Free Samples
IBUS90003 Issues In Managing The Multinationals
.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}
IBUS90003 Issues In Managing The Multinationals
0 Download5 Pages / 1,015 Words
Course Code: IBUS90003
University: The University Of Melbourne
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Question
Select an MNE to study. Provide one example of competitive advantage of the MNE and address the following points:
Which of the three sources of competitive advantage (national differences, scale economics, and scope economies) does this example demonstrate? Make sure you include an explanation of why you think so.
Which of the three strategic objectives (achieving efficiency, managing risks, and innovation, learning, and adaptation) does this example address? Make sure you include an explanation of why you think so.
Please refrain from choosing an MNE that we have discussed in class
The essay should be clear and concise introductory statement that addresses the issues in the question appropriately. The essay should have a concluding statement that summarises the main messages of the essay
Answer
Introduction
The purpose of this study is that analyze competitive advantage of one of the multinational enterprises in the globe. Competitive advantage signifies the recognition that the enterprise delivers quality goods at lower cost or provides services at higher value than competitors (Amini et al., 2012). The selected MNEs for this study is Tesco Plc that deals in the retail industry in supermarket operation chain across the globe. The study focuses on the main source of competitive advantage for Tesco Plc. The strategic objectives that this enterprise addresses is also highlighted in this study.
About Tesco Plc
Tesco plc is one of the UK- based retailing organization that supplies consumers with groceries and other services. The company has near around 476000 employees and 6553 stores worldwide. The stores of Tesco ranges from Tesco Express, Tesco metro and Tesco petrol stations. The core purpose of Tesco Plc is to offer their customers proper service in order to help them enjoy better way of living (Core Purpose and Values., 2018). The enterprise also believes in providing their consumers with the reward systems to attain their loyalty and trust. Tesco plc’s business strategy is to experiment with different aspects of business and attain competitive advantage over their rivalries.
Example of competitive advantage of Tesco
Tesco introduced 24 hours of shopping experience to their customers and at present it has several of Click and Collect points across the nation. In addition to this, their distribution system also helps Tesco to gain competitive advantage (Schaltegger, Lüdeke-Freund & Hansen, 2012). Even with the advanced supply chain system across the globe, they have the ability to deliver right good to right store at appropriate time in timely and cost –effective manner. This helps the enterprise to sustain the business by integrating diversified and value- oriented approach in retailing.
Source of competitive advantage of Tesco Plc
Tesco has attained bench mark of high profits through proper customer service, high product quality and low product cost. The company’s competitive advantage makes commodity preferable over other products by the customers. One of the major source of competitive advantage of this company is economics of scale owing to its huge scale of business operations (Barney, 2012). Economies of scale refers to the cost advantages which the companies attain owing to their scale of business operation along with cost per unit of total output declining with increasing scale. As their businesses grow and output increase, they benefits from declining in average production cost. The total cost of producing products increases with rise in output but its cost of manufacturing per unit decreases as output increases. The economies of scale of this company are their capital cost of production, friction loss of industrial equipment and transportation (Urbancova, 2013). Tesco’s source of economies of scale occurs in its possibility of buying various inputs for producing products at low per-unit cost. One way in which this enterprise attains benefit from scale economies is expanding their business by opening new stores across the globe (Finster & Hernke, 2014). Building large stores also provides them benefit from scale economies as the government provides them huge cash incentives for building new supermarkets. This company attains competitive advantage from scale economies under numerous categories. One of their internal scale economies is purchasing of inputs. As this enterprise continues to expand their business, they tries to increase their order size for the raw materials. This outcomes in decrease in cost of the component purchased. As a result, the average production cost decreases, which in turn provides Tesco competitive advantage over their rivalries (Mahdi & Almsafir,.2014).
Strategic objectives that Tesco Plc address
Tesco plc strategic drivers mainly sets out plans as well as aspirations that create long term value for their stakeholders. Innovation is one of the strategic objectives that this example addresses (Schubert, Williams & Woelfle, 2013). This strategic objective helps Tesco to attract more customers and satisfy them based on their service and product requirements. By listening to their customers as well as analyzing the trends, the company can drive innovation in the commodities they sell and channels through which they sell these products. Even their strength of partnerships with their suppliers plays vital role in innovation (Pisano, 2015). Moreover, by building the business together, Tesco provides their suppliers confidence in investing in innovative goods and solutions to benefit their customers.
Conclusion
From the above discussion, it can be concluded that the above source provides edge to this company over the competitors. Effective strategy adopted by managers of the enterprise so helps them to gain competitive advantage over their competitors. This competitive advantage makes their good preferable over the other rivals by their customers. Apart from this, Tesco innovates product after analyzing the market trends and customers purchasing behavior. This in turn aids them to attain sustainable competitive advantage and expand their business across the globe.
References
Amini, A., Darani, M., Afshani, M., & Amini, Z. (2012). Effectiveness of marketing strategies and corporate image on brand equity as a sustainable competitive advantage. Interdisciplinary Journal of Contemporary Research in Business, 4(2), 192-205.
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory. Journal of supply chain management, 48(2), 3-6.
Core Purpose and Values. (2018). Retrieved from https://www.tescoplc.com/about-us/core-purpose-and-values/
Finster, M. P., & Hernke, M. T. (2014). Benefits organizations pursue when seeking competitive advantage by improving environmental performance. Journal of Industrial Ecology, 18(5), 652-662.
Mahdi, O. R., & Almsafir, M. K. (2014). The role of strategic leadership in building sustainable competitive advantage in the academic environment. Procedia-Social and Behavioral Sciences, 129, 289-296.
Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.
Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2012). Business cases for sustainability: the role of business model innovation for corporate sustainability. International Journal of Innovation and Sustainable Development, 6(2), 95-119.
Schubert, P., Williams, S. P., & Woelfle, R. (2013). Sustainable competitive advantage in e-commerce and the role of the enterprise system. In Competition, Strategy, and Modern Enterprise Information Systems (pp. 303-319). IGI Global.
Urbancova, H. (2013). Competitive advantage achievement through innovation and knowledge. Journal of Competitiveness, 5(1).,67-87.
Free Membership to World’s Largest Sample Bank
To View this & another 50000+ free samples. Please put
your valid email id.
Yes, alert me for offers and important updates
Submit
Download Sample Now
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
UploadUnique Document
DocumentUnder Evaluation
Get Moneyinto Your Wallet
Total 5 pages
PAY 3 USD TO DOWNLOAD
*The content must not be available online or in our existing Database to qualify as
unique.
Cite This Work
To export a reference to this article please select a referencing stye below:
APA
MLA
Harvard
OSCOLA
Vancouver
My Assignment Help. (2020). Issues In Managing The Multinationals. Retrieved from https://myassignmenthelp.com/free-samples/ibus90003-issues-in-managing-the-multinationals/tesco-plc-strategic.html.
“Issues In Managing The Multinationals.” My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/ibus90003-issues-in-managing-the-multinationals/tesco-plc-strategic.html.
My Assignment Help (2020) Issues In Managing The Multinationals [Online]. Available from: https://myassignmenthelp.com/free-samples/ibus90003-issues-in-managing-the-multinationals/tesco-plc-strategic.html[Accessed 18 December 2021].
My Assignment Help. ‘Issues In Managing The Multinationals’ (My Assignment Help, 2020)
My Assignment Help. Issues In Managing The Multinationals [Internet]. My Assignment Help. 2020 [cited 18 December 2021]. Available from: https://myassignmenthelp.com/free-samples/ibus90003-issues-in-managing-the-multinationals/tesco-plc-strategic.html.
×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}
×
Thank you for your interest
The respective sample has been mail to your register email id
×
CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.
Account created successfully!
We have sent login details on your registered email.
User:
Password:
MyAssignmenthelp.com is the solution to all your assignment-writing troubles. We are the no1 preference of students across Aus, UAE, Malaysia and numerous other countries. With hundreds of thousands of user reviews, we have delivered flawless accounting, programming, microbiology, finance assignments, etc. help to pupils all over. Millions of students have tasted sweet success through our exceptional assignment writing assistance on a wide variety of subjects. Our appointed writers are the best choice for scoring straight As in all of your assignments.
Latest Management Samples
div#loaddata .card img {max-width: 100%;
}
MPM755 Building Success In Commerce
Download :
0 | Pages :
9
Course Code: MPM755
University: Deakin University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
Introduction
The process of developing a successful business entity requires a multidimensional analysis of several factors that relate to the internal and external environment in commerce. The areas covered in this current unit are essential in transforming the business perspective regarding the key commerce factors such as ethics, technology, culture, entrepreneurship, leadership, culture, and globalization (Nzelibe, 1996; Barza, 2…
Read
More
SNM660 Evidence Based Practice
Download :
0 | Pages :
8
Course Code: SNM660
University: The University Of Sheffield
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answers:
Critical reflection on the objective, design, methodology and outcome of the research undertaken Assessment-I
Smoking and tobacco addiction is one of the few among the most basic general restorative issues, particularly to developed nations such as the UK. It has been represented that among all risk segments smoking is the fourth driving purpose behind infections and other several ailments like asthma, breathing and problems in the l…
Read
More
Tags:
Australia Maidstone Management Business management with marketing University of New South Wales Masters in Business Administration
BSBHRM513 Manage Workforce Planning
Download :
0 | Pages :
20
Course Code: BSBHRM513
University: Tafe NSW
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Task 1
1.0 Data on staff turnover and demographics
That includes the staffing information of JKL industries for the fiscal year of 2014-15, it can be said that the company is having problems related to employee turnover. For the role of Senior Manager in Sydney, the organization needs 4 managers; however, one manager is exiting. It will make one empty position which might hurt the decision making process. On the other hand, In Brisba…
Read
More
MKT2031 Issues In Small Business And Entrepreneurship
Download :
0 | Pages :
5
Course Code: MKT2031
University: University Of Northampton
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answer:
Entrepreneurial ventures
Entrepreneurship is the capacity and willingness to develop, manage, and put in order operations of any business venture with an intention to make profits despite the risks that may be involved in such venture. Small and large businesses have a vital role to play in the overall performance of the economy. It is, therefore, necessary to consider the difference between entrepreneurial ventures, individual, and c…
Read
More
Tags:
Turkey Istanbul Management University of Employee Masters in Business Administration
MN506 System Management
Download :
0 | Pages :
7
Course Code: MN506
University: Melbourne Institute Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Introduction
An operating system (OS) is defined as a system software that is installed in the systems for the management of the hardware along with the other software resources. Every computer system and mobile device requires an operating system for functioning and execution of operations. There is a great use of mobile devices such as tablets and Smartphones that has increased. One of the widely used and implemented operating syste…
Read
More
Tags:
Australia Cheltenham Computer Science Litigation and Dispute Management University of New South Wales Information Technology
Next