The Recent Expansion of Tesco into the US Case Study

The Recent Expansion of Tesco into the US - Case Study Example Tesco is based out of the UK, dealing mainly with grocery items and general merchandising retail chain. If the global sales and domestic market share of the company are taken into account then it is found that the company is the largest British retailer by far. The profit of the company exceeded  £2 billion for the year 2008 and it is believed that the profit will be much higher in the year 2009. The company mainly focuses on food and drink but it has also started dealing in clothes, financial services, internet services etc. The brand Tesco first appeared in the year 1924 when Jack Cohen supposedly bought a tea shipment from Mr. T. E Stockwell. The year 1929 marked the opening of a store in North London and the company rapidly developed from there on. The headquarters of the company was first established in North London in the 1930s. In the year 1932, the company became a private limited company, another feather in the cap of Tesco. The current success of Tesco is largely because of the favorable political climate, Tesco has managed to penetrate into nations which were previously considered difficult to penetrate into and this is certainly paved the way for success. Politically the organization has helped in solving the unemployment problem in the UK, the credit crunch has taken a toll on the employment rate but Tesco has still managed to provide job opportunities hence bringing down the unemployment rate in the UK. The EU laws largely favor Tesco, the EU laws tend to favor organizations that have a large presence in a country, Tesco not only has a large presence in the UK but it has also expanded rapidly in other countries as well and this has certainly worked to the advantage of the organization. The specialty of the organization was initially in drink and food business but the giants gradually decided to enter into consumer products like music players, CD players, computers and other products that sell like hotcakes.