Name: Unit 5 - Assignment 1
DISCLAIMER: If you’re going to copy and paste my work, I suggest you get a
paraphrasing tool to re-word so that you don’t get caught with plagiarism
and also shift the paragraph so it doesn’t look identical to mine and also do
not share this specific work with another classmate.
Unit 5 - Explore the international context for business operations
P1: Explain why two businesses operate in contrasting international markets
Main types of international business
Exporting Business – Businesses that sell their goods and services to other
customers are exporting them – they are producing them in one country and
shipping them to another.
Importing Business – They bring the goods from one country for the purpose
of reselling them in another country. When it comes to sourcing products to
sell, for many products, foreign sources of supply can provide higher quality,
lower costs, or some other desirable feature in comparison to US sources.
Multinational Business – It is a business organisation that operates in several
countries and the organisational form that defines foreign direct investment.
Associated Business – This is when a business is associated with another
business at a particular time, during that time or at any other time within the
preceding 12 months. One business has control of the other. Examples would
be logistics, haulage, marketing and insurance.
Tesco
Tesco is a multinational grocery and merchandise retailer and their main
headquarters is located in Welwyn Garden City in Hertfordshire in the United
Kingdom. It is the largest retailer in the world measured by profits and also the
9 largest retailer measured by revenues. It operates in 10 countries according
th
to their website and these countries include the United Kingdom, China, India,
Hungary, Poland and Slovakia.
McDonalds
McDonalds is an American fast-food company that was found 1940 as a
restaurant operated by Richard and Maurice McDonald in California, United
States. They rechristened their business as a hamburger stand but then turned
,Name: Unit 5 - Assignment 1
the company into a franchise with the Golden Arches logo being introduced in
1953 at a location in Phoenix Arizona.
Growth
Business growth can be achieved by either by boosting the income of the
business by producing a high amount of sales or service income. Growth makes
it easier to acquire new assets, attract new talent and fund investments.
Tesco recorded its strongest growth in seven years, boosted by its acquisition
of the Booker cash and carry group. It has also been said that the UK and Irish
sales increased by 3.5% in the most recent three months, which meant it was
their 10 consecutive quarter of growth. Also, by introducing other new stores
th
across the country it increases the growth for Tesco as they are planning to
add 30 more new stores in the UK which currently 691 stores operating.
McDonalds generic strategy determines its basic approach to developing its
business and competitive advantage. As the biggest fast food restaurant chain
in the world, McDonalds uses it’s sensitive growth strategies to support
continued business development and expansion.
Additional Revenue Streams
It is a source of revenue for a business. A revenue can generally be made of
either recurring revenue, transaction based revenue and service revenue.
Tesco is aiming to grab another £2.5bn of sales in the UK as it teams up with
wholesaler Booker to sell its product to independent corner shops, restaurants
and café. The UK biggest supermarket unveiled the plan as it announced a 28%
increase in operating profits which was bolstered by better than expected sales
growth in the last three months of its financial year. It was also said that Tesco
made a pretax profit before exceptional items of £1.64bn in the year to 24 th
February as total group sales went up to 2.8% which led to £57.5bn. The sales
that were established in the UK and Ireland stores increased to 2.4% in the
final quarter, which is slightly ahead of the 2.2% expected by data analysts.
Tesco makes their revenue from goods or services because they gain their
revenue by selling products within the store as well as providing services to
their customers.
, Name: Unit 5 - Assignment 1
No company has used their income base as a tool for developing new business
ventures than the McDonald's corporation. McDonalds offers a consistent
product from an efficient assembly line whose invention did for the industry
what Henry Ford did for the auto industry. Majority of McDonald's profit
comes from not only food sales but also through Real Estate.
Brand Exploitation
When you have identified, valued, and protected your brands, the business is
then able to be able to exploit the potential in those brands. For example,
treating Advertising as an investment rather than an expense as a brand should
increase value through use.
The Tesco brand is synonymous with shopping in the UK. After questionable
investment decisions and multiple scandals rocked the business in 2013 and
2014, the business began facing unprecedented quarterly losses. Consumer
confidence in the brand plummeted and sales began to reflect that new reality.
The business began to try out a new form of marketing – humour – in its
Christmas commercial campaigns. With Tesco using previous commercial
actors in a new setting, the business was able to keep a familiar spirit around a
new concept.
The main thing that McDonalds always get right with their branding is
managing to appeal to their target audience. With the creation of the happy
meals and the iconic figure of Ronald McDonald it’s been clear for decades that
McDonalds has been marketed towards children and it has worked.
Access to New Markets
By entering a new market with a new product or service this means that
customers have a wider access to a wider range of products to choose from.
This could lead to better quality or just different to home brands.
Tesco has been able to strengthen and expand into new markets by showing
sales growth in South Korea which is their biggest market outside Britain as
well as increasing sales in China, Thailand and India. In China and Thailand the
sales went up by 8.3% and 3.4% in the same period, down from 9.3% and 4.8%
growth respectively in the second quarter while underlying sales in Malaysia
were up by 0.5% following a second quarter decline of 2%.
DISCLAIMER: If you’re going to copy and paste my work, I suggest you get a
paraphrasing tool to re-word so that you don’t get caught with plagiarism
and also shift the paragraph so it doesn’t look identical to mine and also do
not share this specific work with another classmate.
Unit 5 - Explore the international context for business operations
P1: Explain why two businesses operate in contrasting international markets
Main types of international business
Exporting Business – Businesses that sell their goods and services to other
customers are exporting them – they are producing them in one country and
shipping them to another.
Importing Business – They bring the goods from one country for the purpose
of reselling them in another country. When it comes to sourcing products to
sell, for many products, foreign sources of supply can provide higher quality,
lower costs, or some other desirable feature in comparison to US sources.
Multinational Business – It is a business organisation that operates in several
countries and the organisational form that defines foreign direct investment.
Associated Business – This is when a business is associated with another
business at a particular time, during that time or at any other time within the
preceding 12 months. One business has control of the other. Examples would
be logistics, haulage, marketing and insurance.
Tesco
Tesco is a multinational grocery and merchandise retailer and their main
headquarters is located in Welwyn Garden City in Hertfordshire in the United
Kingdom. It is the largest retailer in the world measured by profits and also the
9 largest retailer measured by revenues. It operates in 10 countries according
th
to their website and these countries include the United Kingdom, China, India,
Hungary, Poland and Slovakia.
McDonalds
McDonalds is an American fast-food company that was found 1940 as a
restaurant operated by Richard and Maurice McDonald in California, United
States. They rechristened their business as a hamburger stand but then turned
,Name: Unit 5 - Assignment 1
the company into a franchise with the Golden Arches logo being introduced in
1953 at a location in Phoenix Arizona.
Growth
Business growth can be achieved by either by boosting the income of the
business by producing a high amount of sales or service income. Growth makes
it easier to acquire new assets, attract new talent and fund investments.
Tesco recorded its strongest growth in seven years, boosted by its acquisition
of the Booker cash and carry group. It has also been said that the UK and Irish
sales increased by 3.5% in the most recent three months, which meant it was
their 10 consecutive quarter of growth. Also, by introducing other new stores
th
across the country it increases the growth for Tesco as they are planning to
add 30 more new stores in the UK which currently 691 stores operating.
McDonalds generic strategy determines its basic approach to developing its
business and competitive advantage. As the biggest fast food restaurant chain
in the world, McDonalds uses it’s sensitive growth strategies to support
continued business development and expansion.
Additional Revenue Streams
It is a source of revenue for a business. A revenue can generally be made of
either recurring revenue, transaction based revenue and service revenue.
Tesco is aiming to grab another £2.5bn of sales in the UK as it teams up with
wholesaler Booker to sell its product to independent corner shops, restaurants
and café. The UK biggest supermarket unveiled the plan as it announced a 28%
increase in operating profits which was bolstered by better than expected sales
growth in the last three months of its financial year. It was also said that Tesco
made a pretax profit before exceptional items of £1.64bn in the year to 24 th
February as total group sales went up to 2.8% which led to £57.5bn. The sales
that were established in the UK and Ireland stores increased to 2.4% in the
final quarter, which is slightly ahead of the 2.2% expected by data analysts.
Tesco makes their revenue from goods or services because they gain their
revenue by selling products within the store as well as providing services to
their customers.
, Name: Unit 5 - Assignment 1
No company has used their income base as a tool for developing new business
ventures than the McDonald's corporation. McDonalds offers a consistent
product from an efficient assembly line whose invention did for the industry
what Henry Ford did for the auto industry. Majority of McDonald's profit
comes from not only food sales but also through Real Estate.
Brand Exploitation
When you have identified, valued, and protected your brands, the business is
then able to be able to exploit the potential in those brands. For example,
treating Advertising as an investment rather than an expense as a brand should
increase value through use.
The Tesco brand is synonymous with shopping in the UK. After questionable
investment decisions and multiple scandals rocked the business in 2013 and
2014, the business began facing unprecedented quarterly losses. Consumer
confidence in the brand plummeted and sales began to reflect that new reality.
The business began to try out a new form of marketing – humour – in its
Christmas commercial campaigns. With Tesco using previous commercial
actors in a new setting, the business was able to keep a familiar spirit around a
new concept.
The main thing that McDonalds always get right with their branding is
managing to appeal to their target audience. With the creation of the happy
meals and the iconic figure of Ronald McDonald it’s been clear for decades that
McDonalds has been marketed towards children and it has worked.
Access to New Markets
By entering a new market with a new product or service this means that
customers have a wider access to a wider range of products to choose from.
This could lead to better quality or just different to home brands.
Tesco has been able to strengthen and expand into new markets by showing
sales growth in South Korea which is their biggest market outside Britain as
well as increasing sales in China, Thailand and India. In China and Thailand the
sales went up by 8.3% and 3.4% in the same period, down from 9.3% and 4.8%
growth respectively in the second quarter while underlying sales in Malaysia
were up by 0.5% following a second quarter decline of 2%.
