Introduction
For this task I am going to describe how the environment and culture of another country
affects Tesco operating internationally. I will also compare how cultural differences and
foreign business environments affect multi-national corporations and evaluate the impact of
these differences on international business performance in the international market. I have
chosen to talk about the branch that Tesco has in Malaysia as it is international and I think it
will have different rules and regulations compared to the UK.
Political
“Our Nation, Malaysia is dedicated to: Achieving a greater unity for all her people;
maintaining a democratic way of life; creating a just society in which the wealth of the nation
shall be equitably distributed; ensuring a liberal approach to her rich and diverse cultural
tradition, and building a progressive society which shall be oriented to modern science and
technology”
If this is the ideology of Malaysia this means that welcoming Tesco would be accepted and
they already have been because Malaysia wants to bring and welcome business to their unity
so that they may achieve. Due to them being in a different culture tradition area Tesco would
have to change the type of products that they sell in Malaysia so that they gain as many
customers as possible. However because Tesco is the biggest retailer in the UK they
completely understand the market and what they want so there is nothing that they would
have to adapt to. Nevertheless individual branches may have to bring in some higher priced,
luxury items depending on where they are based because in certain areas they would expect
for a retail store in their area to have more than just standard goods. They may even have to
rebrand their company just for that area in order to fit in.
At the moment Malaysia is seen as one of the most corrupted countries because of what the
government is doing over there. This causes many riots in the cities which could have a
negative affected on Tesco because they may target the big companies to destroy or they may
be based amongst the riots so they well be affected since it’s in that area. This results in
money being spent time after time on repairing the damages so that the store looks attractive
to customers so they can come into the store. Another problem is that if bad things are
happening in that particular area they are going to have to close down business in that area
because people may want to avoid that areas due to the political factors.
The Malaysia’s economy has sped up, Malaysia’s economy accelerated in the second quarter
as a global rebound lifted demand for its exports, raising the possibility of an increase in
interest rates. “For the Malaysian economy, the leading indicators now suggest that private-
sector activity will remain the key driver of growth,” this is a quote that someone said which
indicates that Tesco will grow as a company and due to the investments from Tesco this is the
perfect time to make profit because since the economy is growing, people will have more
money to spend. On the other hand in the UK Tesco isn’t doing too well at all. They have
suffered their worst sales in history. Even after they used 1bn to revamp their existing and
make price cuts against stores like Aldi and Lidl they still have failed to keep a good track
record. International things have potential to progress however in the UK things are on a
decline.
1
For this task I am going to describe how the environment and culture of another country
affects Tesco operating internationally. I will also compare how cultural differences and
foreign business environments affect multi-national corporations and evaluate the impact of
these differences on international business performance in the international market. I have
chosen to talk about the branch that Tesco has in Malaysia as it is international and I think it
will have different rules and regulations compared to the UK.
Political
“Our Nation, Malaysia is dedicated to: Achieving a greater unity for all her people;
maintaining a democratic way of life; creating a just society in which the wealth of the nation
shall be equitably distributed; ensuring a liberal approach to her rich and diverse cultural
tradition, and building a progressive society which shall be oriented to modern science and
technology”
If this is the ideology of Malaysia this means that welcoming Tesco would be accepted and
they already have been because Malaysia wants to bring and welcome business to their unity
so that they may achieve. Due to them being in a different culture tradition area Tesco would
have to change the type of products that they sell in Malaysia so that they gain as many
customers as possible. However because Tesco is the biggest retailer in the UK they
completely understand the market and what they want so there is nothing that they would
have to adapt to. Nevertheless individual branches may have to bring in some higher priced,
luxury items depending on where they are based because in certain areas they would expect
for a retail store in their area to have more than just standard goods. They may even have to
rebrand their company just for that area in order to fit in.
At the moment Malaysia is seen as one of the most corrupted countries because of what the
government is doing over there. This causes many riots in the cities which could have a
negative affected on Tesco because they may target the big companies to destroy or they may
be based amongst the riots so they well be affected since it’s in that area. This results in
money being spent time after time on repairing the damages so that the store looks attractive
to customers so they can come into the store. Another problem is that if bad things are
happening in that particular area they are going to have to close down business in that area
because people may want to avoid that areas due to the political factors.
The Malaysia’s economy has sped up, Malaysia’s economy accelerated in the second quarter
as a global rebound lifted demand for its exports, raising the possibility of an increase in
interest rates. “For the Malaysian economy, the leading indicators now suggest that private-
sector activity will remain the key driver of growth,” this is a quote that someone said which
indicates that Tesco will grow as a company and due to the investments from Tesco this is the
perfect time to make profit because since the economy is growing, people will have more
money to spend. On the other hand in the UK Tesco isn’t doing too well at all. They have
suffered their worst sales in history. Even after they used 1bn to revamp their existing and
make price cuts against stores like Aldi and Lidl they still have failed to keep a good track
record. International things have potential to progress however in the UK things are on a
decline.
1
