Transcript Tesco case study

What is the global economy?
a) The outsourcing of jobs to LEDCs
b) LEDCs selling goods to MEDCs
c) The contribution of countries’
economies to the rest of the world.
Lesson objectives: To evaluate the
growth of China
To explain the role of Tesco as a TNC
Positives and negatives
• Different groups of people are affected
differently:
• In the source countries
• In the host countries
• Governments
• TNCs
Environmental problems
• http://www.bbc.co.uk/news/world-asia19995748
•
Environmental problem
Air pollution
Water pollution
Desertification
Causes
Consequences
Use Geog.3 to add to your table
TNCs
• Add into your bag the characteristics of a
successful TNC
How many TNCs can you identify?
What are Tesco’s products?
Tesco – A TNC case study
Key questions:
What is Tesco and what is it’s history?
What products and services are provided by Tesco?
Where is Tesco’s global influence? (Annotated map)
Why has Tesco outsourced?
What is the role of TESCO in Hong Kong, India and
Sri Lanka?
http://www.linkedin.com/company/tesco-international-sourcing
What are the negative impacts of Tesco?
What do they do? Mainly retail – HR, finance.
• Clothing, footwear and accessories
• General Merchandise e.g. cookware
• • Electrical and connected devices
• IT, HR and Finance
Where in the world do they operate? (add to your world map)
Sales: Operate in 13 countries.
China, Czech Republic, France (withdrew 2010), Hungary, India, Ireland, Japan, Malaysia, Poland, Slovakia, South
Korea, Taiwan, Turkey and USA (withdrew from here in 2013). Stores in UK.
Operations: Call centre in Bangalore, India. Sourcing hubs in Asia including Hong Kong and Sri Lanka. (products for
retail sourced in HK, China, Sri Lanka).
What are the impacts? (use Shameela and Sarah)
Positives: 19,000 pounds for call centre employee in UK vs 2500 pounds per year for a call centre employee in India –
positive for Tesco, because costs are lower.
Value of outsourcing in India 24 bn pounds in 2007 – positive for the host country. More jobs and increased GDP.
Wider availability of products available for the customer. Cost of products is lower.
Negatives: Job losses in the UK due to outsourcing. Workers in India have to work longer hours for less pay.
Most of the profits from the TNC go to the source country (UK) so don’t always benefit the host country.
Environmental impacts from shipping goods from host to source country. Manufacturing products causes air
pollution and emissions.
Discuss the impacts of one TNC on the
host country
• Discuss – describe & give reasons for, explain
the arguments for and against.
• Case study: ?
Cost benefit analysis
Costs
Total
score
Value
Benefit
Value