Unit 39 P6
Explain the business strategies used by a business operatng internatonally P6
There is various diferent type of strategy that a business like Tesco uses in order to operate
internatonally. This includes miarketngg, productong, humian resources and fnance.
Marketng
One strategy that Tesco use in order to operate successfully is related to miarketng. For examipleg,
Tesco used miarket research to miake sure that they identfy the needs of their customiers. When
Tesco started business in Thailandg, they bought an existng business to fnd a gap in the miarket; one
efectve )ay of understanding their miarket )as by ofering club cards to their customier. Fromi this
Tesco )as able to track do)n or understand the buying behaviour of their customierg, this )ay Tesco
)ill be able to kno) )ho their Target miarket is )hich is good because they can adjust their
promioton accordingly. Every country is diferent and every business has to be sensitve about the
culture and the religion because not be culturally sensitve can efect customiers )hich mieans Tesco
)ill have to provide promiote their goods and service in a )ay that suites the taste of the targeted
miarket. The miain religion in Thailand )here Tesco has operated is Buddhismi and Islami. When
advertsing Tesco has to miake sure that their miodels )ho advertse good and services for Tesco has
to be fully covered as )omien are not allo)ed to reveal too miuch skin because this is disrespectul to
the their religion. If Tesco don’t t follo) accordingly then there is risk that they )ould lose sales due
not being sensitve.
Producton
Another strategy that business like Tesco uses is related Producton. For examipleg, operatng
internatonally it mieans that Tesco )ill have to adapt to the ne) rules and regulaton in diferent
countries such as operatng in Tesco mieans that there )ill be health and safety rules that are
diferent to the host countries and somietmies ne). Thailand has diferent environmients comipared
to UK )here Earthquake is miore regularg, this mieans ne) safety practce like earthquake safety. This
is imiportant for Tesco to consider about this because not performiing health and safety before
producing and lead to accidents )hich can afect the reputaton of Tesco. Operatng in diferent
countries mieans that Tesco )ill have to fnd suppliers that produce goods and services that mieet the
requiremients of Tesco )hich can afect the productveness of Tescog, Tesco has found suppliers that
mieets their requiremients and the miajor suppliers include Guangzhou Biro Personal Products
Co.Ltd.Furthermiore Tesco needs to be considered about the technology that is available to produce
the goods and services that mieets their requiremient )hich can lead to infuence the efciency of
goods being produced.
Humian Resources
In order for Tesco to be successful in operatng their business internatonallyg, Tesco had to miake
sure they look into Humian resources. For examipleg, Tesco needs to be considerate about the
emiploymient la) in the countries they are startng a business ing, this can include miinimiumi )age.
The current miinimiumi )age of Thailand is THB 300 (US$8.39)g, )hen Tesco started their business in
Thailandg, they had to miake sure that they )ere paying the right about of mioney to their emiployees
and if Tesco fail to do sog, Tesco can get fned or banned fromi the country. Furthermioreg, Tesco can
adapt to the mianagemient style according to the local needsg, this is a afectve strategy because
Explain the business strategies used by a business operatng internatonally P6
There is various diferent type of strategy that a business like Tesco uses in order to operate
internatonally. This includes miarketngg, productong, humian resources and fnance.
Marketng
One strategy that Tesco use in order to operate successfully is related to miarketng. For examipleg,
Tesco used miarket research to miake sure that they identfy the needs of their customiers. When
Tesco started business in Thailandg, they bought an existng business to fnd a gap in the miarket; one
efectve )ay of understanding their miarket )as by ofering club cards to their customier. Fromi this
Tesco )as able to track do)n or understand the buying behaviour of their customierg, this )ay Tesco
)ill be able to kno) )ho their Target miarket is )hich is good because they can adjust their
promioton accordingly. Every country is diferent and every business has to be sensitve about the
culture and the religion because not be culturally sensitve can efect customiers )hich mieans Tesco
)ill have to provide promiote their goods and service in a )ay that suites the taste of the targeted
miarket. The miain religion in Thailand )here Tesco has operated is Buddhismi and Islami. When
advertsing Tesco has to miake sure that their miodels )ho advertse good and services for Tesco has
to be fully covered as )omien are not allo)ed to reveal too miuch skin because this is disrespectul to
the their religion. If Tesco don’t t follo) accordingly then there is risk that they )ould lose sales due
not being sensitve.
Producton
Another strategy that business like Tesco uses is related Producton. For examipleg, operatng
internatonally it mieans that Tesco )ill have to adapt to the ne) rules and regulaton in diferent
countries such as operatng in Tesco mieans that there )ill be health and safety rules that are
diferent to the host countries and somietmies ne). Thailand has diferent environmients comipared
to UK )here Earthquake is miore regularg, this mieans ne) safety practce like earthquake safety. This
is imiportant for Tesco to consider about this because not performiing health and safety before
producing and lead to accidents )hich can afect the reputaton of Tesco. Operatng in diferent
countries mieans that Tesco )ill have to fnd suppliers that produce goods and services that mieet the
requiremients of Tesco )hich can afect the productveness of Tescog, Tesco has found suppliers that
mieets their requiremients and the miajor suppliers include Guangzhou Biro Personal Products
Co.Ltd.Furthermiore Tesco needs to be considered about the technology that is available to produce
the goods and services that mieets their requiremient )hich can lead to infuence the efciency of
goods being produced.
Humian Resources
In order for Tesco to be successful in operatng their business internatonallyg, Tesco had to miake
sure they look into Humian resources. For examipleg, Tesco needs to be considerate about the
emiploymient la) in the countries they are startng a business ing, this can include miinimiumi )age.
The current miinimiumi )age of Thailand is THB 300 (US$8.39)g, )hen Tesco started their business in
Thailandg, they had to miake sure that they )ere paying the right about of mioney to their emiployees
and if Tesco fail to do sog, Tesco can get fned or banned fromi the country. Furthermioreg, Tesco can
adapt to the mianagemient style according to the local needsg, this is a afectve strategy because
