This study examines the international business strategies adopted by Tesco for its expansion and development is South Korea. Tesco is a global brand and a world leader in the retail food industry. Using qualitative secondary information, this dissertation presents a market analysis and discusses the FDI policies of the target market to analyze the external factors contributing to the expansion of the company. The findings suggest that the expanding retails sector and the favourable government policies led to the expansion of Tesco in South Korea. Tesco was well suited for its expansion because of the firm’s internal resources including size, experience and expertise. The dissertation concludes that the multi-national or multidomestic approach adopted by the company was underlying success factor that contributed towards the success of Tesco in South Korea. Its multi-domestic or multinational corporate structure and strategy is clearly reflected through its market entry, leadership, business strategies and its growth and expansion strategy. The dissertation also highlights several initiatives undertaken by the company since 2008 that lead to exemplary success and compares it with its competitors’ unsuccessful strategy.
Inhaltsverzeichnis (Table of Contents)
- Dissertation
- Executive Summary
- Introduction
- Research Question
- Research Objectives
- Literature Review
- Globalization and Internationalization
- Factors Influencing Business Decisions for Internationalization
- Internal Factors
- External Factors for Globalization
- Types of international strategy: Multi-domestic vs. Global
- Global Strategy
- Multi-domestic Strategy
- Research Methodology
- Findings
- Market analysis
- FDI Strategy of the Host Market
- Market Entry Strategy
- Avertering Challenges Faced by Tesco
- Strategic Leadership of the Company
- Business Strategies
- Analysis of the Findings
- Conclusion
- Consultancy Report
- Executive Summary
- Introduction
- Key Findings
- Conclusion
- Recommendations
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation analyzes the international business strategies employed by Tesco for its expansion and development in South Korea. The study examines both internal and external factors that contributed to the company's success, particularly in comparison to the failures of other global retail giants. Here are some of the key themes and objectives explored in the dissertation:- Investigating Tesco's internationalization strategy in South Korea and its alignment with local business customs and values.
- Evaluating the effectiveness of Tesco's multi-domestic approach to global expansion.
- Analyzing the role of government policies and market conditions in facilitating Tesco's success.
- Identifying internal resources and strategic leadership as factors contributing to the company's growth.
- Comparing Tesco's successful strategies with the unsuccessful strategies of competitors like Wal-mart.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides a background on Tesco, its market leadership in the UK, and its international expansion strategy. The dissertation's focus on Tesco's South Korean expansion is introduced, highlighting the attractiveness of the market and the need for research on factors contributing to success in emerging markets.
- Research Question: This chapter outlines the core questions driving the research. These questions focus on understanding how Tesco achieved sustained growth in South Korea, how the company navigated cultural and business challenges, and what corporate governance structure best suited retail expansion in a culturally different market.
- Literature Review: This section reviews existing literature on international business and strategy, emphasizing the benefits and risks associated with global expansion. The chapter also explores the limited research on factors influencing the success or failure of UK-based retailers in emerging markets.
- Globalization and Internationalization: This chapter delves into the concepts of globalization and internationalization, exploring the factors influencing international business decisions. It differentiates between internal and external factors, providing insights into both the advantages and challenges of global expansion.
- Factors Influencing Business Decisions for Internationalization: This chapter further explores internal and external factors that influence business decisions for international expansion. It provides specific examples of how these factors shape a company's strategy and success.
- Types of International Strategy: Multi-domestic vs. Global: This chapter examines different types of internationalization strategies, focusing on the differences between multi-domestic and global approaches. The chapter discusses the implications of each strategy for a company's organizational structure, market entry, and overall success.
- Global Strategy: This chapter provides a deeper analysis of global strategies, outlining their characteristics, benefits, and limitations. It explores how global strategies are implemented and the challenges companies might face in their pursuit.
- Multi-domestic Strategy: This chapter provides an in-depth examination of multi-domestic strategies, focusing on their key elements and how they differ from global strategies. It discusses the advantages and challenges of a multi-domestic approach, particularly in relation to cultural differences.
- Research Methodology: This chapter outlines the research methodology employed in the dissertation. It describes the research approach, data collection methods, and data analysis techniques used to answer the research questions.
- Findings: This chapter presents the key findings of the research, drawing on qualitative secondary information. It examines the market analysis of South Korea, analyzes the country's FDI policies, and explores Tesco's market entry strategy.
- Market analysis: This chapter provides an in-depth analysis of the South Korean market, focusing on the retail sector and its growth potential. It explores consumer preferences, market trends, and the competitive landscape in South Korea.
- FDI Strategy of the Host Market: This chapter analyzes the Foreign Direct Investment (FDI) strategy of South Korea, focusing on the policies and incentives that influence foreign investment in the retail sector. It examines the government's role in promoting FDI and the impact of these policies on Tesco's expansion.
- Market Entry Strategy: This chapter examines Tesco's market entry strategy in South Korea. It investigates the company's chosen mode of entry, the challenges faced during the initial stages of expansion, and the effectiveness of its entry strategy.
- Avertering Challenges Faced by Tesco: This chapter focuses on the challenges that Tesco faced during its expansion in South Korea. It examines how the company addressed these challenges, including cultural differences, competition, and regulatory hurdles.
- Strategic Leadership of the Company: This chapter analyzes the role of strategic leadership in Tesco's success in South Korea. It explores the company's leadership style, decision-making processes, and the impact of leadership on the company's overall strategy and performance.
- Business Strategies: This chapter delves into Tesco's business strategies in South Korea, analyzing its product offerings, pricing strategies, marketing efforts, and overall approach to building a successful presence in the market.
- Analysis of the Findings: This chapter analyzes the findings presented in previous chapters, drawing connections between the different factors that contributed to Tesco's success. It provides a comprehensive interpretation of the research results.
Schlüsselwörter (Keywords)
This dissertation focuses on the successful international expansion of Tesco in South Korea, exploring key concepts such as international business strategy, globalization, multi-domestic approach, market analysis, FDI policies, market entry strategy, strategic leadership, and business strategies. The study utilizes qualitative secondary information to analyze the company's success factors and compare them with the failures of other multinational retailers.
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- Mayer Taylor (Author), 2011, The Success of Tesco’s International Expansion in South Korean Market. Examination and Analysis of Key Factors, Munich, GRIN Verlag, https://www.grin.com/document/267070
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