Prepare A Case Analysis On The Following Global Case Study

Prepare A Case Analysis On The Following Case Study On Global Hrm Stra

Prepare a case analysis on the following case study on global HRM strategic management and why it is critical to the success of an organization in meeting its goals and mission. In your analysis, respond to the following question: What is strategic management, and why is it critical to the success of an organization in meeting its goals and mission globally? Your analysis of this case and your written submission should reflect an understanding of the critical issues of the case, integrating the material covered in the text, and present concise and well-reasoned justifications for the stance that you take. Tesco® — Entry Into and Exit From Japan In September 2011, Tesco, the British supermarket group and the world’s third-biggest retailer, announced its exit from Japan after 8 years in the country. In the event, Tesco became the latest in a long list of foreign retailers to exit from Japan. This case study highlights why many international supermarket chains like Tesco have been unsuccessful so far in a difficult Japanese market. “Let’s be honest, Japan was a short, expensive adventure for us." — Jose Luis Duran, Chief Executive of Carrefour in March 2005 on its exit from Japan. “These retailers brought into Japan their business formats without adjusting for Japan. It’s not as if a wholesale-club-type concept will not take off here, but there has to be some modification." — Masayoshi Saotome, research director at Mitsubishi® Research Institute Inc. Japan, the world’s third-biggest grocery market, remains a difficult country to make money from, as international retailers Walmart® and Carrefour have found out. Walmart has not done very well in Japan with its presence since 2002 through Seiyu. When Carrefour entered Japan in 2000, it made huge claims on revolutionizing retailing in the country. However, in 2005, Carrefour swapped its Japanese assets for Tesco’s assets in Taiwan. Seven & I Holdings® and Aeon® dominate Japan. Even British drugstore chain Boots pulled out of Japan owing to increased competition and deflation. Additionally, Japan’s Byzantine distribution system of closely knit web of suppliers and consumers’ fickle taste is the reason behind many retailers struggling. Many analysts attribute the failure to misreading Japanese consumers’ mindset. However, the competitive Japanese retail market is a tough arena, not just for foreign retailers but also for local Japanese department stores. Local stores also have been struggling with price deflation and ever-increasing specialty stores.

Paper For Above instruction

The case study of Tesco’s entry and subsequent exit from the Japanese market offers valuable insights into the complexities of international retail expansion, especially within highly challenging and mature markets like Japan. At the core of understanding Tesco’s decision is an exploration of strategic management and its critical role in guiding organizations towards achieving their goals in dynamic global environments.

Strategic management refers to the formulation and implementation of major goals and initiatives taken by an organization’s top management on behalf of owners, based on the consideration of resources and an assessment of the internal and external environments in which the organization competes (David, 2017). It provides a sense of direction, positions the company in its competitive landscape, and aligns resources to capitalize on opportunities and mitigate threats. When executed effectively, strategic management enhances organizational resilience, sustainability, and long-term success (Thompson, Peteraf, Gamble, & Strickland, 2018).

In the context of global operations, strategic management becomes even more critical because organizations must navigate diverse cultural, economic, legal, and political environments. A successful global strategic approach requires a nuanced understanding of local consumer behaviors, market structures, and competitive dynamics. Tesco’s experience in Japan exemplifies the importance of localization—a strategy that involves adapting the core business model to meet the specific needs and preferences of the local market (Shenkar, 2020). Failure to customize offerings, and underestimating cultural differences, can result in poor market penetration and financial losses, as was the case with Tesco in Japan.

One of the major issues Tesco faced was the misreading of Japanese consumer preferences. Unlike Western markets, Japanese consumers exhibit a high preference for quality, freshness, and local products, along with a strong inclination towards trusted brands and seamless distribution channels (Fujimoto, 2019). Tesco’s business model, which emphasized large hypermarkets with a broad product mix and price competitiveness, did not adequately align with these local expectations. Consequently, Tesco struggled to attract and retain customers, leading to underperformance and eventual withdrawal.

Furthermore, the Japanese retail environment is characterized by an intricate distribution system involving a tightly woven web of suppliers, which demands precise coordination and supply chain management (Kumar & He, 2021). Many foreign entrants, including Walmart and Carrefour, failed to adapt their supply chain practices to Japanese standards. Tesco’s inability to modify its logistics and distribution to fit this system contributed significantly to operational inefficiencies and increased costs, further hampering its competitive positioning.

Strategic flexibility and cultural intelligence are essential components for successful international expansion. In Tesco’s case, a more tailored approach—such as product localization, partnership with local suppliers, and understanding consumer preferences—might have increased its chances of success. Recognizing the importance of employing local managerial talent and establishing relationships with Japanese stakeholders could have facilitated better market adaptation (Eisenman, 2013). Conversely, the tendency to impose a one-size-fits-all strategy often results in failure, as exemplified by Tesco’s experience.

In conclusion, the case underscores the vital role of strategic management in international business operations. Organizations venturing into global markets must conduct comprehensive environmental analyses, embrace cultural differences, and adapt their strategies accordingly. For Tesco, understanding and implementing effective localization strategies aligned with robust supply chain management and cultural insights could have potentially altered its fate in Japan. Ultimately, strategic management not only guides organizations in achieving their objectives but also ensures they remain resilient amidst the complexities of global markets (Barney & Hesterly, 2019).

References

• Barney, J. B., & Hesterly, W. S. (2019). Strategic management and competitive advantage: Concepts and cases (6th ed.). Pearson.
• David, F. R. (2017). Strategic management: Concepts and cases: Competitiveness and globalization. Pearson.
• Eisenman, M. (2013). Understanding culture and negotiating internationally. Journal of International Business Studies, 44(9), 929-934.
• Fujimoto, T. (2019). Supply chain management and consumer preferences in Japan. Japanese Business & Management Journal, 7(2), 45–68.
• Kumar, N., & He, W. (2021). Distribution systems and supply chain coordination in Japan. International Journal of Logistics Management, 32(1), 123-139.
• Shenkar, O. (2020). The cultural analysis of global markets. Journal of International Business Studies, 51(3), 393-403.
• Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland, A. J. (2018). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases (21st ed.). McGraw-Hill Education.