Discussion 1 - Management''s Responsibility Coursework

Discussion 1 - Management''s Responsibility - Coursework Example There are many reasons that are associated with their failure and the management had an important part in its failure as it could be circumvented. Firstly, the business environment was risky because the timing of its new venture corresponded with the recession of 2007 when consumer spending had reduced drastically. Secondly, Tesco’s management decision to pull out of the market rather than giving time for consumers to recover from the recession. For Tesco, the external, macro-environment proved to be challenging when the firm decided to launch a new venture in the US. So, its decision making was crucially important for the firm to choose its course in the challenging environment. Many also blame the research and its analysis. Tesco’s interpretation of the collected data ignored the cultural context and the options consumers had if there were one-stop stores. However, the recession had greatly reduced their spending capacity of consumers and even though they had the time to shop at multiple stores, they had little money. (2) Caty has pointed out some important information regarding the credit industry. I agree with Caty that the management did not have much involvement in the decision for closing the branch. In this case, the orders came from the head office. Usually, the most profitable branches provide little reason for the corporate management to shut it down however this is not the only criteria for closing down a branch. In BankFirst’s case, the branch location was generating enough revenues to sustain it in the long run however the decision to close it down came from the head office located in another state. Perhaps the bank was trying to cut down its branches in that particular state as part of its strategy to focus on reducing market penetration to allow for another growth strategy. The credit card industry serves an important purpose as credit providers. Technology is one external factor over which the management has little control over although