Tesco and Globalization Essay

2147 WordsDec 10, 20129 Pages
1.0 Introduction Management is like investment, its goal is to get the most out of resources, add the most value or get the best return. Management can be defined as achieving goals in a way that makes the best use of all resources. This definition covers self-management as well as managing people, being a manager. Whenever you prioritize, you are managing your time. You manage yourself and all other resources at your disposal in order to do a good job. Boddy (2007) describes management as the activity of getting things done with the aid of people and other resources. Management is both a universal human activity and a distinct occupation. Management is a feature of most human circumstances, domestic, social and political as well as in…show more content…
A limited franchise agreement has been signed by Tesco with Trent, retailer of Tata group, which is one of the largest industrial corporations of India (Mintel, 2010). Threats * There has been fierce competition in the UK grocery market. Tesco though has been leading this sector for 15 years, but is now faced with intense competition from its competitors which are gaining in market share. These include the rest of the ‘big four’ i.e., Asda, Sainsbury’s and Morrisons respectively. * The decline in income and the rise in unemployment have affected the discretionary buying behaviour of consumers which has adversely impacted the company’s sales, in particular the non-food items. PESTLE Analysis Political * Promotion of free trading blocs by governments to benefit from globalisation has been presented in the literature. Immersion of 10 further countries into the European Union (EU) took place in 2004 promoting trade between Western and Eastern European countries. This has provided Tesco with a platform to expand its retail network across the EU. (Tesco, 2009). * China’s accession to the WTO has promoted a free flow of foreign trades by removing all barriers encouraging Western companies, including Tesco, to make way into the world’s most profitable market encompassing over 1.3 billion people. In 2009 an agreement was signed by Tesco to set up a premeditated series of joint ventures for the
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