...WALMART SUCCESS IN MEXICO, CANADA AND CHINA: GLOBAL EXPANSION, STRATEGIES, ENTRY MODES, THREATS AND OPPORTUNITIES Lee Yee Mun B1000922 Help College Of Arts and Technology Bachelor of Science in Collaboration with Southern New Hampshire University, USA lemon_0611@hotmail.com Rashad Yazdanifard Faculty of Management, Multimedia University, Cyberjaya, Malaysia. rashadyazdanifard@yahoo.com 1 ABSTRACT Global expansion has been gaining a lot of attention. There are many important factors to be considered in the decision-making process such as business strategies, entry modes, and threats and opportunities in the markets. Appropriate strategies will minimize the risk of failure in international markets. The right business strategies and entry modes employed will increase the firm’s chances of success and influence the future of the retailer. Key words: global expansion, business strategies, entry modes, threats, opportunities, Walmart 1. Introduction The internalization of the retail industry has been researched widely, and majority of these studies have described the motivations and scales for international expansion by retailers (Akehurst & Alexander, 1995; Williams, 1992). Many models of internalization explains the sequence of foreign expansion, showing that companies who go international will do better in foreign markets that are similar to their domestic markets. This was why Walmart chose to enter the markets of Canada and Mexico (Johanson...
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...stores within 48 hours and often without having to stock them. This allows Walmart to refill the shelves 4 times faster than its competitors. Walmart controls its buying power through purchasing in bulks and distributing the goods on time. Walmart guarantees everyday low prices and considers them the one stop shop. Walmart operates in Mexico as Walmex, in the UK as ASDA abbreviation of Asquith and Dairies, and in Japan as Seiyu. It has wholly owned operations in Argentina, Brazil, Canada, and Puertorico. Walmart's investments outside North America have had mixed results: its operations in South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. Consumers can also shop Walmart through their...
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...Context: 1. Introduction 2 2. Background of Wal-Mart stores Inc. 3 3. Retail organization internatinalization expension 4 4. International Expansion of Wal-Mart in Maxico,china and canada 5 5. Comparison of Entry Modes 6 6. comparison of Opportunities 7 7. Final touch 8 8. Conclusion 9 9.Bibliography 10 1. Introduction: Being present and having to enter foreign markets is for many companies natural, while for other it is a new challenge that they have to face. This challenge, known as market entry, consists of three major decisions: where to enter, when to enter and how to enter different markets. Some companies are forced to internationalize in the early stages of their life due to small saturated home markets, while other companies choose to go abroad because of the great opportunities new markets might bring (Peng, 2006). Once deciding to go abroad and choosing the target market and timing, companies' need to consider the choice of entry modes. Generally, to choose international firm there are six different entry modes: exporting, turnkey projects, licensing, franchising, joint ventures, wholly owned subsidiary (Hill, 2004). Each entry mode its distinctive characteristics (see, e.g., Hill, 2004; Hill, et al, 1990; Hill and kim, 1988; Anderson and Gatignon, 1986; Madhok, 1997; Brouthers and Brouthers, 2000; Bishop 2006. Selecting a suitable entry mode is a difficult decision for firms interested in entering a foreign market (Agarwal and Ramaswami, 1992). Sometimes...
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...CHAPTER ONE INTRODUCTION China’s emergence on the world scene is one of the most important and challenging developments of the 21st century. Its remarkable growth since the early 1980s has the potential to greatly expand the global economy, and with it, global wealth, more than any other nation in history. China’s more proactive global engagement and the modernization of its military have already greatly altered the economic and political balance of power in East and Southeast Asia and has added yet another actor to the world scene. Several scholars recently have speculated that China and India will emerge as two great superpowers as the twenty-first century progresses. China’s uninterrupted economic growth of about ten percent GDP per year since the late 1970s is unprecedented and there are few signs that the world’s fastest growing economy will taper off any time soon. Real per capita output in 2005 was nine times that of 1978, which is when real economic reform began. Depending on how one calculates and interprets economic data, by 2007 China had become the third or fourth largest economy in the world. While economic growth is most notable in the large cities along China’s east coast like Shanghai and Beijing, virtually everybody across China is much better off now than in 1978. Rapid economic growth has brought vast improvements in the quality of life throughout China over the past three decades. Life expectancy rose to 71 years by 2000, the last time China...
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...WORKING PAPER NO: 366 Foreign Direct Investment in India’s Retail Sector: Some Issues Murali Patibandla Professor Corporate Strategy & Policy Indian Institute of Management Bangalore Bannerghatta Road, Bangalore – 5600 76 Ph: 080-26993039 muralip@iimb.ernet.in, m_patibandla@yahoo.com Year of Publication June 2012 1 Foreign Direct Investment in India’s Retail Sector: Some Issues Abstract Foreign direct investment (FDI) plays an important role in India’s growth dynamics. There are several examples of the benefits of FDI in India. FDI in the retail sector can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers, and suppliers (farmers). This also can result in net gains in employment at the aggregate level. This paper brings forth a few conceptual issues and analysis of qualitative information, data and stylized facts on these issues. Key words- India, Foreign direct investment, Retail, Supply chain, Farmers 2 INRODUCTION In applying transaction-cost logic to political aspects of the reform process in less-developed economies, Dixit (2003)) characterizes three phases in the formation of interest groups under information asymmetry: ex ante, interim, and ex post. At the ex ante stage, each individual is uncertain about his own type as well as the types of others because there is no private information. At the interim stage, each individual knows his own type but not the type...
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...The World is Flat Thomas L Friedman Kq p K To Matt and Kay and to Ron Kq p K Contents How the World Became Flat One: While I Was Sleeping / 3 Two: The Ten Forces That Flattened the World / 48 Flattener#l. 11/9/89 Flattener #2. 8/9/95 Flattener #3. Work Flow Software Flattener #4. Open-Sourcing Flattener #5. Outsourcing Flattener #6. Offshoring Flattener #7. Supply-Chaining Flattener #8. Insourcing Flattener #9. In-forming Flattener #10. The Steroids Three: The Triple Convergence / 173 Four: The Great Sorting Out / 201 America and the Flat World Five: America and Free Trade / 225 Six: The Untouchables / 237 Seven: The Quiet Crisis / 250 Eight: This Is Not a Test / 276 Developing Countries and the Flat World Nine: The Virgin of Guadalupe / 309 Companies and the Flat World Geopolitics and the Flat World Eleven: The Unflat World / 371 Twelve: The Dell Theory of Conflict Prevention / 414 Conclusion: Imagination Thirteen: 11/9 Versus 9/11 / 441 Acknowledgments I 471 Index I 475 Kq p K :::::How the World Became Flat ::::: ONE While I Was Sleeping Your Highnesses, as Catholic Christians, and princes who love and promote the holy Christian faith, and are enemies of the doctrine of Mahomet, and of all idolatry and heresy, determined to send me, Christopher Columbus, to the above-mentioned countries of India, to see the said princes, people, and territories, and to learn their disposition and the proper method of converting them to our...
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...civil law system which is based on a detailed set of laws organized into codes. When law courts interpret civil law, they do so with regard to these codes. Factor endowments are the extent to which a country is endowed with such resources as land, labor, and capital. A simple example of a factor endowment with respect to land would be the presence of natural resources such as oil. Countries with abundant oil tend to export oil, focusing internal resources toward producing the factor they have in quantity. Angola is an extreme example of such specialization: oil accounts for 98% of its exports or for instance, as China's labor force has grown more skilled, wages have risen and China has begun specializing in more complex manufactured goods. Local content requirement is a requirement that some specific fraction of a good be produced domestically. The requirement can be expressed either in physical terms (e.g., 75 percent of component parts for this product must be produced locally) or in value terms (e.g., 75 percent of the value of this product must be produced...
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...Licensed to: CengageBrain User Licensed to: CengageBrain User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: CengageBrain User Managing Supply Chains: A Logistics Approach, Ninth International Edition John J. Coyle, C. John Langley Jr., Robert A. Novack, Brian J. Gibson Vice President of Editorial, Business: Jack W. Calhoun Editor-in-Chief: Joe Sabatino Senior Acquisitions Editor: Charles McCormick, Jr. Developmental Editor: Daniel Noguera Editorial...
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...Marketing in China Before the reforms, under the command economy, Chinese companies took order from the state in production and push the products through state-controlled distribution systems. They never had to advertise, to do consumer research, and to think about marketing strategies. For years, even after the opening and reforms, many Chinese still consider marketing western concept of a dubious practice, something that may be not valid or applicable in China. Marketing proves to be one of the most challenging parts of China operations, perhaps more so than other areas such as accounting, finance, or research & development. For several reasons, First, infrastructure in marketing is underdeveloped, including transportation systems, media development, labyrinth of multi-tier distribution channels, and the severe shortage of qualified marketing personnel. Firms attracted to the longterm potential of this vast country must remember to pay sufficient attention to the basics of producing, distribution and marketing a successful product (Country Commercial Guide 1998), Marketing Strategies In the early 1980s when MNCs first came to China, many thought of China as a huge market with a homogeneous culture and felt standardized global marketing would be effective in capturing the opportunities and improving efficiency. These feelings were confirmed by the desire of Chinese to acquire western technologies and their fascination with products from the West. After living in an economy of...
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...Marketing in China Before the reforms, under the command economy, Chinese companies took order from the state in production and push the products through state-controlled distribution systems. They never had to advertise, to do consumer research, and to think about marketing strategies. For years, even after the opening and reforms, many Chinese still consider marketing western concept of a dubious practice, something that may be not valid or applicable in China. Marketing proves to be one of the most challenging parts of China operations, perhaps more so than other areas such as accounting, finance, or research & development. For several reasons, First, infrastructure in marketing is underdeveloped, including transportation systems, media development, labyrinth of multi-tier distribution channels, and the severe shortage of qualified marketing personnel. Firms attracted to the longterm potential of this vast country must remember to pay sufficient attention to the basics of producing, distribution and marketing a successful product (Country Commercial Guide 1998), Marketing Strategies In the early 1980s when MNCs first came to China, many thought of China as a huge market with a homogeneous culture and felt standardized global marketing would be effective in capturing the opportunities and improving efficiency. These feelings were confirmed by the desire of Chinese to acquire western technologies and their fascination with products from the West. After living in an economy...
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...Retail 4.0: The Future of Retail Grocery in a Digital World Parag Desai Ali Potia Brian Salsberg The Future of Retail Grocery in a Digital World Introduction I f there’s one thing that always stays the same in retail, it’s change. New stores open, others go out of business. Market leaders experiment with larger or smaller store formats. They change the layout in their stores and launch new private brands on their shelves. Loyalty programs are tweaked, new offers and affinity programs designed. Supply chains become more automated and efficient, resulting in increased product availability and improvements in inventory management.But in reality there are few really big innovations in retail. Most of the change we see year after year is relatively incremental. True transformation in this sector comes along only once every few decades. And when these transformational events occur, they nearly always create new winners and leave a trail of casualties in their wake. To understand whether today’s innovations represent seismic industry shifts, it’s useful to recognize the three preceding “ages of modern retail”. This report focuses on the grocery sector, but we also draw on the best practices and experiences of leading retailers in different categories from around the world. For the purposes of this article, we’ll peg the birth of modern retailing to the 20th century and begin with what we call “Retail 1.0.” Retail 1.0: Birth...
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...environment, operations resources and performance: an empirical study of retail firms in China. PhD thesis, University of Nottingham. Access from the University of Nottingham repository: http://eprints.nottingham.ac.uk/14191/1/546558.pdf Copyright and reuse: The Nottingham ePrints service makes this work by researchers of the University of Nottingham available open access under the following conditions. · Copyright and all moral rights to the version of the paper presented here belong to the individual author(s) and/or other copyright owners. · To the extent reasonable and practicable the material made available in Nottingham ePrints has been checked for eligibility before being made available. · Copies of full items can be used for personal research or study, educational, or notfor-profit purposes without prior permission or charge provided that the authors, title and full bibliographic details are credited, a hyperlink and/or URL is given for the original metadata page and the content is not changed in any way. · Quotations or similar reproductions must be sufficiently acknowledged. Please see our full end user licence at: http://eprints.nottingham.ac.uk/end_user_agreement.pdf A note on versions: The version presented here may differ from the published version or from the version of record. If you wish to cite this item you are advised to consult the publisher’s version. Please see the repository url above for details on accessing the published...
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...An Integrated Approach to Strategy Running Case Featuring Wal-Mart Wal-Mart’s Competitive Advantage (Chapter 1) ● Working Conditions at Wal-Mart (Chapter 2) ● Wal-Mart’s Bargaining Power over Suppliers (Chapter 3) ● Human Resource Strategy and Productivity at Wal-Mart (Chapter 4) ● How Wal-Mart Became a Cost Leader (Chapter 5) ● Wal-Mart’s Global Expansion (Chapter 6) ● WalMart Internally Ventures a New Kind of Retail Store (Chapter 8) ● Sam Walton’s Approach to Implementing Wal-Mart’s Strategy (Chapter 9) Strategy in Action Features A Strategic Shift at Microsoft (Chapter 1) ● The Agency Problem at Tyco (Chapter 2) ● Circumventing Entry Barriers into the Soft Drink Industry (Chapter 3) ● Learning Effects in Cardiac Surgery (Chapter 4) ● How to Make Money in the Vacuum Tube Business (Chapter 5) ● The Evolution of Strategy at Procter & Gamble (Chapter 6) ● Diversification at 3M: Leveraging Technology (Chapter 7) ● News Corp’s Successful Acquisition Strategy (Chapter 8) ● How to Flatten and Decentralize Structure (Chapter 9) Practicing Strategic Management Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating...
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...An Integrated Approach to Strategy Running Case Featuring Wal-Mart Wal-Mart’s Competitive Advantage (Chapter 1) ● Working Conditions at Wal-Mart (Chapter 2) ● Wal-Mart’s Bargaining Power over Suppliers (Chapter 3) ● Human Resource Strategy and Productivity at Wal-Mart (Chapter 4) ● How Wal-Mart Became a Cost Leader (Chapter 5) ● Wal-Mart’s Global Expansion (Chapter 6) ● WalMart Internally Ventures a New Kind of Retail Store (Chapter 8) ● Sam Walton’s Approach to Implementing Wal-Mart’s Strategy (Chapter 9) Strategy in Action Features A Strategic Shift at Microsoft (Chapter 1) ● The Agency Problem at Tyco (Chapter 2) ● Circumventing Entry Barriers into the Soft Drink Industry (Chapter 3) ● Learning Effects in Cardiac Surgery (Chapter 4) ● How to Make Money in the Vacuum Tube Business (Chapter 5) ● The Evolution of Strategy at Procter & Gamble (Chapter 6) ● Diversification at 3M: Leveraging Technology (Chapter 7) ● News Corp’s Successful Acquisition Strategy (Chapter 8) ● How to Flatten and Decentralize Structure (Chapter 9) Practicing Strategic Management Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating...
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...coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts...
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