Samer Ghaida
Apple and Tesco
In this document, I will be discussing the activities of two contracting businesses that
operate on an international scale. I will also be mentioning their structure, the activities they
place and the market they operate in.
Different Business Activities include multinational companies, importing business, exporting
business and associated businesses. Multinational companies functions when a business
operates in several countries but managed from one country. Businesses that access at least
a quarter of its revenue from operations outside of its country is stated as a multinational
Company. Importing businesses includes a company receiving goods from other countries
using their products to trade in their country when the advantage of this is that it will allow
the business to trade with products, they cannot find in their very own country. Exporting
businesses include a company that trade their merchandise, goods and services in a country
that is not their origin. For example, if Apple were to export phone sets that have been
produced in the US and exporting them to another country in the Europe to sell. The
advantage of exporting to other countries is that the businesses exporting will see better
business opportunities in other countries.
Apple is an American multinational company that manufactures, develops and sells mobile
communication and media devices. It was established in California and is one of the top 5
big companies in the US in the technological industry. Apple work in a hierarchical structure
which indicates that the divisional characteristics refer to the product-based grouping
within Apple. Apples hierarchical organizational structure resulted to effective and efficient
innovation. Apples international expansion was a major reason to its increase in market
share and brand image. Apple’s total revenue has been increased to the highest record
figure of $ 42,905 million in 2008. These figures shows that its annual growth rate is 32.15%
showing dominance in the performance ranking compared to other technological firms in
the same market. Apple has very recently reported that its financial performance for the
2010 first quarter has been increased to $15.68 billion. Apple’s international business is
dedicated to produce high quality mobile communication, digital music players and video
experience to its worldwide customers. Apple markets using its own retailing, online stores
and third-party sellers. Apple is not captive in a particular market; however, it has a huge
impact in various highly competitive markets such as PC, software, digital music player and
Smartphone. Apple operates in the UK which makes is known to cooperate with cariforum.
By expanding to several countries, Apple would be able to increase their chances of reaching
out to customers on a global scale which is known to be an access to new markets. This
allows them to access more potential customers from different regions and states. For
example, Apple targets individuals and organizations through the iPhone product line. This
generic strategy of broad differentiation allows the company to maintaining its competitive
advantage and position as a high-end technology company. This allows them to reach
different markets, producing more opportunities to develop and expand their product and
services. Another reason Apple operate in international markets is the opportunity to have a
comparative advantage. A comparative advantage is the process in which a business
produces goods and services in more than one country and sell them in another which
, Samer Ghaida
reduces their costs and support a higher profit made. One reduction of cost for Apple would
be cheap labour. This allows them to set up in several countries where demand for their
products and services are high while cheap Labour is available. Companies such as Apple are
also able to increase their market share and revenue by accessing new customers.
Decreasing labour costs will reduce costs and improve their profit margins more efficiently.
Apple is known to have a high position in the technological dominance as the market leader
in many countries. Technological dominance applies to businesses that are market leaders
in particular market sector. For example, Apple has the technological dominance in the
technological industry allowing it to be the most powerful business in the sector. With
reaching new markets and customers, Apple saw their profit margins increase as well as
reputation in many countries which gave them the ultimate advantage over other
technological companies such as Samsung and Microsoft on the long run. Apple’s
dominance makes it harder for other technological companies to enter the market in which
they operate in. Hence, when Apple expands across countries, it is able to invest in
technology to make processes work more efficiently. This will lead to higher profits and
revenue while reducing cost.
Tesco is a multinational grocery and merchandise retailer in England and United Kingdom. It
was widely known to be the largest retailer in the world measured by its profits and
revenue. Tesco operates in 10 countries including the United Kingdom, India, Malaysia,
Lotus, Czech Republic, Hungary, Poland, Slovakia and China having a total of 500,000
employees serving 15 million customers across the different market areas. Tesco operate in
the multinational business because they produce groceries, clothes, food improving
employment opportunities in different countries. They will also be able to sell products at
lower prices increasing their profits and benefiting their customers at the same time. In
2007, Tesco’s results exceeded £10 billion in sales and £561 million in profits making it one
of the most valuable retailer and merchandiser. Tesco's strategy for International operation
includes elements of flexibility, local operations including customers, cultures, and supply
chains. This allowed them to focus on different countries and offerings to meet the needs
and demand of the local market and processes and systems to create healthy customer
relationships. The International strategic business unit allows Tesco to tailor its market entry
and offerings to the different individual market areas.
By expanding their businesses internationally, Tesco would have a higher revenue potential
and ultimately increase their market share and leadership of the business allowing growth
and development at the same time. This occurs when a business acquires dominance by
having a greater share of the market meaning they have more sales than any other business
operating in that market. Tesco ended up increasing its market share by value by more than
2% from 19% to 21.2% by the end of 8 months. This 2% has represented a value of over
£600m in sales. As Tesco climbs the ranks of leadership in grocery and general merchandise,
their brand value has risen to a total of 8.5bn in USD worldwide. Tesco also operates
internationally to increase their market share through diversification. One of the main
reasons Tesco pursued the international market was because the local UK market had
reached saturation and maturity allowing it to be really hard to grow without utilizing
overseas opportunities. Hence, for Tesco to stay relevant for the economy, they introduced
Apple and Tesco
In this document, I will be discussing the activities of two contracting businesses that
operate on an international scale. I will also be mentioning their structure, the activities they
place and the market they operate in.
Different Business Activities include multinational companies, importing business, exporting
business and associated businesses. Multinational companies functions when a business
operates in several countries but managed from one country. Businesses that access at least
a quarter of its revenue from operations outside of its country is stated as a multinational
Company. Importing businesses includes a company receiving goods from other countries
using their products to trade in their country when the advantage of this is that it will allow
the business to trade with products, they cannot find in their very own country. Exporting
businesses include a company that trade their merchandise, goods and services in a country
that is not their origin. For example, if Apple were to export phone sets that have been
produced in the US and exporting them to another country in the Europe to sell. The
advantage of exporting to other countries is that the businesses exporting will see better
business opportunities in other countries.
Apple is an American multinational company that manufactures, develops and sells mobile
communication and media devices. It was established in California and is one of the top 5
big companies in the US in the technological industry. Apple work in a hierarchical structure
which indicates that the divisional characteristics refer to the product-based grouping
within Apple. Apples hierarchical organizational structure resulted to effective and efficient
innovation. Apples international expansion was a major reason to its increase in market
share and brand image. Apple’s total revenue has been increased to the highest record
figure of $ 42,905 million in 2008. These figures shows that its annual growth rate is 32.15%
showing dominance in the performance ranking compared to other technological firms in
the same market. Apple has very recently reported that its financial performance for the
2010 first quarter has been increased to $15.68 billion. Apple’s international business is
dedicated to produce high quality mobile communication, digital music players and video
experience to its worldwide customers. Apple markets using its own retailing, online stores
and third-party sellers. Apple is not captive in a particular market; however, it has a huge
impact in various highly competitive markets such as PC, software, digital music player and
Smartphone. Apple operates in the UK which makes is known to cooperate with cariforum.
By expanding to several countries, Apple would be able to increase their chances of reaching
out to customers on a global scale which is known to be an access to new markets. This
allows them to access more potential customers from different regions and states. For
example, Apple targets individuals and organizations through the iPhone product line. This
generic strategy of broad differentiation allows the company to maintaining its competitive
advantage and position as a high-end technology company. This allows them to reach
different markets, producing more opportunities to develop and expand their product and
services. Another reason Apple operate in international markets is the opportunity to have a
comparative advantage. A comparative advantage is the process in which a business
produces goods and services in more than one country and sell them in another which
, Samer Ghaida
reduces their costs and support a higher profit made. One reduction of cost for Apple would
be cheap labour. This allows them to set up in several countries where demand for their
products and services are high while cheap Labour is available. Companies such as Apple are
also able to increase their market share and revenue by accessing new customers.
Decreasing labour costs will reduce costs and improve their profit margins more efficiently.
Apple is known to have a high position in the technological dominance as the market leader
in many countries. Technological dominance applies to businesses that are market leaders
in particular market sector. For example, Apple has the technological dominance in the
technological industry allowing it to be the most powerful business in the sector. With
reaching new markets and customers, Apple saw their profit margins increase as well as
reputation in many countries which gave them the ultimate advantage over other
technological companies such as Samsung and Microsoft on the long run. Apple’s
dominance makes it harder for other technological companies to enter the market in which
they operate in. Hence, when Apple expands across countries, it is able to invest in
technology to make processes work more efficiently. This will lead to higher profits and
revenue while reducing cost.
Tesco is a multinational grocery and merchandise retailer in England and United Kingdom. It
was widely known to be the largest retailer in the world measured by its profits and
revenue. Tesco operates in 10 countries including the United Kingdom, India, Malaysia,
Lotus, Czech Republic, Hungary, Poland, Slovakia and China having a total of 500,000
employees serving 15 million customers across the different market areas. Tesco operate in
the multinational business because they produce groceries, clothes, food improving
employment opportunities in different countries. They will also be able to sell products at
lower prices increasing their profits and benefiting their customers at the same time. In
2007, Tesco’s results exceeded £10 billion in sales and £561 million in profits making it one
of the most valuable retailer and merchandiser. Tesco's strategy for International operation
includes elements of flexibility, local operations including customers, cultures, and supply
chains. This allowed them to focus on different countries and offerings to meet the needs
and demand of the local market and processes and systems to create healthy customer
relationships. The International strategic business unit allows Tesco to tailor its market entry
and offerings to the different individual market areas.
By expanding their businesses internationally, Tesco would have a higher revenue potential
and ultimately increase their market share and leadership of the business allowing growth
and development at the same time. This occurs when a business acquires dominance by
having a greater share of the market meaning they have more sales than any other business
operating in that market. Tesco ended up increasing its market share by value by more than
2% from 19% to 21.2% by the end of 8 months. This 2% has represented a value of over
£600m in sales. As Tesco climbs the ranks of leadership in grocery and general merchandise,
their brand value has risen to a total of 8.5bn in USD worldwide. Tesco also operates
internationally to increase their market share through diversification. One of the main
reasons Tesco pursued the international market was because the local UK market had
reached saturation and maturity allowing it to be really hard to grow without utilizing
overseas opportunities. Hence, for Tesco to stay relevant for the economy, they introduced
