration and business environment, and current events. By the end of this paper you will be able to know everything about the UK and if you want to construct business or take business out of this country.