Tesco in India Essay Example | Topics and Well Written Essays - 2000 words - 4

Tesco in India - Essay Example This paper illustrates that Tesco is the second largest retail chain after the United States giant Walmart and is the leading retail chain in the United Kingdom. The company is involved in offering both food and non-food products to its customers. Tesco with the proposal to open multi-store in India is the first international retailer interested in penetrating the Indian market after the resolution pass by the Indian government to allow foreign investment in the multi-brand retail in 2012. The government of India has revealed its positive approach towards this initiative of Tesco. If the application is approved by the government of India, Tesco intends to enter the country in 50-50 partnerships with the Indias Tata group. Tata group owes Trent Hypermarket Limited, that majority operates Star Bazaar and Star Daily in the western region of India namely Maharashtra and its neighboring state of Karnataka. Culture is defined as a complex set of knowledge, beliefs, perceptions, morals, att itudes, customs and any other capabilities or habit acquired by an individual as a member of society. Correspondingly, cross-culture represents the differences between the countries in terms of culture acquired by the people of the respective country. Schein regarded culture as the key source of organizational culture. Accordingly, culture affects the business in every stage of organizational operations. It is thus argued that understanding culture is of prior importance for the business particularly those intending to or operating in the foreign market. Moreover, it has been noted that corporate culture can impose serious constraints on strategy and act as an impeding factor in the course of achieving the business objectives. It is thus crucial for Tesco to identify the differences in the UK and Indian culture for deriving considerable understanding regarding the cultural issues that may affect the business process of the proposed joint venture.