This article examines the entry to the Chinese market of Kingfisher plc under its B＆Q brand, operating in the DIY or home improvement market. It is a pedagogically oriented case in the international strategy area, wh...This article examines the entry to the Chinese market of Kingfisher plc under its B＆Q brand, operating in the DIY or home improvement market. It is a pedagogically oriented case in the international strategy area, which deals with both the mode of market development by the company in China and some of the softer issues arising from that process relating to HR in the company and the inevitable cultural challenges it faced. The story begins in the mid-1990s and goes through to the early summer of 2010. On the one hand, the entry has been successful： B＆Q is now a significant presence in China, holding number one position in their chosen market, which is primarily highly fragmented; there is some concentration in four key cities in the wealthy east coast region; and it has made profits over a fair portion over the last decade. Lessons were learned from the initial mistakes and the core sales proposition in China has been crafted to differ from that in the original UK home base. However, for the last three completed financial years, losses have been booked and significant changes have been made or were planned at the time of writing. Some changes were inevitable, but which were they （other than those where the Chinese government changed its rules）？展开更多
The case looks at the internationalisation of Tesco PLC, a successful UK retailing business, and in particular how and why it has gone about developing its business in Southeast/East Asia. The case is suitable for use...The case looks at the internationalisation of Tesco PLC, a successful UK retailing business, and in particular how and why it has gone about developing its business in Southeast/East Asia. The case is suitable for use with final year undergraduate and especially postgraduate students, in either corporate strategy or international business modules. The case follows Tesco＇s moves into Thailand, South Korea, and most recently China. It is found that the methods of entry to the new markets/countries and strategies used post-entry have varied country by country, culture by culture. The strategies adopted are found not to have been universally successful, which raises questions as to why that may be. It is expected that students will be able to identify the entry methods and reasons for their use; determine the business strategies adopted country by country, explore why they may differ, and locate the influences of the varying cultures. They will be expected to assess how successful Tesco has been in these processes. Finally, they should explore the question whether the giant China market can indeed be ＂an ultimate prize＂ and if so how it should best be tackled. For the time being, South Korea is arguably the most successful part of the company＇s Asian push.展开更多
文摘This article examines the entry to the Chinese market of Kingfisher plc under its B＆Q brand, operating in the DIY or home improvement market. It is a pedagogically oriented case in the international strategy area, which deals with both the mode of market development by the company in China and some of the softer issues arising from that process relating to HR in the company and the inevitable cultural challenges it faced. The story begins in the mid-1990s and goes through to the early summer of 2010. On the one hand, the entry has been successful： B＆Q is now a significant presence in China, holding number one position in their chosen market, which is primarily highly fragmented; there is some concentration in four key cities in the wealthy east coast region; and it has made profits over a fair portion over the last decade. Lessons were learned from the initial mistakes and the core sales proposition in China has been crafted to differ from that in the original UK home base. However, for the last three completed financial years, losses have been booked and significant changes have been made or were planned at the time of writing. Some changes were inevitable, but which were they （other than those where the Chinese government changed its rules）？
文摘The case looks at the internationalisation of Tesco PLC, a successful UK retailing business, and in particular how and why it has gone about developing its business in Southeast/East Asia. The case is suitable for use with final year undergraduate and especially postgraduate students, in either corporate strategy or international business modules. The case follows Tesco＇s moves into Thailand, South Korea, and most recently China. It is found that the methods of entry to the new markets/countries and strategies used post-entry have varied country by country, culture by culture. The strategies adopted are found not to have been universally successful, which raises questions as to why that may be. It is expected that students will be able to identify the entry methods and reasons for their use; determine the business strategies adopted country by country, explore why they may differ, and locate the influences of the varying cultures. They will be expected to assess how successful Tesco has been in these processes. Finally, they should explore the question whether the giant China market can indeed be ＂an ultimate prize＂ and if so how it should best be tackled. For the time being, South Korea is arguably the most successful part of the company＇s Asian push.
