Proctor & Gamble and Tesco Case Studies

Task 1:

Read the Management Focus on the evolution of strategy at Procter & Gamble (Chapter 13), then answer the following questions:

1. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the early 1990s?

2. Why do you think this strategy became less viable in the 1990s?

3. What strategy does Proctor & Gamble appear to be moving toward? What are the benefits of this strategy? What are the potential risks associated with it?

Task 2: Tesco Goes Global (Management Focus in Chapter 15 or

https://writepass.com/journal/2017/01/the-international-strategy-of-tesco-plc/)

The Management Focus describes Tesco’s international expansion strategy. Tesco, the British grocer, has established operations in a number of foreign countries.

Typically, the company seeks underdeveloped markets in developing nations where it can avoid the head-to-head competition that goes on in more crowded markets, and then enters those markets via joint
venture where the local partner provides knowledge of the market while Tesco provides retailing expertise.

1. Why did Tesco’s initial international expansion strategy focus on developing nations?

2. How does Tesco create value in its international operations?

3. In Asia, Tesco has a long history of entering into joint venture agreements with local partners. What are the benefits of doing this for Tesco? What are the risks? How are those risks mitigated?

4. In 2006, Tesco announced that it would enter the United States. This represents a departure from its historic strategy of focusing on developing nations. Why do you think Tesco made this decision? How is the U.S. market different from others Tesco has entered? What are the risks here? In April 2013, Tesco announced that it would leave the U.S. market. How do you think of Tesco’s failure in U.S.?

Write a 2-page paper to summarize your thoughts.