On the Way towards Transnational Organizations - A Comparative Case Study between Wal-Mart and Tesco

Group Part

Introduction

The 1990s witnessed an enormous wave of retail internationalization as leading retailers from Europe and the USA went global (Wrigley, 2000 and Coe, 2004) as a result of material and cultural developments (Kalhan and Franz, 2009). Wal-Mart and Tesco atomic number 18 two of them and they are becoming powerful global operators since then. Table 1 shows both(prenominal) key facts of the two companies.

Table 1: Key Facts of Wal-Mart and Tesco

	Wal-Mart	Tesco
Country of Origin	US	UK
Year Founded	1962	1919
International Coverage (countries)	16	14
Number of Employees	2,000,000	472,000
Total Revenue 2010	405 one thousand million	62.5 billion
International Revenue 2010 (percentage of the total)	100.1 billion (24.7%)	19.4 billion (31.2%)
Total Net Profit 2010	23.9 billion	3.4 billion
International Net Profit 2010 (percentage of the total)	5.033 billion (21.1%)	0.749 billion (22.0%)
Main formats	Discount Centers Sam clubs Supercenters Neighbourhood markets	98% rowspan=1 colspan=1> Extras Superstores Compact superstores Metro stores Express stores
Total Stores	8,416	4,811
International Stores	4,112	2,328

Source: Respective company annual report (Wal-Mart, 2010 and Tesco, 2010) and groups calculations

According to Bartlett and cheerful (2008) MNEs are evolving into transnational organizations with emerging requirement for them to become to a greater extent flexible while achieving improved global efficiency, and also encyclopedism is of greater importance in this process. This is particular the case in international retailing for global companies like Wal-Mart and Tesco. This essay, therefore, seeks to evaluate the proportional transnational effectiveness of Tesco and Wal-Mart in pursuing efficiency, flexibility and learning. It begins with the discourse of motivations, means and mentalities of these two firms, and then it evaluates them in achieving the three goals separately. at long last it also explores the collaboration and social corporate responsibility (SCR) elements of these companies for comparison.

Motivations, Means and Mentalities

Regarding motivations, market-seeking was a main motivation for...

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