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.