Tesco's Expansion In China

TESCO is a British retail company that wants to expand its operation in China and the United States of America. Therefore the company wants to analyze the cultural and institutional challenges that it might face while entering these international borders. Also it wants to develop an international HRM strategy to ensure management of the expansion in the best way.

We would apply the Hofstede perception of culture which includes power distance, individualism, masculinity, uncertainty avoidance and long/short term orientation as it poses cultural challenges and other factors that highlights the challenges TESCO is likely to face in China and USA knowing that management is interpreted differently from one country to another. Hofstede (2001)

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TESCO Plight in China and USA which has different institutional, legal and cultural system needs to know what is and isn’t allowed combined with what constitutes a cost effective management practice. Brewster et al. (2011). CHINA has high cultural distance as they play loyalty to hierarchy which is different from the UK. The government still controls about half of the economy through state owned enterprise and virtually all credit via a controlled banking system Withcomb et al. (1998).This might pose a challenge to

The US is also short term oriented nevertheless, TESCO needs to be strategic.

Uncertainty avoidance shows the extent to which people in a culture react to threats and ambiguity and creates rules to avoid them such as having a strong union. China has high uncertainty avoidance which is not far from why they are long term oriented. America has low uncertainty avoidance, meaning they can take risk by switching jobs at the next best offer. TESCO being western also has it low and would have to face it with china.

China has high collectivism and medium feminity and America has high individualism and medium masculinity. This is a more reason in America why labour market is deregulated, a strong force for firm to deliver shareholder value and the state doesn’t play a big role. But in china, they would look out for themselves and have loyalty to the group they belong. TESCO has a background of where union is weak and labour system is flexible and would have to face these in both countries. Hofstede (2001)

Other challenges include;

1. State