(TESC0 expansion) to South Africa

Assessment Scenario

Assume you are working at (TESCO – UNITED KINDOM -Retail food industry) and your position is in corporate strategy, so (TESCO) is seeking to expand into South Africa.

Assignment is 4000 word, divided into section.

please follow this instructions carefully and the core report should include the following as heeding.

1- executive summery ( I recommend it after you Finnish the assignment ) because it is summary of the main content, finding, recommendation, conclusion, so the executive summery should contain enough information for the reader on what is discussed in the full report (not more than 400 word).

2- Introduction – a brief introduction starting what the report will cover (200 word)

3- use the three following quotations and please translate them into your own word and analyse the strength and weakness of the (TESCO) (300 word)

-First Quote is a brief introduction on (TESCO)
"TSCO is the UK based MNE, it is one of the world largest retail sector and it operate in as international industry in many countries across the globe and it employing around 400000 people, TSCO has grown significantly across the globe by benefiting from the expansion it foreign retail grocery market"

SOWT Analysis on TESCO

– strength
– second Quote about (TESCO strength)
" on the the greatest strength for TESCO is achieving sustainable business development model overs the years through diversification into new geographies and value oriented retailing, tosco operate in countries which have good economic grows, which contribute at least 50% of GDP"

– Weakness
– third Quote is about (TESCO weakness)

"TESCO has been effected badly with house meet scandal, and it has recall it product many time, specifically the company had recalled the Value Burger many time due to contamination with hours meet. TESCO operations in united State suffered huge losses, effected by the poor performance in the country"

-4-using Five forces Analyse, please analyse the business environment of South Africa. please Translate the following four Quotations to you Own word . ( 300)

Five Forces a analysis

– Fist Quote – (Supplier Power)

"the relationship between supplier change and the retails industries
is excellent, this mean the risk of bargaining power os supplier is minimised, always the large retailer in South Africa they build a good supply chain with a great deal of freedom that help to offset the dangers of local sourcing problem or price fluctuations"

Second Quote – (Barrier to entry)

"entry to the market is not impossible, so the new entrance are always encourage by low entry cost and low exit cost"

PEST analysis of South Africa

third Quote – (Political )

"since 1994 the Republic South Africa has been able to maintain political stability, so the country transformed into democratic system which brought consecutive democratic government"

fourth Quote – (economical Aspect)

"despite the economic resection the country has enjoyed economic growth started in 2010
and 2011, the growth rate recored at this period was 2.89% and 3.46%"

-5- food industry analysis empirical research evidence, finding, ( 300) word)

6- Mode of entry and recommendations
– this is the substantive core of the report, using only Dunning mode of entry for foreign market service Strategy justify your choice and recommendations in (2000 word) please address the following point .

According to dunning "foreign direct investment occur will occur when three conditions are satisfied, ownership advantage ,locational advantage, and internalization advantage."

-instruction address the following point-
-Point 1- the ownership advantage of (Tosco in term of financial, competitive advantage
– Point 2- Locational advantage of South Africa, the key strength GDP on the country and power of the consumer purchases

– Point 3- internalisation advantage

– point 4- chose Direct exporting as foreign market strategy and justified-with the following advantages –

the advantage of exporting
– Low financial exposure, its less risky and not costly
-gradual market enter
-exporting Acquire knowledge, it allow to the firm acquire knowledge of local market
-exporting will Avoid restriction on foreign investment. the company strategy should focus on the strategy has not lthe strategic postion of the

7- finally a short conclusion – re – starting key point (200 word).

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