(M2) Compare the challenges to selected business activities within a selected organisation, in two different economic environments.
It is very common in large businesses to expand abroad but there are a lot of factors to be considered when planning to start operation in a different country as countries differ depending on their background, policies, infrastructure and stability. In this report I will compare the challenges to business activities within Tesco Plc. In two different economic environments: China and UK. I have chosen China and UK as two contrasting countries and my chosen business is Tesco Plc., a large retail store in the UK. China is the 2nd most populated country in the world and is the largest economy in the wold in contrast UK has a significantly smaller population than China and is the second largest economy in the world.
Chinese businesses have become much more efficient and China is now the largest Asian economy by a long way: meaning that if Tesco wanted to expand into China it would face a lot of competition and successful businesses with similar products. Tesco’s main most popular products are food and beverage where China is one of the world’s top producers of cereals: wheat, rice and sugar also meat, fruit, vegetables, tea and coffee which shows that in case where Tesco decides to start operating in China this could be considered as a challenge as locals would refuse to buy food from a retailer such as Tesco when they’ve got their own products.
The media industry in China is doing particularly great with China becoming more liberal with their internet restrictions. Chinas television market has more than 70 million subscribers about the size of the UK population: this is an advantage as Tesco could advertise its company and products on Chinese TV. The number of people registered with online internet services in China exceeds 50 million.