Author(s)

Longhui Peng

Corresponding Author

Longhui Peng

ABSTRACT

Tesco claimed that it failed and decided to exit from the Chinese market based on strategic consideration. The researcher aims to analyze external and internal factors to determine organizational management adaptability in Tesco’s localization in China. This paper reviewed the Chinese retail background and Tesco’s operation in China. Based on Porter’s five forces model and internal organizational analysis, this paper discussed Tesco’s challenges in China during the localization process. Referred to the organizational behavior theory that the researcher believes learning organization could help Tesco enhance its adaptability and solve its business pain points in the Chinese market.

KEYWORDS

Tesco, China, Learning Organization, Localization