Feng Shui

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(No Transcript)
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Tesco in Israel

• Sid numbers
• (0408981), (0213195), (0408770), (), ()

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Tesco in Israel

• Presentation
• About Tesco
• Market Research
• Culture in Israel
• Culture in UK
• Conclusion

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Setting up a Tesco Subsidiary in Israel
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Tesco are now one of the top three international
retailers in the world.
With 2,318 stores and 326,000 employees

• Throughout Europe
• Ireland 82
• Poland 69
• Czech Republic 22
• Hungary 60
• Slovakia 23
• Turkey 5

CURRENT STORE LOCATIONS

• Throughout Asia
• Japan 78
• Malaysia 5
• South Korea 28
• Taiwan 4
• Thailand 11

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• Tesco already know how to be the number one
  leading supermarket.Will it be enough to succeed
  in Israel?
• Changes in eating habits in Israel mean Tesco
  could introduce convenience products into the new
  stores.

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• Israel has very strict marketing and labelling
  requirements that differ from other countries.
• Tesco could choose to assign senior management to
  head up a local subsidiary to serve as a
  culture transfer agent.
• Is there a market for Tesco to succeed in Israel?

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Market Research

• Total retail sales in Israel increased by 24
  (1999-2003).
• A trend in the retail sector for larger players
  to acquire small retailers .
• Super Sol Ltd was the leading retailer in 2002.
  Blue Square was Super Sols main competitor.
  Clubmarket followed.
• Overall economic outlook for the Israeli market
  is extremely uncertain because of violence in
  region.

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Market Research

• Israeli food market is moving toward a trend in
  convenience.
• Israelis are eating more prepared foods, fast
  foods and snacks.
• Israel has a relatively liberal import policy
  (not food) and has entered into free trade
  agreements (FTAs).
• The European Union accounted for 39 of total
  food imports in 2001. Multinational firms have
  successfully entered the market.

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GENERAL CHARACTERISTICS IN ISRAEL

• Economic
• Geographic
• Cultural
• Political

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WHAT WE SHOULD KNOW ABOUT THE FIRST NEGOTIATION

• Israeli behaviour
• Before negotiating
• During the appointment
• Business dress

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British Culture
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We need to be aware that people feel, think and
behave differently, while they are equally
logical and rational. To understand the UK
culture we must take in account

• Appearance
• Behaviour
• Communication

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Hofstedes Model

• The Power Distance is relatively mobile, a
  culture of consensus and diversity
• British tend to avoid uncertainty
• High level of toleration regarding local and
  individual autonomy
• Change and evolution is gradual and permitted

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• great ideas and central planning are distrusted
• Hierarchy is not an issue
• Co-workers expect to be consulted when decisions
  need to be taken
• Disbelieve in bureaucratic tradition
• Relationships based on reciprocal and personal
  trust

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Conclusion

• By analysing the research in the retail market in
  Israel our group came to a decision that we
  should not open a TESCO subsidiary in Israel.

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Conclusion

• Reasons
• Religion
• Language
• Life Style
• Political Instability
• Poor security situation
• Working hours
• Other established large retailers / small
  retailers
• Food requirement in Israel ( grows 95 of its
  food )
• Threat from the other multinational companies

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The End

• Thank you!