Strategic Analysis of Tesco for UK and US Markets

Strategic Analysis of Tesco for UK and US Markets Brief background As the Tesco used the corporate strategy like diversification, it has begun its Tesco bank and Tesco hope its bank could offer mortgages for its customers, also Tesco has buy a restaurant in UK. Although Tescos supermarket has taken the biggest market share in the UK market, but it is decrease in 2012-2013. So this means the Tescos business met problem in the UK market. One of the major challenge for Tesco was that the discovery of equine DNA in beef and other meat products throughout the UK industry. So the Tesco should do some change on its business strategy in the UK market. As the biggest retailer in the world, these years Tesco met some problem as its expanded market, such as the Japan market and the U.S market. In the US market, Tesco named their store a new name fresh easy. As the Tesco makes wrong strategy in US market, its entry mode is FDI, this makes Tesco pay a lot of money on the distribution build and on the store design. Also Tesco do not localization on the US market, thus it failed in the US market. Tesco should learn something new about how to expand its foreign market, such as localization and choose a right entry model to entry foreign market. As Tescos annual report(2012) has said that Tesco is one of the worlds largest retailers with operations in 14 countries. But its business met some problems in recently years. As it has entry the US market for several years, US market does not make any profit. Also in the UK market, Tescos supermarket face the problem of the reducing market share. Aim and objectives The aim of study is to assess the Tesco strategic choosing and if they using right or wrong strategic. The objectives are to: Provide a general overview of the Tesco business running in the US and UK. Analyze the business environment in the US and UK Analyze the retail market environment in the US market Identify and assess the Tesco value chain in the US retail market Identify what problems Tesco has meet on its business in recent years. Identify if Tesco face finance problem when its entry the US retail market and after entry the US market, if the Tesco has problem with cash flow or something else in finance. Research questions What is the Tesco advantage in the UK? It is can be keep in other countries market? What kind of strategy that Tesco using recent years, how it’s working? Did Tesco choose right strategy in the US market? After entry US market, when Tesco has nonprofits in the first year, what kind of decision that Tesco has made and how it influence its business. MNEs how to avoid failed or reduce its lost in the new market. Likely source of literature The conduct this research there are three types of literature sources will be used to discussion of the topic. Including primary literature sources, secondary literature sources and reference guides (Naoum,2013) Primary literature sources: the first-hand testimony or direct evidence. Includes academic research journal, refereed conferences, and reports. Secondary literature sources are cite from the primary sources, for example textbooks, newspaper articles, and magazine and construction news. Reference guides are useful for find out the basic questions quickly, such as dictionaries and handbooks. Literature sources Research methodology Research strategy Source of Data The source of data will be collected mainly from Tesco annual report, newspaper, academic journal article and academic report which based relevant with Tesco Plc. Also some finance detail will get from e-databases of uclan library website. Data collection Data will be collection from the literature directly. Methods of Data analysis Wolcott (1994) stated that methods of data analysis are used to describe facts, highlight useful information, detect patters, develop explanations and test hypotheses. Among several of data analysis methods, content analysis, typology and taxonomy as well as descriptive statistics will be used. Typology and taxonomy method is used to analyze the qualitative data. It can identify different kinds of data, thus forming sub-groups with the general construction project risk category. It can also clarify the relationship between the concepts. Descriptive statistics is a summary to describe the basic features of the data in a study. It helps ones to simply large amounts of data in a sensible way. Content analysis is a method for summarizing any form of content by counting various aspects of the content. It is useful to analyze and understand the collections of text(Strauss and Corbin,1990). references