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Walmart in the German Market

In: Business and Management

Submitted By callum610
Words 2553
Pages 11
“Internationalisation of operations is critical to a company’s success in today’s competitive environment”

Internationalisation of operations is a huge issue which has faced many companies in today’s competitive business environment. With the increase in communications and ability to reach other countries being cheaper and easier in the 21st century, many companies have chosen to internationalise and expand on the domestic market in order to generate greater profits and become household names internationally. This essay will look at how American born company Wal-Mart Stores, Inc has grown and seen successes and failures in the international environment. It also will look at reasons behind the failures in relation to culture, using the venture into the world’s third largest retail market, Germany as the main focus for the essay.

Firstly, this essay will look at culture and some theories that surround it and also look at different dimensions that make up culture. The definition of culture according to the Oxford Dictionary (1992) is: “the arts and other manifestations of human intellectual achievement regarded collectively or a refined understanding or appreciation of culture”.

The theory that has been chosen to outline culture is Geert Hofstede’s five dimensions. The reason Hofstede’s theory has been used as an example in this case is because of the extensive research that he has put into developing his theories, as well as its relevance to the Wal-Mart failure in Germany. Between the years of 1967 and 1973, while Hofstede was working at international company IBM as a psychologist, he did a survey of over 100,000 employees in 40 different countries. From these results he was able to come up with four dimensions that can help people to understand the intercultural differences within regions and between counties. The four dimensions that Hofstede came…...

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