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If your last name starts with N-Z respond to the following question: Review the

ID: 387669 • Letter: I

Question

If your last name starts with N-Z respond to the following question: Review the Review the Management Focus on Tesco in Chapter 15. Then answer the following questions: . . Why did Tesoo's initial international expansion strategy focus on developing nations? . How does Tesco create value in its international operations? In Asia, Tesco has a history of entering into joint venture agreements with local partners. What are the benefits of doing this for Tesco? What are the risks? How are those risks mitigated? . Tesco's entry into the United States represented a departure from its historic strategy of focusing on developing nations. Why do you think Tesco made this decision? How is the U.S. has entered? market diferent from other markets Tesco

Explanation / Answer

Why did Tesco's initial International expansion strategy focus on developing Nations?

Tesco was looking for location of operation with very few competitors in the grocery retailer industry but have high potential growth. Where developing countries have all of these qualities of operation which would have improved the availability of opportunity for Tesco to operate in international environment as well as to create better revenues.

How does Tesco create value in its International operations?

Implementing their knowledge and skills in new ventures by implementation of better communication strategies on international environment for better business operations.

Most of the managers involved in joint ventures are local increasing their adaptability towards the culture as well as providing expertise from UK for better implementation of a strategic goals by Tesco.

It creates deep understand national environment as Tesco has a vulnerable operating environment in most of the international structures.
Company is specifically interested in developing their business with very few competitors increasing their overall value.

In Asia, Tesco has a history of entering into joint venture agreement with local partners. What are the benefits of doing this for Tesco? What are the risks? How are these risks mitigated?

Tesco has inability to share the ideas that are used by Asian companies for better implementation of business strategies. The main risk in operating at International asian environment is that the partners can easily pull out from the specific deal and Steel the operational ideas of Tesco that would leave the company with dept in its operational environment. This type of risk enable if the company is involved in operations by 50%. Using strict policies for implementation of policies for business in this environment would help the company to reduce the risk.

Tesco's entry into the United States represented a departure historical strategy of a focusing on developing Nations. Why do you think Tesco made this decision? How is the US market different from other markets Tesco has entered?

As American environment already have a dominance of many grocery retailers such as Walmart. According to the opportunities that could be obtained by Tesco in operation in United States there break even analysis stated that company would do better in United States as well. As United States has no model of operation like Tesco, which would benefit the Tesco in United States for implementation of their strategies for betterment.