Analyze the entry and expansion strategies of Tesco in Turkey
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International Business
Case Studies
CASE STUDY (20 Marks)
PATRA Global is engaged in IT industry
having 1000 employees. The Human Resource Head of the company is faced with
many problems of like high turnover of employees, late coming, The young
employees don’t stay for long and quit the job within a year or so. H R Depart.
Experienced people demand very high salary. The CEO of the Company has worked
hard to win the new business contracts and would like to double the turnover in
2 years. However due to shortage of right people on stable basis contracts are incomplete
and the company may have to pay penalty and will find difficult to get renewal
of contract. The employees of the company compare their company with leading
companies in the Industry and feels demoralized.
Answer
the following question.
Q1.
What is your suggestion for planning and getting right people for right job.
Q2.
What are various sources for recruitment which can be tried?
Q3.
How you would like to improve skills of the employees.
Q4.
Suggest steps to motivate the employees.
CASE STUDY (20 Marks)
Germany based, Albrecht Discount,
abbreviated as Aldi, evolved over the years from a small grocery store into one
of the leading hard discount stores. Karl and Theo, two brothers of the
Albrecht family, were responsible for this huge transformation. They took charge
of the grocery shop, which was earlier run by their mother to meet family
requirements, in 1945. Albrecht Discount was incorporated in the year 1948. At
that time, about 13 stores were in operation. Gradually, the store’s figures
rose. In the same year, the first supermarket under the name ‘Aldi’ was
started. Later, owing to a disagreement between the brothers, reportedly over
the issue of selling cigarettes, Aldi was split into Aldi Nord and Aldi Süd.
Though they operated in different geographic areas they maintained a common
corporate identity. In 1967, Aldi entered Austria, its first overseas venture.
It gradually expanded into countries like Belgium, Denmark, France, Luxembourg,
The Netherlands, Portugal, Spain, Australia, the UK, Slovenia, Switzerland, and
the US.
Answer
the following question.
Q1.
Discuss the importance of understanding shoppers’ behavior.
Q2.
Explain the role of cost leadership and factors influencing retail operations.
CASE STUDY (20 Marks)
The case discusses the entry and
expansion strategies of French retailer Carrefour, in the Chinese market.
Carrefour began its Chinese operations by forming joint ventures in the year
1995. The company entered into direct deals with the local governments of various
provinces in China to get the approval to set up its stores. By the early
2000s, Carrefour had emerged as the largest foreign retailer in China. The
company considered China to consist of several small markets instead of one
large market, and accordingly employed strategies for operating in the country.
Most of the products sold in Carrefour stores were procured from China. The
store formats, location, and the products sold were customized according to the
local preferences, and the store managers were empowered to run the stores
according to the local requirements. Carrefour faced many challenges in China.
The company faced stiff competition in China especially after WalMart's acquisition
of TrustMart.
Answer
the following question.
Q1.
Analyze the entry and expansion strategies of Carrefour in China.
Q2.
Evaluate the strategy of operating in China through several joint venture
partners.
Q3.
Explain how Carrefour brought changes in its store formats and operational
methods to cater to the needs and preferences of consumers in China.
CASE STUDY (20 Marks)
The case focuses on UK based retailer
Tesco's strategies in the Turkish market. It discusses Tesco's international
ventures and elaborates on some of the strategies that it followed in the non UK
markets. Tesco entered Turkey in 2003 by acquiring the Kipa Kitle Pazarlama
Ticaret ve Gida Sanayi AS (Kipa) chain of supermarkets and operated under the
name Tesco Kipa. It started operating hypermarkets and then introduced other
format stores in the country. It opened Tesco Express stores which were smaller
than hypermarkets, and sold a wide range of food products. To cater to the
needs of shoppers who preferred to shop at open air shops and small mom and pop
stores called bakkals, Tesco Kipa opened smaller stores called supermarkets. It
also operated through Kipa Extra stores, which were larger than hypermarkets.
Tesco Kipa initially operated in the Izmir region and later expanded to other regions.
It localized its operations by offering products preferred by the local people.
In spite of its best efforts, Tesco did notmanage to become one of the leading
players in the market and its market share was at just 1% as of 2011. With
Tesco closing its stores in Japan due to poor performance, analysts opined that
it might also exit Turkey soon. However, Tesco continued to expand in the
country and acquired Ardas Supermarket chain in November 2011. It remained to
be seen if Tesco would be able to succeed in the market or would make an exit.
Answer
the following question.
Q1.
Analyze the entry and expansion strategies of Tesco in Turkey.
Q2.
Examine how Tesco localized its retail practices in Turkey.
Q3.
Discuss the entry and expansion strategies of a retailer.
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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