P1 Unit 39 Essay

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In this assignment I will be explaining the international business environment in which a selected organisation operates. I will use Tesco operating in South Korea as my case study, ill will draw up a PESTLE analyse to describe all the factors that would affect Tesco in South -Korea. When companies begin to dominate the local market most of the time they would want to expand their horizons to the outside world where it could either make great strides or horrible losses. Tesco PLC is a British multinational grocery and general merchandise retailer headquartered in Cheshunt ,Hertfordshire .It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the Malaysia, the Republic of Ireland and Thailand. The success of this company has been brought about by careful analysis of the country it intends to operate in. Reasons being for every business that wishes to go international and wanting to expand are Survival, Core competency, globalisation and maximisation of profits/resources. .Learning the culture and way of life of the people is of upmost importance as to be alert not to offend any body’s beliefs or traditions and making sure that your product/service is in Demand as to avoid suffering potential losses in foreign investments. To see how businesses cope with these problems we shall see how the P.E.S.T. analysis plays a vital role in assessing the countries current situation. The political risks are whether the country has a favourable trade environment, meaning that there is no discrimination between people like gender, religion, etc. and they have few regulatory hurdles and little or no beurocracy that the business have to have to enter in a different count * The ownership risks are where the owners and managers of the company have to be sure that they want to go international. The risks for the owners are very

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