Unit 5 assignment 2- international business
Learning aim C: investigate the external factors that influence international business
Learning aim: investigate the cultural factors that influence international business
Title: External factors and cultural differences
in this assignment I will about Tesco and how external factors can affect the business and
influence the international trade and also investigate how different cultures that have an
impact on the business and the decision that are taken by Tesco when the business want to
expand in a different countries they have to look at different criteria’s that can influence the
business so Tesco needs to have a knowledge of the cultural factors that can influence the
business and the business needs to make sure that they have a good understanding in order
to be able to succeed in the specific countries that the business would like to expand and
start selling their products.
P5
Tesco
It is a worldwide business which it is leading the majority of the marketplace that the
business it is operating into. Tesco it is a retailer supermarket that can supply the business
customers with products from food to alcoholic drinks in order to be able to keep up with all
the customers demand and also in the business had such a big variety of products to make
sure every customer it is pleased with the products that the company it is offering.
External environment it is defined as the factors or different influences that can are
happening outside the business and can have an impact on the performance of the
business. In order for Tesco to decide if they should operate in a particular county, they can
look the factors that are external environment includes in order to analyse the external
factors for the two countries that Tesco would want to start to operate and expand their
business:
Political factors that can be found in Turkey and can affect Tesco
There are couple factors that that can affect a business as a political factor if they want to
trade in Turkey such as: tax regulations, government support and also trading blocs that can
have an impact on the trades that Tesco can made in Turkey.
After Turkey faces some political challenges back in 2016 the countries failed to help
businesses be able to survive and to operate so after 2016 a lot of businesses closed down
because of the political factors that happened in Turkey and also the terrorists attacks had
an impact on the political factors that can influence a business to start operating in Turkey.
Since 2016 Turkey make sure that the country can start being a safe land where people and
businesses will start to re-open in order to also help the economy of the country also,
Turkey it is now a relatively safe country for people to plan their holiday but also for the
businesses to start operating in Turkey. Another political factor that can influence Tesco to
start operating in Turkey is that the country has access to one of the largest markets in the
entire world and the freedom of movement so this can be a benefit for Tesco has they are
able to move the business goods freely which means the business will not pay taxes if they
want to trade. Another political factor that can be an advantages for Tesco it is that even
Turkey isn’t part of the EU but they have an agreement with EU to be able to export and
import internationally which can be an advantages for Tesco as they can import goods that
,they can bring for the Turkish market place but also the business can import goods from
Turkey in other countries where Tesco it is operating in order to have a larger production
access for the business customers in order for the business to have a larger varieties of
products where they can pick from in order to keep up with customers wants and the
demand that it is asked from the business customers. Another reason why Tesco can start
operating in Turkey because of the high population number that can be found in Turkey
which is around 84 million people because of this factor can be an advantage for Tesco as
the business can attract a high number of customers because of the high population number
that can be found in Turkey.
Because of the arrangement with EU trading blocs can have an impact on Tesco
performance because it allows the business to get raw materials or products that can be
bring from another country in Turkey, because of this factor it allows the business to keep
their prices quite low which means that the business can attract a higher number of
customers because of the prices that are set by Tesco which can result for the business to
increase the number of customers that the business has as the customers want cheap
products that they can purchase.
Economic factors that can be found in Turkey and can affect Tesco
Turkey it is now an upper-middle country for the income that Turkey has because of this
factor can allow Tesco to start operating in this country because the economy of Turkey it is
very stable to it will make sure that the business will be able to operate without economic
issues that a country has so because Turkey it is a stable country for their economy it allows
Tesco to be able to operate in Turkey without any issues and no taking many risks if they
want to operate in this country. Turkey it is also one of the largest EU largest trading
partner when it comes to import and export because of this economic factor can be an
advantage for Tesco as they can import and export goods in order to make the market place
for Turkey very successful because of the high number of new products that they can bring
into the Turkish market place in order to attract products and also because the business can
have a high rate of imports Tesco can bring high quality products that can’t be found in
Turkey in order to keep up with the customers demand and wants therefore the business
can have a high number of sales which can allows the business to make profit. Another
advantage because Tesco can have a high number of imports the business can bring raw
materials and products cheaper from other countries because of the exchange rate so even
if the importing costs will be higher the margin costs will be reduce because of the cheap
materials that the business it is getting from other country.
Another economic factor that can affect a business can be the different levels of taxes that
needs to pay in every country where a business it is operating into. The level of VAT needs
to be paid in every country but the level that needs to be paid in different countries can vary
and also can be different by the different types of goods that are sold. The VAT that it is paid
in Turkey it is now 18% which can be very low comparing with other countries in EU such as
UK where the VAT level is 20% or in Hungary where the VAT percent is 27 because of the
low VAT level that can be found in Turkey it can allow the business to sell the prices a bit
lower than the business it is selling their products in UK because of the cheaper product cost
that Tesco it is selling it allows them to attract a higher number of customers because higher
number of people can have access to the business products so because of this factor it can
make Tesco to have a higher number of sales and because of this factor it is allowing the
business to have a high profit.
, Social factors that can be found in Turkey and can affect Tesco
Social factors can have an influence on international businesses which can depend on the
country that the business it is choosing to operate. The external social factors that are
influencing a business it is defined by the general population that can be found in that
country and because of the population the social factors can have an influence on the
business. A social factor that can influence Tesco if the business it is deciding to start
operate in Turkey can be religion and beliefs as the Turkish people are part of the Islam
religion and because of this factor alcohol drinks aren’t allowed to be sold in a high number
of because of this factor if Tesco would want to expand and start operating in Turkey they
need to do research on the drink that the business can sell and not in order to be a legal
running company and also to keep up with the religion and social factors that can be found
in Turkey.
Another social factors that can be a benefit for Tesco if they choose to operate in Turkey it is
the high population growth that can be found in this country, because of the high rate of
population can be an advantage for Tesco as they can reach to a high number of customers
which will allow the business to make a high number of sales therefore the business will be
able to break-even and make profit which is what any business would want.
Technological factors that can be found in Turkey and can affect Tesco
Technological factors can have a big impact on the business performance. The technological
changed are developing and changing very rapidly, because of this factor it will allow
companies to use high technology in order to develop new strategies and have a faster
producing line that can help businesses to operate much faster and produce a higher
number of products. The Turkish government has invested a lot of money in this factor and
order to keep up with other countries and because of this factor can be seen and
acceleration in the technological sector. By the end of 2023 turkey want to be one of the top
10 technological advances countries in the world because of this factor can be a benefit for
Tesco because the business can use a fast and reliable technology that it is implemented by
the Turkish government so because of this factor Tesco can benefit of an advanced
technology that can help the business communicate with other countries if the business
would want to import and exports goods especially imports in order to bring good quality
products on the Turkish marketplace in order to keep up with the business competitors that
can be found in Turkey the business can also can communicate easier with the shareholders
of the business and the external and internal stakeholders that the business has. Another
advantage that can be found in the Turkish marketplace and it can help Tesco it is the use of
automatic machines and robots that the business can use because of the high technological
level that can be found in this country. If Tesco it is using more robots and machines, they
can replace the unskilled employees and this can be an benefit as it will allows the business
to reduce the mistakes that the business it is making and also reduce the waste therefore
because of this factors the costs of the business will be reduce which will allows the
business to save more money and increase the profit of the business because of the less
waste level that the business will have.
Environment factors that can be found in Turkey and can affect Tesco
International businesses like Tesco can be affected by environmental factors depending on
the country that they want to start operating. There are couple of environmental issues that
Learning aim C: investigate the external factors that influence international business
Learning aim: investigate the cultural factors that influence international business
Title: External factors and cultural differences
in this assignment I will about Tesco and how external factors can affect the business and
influence the international trade and also investigate how different cultures that have an
impact on the business and the decision that are taken by Tesco when the business want to
expand in a different countries they have to look at different criteria’s that can influence the
business so Tesco needs to have a knowledge of the cultural factors that can influence the
business and the business needs to make sure that they have a good understanding in order
to be able to succeed in the specific countries that the business would like to expand and
start selling their products.
P5
Tesco
It is a worldwide business which it is leading the majority of the marketplace that the
business it is operating into. Tesco it is a retailer supermarket that can supply the business
customers with products from food to alcoholic drinks in order to be able to keep up with all
the customers demand and also in the business had such a big variety of products to make
sure every customer it is pleased with the products that the company it is offering.
External environment it is defined as the factors or different influences that can are
happening outside the business and can have an impact on the performance of the
business. In order for Tesco to decide if they should operate in a particular county, they can
look the factors that are external environment includes in order to analyse the external
factors for the two countries that Tesco would want to start to operate and expand their
business:
Political factors that can be found in Turkey and can affect Tesco
There are couple factors that that can affect a business as a political factor if they want to
trade in Turkey such as: tax regulations, government support and also trading blocs that can
have an impact on the trades that Tesco can made in Turkey.
After Turkey faces some political challenges back in 2016 the countries failed to help
businesses be able to survive and to operate so after 2016 a lot of businesses closed down
because of the political factors that happened in Turkey and also the terrorists attacks had
an impact on the political factors that can influence a business to start operating in Turkey.
Since 2016 Turkey make sure that the country can start being a safe land where people and
businesses will start to re-open in order to also help the economy of the country also,
Turkey it is now a relatively safe country for people to plan their holiday but also for the
businesses to start operating in Turkey. Another political factor that can influence Tesco to
start operating in Turkey is that the country has access to one of the largest markets in the
entire world and the freedom of movement so this can be a benefit for Tesco has they are
able to move the business goods freely which means the business will not pay taxes if they
want to trade. Another political factor that can be an advantages for Tesco it is that even
Turkey isn’t part of the EU but they have an agreement with EU to be able to export and
import internationally which can be an advantages for Tesco as they can import goods that
,they can bring for the Turkish market place but also the business can import goods from
Turkey in other countries where Tesco it is operating in order to have a larger production
access for the business customers in order for the business to have a larger varieties of
products where they can pick from in order to keep up with customers wants and the
demand that it is asked from the business customers. Another reason why Tesco can start
operating in Turkey because of the high population number that can be found in Turkey
which is around 84 million people because of this factor can be an advantage for Tesco as
the business can attract a high number of customers because of the high population number
that can be found in Turkey.
Because of the arrangement with EU trading blocs can have an impact on Tesco
performance because it allows the business to get raw materials or products that can be
bring from another country in Turkey, because of this factor it allows the business to keep
their prices quite low which means that the business can attract a higher number of
customers because of the prices that are set by Tesco which can result for the business to
increase the number of customers that the business has as the customers want cheap
products that they can purchase.
Economic factors that can be found in Turkey and can affect Tesco
Turkey it is now an upper-middle country for the income that Turkey has because of this
factor can allow Tesco to start operating in this country because the economy of Turkey it is
very stable to it will make sure that the business will be able to operate without economic
issues that a country has so because Turkey it is a stable country for their economy it allows
Tesco to be able to operate in Turkey without any issues and no taking many risks if they
want to operate in this country. Turkey it is also one of the largest EU largest trading
partner when it comes to import and export because of this economic factor can be an
advantage for Tesco as they can import and export goods in order to make the market place
for Turkey very successful because of the high number of new products that they can bring
into the Turkish market place in order to attract products and also because the business can
have a high rate of imports Tesco can bring high quality products that can’t be found in
Turkey in order to keep up with the customers demand and wants therefore the business
can have a high number of sales which can allows the business to make profit. Another
advantage because Tesco can have a high number of imports the business can bring raw
materials and products cheaper from other countries because of the exchange rate so even
if the importing costs will be higher the margin costs will be reduce because of the cheap
materials that the business it is getting from other country.
Another economic factor that can affect a business can be the different levels of taxes that
needs to pay in every country where a business it is operating into. The level of VAT needs
to be paid in every country but the level that needs to be paid in different countries can vary
and also can be different by the different types of goods that are sold. The VAT that it is paid
in Turkey it is now 18% which can be very low comparing with other countries in EU such as
UK where the VAT level is 20% or in Hungary where the VAT percent is 27 because of the
low VAT level that can be found in Turkey it can allow the business to sell the prices a bit
lower than the business it is selling their products in UK because of the cheaper product cost
that Tesco it is selling it allows them to attract a higher number of customers because higher
number of people can have access to the business products so because of this factor it can
make Tesco to have a higher number of sales and because of this factor it is allowing the
business to have a high profit.
, Social factors that can be found in Turkey and can affect Tesco
Social factors can have an influence on international businesses which can depend on the
country that the business it is choosing to operate. The external social factors that are
influencing a business it is defined by the general population that can be found in that
country and because of the population the social factors can have an influence on the
business. A social factor that can influence Tesco if the business it is deciding to start
operate in Turkey can be religion and beliefs as the Turkish people are part of the Islam
religion and because of this factor alcohol drinks aren’t allowed to be sold in a high number
of because of this factor if Tesco would want to expand and start operating in Turkey they
need to do research on the drink that the business can sell and not in order to be a legal
running company and also to keep up with the religion and social factors that can be found
in Turkey.
Another social factors that can be a benefit for Tesco if they choose to operate in Turkey it is
the high population growth that can be found in this country, because of the high rate of
population can be an advantage for Tesco as they can reach to a high number of customers
which will allow the business to make a high number of sales therefore the business will be
able to break-even and make profit which is what any business would want.
Technological factors that can be found in Turkey and can affect Tesco
Technological factors can have a big impact on the business performance. The technological
changed are developing and changing very rapidly, because of this factor it will allow
companies to use high technology in order to develop new strategies and have a faster
producing line that can help businesses to operate much faster and produce a higher
number of products. The Turkish government has invested a lot of money in this factor and
order to keep up with other countries and because of this factor can be seen and
acceleration in the technological sector. By the end of 2023 turkey want to be one of the top
10 technological advances countries in the world because of this factor can be a benefit for
Tesco because the business can use a fast and reliable technology that it is implemented by
the Turkish government so because of this factor Tesco can benefit of an advanced
technology that can help the business communicate with other countries if the business
would want to import and exports goods especially imports in order to bring good quality
products on the Turkish marketplace in order to keep up with the business competitors that
can be found in Turkey the business can also can communicate easier with the shareholders
of the business and the external and internal stakeholders that the business has. Another
advantage that can be found in the Turkish marketplace and it can help Tesco it is the use of
automatic machines and robots that the business can use because of the high technological
level that can be found in this country. If Tesco it is using more robots and machines, they
can replace the unskilled employees and this can be an benefit as it will allows the business
to reduce the mistakes that the business it is making and also reduce the waste therefore
because of this factors the costs of the business will be reduce which will allows the
business to save more money and increase the profit of the business because of the less
waste level that the business will have.
Environment factors that can be found in Turkey and can affect Tesco
International businesses like Tesco can be affected by environmental factors depending on
the country that they want to start operating. There are couple of environmental issues that
