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Global Corporate Strategies

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A Brief Study of Tesco

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Introduction

Global corporate strategies means to adopt new methods and techniques to develop their business in the effective manner. In the global level many companies are apply effective method to develop their develop earn profit and also increase economic scale of the country. Tesco and M&S both are the retail company those are provide all kind of products and services to customers and already build effective and brand image in the market to achieve the objectives and goals of the business(Hillier, Grinblatt and Titman 2011).To increase profit and diversify risk of the business so company will apply some methods like merger and acquisition and strategies alliances all in these methods are two or more parties are merge together to earn mutual profits and benefits related to the business. In these methods mutually divide all risk and profits relating to the business. All kind of business have some responsibilities to develop their business and earn profits as well as do some social benefits to the society just like provide security and safety, to their welfare activities and programmes those help to develop society and their standard of living. In the other hand, global corporate strategies are help to develop business industries with new and innovative ideas and view. To increase production and build a brand image so there are using some technologies and strategies to achieve the targets and goals of the business. In the market there many competitors are beat each other and build a effective image in the market and also in the customers mind in which customers wants something new like innovative products to satisfied needs and wants. Merger and acquisition and strategic alliances in which two or more parties are work together to earn profits and diversify the risk of the business and start a new company with new name.

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Question 1.

Tesco is an international company in UK which provide retails goods to their customers. Tesco wants to expand its market in the whole world for this purpose they make strategies for their business. For this purpose they do SWOT analysis to find out their strength, weakness, opportunities and threats. The SWOT analysis is described as below:

Strength: Tesco is very popular in the UK economy and they also provide satisfaction to their customers properly. They also use better marketing strategies for their products and services. They are also very flexible and adopt the changes quickly. They provide goods to their customers at reasonable prices and of best quality (Rothaermel 2015).

They use new processes and technologies to produce their products and services that also helps to earn them more profits in the market and they can also take advantage from their competitors. They have also brand loyalty and they also sell their products online to their customers. They also improve their technology according to the needs. They are very familiar from the market of UK.

Weakness: They also has weakness so they need to overcome from these weaknesses. Their distribution channel of their products and services is not much effective. So they need to improve their distribution channel to compete their competitors. Also some of the goods are very expensive and cannot sold out too much so they can remove those products from the market. They also struggle in the non-food sector but they are specialists in other sectors such as food sectors, electrical products etc.

Tesco is a company of public sector so that they need to spend much money in the expansion of UK market(Peng 2013). They can overcome from their weakness by take opportunities over them. They are very much depend on the small retailers to fulfil their resources. They do not have proper human resource for their business.

Opportunities: Tesco also has many opportunities in the market that they can take from the market. They can also take investment from the other countries that will help in their development. They also provide home delivery to their customers so that it will help them to achieve the customers loyalty.

Tesco also sell their products online that is food and non-food products. They continuously increase their sales so that it will help them to achieve the more profits. They also have opportunity to enter in various market so that it will help them in development and growth.

Threat: They have threat from their competitors who produce same type of products and also provide goods and services to the people of the country. If they rise in their price of their products then it may lead the lower profits of the company. Every people of the country always attracts towards the new products which are of best quality. So if Tesco want to overcome fro their threats then they need to make strong position in the market.

They also need to provide products and services of best quality to their customers at a reasonable prices. Local consumers are very well familiar from the products and services of the Tesco company. If Tesco take their threats as an adventure then it will help to overcome. The supply power of their product is very low so that they cannot fulfil the demand of their customers timely so competitors can take advantage of this (Cornelissen 2014).

It is essential for a business organization is that to use various aspects in order to achieve organizational goals and objectives in an effective manner. For this the firm is required to use a strategic choice which h can help to implement their activities to deliver their vision. A strategic portfolio management is a systematic process which helps to deciding organizational resources to meet their strategic objectives in an effective manner. In the context of Marks and Spenser which is one of the leading company required that to use various tools and techniques in order to attain their desired goals and objectives. According to the annual report of the cited business organization they focused on the various aspects which can help to improve their business performance. for example, retail industry is one of the competitive sector in the United Kingdom. So that the profitability and market share are going down which needs to be focused in an effective manner. The higher authorities required that to expand their business which can help to maintain their profitability in an effective manner.

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Question 2.Retail internationalisation: Strategic alliances, M&As

Strategic alliances are refers to when two or more parties are merge with each other to earn higher profits and develop their business to that's called strategies alliances. In which two or mare parties working together to earn profits and there are all partners are mutually working with each other’s and divide profits and losses with each other. In which mutually divide fund, capital, resources etc. by the partners (Brondoni 2012).

In the other hand, strategies alliances are create when two or more parties want to work together to earn mutual benefits and profits by the business. Strategies alliances are legal but it is less than joint venture because there are two or more parties are work together not for permanent in the future they are working for earn profits and benefits. Merger and acquisition(M&A) in which two or more companies financially to purchase their company and start a new company with new name and with new objectives and goals.

Merger in which mainly two or more companies are merge together for start a new company with new and innovative ideas views those help to build a brand image in the market and help to achieve decided targets and goals of the business. In which all parties are working together for mutual benefits but they are start a new company with new name. To the merger have to made a legal agreement under the legal law and act of this department and should take permission to the government.

On the other hand, acquisition is one company take over on the other company and continuously working in that company by the acquire person. M&A is the most powerful aspects in the financially corporate world in which two or more companies are working together to their mutual benefits and start anew business.
All these aspects of main aims and objectives are wealth maximization, earn higher profits, build a market image and provide better and effective innovative product and services to customers (Ameer and Othman 2012). Through these financially aspects increase economic scale of the country, diversification growth of the products and services and also diversify risk and chance of loss in the business.

All these are help to increase market share of the business and change the techniques and strategies to produce effective products and services. In the other hand, all these are help to develop business in the systematic a manner and help to build a market image to use new and innovative techniques and strategies to produce product services to their customers.

Merger and acquisition in all terms are legal in the country because in which two or more companies are come together legally and made a legal agreement. So there are follow some rules and regulations those are regulated by government of country. If in case there are not legal agreement so all illegal according to the government.
Tesco is the retail chain that want to start business with M&S. This company provide all type of products and services to customers and already build a effective image in the market and also in the customers mind.

These both are retail companies in the UK market (Torres,2012). These want to develop their business and increase market share of the company so according to this situation merger and acquisition is the best solution to both company. In which both are start are new company with new name. In this aspect of finance develop a new company to build a new innovative image in the market and increase market share and also increase economic share of the country.

Mergers and acquisition having some advantages and disadvantages to the develop a new business with new and innovative ideas. There are some advantages those are help to develop business like: when two or more companies are merge together so those companies of power and control are mutually merge and help to develop market share of the company. Through the merger and acquisition diversify risk of the business. Its help to increase economic scale of the business (Zott and Amit, 2010).

In addition, it also develop technology departments to produce new and innovative products to the customers. Merger and acquisition of main benefit is tax benefits in this aspect of finance tax saving method to merger companies and start a new company with new name. In the other hand, there are some disadvantages those are harmful for both parties like: mergers and acquisition method in loss experience with both parties and have to share all knowledge and techniques with each other so there are loss experience of the parties.

In this method company will facing many difficulties and issues to start a new company also there are increase cost to develop business and their productions and there are using some new and innovative techniques in which have to invest money to develop business and achieve objectives and goals (Milne and Gray 2013.).
In the other hand, merger and acquisition is the financial aspects in which Tesco and M&S to develop their business so that will merge and acquisition method will apply to develop business.

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Question 3.Corporate governance:

The BHS company determine the corporate governance for the decision making process and also define the many rules and regulation in the organisation. This governance determine the many policy of the decision making process.

It also determine the company profile and performance in the organisation. This organisation developing the rules and regulation related to the work environment. This governance determine the company manager, director and other stakeholder in the organisation. This governance taking the profile of the company.This governance provide the best rules and regulation related to the product services and evaluating the best sources in the way of the product. The governance also determine the budget and profile of the company (Crittenden 2011). The budget is create the company overview related to the another company.

This governance evaluating the many factor relating to the social factor, economic factor and organisation factor. Decision making process developing the company goals and objectives and create the best and innovative plan related to the BHS company. This company applying the many strategy of the government rules. This rules take the best process of the product manufacturing. The government evaluating the many research of the customer satisfaction and dissatisfaction and also evaluating the company data.
Corporate social responsibility: This responsibility determine the self-regulation system in the organisation. This responsibility determine the moral and standards of the social factor. The CSR making the slandered of the national and international objectives. The company provide the many facility related to the new product and new product development (Cooke and Saini, 2010).

This is also define the small scale industry and provide the small industry also define the long term relationship for the industry and governance. This responsibility determine the company employees size and their personality. This is also making the best decision and create the management process related to the product. The BHS company provide the human resources management process in the organisation, (Compact 2013). This process setting the new employees entry in the company.

The company also provide the level of the organisation person. The small level and the median level. The small level organisation apply the CSR process in the organisation and medium level organisation taking the best plan and innovative ideas. This responsibility have own authority and making the data and development process. This is provide the supply chain management. The supply chain determine the relationship between the company employees and target customers (Vogel, 2010).

Leadership: The leadership create the company structure and evaluating the vision and mission. Leadership also define the company manager. This term refer to the best plan and innovative ideas. The BHS company leadership create the human resources management. This process also define the selection and recruitment process of the new employees.This process provide the human satisfaction and their product productivity. The leadership also very important in the motivation, co-ordination. The leader of the company provide the organisation objectives and goals. It also create the best structure of the organisation. Leadership making the best decision in the different situation and provide the alternative resources in the organisation (Stahl and et. al., 2012).

The leadership also determine their profile and taking the marketing mix strategy. This strategy also determine the promotion techniques including the sales promotion, personal selling, advertisement, sponsorship, online and direct marketing and also evaluating the packing process in the market related to the product. The leadership as a friend and making the best sources and alternatives plan in the organisation.The leader of the BHS company is an intelligent and create the best skill and knowledge related to the product. Case study define the role of the leader in the organisation. The role create the management process of the product (Weltzien Høivik and Shankar, 2011).

Competitiveness: The company use the many competitiveness related to their product and setting the best product in the organisation. This is determine the company position in the market. The company use the many sources to developing their product and services. Company reduce the cost of the product and increasing the profitability ratio of the product. This is determine the many sector and sub sector this sector provide the goods and services of the supply and taking the alternative resources in the organisation. Company increase the brand of the product. This brand determine the best product and services in the organisation. Company also provide the pre purchasing process and post purchases process. The comparative process determine the product competitor availability in the market and making the best branded product. This is also create the organisation goals and objectives (Milne, M.J. and Gray,2013.).

Question 4.Impact of the global retail industry competition

At present time market take place on global level. Many manufacturing and the other companies deal on the global level. Market refers a slogan on the broad level which is “Each for everyone and every one for each”.

Increase Competition:- All the company have to face more and more competition on the broad and global level. Market is same for all on the global level. Customer have many option on global level. Customer can easily select the right product.

Perfect competition market:- If any company do business on global level so company is working in perfect competition market. Perfect competition market said that a organisation should make the strategic strategy to manage product on global level ( Ameer and Othman 2012 ).

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Key benefits and limitations of the portfolio and integrated organisation perspectives

A portfolio is not the collection of projects. It refers that terms which help to organisation to transform the business on global level. Company make strategy to achieve the organisation goal and objective and use all the thing in a portfolio.

  • Portfolio help to manage the work of organisation.
  • It is easy to conduct and upper level management can manage it.
  • Many times portfolio does not provide the information related to organisation.
  • Many times portfolio does not provide the fully information related to the organisation.
  • Portfolio fails to save the cost of portfolio. Its increase the cost of organisation.

Merits and demerits of choosing strategic alliances

There are many merits and demerits choosing the strategic alliances:-

  • It is helpful to provide the supplementary services (Becker-Olsen and et.al, 2011).
  • It is helpful to provide the new market opportunity for new marketers.
  • It helpful to increase the brand name, brand loyalty and brand awareness in market.
  • It provide the useful information and help to select the right partner for firm or organisation.
  • Its unable to save time and consume more time to manage the work.
  • It is unable to provide the reliable result for organisation.
  • It is take more cost comparison of other.

Role of corporate leadership profitability through responsible policies and practices

  • A corporate leader play a motivator role in organisation to motivate the team.
  • Corporate leader help to solve the problem in organisation.
  • Corporate leader work as a policy enforcer.
  • Corporate leader mange the team work and help to increase the profit in organisation.
  • Corporate leader should be a positive thinker who can manage the any situation with the great decision power.

CONCLUSION

Above information and given report tell about the leadership style in organisation and how the leader mange the work in organisation. At present time many company deal on the broad and global level. Company deal with other company on global level. Global marketing increasingly very fast and all the competitors want to sale its product in more and more quantity. Company hire the leader to manage the team work and make the strong strategy to do work and achieve the organisation goal and objective. A corporate leader is the bone of organisation which provide the many information and help organisation top get the mission of organisation. There is too much competition on global market.

REFERENCES

  • Adriana, B., 2009. Environmental supply chain management in tourism: The case of large tour operators. Journal of Cleaner Production. 17(16). pp.1385-1392.
  • Andriotis, K., Agiomirgianakis, G. and Mihiotis, A., 2008. Measuring tourist satisfaction: A factor-cluster segmentation approach. Journal of Vacation Marketing. 14(3). pp.221-235.
  • Ateljevic, J., 2007. Small tourism firms and management practices in New Zealand: the Centre Stage Macro Region. Tourism Management. 28(1). pp.307-316.
  • Barnes, D., 2008. Operations management: an international perspective. Cengage Learning EMEA.
  • Buckley, R., 2007. Adventure tourism products: Price, duration, size, skill, remoteness. Tourism management. 28(6). pp.1428-1433.
  • Buckley, R., 2011. Tourism and environment. Annual Review of Environment and Resources. 36. pp.397-416.
  • Cochrane, J. and Tapper, R., 2006. Tourism’s contribution to World Heritage Site management. Managing world heritage sites. pp.97-109.
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