International Business - Global Marketplace Case Study

International Business - Global Marketplace - Case Study Example Going international at times looks logical when we look at these pull factors. Economists are not in agreement as to a common definition of multinational or transnational enterprises (MNE/TNC). Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural, etc.) (Root. 1994, Hill, 2007). According to Hill (2007), a global enterprise (or transnational corporation) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. Most multinationals have budgets that exceed those of many countries (Hill 2007). This paper is aimed at analyzing and discussing the potential impacts of globalization on a chosen multinational. The first part of the paper presents activities of Tesco, the second part looks on the positive impact of globalization on Tesco, the third sections focuses on the negative impact of gobalisation on Tesco while the last section presents the conclusion. 1.1 Overview of the Company in Question-Tesco Founded by Jack Cohen in 1919, Tesco Plc has come a long way and has established itself as the largest super store in Europe. At the turn of the century, Tesco became very proactive in coming up to the requirements of the new ear and tesco.com was launched, followed by aggressive entry into international markets like Malaysia, Japan & Turkey, China & the US. Today, the international operations of Tesco yield more profit as compared to the profits in the Europe market. More than half of Tesco's selling space is in markets outside Europe (Tesco Review 2007). The Tesco Plc website states "shareholders. Today the Group operates in 12 markets outside the UK, in Europe, Asia and North America. Over 160,000 employees... As the report declares recent changes in the international market scene, politics and environment have forced companies in the quest and optimisation of various options. With the rational ranging from optimisation of resources, being more responsive with the various stakeholders and keeping the pace of learning and employees development in their world wide operations. According to the report findings it is clear that moving global, shouldn’t be an overnight decision in multinational enterprises. Such a move should be carefully given a second thought, as it involves not only a total strategic reorientation but a major change in an organisations capabilities, resources and challenges. Companies going global should be able to face the challenges of thinking globally and implementing locally. There is no doubt operating internationally rather than domestically presents organisations with many new opportunities. From access to new markets, tactical and strategical positioning to a pool of information for subsequent product development. Going international at times looks logical when we look at these pull factors. Tesco denotes its success to an aggressive global strategy of geographic diversification. In its attempt to renew the brand and keep it in sync with changing customer tastes and keeping up the growth figures in future, Tesco follows various strategies including international diversification, providing value to customers, product diversification, innovation, and umbrella branding.