Questions & Answers 1.

Why do you think that Tesco decided to expand into the highly competitive US market when almost all of its previous international activity had been either in the transformation economies of Eastern and Central Europe or the emerging economies of the Far East? Ans.1. Tescos decided to expand into the highly competitive US market for the following reasons: To fulfill one of the companys strategic objective of growth by international expansion In UK where they controlled in excess of 30% of the market further expansion had become increasingly limited. The company as the worlds fourth largest retailer already had an international presence in Central and Central Europe and the Far East The company undertook detailed market research which indicated the US as profitable market, it identified gaps in the US market and also in the structure and format of the store model

2. Why do you think Tesco decided to use the brand name Fresh & Easy for its US stores when the Tesco brand has been used for all its other international activities? Ans.2. Tesco used the brand name Fresh & Easy as a marketing strategy which best describes the products being offered to its chosen market segment. Market research would have also indicated that the name Fresh & Easy would attract the growing number of health and environmentally conscious Americans.

3. Why do you think that Tesco will not achieve its original target for store openings by 2010? Ans.3. The financial and economic crisis which hit the USA in the mid-2007 played a major role in Tesco not being able to achieve its original target for store

openings by 2010. Tesco continuously redefines and restructures its store model as it responds to market and consumer demands and this has also contributed to a slowdown in the number of stores being opened. 4. How do you think that Tesco should define success in terms of its entry into the US market. Should Tesco put a time limit on its market entry activity? If so, what might that time limit be? Ans.4. Tescos success should be measured on the profitable of its overall operations in the USA. The company undertook extensive market and consumer research prior to commencement of operations in the US, although it has admitted that the research might have been flawed. Not with standing the company continues to redefine and modify its store module and adjust its prices as it response to changes in the economic climate and market conditions, all in an effort to increase sales. Increase sale will result in increase profits. From all indications it appears that Tesco is instituting all measures to ensure that its US venture becomes a success. Yes I think they should have the time limit on its market entry activity and in a planed way. Time limit can be of 1 year in this phase the company will get the time to understand the market in a better way.