Walmart Mnc Report

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Walmart Stores, Inc.

MNC Profile Report

By: William Campos

Date: 04/30/2012

BA 4371 International Business

Instructor: Eric Tsang

Words: 2,770

Table of Contents

Introduction……………………………………………………………………………………………………………………………….3

Company Background………………………………………………………………………………………………………………..3

HR Management………………………………………………………………………………………………………………………..4

Organizational Structure……………………………………………………………………………………………………………5

Supply Chain Management………………………………………………………………………………………………………..6

Mode of Entry……………………………………………………………………………………………………………………………7

Product Adaptation……………………………………………………………………………………………………………………8

Ethics…………………………………………………………………………………………………………………………………………9

Conclusion……………………………………………………………………………………………………………………………….10

Refrences…………………………………………………………………………………………………………………………………12

Introduction

Multinational corporations are the driving force of globalization. In a world with fast technological advances and high competition, companies must learn to conduct business outside of their home country to become more efficient. Unfortunately, different cultural practices have made it difficult for even the biggest corporations to be successful in certain countries. The complexity of globalization has shaped many national and international laws. Companies like Walmart and Nike have had to adjust their business models to comply with not only laws but the different cultures in which they do business in. Multinational corporations are praised with increasing consumer choice and increasing product quality while keeping prices low. However, there are critics that argue the negative impacts of globalization.

Company Background

In 1962 two brothers named Sam and Bud Walton opened Walmart Discount City in Rogers, Arkansas. This was the beginning of what would become the largest (by revenue) multinational corporation in the world. Walmart owns a private satellite system and uses technological advances like electronic data interchange (EDI) and an advanced POS system (Retail Link). Currently Walmart has 10,130 retail stores worldwide with 5,651 being outside the United States. It employs 2.2 million employees with 780, 000 being in 26 other countries besides the US. Walmart Stores, Inc. serves customers under 69 different banners and had sales revenue of approximately $444 billion for fiscal year 2012 (investors.walmart.com). Traded on the New York Stock Exchange (WMT) it stock is valued at approximately $59 per share.

Sam Walton focused his attention on small rural communities, a notion that was unpopular with larger corporations at the time. His ability to tightly control its operating costs, superior customer service and a culture of employee well being were the major elements in the company’s success. Sam Walton emphasized the importance of customer relations with two company priorities. Rule number 1: The customer is always right. Rule number 2: If the customer happens to be wrong, refer back to rule number one. Throughout his career Sam Walton acknowledged the importance of all Walmart employees. Their culture consists of an open-door policy. The policy shaped a notion of one big family-the Walmart family. Sam Walton summed up his beliefs in an acceptance speech for the Gold Medal Award from the National Retail Merchants Association (Abraham, 2006):

“We believe in people. We have involved our folks in running the company. We've developed a partnership through the years and it's our basic philosophy. This is an approach whose time has come for retailers and manufacturers. Walmart employees…from senior management to part-time floor personnel are informed about gross margins, rent bills and other operating expenses - they also share in store profits.”

These are just some of the practices that contributed to Walmart’s success on becoming...
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