The Environment of Management

Walmart Part Two

Walmart went global and it is the fastest growing business. Walmart’s retail establishing with the Chinese consumers in 2004. Walmart operated 39 stores in China. Walmart’s in foreign countries have different food in their super Walmart because of cultural differences. Walmart meets the demands of their consumers by adding local flavors. Walmart has developed an ethical standards program to create a higher product and quality and lower products costs. Policing the workplaces of international venders is a huge task but Walmart executives say it is a necessary one. 

Study Case

1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why has management chosen this approach?

Walmart is using direct direct investing to foreign markets. Walmart has chosen this approach because the company’s goal is the same in every area of the world. The primary objective is to save people money so they can live a little better. Their goal in every market they operate is not only to deliver products at great value, but also to ensure that all of the products we sell are made in an ethical and sustainable way.

2. What challenges do Walmart China managers encounter in the international business environment?

Managers at Walmart should be focus in current cultural differences and developed an Ethical Standards Program to audit suppliers and ensure the ethical procurement of goods. The Ethical Standards Program can help compay’s to analyzing our expectations that our suppliers must compensate all workers with wages and overtimes premiums and benefits that meet or exceed local legal standards, local industry standards, or collective agreements, whichever are higher. Managers not only bring sustainable and positive change to working condition in factories, we also help build ladders to a better life in the countries where we are sourcing.

3. Which of Walmart sustainability initiatives do you believe will greatest positive impact on China? Explain.

I think Walmart will have a positive impact on China by having a social responsible business is a simple good business by reducing waste and energy cost and paving a path to higher profits for all. Also, being able to go in and work with individual factories were instead of costing them more money to do it the right way, the factory is actually able to save cost by doing it the right way.