(M2) Compare how cultural
differences and foreign business
environments affect multi-national
corporations.
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sabinab93
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BTEC L3 Extended Dip In Business Yr2 Gp1
Unit 39: International Business
(M2) Compare how cultural differences and foreign business environments affect multi-national
corporations.
Introduction
In this assignment I am going to compare how the differences in cultures of UK and India affect
Tesco’s operations in India. I am going to use Hofstede cultural dimension framework, to compare
the scores and relate them to Tesco’s international operations.
a) Select a local organisation and in doing so provide a brief overview of this organisation
Tesco PLC is a British multinational grocery and general merchandise retailer. Its headquarters are
situated in Cheshunt, United Kingdom. Tesco is the third largest retailer in the world measured by
revenue and the second largest measured by profits. Tesco operates in 14 countries across Asia,
Europe and North America. 520,000 people are currently employed by Tesco and are working in
6,700 stores.
b) Obtain the foreign nation selected for expansion and provide a brief overview of this nation
India is a country in South Asia. It is the seventh largest country, with a population of 1.2 billion
people. India is one of the currently emerging markets. The Indian economy is one of the largest in
the world and is considered to be one of the fastest growing; however India is still facing the
challenges of poverty, lack of skills and corruption. India is extremely wealthy in culture and there
are four world religions originated in India.
c) Collect the scores of both the UK and the selected nation for each of the following dimensions
identified by Hofstede
d) Analyse the impact of these scores on any possible expansion into the foreign nation
Small vs. Large power distance
UK stands at 35 on the power distance scale, which is considered quite low in comparison to India
which stands at 77. This shows that Britain believes that inequalities amongst people should be
minimized, whereas India appreciates the hierarchical structure in both society and organisations.
Even though the power distance difference between the two countries is quite big, Tesco as a
Page 1 of 3
differences and foreign business
environments affect multi-national
corporations.
written by:
sabinab93
The Marketplace to Buy and Sell your Study Material
Buy and sell all your summaries, notes, theses, essays, papers, cases, manuals, researches, and
many more..
www.stuvia.com
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
BTEC L3 Extended Dip In Business Yr2 Gp1
Unit 39: International Business
(M2) Compare how cultural differences and foreign business environments affect multi-national
corporations.
Introduction
In this assignment I am going to compare how the differences in cultures of UK and India affect
Tesco’s operations in India. I am going to use Hofstede cultural dimension framework, to compare
the scores and relate them to Tesco’s international operations.
a) Select a local organisation and in doing so provide a brief overview of this organisation
Tesco PLC is a British multinational grocery and general merchandise retailer. Its headquarters are
situated in Cheshunt, United Kingdom. Tesco is the third largest retailer in the world measured by
revenue and the second largest measured by profits. Tesco operates in 14 countries across Asia,
Europe and North America. 520,000 people are currently employed by Tesco and are working in
6,700 stores.
b) Obtain the foreign nation selected for expansion and provide a brief overview of this nation
India is a country in South Asia. It is the seventh largest country, with a population of 1.2 billion
people. India is one of the currently emerging markets. The Indian economy is one of the largest in
the world and is considered to be one of the fastest growing; however India is still facing the
challenges of poverty, lack of skills and corruption. India is extremely wealthy in culture and there
are four world religions originated in India.
c) Collect the scores of both the UK and the selected nation for each of the following dimensions
identified by Hofstede
d) Analyse the impact of these scores on any possible expansion into the foreign nation
Small vs. Large power distance
UK stands at 35 on the power distance scale, which is considered quite low in comparison to India
which stands at 77. This shows that Britain believes that inequalities amongst people should be
minimized, whereas India appreciates the hierarchical structure in both society and organisations.
Even though the power distance difference between the two countries is quite big, Tesco as a
Page 1 of 3
