Essay Compare How Cultural Differences and Foreign Business Environments Affect Multinational Corporations

Words: 1557
Pages: 7

M2-Compare how cultural differences and foreign business environments affect multinational corporations
In this report I will be stating the differences of how Tesco function in South Korea compared to how they function in the United Kingdom. Tesco have to adapt to the local culture, traditions and tastes and have to recreate an environment in which shoppers will feel at home.
Tesco’s local adaption strategy in South Korea involves selling products and services based not on the UK experience, but on Korean customer demand. Tesco in South Korea provides live octopus, pet iguanas, fish chopped up alive sushi-style, and dental services as a way of their adaption strategy to appeal to South Korean’s culture. Hofstede’s Uncertainty Avoidance
…show more content…
This is very different to the UK because they have many Tesco supermarkets; many being 24 hours where customers can go to buy their products. They do also offer online shopping, where they can place their order online and get it delivered. Also in the UK they have self-scanner which has become very popular and other big branded supermarkets are now using. This is where customers scan their products and make the payment by themselves.
To conclude, after conducting research on how Tesco functions in both South Korea and the UK, there are many more differences than similarities. Due to the different cultures, Tesco have to adapt their shop to reach the needs of the customer, so their strategies are very different in each country. Tesco is a successful company and due to the changes they make to adapt to different cultures it has made them a well-known international brand.

D2-Evaluate the impact of cultural differences on international business performance in the market
In this report I will be evaluating the impact of cultural differences on international business performance in the market. This includes evaluating the strategies Tesco use in both South Korea and the UK, which are very different.
If Tesco did not adapt their strategies in different countries they wouldn’t fit in with their cultures, therefore people will be less likely to shop there. Tesco need to provide certain foods that will appeal to the country they are in. For example, Tesco in South