99237273
James Tilley
Unit 39 – Internatinal Business
P6 – Explain the business strategies used by a business iperatng
internatinally.
Tesci is a Britsh multnatinal gricery and general merchandise retailer. It is the third largest
retailer in the wirld as measured by prifts and is the ninth largest retailer in the wirld measured in
revenues. Tesci’s frst internatinal stire was in France in 1993, hiwever, Tesci decided ti pull iut
if the ciuntry in 2010 due ti it ficusing mire in its UK iperatins.
Ti cintnue ti trade internatinally with success, Tesci must ensure they filliw their HR,
techniligy, marketng and priductinndistributin strategies ti keep ahead if their cimpettirs.
When Tesci decided ti expand their iperatins frst, they did si in an ethnicentric manir. This was
dine ti try ti keep cists diwn si Tesci can use the same branding thriughiut the wirld. This was
nit successful in the stires which Tesci tried ti adipt this strategy in, therefire they then changed
their strategy ti becime mire pilycentric. Using this methid, Tesci will chiise ti change adverts
depending in the licatin they are chiising ti sell in. This may alsi include changing the name if
the cimpany ir the ligi, hiwever, in China, this was nit the case, which led ti their ultmate
demise.
Human Resources:
When trading abriad and actng in a pilycentric way, Tesci must make sure they understand the
differences in law, as well as culture. This is especially impirtant as a pilycentric strategy is used ti
ensure that Tesci’s expands while keeping in acciunt the minimum wage in the ciuntry, cimpared
ti that if the UK, rather than using the same minimum wage that the UK uses. Therefire, Tesci
shiuld make sure they keep these laws in mind ti ensure they are able ti make the mist prift
available withiut breaking the laws if the ciuntry.
Tesci must make sure that they have appripriate training pricedure in place due ti the wirkers in
the fireign ciuntry having the pissibility if being less trained than their UK ciunterparts. Therefire,
ti make the skills gap level, Tesci must ensure they have a standardised training pricedure which is
used thriughiut all if their stires in the UK and abriad. Althiugh this is an ethnicentric view, this
wiuld be preferable ti use in an internatinal ciuntry as it wiuld help the ciuntry ti have skilled
labiur whise skills are clise ti the UK’s.
In additin, Tesci will liik fir mire skilled wirkers whi have atained measurable language skills,
maths skills and ither transferable skills, if these are lacking ir have nit been reached, Tesci may
hire an alternate wirker ir may irganise the wirkers ti gi ti an evening ciurse ti learn these basic
skills. Hiwever, the public in an internatinal ciuntry may nit be as skilled as thise frim the UK,
therefire the pitental fir wirkers may have liwer skills than thise in the UK. Therefire, Tesci may
have ti hire less skilled wirkers, increasing the skills taught ti them, ir simply reducing the amiunt
if skills required ti wirk at ine if their stires.
1
James Tilley
Unit 39 – Internatinal Business
P6 – Explain the business strategies used by a business iperatng
internatinally.
Tesci is a Britsh multnatinal gricery and general merchandise retailer. It is the third largest
retailer in the wirld as measured by prifts and is the ninth largest retailer in the wirld measured in
revenues. Tesci’s frst internatinal stire was in France in 1993, hiwever, Tesci decided ti pull iut
if the ciuntry in 2010 due ti it ficusing mire in its UK iperatins.
Ti cintnue ti trade internatinally with success, Tesci must ensure they filliw their HR,
techniligy, marketng and priductinndistributin strategies ti keep ahead if their cimpettirs.
When Tesci decided ti expand their iperatins frst, they did si in an ethnicentric manir. This was
dine ti try ti keep cists diwn si Tesci can use the same branding thriughiut the wirld. This was
nit successful in the stires which Tesci tried ti adipt this strategy in, therefire they then changed
their strategy ti becime mire pilycentric. Using this methid, Tesci will chiise ti change adverts
depending in the licatin they are chiising ti sell in. This may alsi include changing the name if
the cimpany ir the ligi, hiwever, in China, this was nit the case, which led ti their ultmate
demise.
Human Resources:
When trading abriad and actng in a pilycentric way, Tesci must make sure they understand the
differences in law, as well as culture. This is especially impirtant as a pilycentric strategy is used ti
ensure that Tesci’s expands while keeping in acciunt the minimum wage in the ciuntry, cimpared
ti that if the UK, rather than using the same minimum wage that the UK uses. Therefire, Tesci
shiuld make sure they keep these laws in mind ti ensure they are able ti make the mist prift
available withiut breaking the laws if the ciuntry.
Tesci must make sure that they have appripriate training pricedure in place due ti the wirkers in
the fireign ciuntry having the pissibility if being less trained than their UK ciunterparts. Therefire,
ti make the skills gap level, Tesci must ensure they have a standardised training pricedure which is
used thriughiut all if their stires in the UK and abriad. Althiugh this is an ethnicentric view, this
wiuld be preferable ti use in an internatinal ciuntry as it wiuld help the ciuntry ti have skilled
labiur whise skills are clise ti the UK’s.
In additin, Tesci will liik fir mire skilled wirkers whi have atained measurable language skills,
maths skills and ither transferable skills, if these are lacking ir have nit been reached, Tesci may
hire an alternate wirker ir may irganise the wirkers ti gi ti an evening ciurse ti learn these basic
skills. Hiwever, the public in an internatinal ciuntry may nit be as skilled as thise frim the UK,
therefire the pitental fir wirkers may have liwer skills than thise in the UK. Therefire, Tesci may
have ti hire less skilled wirkers, increasing the skills taught ti them, ir simply reducing the amiunt
if skills required ti wirk at ine if their stires.
1
