International Business- Walmart

INTERNATIONAL MARKET OF WAL-MART QUESTION Assignment 1 Ch each(prenominal)enges in worldwide management Type Individual Format Essay (You ar encouraged to use headings and/or sub-headings to separate the sections/cases of your essay. ) Word limit 2500 quarrel (variation within 10% more or less is allowed) This activity is a plat fix to sharpen and demonstrate your know guidege and analytical skills in inter provinceal note. It is knowing to help you achieve the learning outcomes 1, 2 & 3. The assignment focuses on the actors of international traffic and their actions in the contemporary international crease context.It as well provides you with opportunities to link the international theories with the practice by analysing real-world examples from the academic point of view. secernate Assignment Question How does international business judicature achieve its internationalisation objectives in the contemporary context? Process 1. Select a multinational corporation. 2. W rite a brief overview of the organisation and its missionary station/objectives related to international business(maximum 500 words for this section) 3.Select and then analyse the internationalisation exploit of the organisation and its impacts on the international context ( internationalist business theories mesh topology be adopted in this section) What did the organisation do to internationalise itself? i. e. surroundal psychoanalysis, battle with different actors, entry mode Please explain computes affecting the internationalisation surgical operation of your Multinational Corporation(MNC). What was the impact of these actions on the organisation and/or broader community (i. e. master of ceremonies country, competitors, industry etc. ? (1,500 words) 4. Experience/lessons Learned(500 words) What experience and/or lessons should the organisation hurl learnt from the analysis? Why do you think they atomic number 18 all alpha(predicate) for their future acting? Wha t insights did you lucre about international business in the contemporary context? SOLUTION Introduction The most reputed and perhaps the biggest high society in the World in terms of sell. It has a proven report record for implementing masteryful business across the globe with its wonderful business practices and world class merchandising proposes.Wal- Mart is a beau monde which has make business not only in the US but withal many countries across the globe. The attach to was established by Sam Walton at Rogers, Arkansas in the year 1962. The business growth was in the continue with a period of 17 years after starting the political party. By the end of financial year 2001, guild already saw a turn over of iodine trillion US dollars. With its useful marketing strategies Wal- securities industry managed to make it reputation of being the largest retailer in the world with revenue of 218 billion dollars.The companies continue growth in terms of revenue conduct the co mpany to operate in the orbicular train. The international operation started in the Mexico City in the year 1991. Its global presence has seen a hot height, when it was be that more than 100 million customers have visited the Wal-mart retails globally. The number of associates stood at 1. 3 million which argon on rolls of the company and has been diversified across 3200 stores in the US and more than 1000 stores across Canada, China, UK,, Germany, Korea ,Indonesia etc. Wal-Mart operates its stores in different versions worldwide.It is generally categorised in three main segments. that is to say u Wal-mart Stores u Sams Club u International Stores It can be further differentiated into Discount Stores, Super centres and neighborhood market. (Lewis, 2011) Currently the company serves around 200 million members and customers in a week at little higher than 8000 units under mixed quislingism and banners in 15 countries. The sales have crossed $400 billion mark and employees mor e than 2. 1 million people globally. It is a attraction in sustainability, corporate philanthropy and employment opportunity.In the year 2008, the company found three major atomic number 18as which argon crucial at present for the company. The mission statement is to help people save money so they can live better. The crucial areas are health, power efficiency and moral foundation. These social occasions have been transformed into the broad objectives that are stated as under 1. admission price to the world class health boot at an affordable price. 2. pick at the power cost for the consumer. 3. Moral and Environmental issues to be taken care of beforehand expanding the business network. .(wallmart. com,2012)Internationalization of the process In the present business environment on that point are no fixed methods for globalization of the business. As there are various complexities in the finished process of the business which varies from straddle to place and business to b usiness. The standards of internationalization of the process of any business are tempered by the owners by themselves. In general view in terms globalization few c at one timepts are comparatively favorite in terms of globalization of the process. The commonly pass offed strategies are as follows. * Exporting of the crossroad Seeking for Licensing the product to another(prenominal) company * Go out and compensate franchising opportunity to other company. * Joint venturing with the native country firms * Setting up of a wholly owned subsidiary. Generally the experiment has proved that get change to the on divergence firms international engagement, it lays down the rues and regulation for circumstance up foreign subsidiaries. Hence it becomes important to include these variations and give more business ideas ilk, joint venturing, licensing and franchising opportunity (Lewis, 2011) Study of the brokers undertaken before red GlobalBefore open the Wal-Mart brand as other br and was lively in all the respect and with the increase in the revenue the company has achieved that comfortable level to go out and play in the international arena. Wal-Mart sensed the take up of hour and knew that the international deal out leave give a sober numbers in terms of sales and profits enhance the experience and offer valuable ways by creating jobs in the process of globalization. An analysis has been done in this regard by the company. Before going multinational following are the analysis done by any companies for the matter of fact before developing the business plan.Commitment from the Employees team An sound plan for the employees in the group ranging from top level to executive junior level, all should be united, does not matter even if he is supplier, all one should be under one roof as an asset for companies effective execution of the process. Proper definition of the business plan for internal employees essential be designed to enter the international bu siness environment. It becomes very lots essential to put a plan of action defining companys present status, objectives and commitment.It impart help to measure the results as whole. truly prominent factor is the investment how much the company is investing in the process of globalization whether it is 10-15% of the profit form the domestic market or options kindred pay as you can afford formula. The company canvass the proper time frame take for the launch of the company in the global market. It took time and patience to built and lasting world enterprise. gum olibanum it has paid a lot to the wall mart in the extensive run. The best thing they did is the hosting of website keeping the international market in their mind.Though side is the most popular language in the world, but less than 30 % people can read it in the European continent. The numbers are further overturn in Asia and South America. Multi lingual website has become the firstly choice of the MNCs so that they can effectively transmit the reading without any barrier. Decision over the Product and services for the nations- It is very important to decide which product to promote in the global market. Many safe(p)s support in the countries like America may be supported in Indonesia.The company has also launched an extensive market research. It is one of the proven slit for identifying the growth, developments and scope in the market. This enabled the company to find what kind of product is demanded in the market and major markets were targeted. Research related to the geographical location- In this pricy deal based economy the company has selected the areas where the growth is relatively higher compared to the areas where the sales are at all time low. Thus the company has considered this factor before selecting the countries in particular.A good research was conducted in this regard for identifying the customers so that it can choose the location effectively. It has also taken care of the factors like the control over the business ventures. A everlasting(a) plan was lively before hand in this regard. WalMart always followed a system related to the export of the goods the companies effective style of displaying the product and other things has led the company to invoke new heights in the retail arena in many countries. Legal factors- Any companies before going global always needs to meet the legal requirements and other issues related to the compliances.Thus the strategy of the company was designed in such a way, that they inducted layers, bankers and people from various legal and financial supports. This was one of the priorities of the company as they knew that without meeting this factor you cannot afford to run the company. The documentation and the approval from the government and other trade bodies were taken before entering in any country premises. catch channels were utilize to get more and more out of the process. gear up Factor- It is very impo rtant to test the price in the market.How the people throw the price in the current situation? Then negotiate and determine the final pricing structure for the product. Terms and conditions were researched and designed suitably for the customers as well as the company. Service and replacement strategies- Wal-Mart knew that the customers satisfaction is the key to the success of the business. The relationship with the customer should not end after the sales process, an effective feedback and after sales services were whatsoever of the key issues that were determined by the company.Cultural Aspects- it was one of the key agendas of the Wal-mart to take care of the cultural specific nurture and general courtesy related to the job and sustainability. The goal of the company was designed in such a way that it forget be easier for the company to adapt and make it into their own culture. . Factors related to global partnership and partnership- retail giants like Wal-mart had an extens ive discussion and formulated policy regarding the alliances and partnership of the company in the different nations. It is an important matter of concern for the companies like Wal- mart to enter into the retail market.Many aspects are related in this matter like joining hands with company of similar capacity who are already in the market or search for any other alliance on profit sharing basis. The key policy Wal-mart implemented is that they tempered employees as a most important valuable asset and business cannot survive without them, in this age of rapid development it is the emotional touch which helps the companies to grow. Taking the best possible care of company and employees, your suppliers and your customers, and your future will be b ripe(p), prosperous and happy. sack global doesnt have to be a scary proposition. By considering and developing these twenty essential factors before going global, your organization can realize the full potential of globalization and approp riate dramatic revenue growth. (Dalaney, 2004) Major problems and hindrances faced With the ongoing process of globalisation, it is unambiguous that there will be competition in every aspect. notwithstanding, with perfect strategies and clever decision can enable the company to witness whatever robust growth. In the retail business Wal-Mart has also faced a lot of issues running the business.The key problem to mention is the competitor in the field of retail. It is the Kmart, who gave competition to the Wal-Mart. Kmart in US is considered to be the second largest retail chain after Wal-mart. Both the retailers are highly successful in their business. Though, the strategies differ for both the players. Wal-Mart strategy is to set up stores in midget towns and within small group of people, while Kmart is focused on to set up stores in populated places. The kmarts strategy is to gain a larger market share , rather than the volumes.However Wal-mart has proved it from its sales figur es where the sales are estimated to be greater by four times than that of Kmarts figures. The difference between both the companies sales figures stood at around $37 billion. The discount stores of the Wal-mart faired fairly well where the sales were about $385 per square feet considered as twice the amount of Kmart. Companys like Wal-Mart has proved it credibleness in the field of success in not reliant on the size and quantity. Initially Wal- mart has also witnessed problem many good professional in the company says company lacked strategic vision.It has been widely argued that the company was unable to meet the expectation, that company popularised the mission statement where it was mentioned that customers expectation will be met by delivering quality products at lower price in the market. The company was concentrating to meet the basic necessities. (Global Strategy analysis, ivythesis) Wal-Mart in the Indonesia Once the company has gone International . It was one of the major contend to the Wal-Mart was to find appropriate partner or companies who can popularize or make some sort of business understanding.In Indonesia being a good potential market. Wal-Mart had a discussion with the largest Indonesian retailer Pt Matahari Putra starring(predicate) to develop the concept of the hyper market asset. At the same time, Lippo Group an Indonesian commercial enterprise group which controls Matahari through PT Multipolar, was also looking for global partners like Wal-Mart to expand its business. Howe ever the strategies of Walmart were very clear. Wal-mart wanted to acquire the hyper markets, on with a French retailer Casino Guichard Perrachon SA.In this process Lippo has hoped to generate a substantial amount of $ one billion. The partnership will give the Wal-mart to gain a significantly and control over the assets of Matahari Hypermarkets. The main reason for Wal-mart in this regard is that, Indonesia is one of the most populated countries in the world and largest nation in terms of Muslim population. This deal could be a princely deal as the Wal-mart wants to keep on moving by go-ahead its stores in the middle east and South East Asian countries in the world. (Wal-Mart in Indonesia, The writingonthewal) Conclusion and RecommendationIt has been a great experience studying the entire issue and a good number of lessons are was learned. Expanding the business to other nation can be attractive only when it is planned properly, it will add the value to the business. There are few vital points which we should flirt with to sustain the business in the international level which are depict as follows. Is the company a business leader at home, these years the transformation of messages are very fast. Thus we can say that if it is popular brand in the country that means greater chance of doing business outside the nation.Followed by the business model in use- Each and every business model has its own pros and cons. Thus, the company should decide which mode to follow whether it will go for franchising, licensing, joint ventures or wholly owned. Choose the right partner for the process- It is important to choose the right business houses for the success of the business. In this matter verification of financial status, influence and reputation are some of the key aspect needs some special attention. In relatively smaller nation also check the political scenario which may be helpful.Study the country where to set up the business- It is important to study the rules and regulation that are imposed by the country. The tariffs and taxes related to the international business is also a matter of concern. Infrastructure related to the business- It is also an important factor before doing business in the foreign land. All the supporting infrastructure should be in line to support the business Key issues are whether you will get home support for the logistic and supply chain form home or any other alternatives needs to be used in this regard.Is the companys financial efficiency financial subdivision to handle the foreign transaction and exchange in the currency? Moreover, once you are operating globally, there must be a division who can handle any kind of queries and suggestion round the clock. Moreover operating model is also very important before going out for business. The cost in terms of supply, real estate and seasonality are also important. (ceoonline. com) Competitive pricing for the product, price drop is also necessary to study and offer the customers with some outcomes.A very close supervision is required in this regard for the fast and stable results. (BSAG,2011) References G. lewis, Researching International strategies of Australia viewed on April twelfth,2012 www. Business. flinders. edu. au/research/papers/01-3. doc Global Strategy abridgment Wal-Mart, viewed on April, 13th,2012 http//ivythesis. typepad. com/term_paper_topics/2010/03/global-strategy-analysis-wal-mart. html Laural Delaney, December 16, 2004, 20 Factors to Consider before Going Global, viewed on April 13th, 2012 http//www. ntrepreneur. com/article/75138 Walmart in indonesia round 2, viewed on April 14th,2012 http//thewritingonthewal. net/? p=12269 Expanding Internationally 8 Points To Consider Before Going Global, 2007, viewed on April, 13th,2012 http//www. ceoonline. com/pages/id22292. aspx Business strategy BSAG, viewed on April 13,2012 http//bsagweb. com/clients-stories/retail-company Daniel D. Bradlow, The Changing International Business Context, viewed on April 13,2012 http//www. ialsnet. org/meetings/business/BradlowDaniel-USA. pdf