Monday, February 17, 2020
Critically discuss the Suitability, Feasibility and Acceptability of Assignment
Critically discuss the Suitability, Feasibility and Acceptability of the International Strategy of an Organisation - Assignment Example This in turn has resulted in increasing internationalisation of the businesses. More and more multinational organisations are operating in different countries because of the increasing globalisation. There are different reasons and motives behind the decision of internalisation. According to Johnson and Turner (2003), the reasons and motives of the organisations behind pursuing internationalisation strategy can be divided into following broad categories: 1. Resource Seeking 2. Market Seeking 3. Efficiency Seeking 4. Strategic Asset Seeking Apart from this different approaches to enter into international market are being used by the organisations. Different market entry modes available to the organisations are presented in the figure below: (Adapted from Johnson and Turner, 2003) According to Wrigley (2000), Coe (2003), and Sanghavi (2000), the international expansion by the retail organisations started relatively later as compared to that of the manufacturing organisations but there have been considerable growth and development in the international expansion by the retail organisations in the last fifteen years. It is relatively difficult for the retail organisations to pursue the strategy of international expansion. The retail organisations do not have a single product which they can export to different markets. These retail organisations offer different products which are supplied by different manufacturers and along with this provide the shoppers with a complete experience. Hence it can be said that the business of retailing also has intangible service element. Along with this the products provided by the retail organisations have different consumer preferences and tastes in different regions. For this reason, it is not easy for the retail organisations to expand in different geographical markets and regions. The retail organisations are provided with two different strategic options in order to expand their business operations internationally i.e. global and multinational strategies. The retail organisations which implement the global strategy follow the same format and strategies all over the world. On the other hand the retail organisations which implement the multinational strategy adapt and change the practices according to local preferences. (Alexander and Myers, 2000) In this report an attempt has been made in order to analyse and discuss the suitability, feasibility, and acceptability of the internationalisation strategy of United Kingdom largest retail organisation, Tesco. COMPANY BACKGROUND: Tesco is the one of the biggest and largest retail organisation in United Kingdom. The company is not only operating in the retail industry but has also expanded in several other industries and markets. Apart from this the company is known for its rapid and successful international expansion in different regions (Palmer, 2005). The company has been successfully operating in 13 different countries of the world. Tesco is a successful multina tional retail organisation and is the third largest retail organisation in the whole world on the basis of revenues. The company is still looking to further expand its international operations (Wood, 2011) INTERNATIONAL STRATEGY OF TESCO: The management of Tesco is making all possible efforts in order to make sure to achieve the strategic of ongoing expansion in the international market. Currently, the retail organization is operating in 13 different countries all over the globe including Europe, North America, and Asia.