Introduction When a business prospers in its home country, international expansion is always the next option. Therefore, it is important for countries to understand the cultural differences that exist in other countries before introducing their business to these countries. According to Lan (2005, p.101), the author of a book titled ‘Global information society: operating information systems in a dynamic global business environment,’ culture can be defined as the unique way in which a specific society lives. The United Kingdom is home to some of the largest retail businesses, such as Tesco. United Kingdom’s official language is English; however, due to the presence of many foreigners, French and German are also common languages. Business relations between the United Kingdom and Hungary have been in existence for many years; indeed, countless British tourists visit Hungary annually. Many Hungarians also work and study in the United Kingdom. In addition, the open economy in Hungary has allowed room for foreign investments from companies such as Tesco, which aid in job creation for the country’s citizens (Hungary, 2011). Its main aim and economic policy are directed towards two pillars: increasing competitiveness and the levels of employment. The government’s main objectives include creating one million new jobs in ten years, economic growth, improved education, innovation, and creating a stable fiscal policy (Hungary, 2011). Hungary has proven to be a major attraction for foreign businesses, one of the major reasons being its use of the English language as an international business language. Cultural diversity is vital as it influences the profitability of foreign business. When cultural awareness is improved, international competencies are built, and global sensitivity is evident. McDonald, Burton & Dowling (2002, p.156) further add that the values and norms of a country establish moral codes of the required behavior. Tesco is one of the largest grocery retail businesses in the world; it was founded by Sir Jack Cohen in 1919. According to Radosevic and Yoruk (2000 p19), the authors of an article titled ‘International expansion and buyer-driven commodity chain: the case of Tesco,’ Tesco bought a 57% of supermarket chain in 1994, which included 41 stores in west Hungary for 15million. Tesco has over 200 stores in Hungary, with Tesco Extra being their latest opening in Hungary. Tesco’s motive is to expand its business, and this can be facilitated by a culture of ensuring that the management monitors employees and managers’ decisions. According to Parish (2007, p.11), an author in the Nursing Standard Journal, Tesco has a culture of keeping customers happy by satisfying the employees. In addition, the company maintains a healthy relationship between the staff and their immediate managers, a strategy that leads to increased performance and customer satisfaction. This paper will focus on addressing the emerging problems of the two cultures of Tesco and Global Supermarkets while analyzing and recommending the possible solutions Tesco requires to maintain healthy trade relations in Hungary. Tesco – Global Supermarket Chain acquisition According to Thompson and Martin (2010, p.549), authors of a book titled ‘Strategic Management,’ ever since Tesco acquired majority control of Global, a 41-store supermarket chain in Hungary in 1994, it has expanded