Wal-Mart Cross Culture Perspectives
April 18, 2013
Wal-Mart Cross Culture Perspectives
Walton was the founder of the World’s number one biggest company, according to Fortune 500. In 1950, along with his wife Helen, Sam Walton owned his first store. In 1962 Sam opened the very first Wal-Mart store in Rogers, Arkansas. Wal-Mart is one of the largest companies in the United States, but internally touching base in countries just as Japan, China, Mexico, Canada, Brazil, and India. Wal-Mart supercenters locate worldwide and make billions of dollars in profit wish is hard for other retail stores to compete with them. Wal-Mart is consider the largest retailer and largest company in the history of the world because of globalization and the way that Wal-Mart conducts business. Globalization has made Wal-Mart a multibillion dollar industry. In Japan sales average around $4.3 billion, in Mexico the annual sales is $20 billion, in Brazil sales are $8 billion dollars as Davis, 2008. Davis also points that in Canada Wal-Mart has established $11 billion business. Wal-Mart internationally has had its struggle for the reason that executives did not understand the culture differences among countries. Once Wal-Mart open in other countries they did not reflect in the way families live. In Mexico, Germany, and South Korea they have different cultures comparing them to the United States. In Mexico families in this areas use public transportation witch Wal-Mart executives did not consider making smaller parking lots with larger spaces. In South Korea and Germany living space for families are smaller than in America, so bulky products are not practical. When Wal-Mart open at Germany they expect to run procedure the same as they done in the United States without understanding and reflecting the cultural differences. When Wal-Mart doors open in Germany it bought out two smaller stores. As Wal-Mart open in Germany it also brought problems to the consumers for the reason of transportation, it not like America that everyone drives a car. As Wal-Mart location was outskirts of the town and public transportation was complicated for the consumers. Wal-Mart did not only bring problems to the consumers, Wal-Mart also lost hundreds of millions of dollars in Germany. Wal-Mart learns from this experience as a model of what to do and what not to do in a future. Mexico, Germany, and South Korea routine is public transportation, which it useful to purchase large products. In this cultural differences, many non-American shoppers prefer daily visits to variable local stores that specialize in groceries, drugs or household goods, rather than shopping once a week at Wal-Mart (Landler & Barbaro, 2006). America economy built upon Capitalistic Principle. American takes pride in of the free market economy with the larges GDP in the world. In the pass years Wal-Mart has develop and convert into the leading store in the world. However, one of the largest stores will bring negative impacted, it is employees. Wal-Mart has tenancy of leaving American employees unhappy by lowering wages. Its leaders have chosen to cut costs and interrupt labor laws. They have been allegation that Wal-Mart requiring employees to work overtime off the clock. Wal-Mart has been the focus of criticism by several groups and individuals. Labor unions, community groups, religious organizations, and environmental groups have protested the company's policies and business practices. Research has proof that in the pass years, Wal-Mart has had unfair labor practices, and charges have been file against Wal-Mart. Only in 2002 there were 43 chargers file against Wal-Mart for violation in firing workers who attempt to organize union, unlawful surveillance, threats, and intimidation of employees as http://www.iqunions.org/walmart-unethical-work-practices.html. When a Wal-Mart store in Jonquière, Quebec became the first unionized...
References: Fortune 500 2011: The World’s Biggest Companies- Wal-Mart Stores. (2011, July 25).
Landler and Barbaro (2006). Insert the paraphrased material.
Retrieved from http://www.cnnmoney.com
The "Iq Unions The Heartbeat Of America" website
Please join StudyMode to read the full document