Question Tesco: International Strategic Business Units Jack Cohen founded Tesco Plc (TSCO.L) in 1919. After expanding intoMarketing Research and Data Analysis every available market in the United Kingdom, including developing new store formats for small areas (Tesco Metro) and a superstore format (Tesco Extra), new product lines such as electronics and home goods, and an environmentally-aware range of foods, the company began to expand internationally. The first expansion was in 1995, when Tesco opened a store in Hungary. Poland, the Czech Republic, Slovakia, Northern Ireland, the Republic of Ireland, Taiwan, Thailand, and South Korea followed this initial expansion in the 1990s. Today, Tesco serves a total of twelve international markets, plus all areas of the United Kingdom. Tesco has chosen to pursue a strategic business unit (SBU) across all of its business areas in order to maximize the degree of competitiveness within the individual market areas. Tesco operates using four strategic business units – Core UK, which handles United Kingdom grocery operations, International, which handles international holdings, Non-Food, which handles sales of electronics, home goods and other non-food items sold in Tesco Extra and other stores, and Retailing Services, which manages financial services, the Tesco.com web site, and Tesco Telecoms services. A focus on the International strategic business unit, currently the focus of a lot of business development and change, provides insight into the company use of the SBU as a whole. The stated strategy of Tesco’s International SBU includes elements of flexibility, local operations including customers, cultures, supply chains and regulations, focus on a few countries, multi-format offerings in order to meet the needs of the local market, capability in eopl processes and systems, and brand-building to create lasting customer relationships. All aspects of the store’s marketing and design were custom-tailored to the market region in which they were opening. The name, Fresh and Easy, was intended to take advantage of Californian culture and values. Their product offerings within the store, with a strong emphasis on fresh fruits and vegetables, natural and organic foods, were intended to not only appeal to the tastes of the local culture but also to fill a gap in the current supermarket offerings within the region. The locations, which are primarily urban, small footprint locations in city centers and underserved neighborhoods, are intended to not only take advantage of the chance to enter an underserved market but also to fit the market needs of the surrounding areas and to integrate seamlessly into the neighborhoods.