Walmart case, Introduction to international business

Good Essays
Wal-Mart case

October 9, 2013
1. A few of Wal-Mart’s FSA’s are the ‘every day low price’ (ELPD) and the their so called ‘exceptional service’. Their very low price is reached by a very efficient distributing systems, innovative technology, low prices negotiated with the supplier and efficient processes with suppliers. And their ‘exceptional’ service means smiling at customers, assisting them and exceeding their expectations. If we look at this general strategy it would seem these are all international transferable FSA’s, you can implement the same efficient systems in the new host country, negotiate low prices and teach the Wal-Mart staff to give ‘exceptional’ service. Of course small adjustments have to be made to coop well with the local culture. But in general these FSA’s all seem internationally transferable.
2. American retailers faced distance components in Germany. Wal-Mart had only two warehouses, in west-Germany, nearly 500 kilometers away from their stores in east and south- Germany. The physical distance between the headquarters of the two former companies also forced Wal-Mart to consolidate and shut down one of the former headquarters.
3. Considering the statement: ‘Hey we are in Germany, isn’t that great?’ to be true. We do think Wal-Mart overestimated the transferability of its FSAs. However, Wal-Mart’s main reason for failing is the underestimation of the differences between the US-market and the German market. If Wal-Mart went to for example the Netherlands, the customers would be less parsimonious, and the American products might have been a lot more bought. Wal-Mart did overestimated the general transferability of its FSAs to an unspecified country. Germany doesn’t lend itself to a company with a foreign culture, where smaller countries would do so. Wal-Mart basically had to deal with laws that were against Wal-Mart. Some other countries have looser restrictions for supermarkets. Wal-Mart didn’t make a distinction between foreign

You May Also Find These Documents Helpful

  • Powerful Essays

    INTERNATIONAL MARKET OF WAL-MART QUESTION Assignment 1: Challenges in international management Type: Individual Format: Essay (You are encouraged to use headings and/or sub-headings to separate the sections/cases of your essay.) Word limit: 2500 words (variation within 10% more or less is allowed) This activity is a platform to sharpen and demonstrate your knowledge and analytical skills in international business. It is designed to help you achieve the learning outcomes 1, 2 & 3.…

    • 2969 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Unethical Business Ethics is defined as beliefs about what is right and wrong or good and bad in actions that affect others.( Therefore, unethical behaviour is behaviour that is believed to be bad or wrong actions or decisions. Other definition about ethics is ‘the activity of examining the moral standards of a society, and asking how these standards apply to one’s life and whether these standards are reasonable’ (Velasquez, 1998; pg 11). Ethics are based on personal or social beliefs…

    • 1856 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    INTERNATIONAL BUSINESS Pham To Mai University of Economics and Law National University of HCMC INTRODUCTION TO INTERNATIONAL BUSINESS 3 Course Introduction Firm Strategy, Structure and Operation of International Business (Part 5&6) PTM – Introduction to International Business International Business Environment (Part 2, 3&4) 07-Sep-14 4 Course Books & Reference Books Charles W. L. Hill (2011), International Business: Competing in the Global Marketplace…

    • 1381 Words
    • 20 Pages
    Satisfactory Essays
  • Good Essays

    International Business Spring 2013 GSIS, Ajou University - A Survival Toolkit in the HOT, FLAT, CROWDED and VOLATILE WORLD Stay Hungry, Stay Foolish? Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart. - Steve Jobs (1958-2001) International Business Spring 2013 GSIS, Ajou University - A Survival Toolkit in the HOT, FLAT, CROWDED and VOLATILE WORLD Stay…

    • 1634 Words
    • 7 Pages
    Good Essays
  • Good Essays

    INTRODUCTION Foreign direct investment (FDI) is known as the important tool in the development and modernization in economies. The Central and Eastern European Countries (CEEC) acknowledge foreign direct investment (FDI) give a huge impact to their economies in terms of development and modernization. Foreign direct investment means that the investment is direct because the investor, which could be a foreign person or company that have effort to control and manage or have significant influence over…

    • 919 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Introduction to Walmart

    • 275 Words
    • 2 Pages

    Introduction Wal-Mart Stores, Inc. branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. Being the world’s third largest public corporation, Walmart is the biggest employer in the world with more than two million employees. Furthermore, it is the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family. It is also one of the world's most valuable…

    • 275 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Closing Case: A BOOM IN BANGALORE What is the fastest growing industry in India? Software, by far. The software industry serves as a poster child for the success of India’s economic reforms and the benefits of opening up its economy. For decades India’s universities annually graduated tens of thousands of well-trained engineers, but its inward-looking economic policies often failed to utilize the engineers’ talents. In 1991, however, the Indian government relaxed its control over the economy…

    • 686 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Understanding International Business International business is the business transactions between institutions, private individuals, individual companies, groups of companies, and governmental agencies across countries. The skills and knowledge needed to be successful in international business are different from doing business locally. At the basic level, domestic business involves transactions occurring within the boundaries of a single country, while international business transactions cross national…

    • 604 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    WALMART, BUSINESS

    • 3297 Words
    • 14 Pages

    cost of doing business. Wages in particular are as low as can be. Minimum wages and minimum benefits: that’s the way Wal-Mart stays ultra competitive. This report examines the state of Wal-Mart’s business practices and its effect on the economy. It will describe Wal-Mart as a non-union employer, paying lower wages to their employees than other retail and grocery stores. They do not offer benefits to all employees and most are unable to afford them. Between Wal-Mart’s business practices in increasing…

    • 3297 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    became the CEO. He went to an Italian coffee house in Italy and wanted the same format in Starbucks. The idea was to still sell the same products but with a coffee house setting. This idea is an example of what international business is. International business is a world where business is done globally rather than domestically. An example of this would be, 10 years ago Toyota (a Japanese company) would be considered a Japanese car but today it would be considered a global car since all the parts…

    • 522 Words
    • 3 Pages
    Good Essays