Strategic Planning - Essay Example

Tesco has been successful in expanding the growth of its business through entering into joint venture with other large retail companies all over the world. (Leahy, 2007: 41) As of 2008, the company was able to establish a total of 12 international businesses which serves the market of Hungary, Thailand, Malaysia, Japan, South Korea, Turkey, United Kingdom, Central Europe, Czech Republic, Poland, and the United States among others. (Leahy, 2007: 42 – 43; Couch, 2006; Wilson, 2005) In early part of 2007, the company entered into a joint venture with Tin Cao who owns a little more than 50 Hymall-branded hypermarkets.

(Hawkes, 2008; China Daily, 2008; Baijia, 2007) Tesco’s joint venture in China is known as the ‘Happy Shopper Hymall.’ The company was able to increase its sales by 13% to £7.6 billion in 2006. (Times Online, 2006) In line with the success behind Tesco China, its top management believes that the said strategic move will enable the company to serve a more lucrative market in Shanghai, China. With regards to Tesco’s current expansion in the Chinese market, the researcher will seek to identify and evaluate the key stakeholders of the joint venture between Tesco and Tin Cao.

Eventually, the impact of the joint venture agreement in terms of its competitive position in the chinese market will be discussed thoroughly. Based on the past retailing experiences of Tesco in the UK market, the researcher will make use of the PESTLE as well as the opportunities and threat analysis model as part of determining and examining the potential external factors that could significantly affect the business expansion of Tesco in China. Prior to the conclusion, the identified value adding activities that may contribute to the success of Tesco in China will be highlighted.

Aside from the employee of Tesco Group, Tin Cao owned Hymall-branded hypermarkets and