...Read the case study “Wal-Mart Goes South” below and respond to the following questions: 1. How much of Wal-Mart’s success is due to NAFTA, and how much is due to Wal-Mart’s inherent competitive strategy? 2. How has the implementation of NAFTA affected Wal-Mart’s success in Mexico? 3. Faced with going out of business, what steps did Comerci take to remain competitive? What other steps do you think Comerci should take to secure its future and further compete with Wal-Mart’s operations in Mexico? APA format is required for text citations and references. You are expected to support your answer with: (1) the textbook “International business environments and operations (twelfth edition), Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2009). New Jersey, NJ: Pearson Education, Inc.”, and (2) news articles, internet articles, and academic source. WAL-MART GOES SOUTH Comercial Mexicana S.A. (Comerci), one of Mexico’s largest retail chains, is faced with a serious dilemma. Since Wal-Mart’s aggressive entry into the Mexican retail market, Comerci has found it increasingly difficult to remain competitive. Wal-Mart’s strong operating presence and low prices since NAFTA’s lifting of tariffs have put pressure on Comerci, and now management must determine if Comerci’s recent participation with the purchasing consortium Sinergia will be sufficient to compete against Wal-Mart. What’s caused this intense competitive pressure on Comerci, and what is likely to be its...
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...Wal-Mart MKTG305-06 Marketing Management Abstract Wal-Mart is a Fortune 500 international country with 5,651 stores in 26 countries. Wal-Mart is located in different countries, possibly under a different name. This paper will discuss the four Ps of marketing and any differences observed in making this company international. Wal-Mart Wal-Mart is a Fortune 500 international business. Wal-Mart employs 780,000 associates in 5,651 stores in 26 countries. The main corporate office of Wal-Mart is in Bentonville, Arkansas. Wal-Mart first opened in Rogers, Ark in 1962. The idea of discount retailing was not new, but Sam Walton, the founder, wanted a new type of store. To only name four countries in which Wal-Mart stores can be found Argentina, Honduras, South Africa, and Swaziland, but they may be seen under a different name in each country. In Argentina, Wal-Mart may be known as Changomas. In Honduras, Wal-Mart may be seen as Centroamérica. In South Africa, Wal-Mart may be seen as Massmart. In Swaziland, Wal-Mart may be seen as Massmart (Wal-Mart, 2012). The Four P Components of the Marketing Mix were Product, Place, Promotion, and Price. The product is the items or services the company sales. The place is the location of the company. The promotion is the ads used to sale the products or service to the customers. The price is the amount of money that the customers are willing to pay for the product or service while the company can still make money. The Evolution...
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...Wal-Mart: The Future is Sustainability Summary Wal-Mart Stores, Inc. is one of the top companies in the retail industry. According to Forbes (2010), in 1962 brothers Sam and Bud Walton ran handful of small 5-and-10 stores in Arkansas and Missouri and they built their first Wal-Mart discount store in 1962. Then on Halloween day 1969 Wal-Mart Corporate (n.d.) states that the company incorporated. Since those early days when the founder Sam Walton was running the company many things have changed. For instance Ferrell, Fraedrich, and Ferrell (2011) stated that due to the staunch work ethic and dedication to customer care that Sam Walton instilled in the company, the company did feel that there was a need formal ethics program (p. 315). However, as time has passed the thinking of the Wal-Mart Executives has had to change. I do not know if Wal-Mart has changed because of the lawsuits they have encountered over ethical issues, if it was driven by the desire to keep profits high, or if Wal-Mart changed the way they do business because the company really does want to right thing for all the stakeholders. From what I can see, ethics has become a very important part of Wal-Mart’s business strategy. They seem to have a formal ethics program in company these days and they even want the entire world to know about because they provide a digital copy of their 36 page Statement of Ethics document on their web site. Text Questions 1. Do you think Wal-Mart is doing enough to become more sustainable...
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...island’s growth Wal-Mart Stores could make a significant change to the island. Wal-Marts stakeholders and shareholders as well as the CEO Mike Duke would like to come to Kava to provide assistance in helping the island to recover from all the mishap. Wal-Marts appearance on this island will better the economy immensely. Hundreds of stable job’s for the community working for Wal-Mart. The island is in need of restoring Wal-Mart is well known for donating money to communities. Wal-Mart is exactly what Kava needs to make a comeback. “Wal-Mart Stores, Inc. (Wal-Mart)2011, incorporated in October 1969, operates retail stores. The Company operates in three business segments: Wal-Mart U.S., Wal-Mart International, and Sam’s Club”. ( www.reuters.com/). 2011. “ The Wal-Mart story began in 1962, when Sam Walton, our founder opened the company’s first discount store in Rogers, Ark. 1968 saw the hiring of Wal-Mart Aviation’s first full-time pilot, who provided help to Sam and Bud Walton, as well as the opening of the first stores outside of Arkansas, in Sikeston, Mo., and Claremore, Okla. The company officially incorporated as Wal-Mart Stores Inc. on October 31, 1969.” (Wal-Mart)2011 The environment at the stores is a family atmosphere. Careers are easily obtainable all Wal-Mart stores 2/3 of our store managers who started off on the stock or sales floor. Employment with the option to move up in the company will be very positive for the morale in Kava. “The Wal-Mart Foundation...
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...domestic markets into international markets is known as globalization. The ability to trade and operate in international markets has increased the profits and overall net income of these multinational corporations. McDonalds, Exxon and Wal-Mart are among many global companies that have been able to increase their revenues by operating in international markets. Wal-Mart’s international ventures accounts for 20.1% of their total revenue which is estimated at $60 billion annually. The purpose of this paper is to select a company and discuss their business model. The company we will be looking at through out this paper is Wal-Mart. Wal-Mart’s slogan “Saving people money so they can live a better life” is what Wal-Mart’s business model is all about. Selling thousands of quality merchandise to low-income consumers at extremely low prices has been responsible for their success in the United States. Achieving success domestically is quite different from succeeding internationally. Doing business globally requires different business models. For a successful transition into the global environment, each business model must be designed to adhere to the preference or norms of each individual country. Both Wal-Mart and Ikea realized that success in the global market goes beyond offering low priced items when they moved into the global market. Its failure in Germany and South Korea made them realize that culture is a factor that must be considered when operating in international In this paper I...
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...Wal-Mart Jessica Martin May 28, 2011 MKTG305 AIU Online Abstract Wal-Mart is rated 1 on the Forbes 500 international list. It has stores in 15 different countries. It has always kept its mission statement. The mission statement for Wal-Mart is to save people money so they can live a better life. Japan, Honduras, India, and the United States each have their own way of doing business. They each advertise differently, have different ways of pricing, and contain different products. Wal-Mart Wal-Mart has become an icon. The first Wal-Mart discount store opened in 1962 in Rogers, AR. On October 31, 1969 it was incorporated as Wal-Mart Stores, Inc. (Wal-Mart, n.d.) It was listed on the New York Stock Exchange in 1972. At this time there were 276 stores in 11 states. In 1983 the first Sam’s Club membership warehouse was opened and in 1988 the first supercenter opened. Wal-Mart became an international company in 1991 when it opened a Sam’s Club near Mexico City. (Wal-Mart, n.d.) Most of the Wal-Mart stores are now supercenters. The supercenters have a complete grocery store along with general merchandise. When Sam Walton opened the first Wal-Mart he had a vision. His vision was to help save people money and live better lives. Wal-Mart has more than 9,000 retail stores in 15 countries and has 2 million employees worldwide. Mr. Walton said it best “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see...
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...essay, “Up Against Wal-Mart”, Karen Olsson claims that Wal-Mart does not benefit their staff members. Olsson states, with confirmation from Wal-Mart employees, that Wal-Mart does not support unions and, due to being underpaid, does not provide an affordable health insurance. Although Wal-mart is the worlds largest retailer, with $220 billion in sales, and having over 3,000 stores in the nation, the average hourly Wal-Mart employee barely makes $18,000 a year. One associate, Sarah McLaughlin, a twenty-two year old single mother, tells Olsson that after working for her local Wal-Mart for over three years,only makes $16,800 a year. At Wal-Mart, that’s considered high-paid, according to McLaughlin. Due to workers being underpaid, many of them can not afford the health insurance benefits that Wal-Mart provides. Olsson states that Health insurance through the Wal-Mart plan would deduct $85 from McLaughlin’s $550 biweekly paychecks, therefore, she goes without and relies on Medicaid to take care of her one year old son. Olsson’s main issue with Wal-Mart, appears to be their drastic efforts on being anti-unionized. Wal-Mart strongly believes that unions are not for their company and those that supported a union were told they don't belong at Wal-Mart. Wal-Mart is so against supporting unions, that management monitors anyone who is under suspicion. McLaughlin’s boyfriend, Eric Jackson, started working for Wal-Mart as an evening cashier...
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...Resources Management GB520-01N Wal-Mart Case Study Contents Introduction 3 Background 3 Summary 3 Exploring Answers 4 The Secret Formula 4 The Issues 5 Recommendations 7 Conclusion 7 Introduction The purpose of this analysis is to examine domestic Human Resource strategies in contrast to International Human Resource strategies. One goal of globalization is to be able to do business across borders without stress. Similarly, as companies grow customer bases, it is important to have strategic business units in areas local to the customer base. It is what is required to successfully build a successful global presence. This analysis will attempt to highlight potential issues faced by Walmart when they opened up for business in China in 1996. This analysis will also provide a set of recommendations that may have helped to avert the issues that Wal-Mart faced. Background Wal-Mart Stores, Inc. started when Sam Walton set out on an ambitious mission to have a store with the lowest prices anytime, anywhere. In 1962 Sam Walton opened the very first Wal-Mart in Rogers, Arkansas. By 1967, they owned 24 stores and continued to rapid expanding. In 1983, they added to their portfolio by starting a wholesale/bulk retailer called “Sam’s Club” and by 1988, they started a hybrid of general merchandise stores and supermarkets and aptly called them “Super Centers.” In 1990 Wal-Mart became USA’s number-one retailer. In 1991, Wal-Mart opened its first global store in...
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...manifest itself in terms of labor relations and corporate responsibility. Such is the case for Wal-Mart Stores Inc. Some groups maintain the position that Wal-Mart is terrible for poor Americans, while others assert that they are a progressive success story. In the article Up Against Wal-Mart, Karen Olsson communicates that Wal-Mart is detrimental to its employees by being anti-union. She utilizes an expansive array of facts, quotes, and statistics to persuade readers that Wal-Mart has little concern for its employees or environment in which they operate. On the other hand, Sebastian Mallaby argues in his article Progressive Wal-Mart. Really. the pay, opportunities, and perks the company offers to its employees must serve its goal for long-term growth and profitability. He does this in a succinct, sometimes argumentative, fashion by rebuking specific attacks on the way in which they conduct business. Within their own writing styles, each author expresses different points of views regarding Wal-Mart’s healthcare policies, compensation plans, and its effects upon the communities and economies in which it operates. Many people are under the impression that employers are responsible for the healthcare cost of their employees. Mallaby argues that Wal-Mart improves access to healthcare by raising the real incomes of people who are its customers. Furthermore, the size of Wal-Mart allows it to influence prices throughout the retail industry. This, in turn affects all consumers...
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...A Need for Change I go back now and the stores are all empty Except for an old coke sign from 1950 Boarded up like they never existed Or renovated and called historic districts There goes the little man There goes the little man Now they are lined up in a concrete strip You can buy the world with just one trip And save a penny cause it's jumbo size They don't even realize They'er killin' the little man Oh the little man These are the lyrics to Alan Jackson’s song “Little Man”. I think that this song gives a great picture of the way we shop, and how it has changed over time. There used to be specialty stores like a TV shop, hardware store and independently ran car garages, but they are being replaced by mini malls, Wal-Mart’s, and Jiffy Lubes. These “little men” still exist but are hurting. It is close to impossible to compete with the low prices that these chains can offer. In the article “The Store to All Ends” the company Wal-Mart is scrutinized. Why is Wal-Mart so successful? How is it affecting the world? Have you ever heard this? “Wal-Mart is taking over the world!” This statement is a little outlandish, but in all seriousness, maybe it is somewhat true. As the years go on, it seems that companies such as Wal-Mart keep getting bigger and more powerful. With all the corporate greed and global competition to produce goods at the lowest possible price, no one is worried about any of the negative effects that are resulting from it. Along with these businesses...
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...August 18th, 2014 Tana Romero Cross-Cultural Perspectives Wal-Mart is a global organization with a multinational presence. Wal-Mart started in the United States of America and after obtaining huge success in the U.S., they went global with their brand of marketing and selling products at a lower price than their competitors, in order to help lower income families. Wal-Mart is considered the world’s largest retailer, but this title has not come without issues. Wal-Mart Cultural issues Wal-Mart is a massive retail store chain in the United States, this goes without saying. I would find it hard to believe you could find a single person in the United States that has not heard of or been to a Wal-Mart. Because of their great success in the U.S., it only makes sense they would travel abroad and attempt to bring their services to other countries. Wal-Mart devised and produced a 36 page, global policy for ethics, which states the following: According to "Walmart Statement of Ethics" (n.d.), “Each business organization Walmart operates is expected to have a complete set of policies providing guidance to associates for whatever country they are working in”. “Walmart also publishes several “global policies,” which are designed to give associates a set of rules that are the same for all locations.” “This Statement of Ethics is an example of a global policy.” “If any part of this Statement of Ethics goes against local policies or laws, then the local policy or law must...
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...WAL-MART’S PROBLEMS IN Wal-Mart’s Problems in International Market Patiporn Kitlertphiroj University College of University of Denver Abstract Wal-Mart, the biggest retailer in the world, is spreading its power throughout the world, starting with nine countries in Asia, Europe and South America. The expansion has planed for more in the near future. With its attempt to penetrate hypermarket culture in every country which it enters, many severe problems are come into play. Acquisitions and joint venture with local businesses became a problem in nationalism country. Thus, strict governments’ rules and regulations blocked business operations. Misreading competitors and late in entry destroyed location opportunities the same as harmed relationship with local suppliers. Inadaptable to local culture become a big problem in global business. Moreover, low wages, unions and sex discrimination brought Wal-Mart to be an evil in employees’ perspective. Literature Review Wal-Mart is the largest Discount Store in the United States. Its magnitude is not only recognized domestically but also expanded to International Market. The company believes that one day this one will replace the United States position when the trend down (Molin, 2004). With this goal Wal-mart is encouraged to expanding stores into nine countries around the world and more in its plans (About Wal-Mart, 2001). Being number one in the United States does not always guarantee for being number one...
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... June 28, 2009 Introduction and Overview Sam Walton founded the first Wal-Mart in 1962; the idea of bringing in a discount-shopping store into rural America was almost unheard of, except for the local five and dime stores. When Walton noticed he had plenty of competition from regional discount chains, he traveled the country to study other new retailing concepts. He was convinced that it was the wave of the future (Wal-Mart, 2009). Wal-Mart was founded in 1962, with the opening of the first Wal-Mart discount store in Rogers, Ark. The company incorporated as Wal-Mart Stores, Inc. on Oct. 31, 1969. In 1983, the company opened its first Sam’s Club membership warehouse, and in 1988 opened the first supercenter. Wal-Mart became an international company in 1991 when it opened its first Sam's Club near Mexico City (Wal-Mart, 2009). Wal-Mart competes in many industries that include 5331- Retail-Variety stores, 5411-Grocery stores, 5311-Department stores, 5812-Eating Places, 5399-Miscellaneous General Merchandise store, and 5912-Drug stores and Proprietary stores. In 2002, Wal-Mart became first on the Fortune 500 list and received the Ron Brown Award for Corporate Leadership (Wal-Mart, 2009). This is a presidential award that recognizes companies for outstanding achievement in employee and community relations. Compared together, Wal-Mart, Target and Kmart are very close competitors. They are all retail-variety discount stores making their existence...
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...that are undemocratic, violate human rights, or permit exploitative work conditions even if it benefits those employed by Walmart in that country. In order to understand the reasons why Walmart should care about doing business in undemocratic countries where human rights are constantly being violated, several factors must be taken into consideration. Firstly, the definition of corporate and social responsibility must be clearly realized. Next, there should be thorough comprehension of corporate law and international corporate law in relation to human rights. Another point to identify to realize Wal-Mart’s responsibility is the efforts that have been made by the corporation in the issues of humanitarianism; in this we will identify cases, which will illustrate the corporation’s record when it comes to human rights. As a corporation founded in one of the democratic countries in the world as well as a major player in international organizations such as the United Nations, Wal-Mart as an entity has a moral responsibility to adhere to human rights law and protecting the citizens of so called “undemocratic countries.”, Corporate responsibility is defined as “duty and rational conduct expected of a corporation; accountability of a corporation to a code of ethics and to established laws” (Dictionary.com.) but in this case, the definition of Corporate Social Responsibility will be addressed. According to the Business Dictionary, Corporate Social Responsibility (CSR) is defined as “A...
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...Wal-Mart Just In Time Just In Time - A Business Strategy for Efficiency and Cost Reduction The retail industry has long sought to improve their bottom line by strategically pricing their merchandise to maximize profits while remaining competitive. This paper addresses one approach utilizing an emerging technology for inventory tracking: Radio Frequency Identification (RFID). Introduction A typical concern of all retail establishments is maximizing profits while maintaining customer loyalty. Now where this is more of a concern than with the Big-Box stores such as, Target and Wal-Mart in the United States. These stores offer a wide variety of goods and provide a “one-stop” shopping experience for their customers. The challenge for the store is to provide the variety and availability of merchandise without the high cost of inventory storage and over-stocking. Consequently, the goal is to have the merchandise available to their customers, “just in time” for them to make the purchase. These stores have a greater challenge than the warehouse club stores such as Costco and Sam’s Club because they require their members to buy in quantity. This paper will focus on the special problem that non-warehouse club stores encounter in selling smaller quantities and describe the “just in time” philosophy and how it is applied in today’s retail industry. A case history of how Wal-Mart is applying this approach to their operation and some of their implementation challenges. Addressing...
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