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You Be the International Management Consultant Tesco, a multinational grocery and general merchandise retailer, operates over 6,000 stores around the world and 442 stores in
You Be the International Management Consultant Tesco, a multinational grocery and general merchandise retailer, operates over 6,000 stores around the world and 442 stores in Poland. Tesco has a large online presence and handles online orders for customers in its various markets. The company has enjoyed considerable success across the world but has faced some recent difficulty with its Polish investments. The Polish government has recently announced a plan to increase revenues to pay for various initiatives, including the proposed imposition on large retailers of a 1.9 percent tax on gross revenue. This tax is targeted at "foreign-dominated industries" like supermarkets and banks. Moody's estimates that this new tax could cost Tesco as much as 3.5 percent of earnings.94 Questions 1. If you were a consultant for Tesco, how would you advise Tesco to deal with the new tax? 2. Would this new tax be enough for you to advise the company to end business in Poland? 3. Does the fact that this regulation is specifically targeted at foreign-dominated industries and businesses create concern for future regulations should you choose to continue operations in Poland? Show a
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