...Contenido 1.0 El perfil de Walmart México 3 Castro Wright 3 Érase una vez: Walmart México y Centroamérica 4 Posicionamiento en el mercado 5 La importancia de la responsabilidad social para Walmart 6 2.0 La industria minorista comercial mexicana 8 Mercado comercial minorista 8 Aporte de Walmart México en el crecimiento de la industria 8 3.0 ¿Quién es Walmart México? 10 Filosofía de Negocios 10 Estrategia de una transnacional 10 4.0 El soborno como estrategia de negocio 15 La red de sobornos en México 15 Walmart Teotihuacán 16 Walmart Nuevo León 17 Políticas quebrantables según Walmart México 17 5.0 CEO de Walmart México 19 Investigación del caso 19 6.0 Análisis del problema 20 Conflicto de intereses, valores o responsabilidad 20 Stakeholders involucrados y sus intereses 20 Causas culturales, estructurales y estratégicas del problema 21 Jerarquía de valores de los involucrados 22 Valores de sustentabilidad en Walmart México 23 Principios universales presentes en el caso 24 7.0 Solución propuesta 25 Oficina de Ética Global con “empowerment” 25 8.0 Anexos 26 El perfil de Walmart México Castro Wright 2012 Es domingo primero de Julio y hace calor. La sensación que pronto se vuelve en urgencia de salir y saltar, saltar a la alberca, se torna realidad. Con poca energía, Eduardo Castro Wright sale de su casa, sus ojos le duelen al ver la luz del sol, se tapa como puede y salta. Salta...
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...Walmart Mexico Controversy 7/17/2012 Professor Breskin, International Business Walmart has been bribing Mexican officials to add store locations. Back in May of this year it had come to the attention of Reuters investigators, the New York Times, and other sources that Walmart had acquired its many new store locations in every corner of Mexico through bribery. Even if that is “just how they do things down there”, is it alright that a company that if it were a country would make it on par with the GDP of the 25th largest economy in world to behave in this manner? In today’s globalization much is changing within all the different cultures in the world, it is sad to see this happening but globalization is necessary. That being said, when this happens we the people need to minimize any possible corruption as things play out. Mexico is a country where almost anything can be bought with enough money. All Walmart did was play by their rules, but on the other hand, Walmart cannot do that because they represent a large US company and future globalization, they need to set the example. Walmart has been working for a while now to fix their public reputation and then they let something like this happen. Walmart claims they had no idea this was going on, and to an extent I believe them but also believe they weren’t too eager to make sure it wasn’t happening. The desire to avert negative publicity is understandable. Attempting to through concealment inevitably leads to more crisis...
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...Wal-Mart de Mexico Wal-Mart, one of the worlds largest companies, has been reported to be pushing bribes on people to get into different parts of Mexico and expand their markets. About 24 million dollars was said to be utilized to bribe Mexican city officials to redraw zoning maps, so that Wal-Mart was able build their storage warehouses and super centers in areas of high populations and even in locations of historic importance. People like mayors, members of the zoning boards, and governors were all bribed into these plans of international expansion. In the Wal-Mart de Mexico case, CEO Lee Scott is faced with the three options of how to handle the bribery of building of record locations throughout Mexico. He needs to decide whether he should ignore the problem, “quietly neutralize the problem”, or make the results of the investigation public. The following is a list of the stakeholders involved in this case (in no apparent order): The communities of the places the new facilities were built – These people lost business of their Mom and Pop stores making many people suffer and lose jobs. While being bribed to give up locations and being manipulated into potential poverty. The customers of Wal-Mart in Mexico - The consumers who are treated as though they are being thought of, by lower prices, and marketing schemes that seem more appealing towards them, all the while being teased. Wal-Mart as a company – Not only has the company lost much business because of this brutal...
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...ETHICAL ISSUES INVOLVING WAL-MART STAKEHOLDERS Employee Stakeholders DISCRIMINATION The U.S. Equal Employment Opportunity Commission (EEOC) has filed fifteen lawsuits against Wal-Mart since 1994. Of these, ten are still pending, and five have been resolved. FEMALE EMPLOYEES Although women account for more than 67 percent of all Wal-Mart employees, women make up less than 10 percent of top-store managers. Wal-Mart insists that it adequately trains and promotes women, but in 2001 a Wal-Mart executive conducted an internal study that showed the company paid female store managers less than men in the same position. In June 2004, a federal judge in San Francisco granted class-action status to a sexdiscrimination lawsuit against Wal-Mart. It is the largest class-action lawsuit and involves 1.6 million current and former female employees at Wal-Mart. It claims that Wal-Mart discriminated against women in promotions, pay, training, and job assignments. Even Wal-Mart concludes in its annual report that if the company is not successful in its appeal of the class-action certification of the case, the resulting liability could be material to the company. DISABLED EMPLOYEES In January 2000, Wal-Mart agreed to pay two deaf applicants $132,500. The two applied to work at a Wal-Mart in Tucson, Arizona, but were denied employment because of their disabilities. Wal-Mart agreed to hire the two men as part of the settlement and to make corporate-wide changes in the hiring and...
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...TRABAJO FINAL Materia: Economía para la toma de decisiones. Profesor: Dr. Jorge Mendoza TRABAJO FINAL INDIVIDUAL ECONOMÍA PARA LA TOMA DE DECISIONES - Dr. Jorge Mendoza EL TRABAJO FINAL DEBERÁ TENER LOS SIGUIENTES ATRIBUTOS: 1.- DEBE SER CLARO, PRECISO, DIRECTO, BIEN ESCRITO Y SÓLIDO EN SU ARGUMENTACIÓN. DEBE INFORMAR BIEN Y CONVENCER AL LECTOR DE SUS PLANTEAMIENTOS. 2.- DEBE INCORPORAR LOS TEMAS, IDEAS, CONCEPTOS Y ENFOQUES ANALÍTICOS DEL CURSO Y DEL LIBRO DE TEXTO, RELACIONÁNDOLOS CON LA EMPRESA ESTUDIADA. 3.- DEBE INCORPORAR CADA UNA DE LAS SECCIONES INDICADAS ABAJO Y CUMPLIR CON SUS REQUERIMIENTOS (o justificar por qué no resultan pertinentes para la empresa). a) Análisis de la empresa, los productos y servicios que ofrece (identificando sus principales sustitutos y complementos), sus principales mercados o clientes, las características de la demanda de sus principales productos (identificando los determinantes de su demanda y sus elasticidades aproximadas), las tecnologías que utiliza, sus principales insumos, y el comportamiento de sus costos totales y unitarios respecto al nivel de producción (extensión sugerida: 3 págs. renglón cerrado). Algunas de las preguntas que le guían a preparar esta sección son las siguientes: * Identifique los principales productos o servicios que ofrece la empresa. * Identifique los principales sustitutos y complementos de los productos o servicios de la empresa. * ¿A qué segmentos de mercado...
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...A Comparative Study of Walmart Operations in Canada & Mexico Table of Contents 1. Executive Summary…………………………...………………………………...…...2 2. Introduction………………………………………………………………………….3 3. Walmart and the Canadian Marketplace……………………………..…………3 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 4. Walmart and the Mexican Marketplace……………………………..………….10 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 5. Summary Comparison of Canadian and Mexican Markets…………………….18 6. Recommendation…………………………………………………………………….19 7. References…………………………………………………………………………...21 1. Executive Summary This report closely examines the operations of the world's largest retailer, Walmart, in Canada and Mexico. Assessments of market conditions in both countries have been conducted in terms of country competitiveness, cultural, political and legal environments and the strategies used by Walmart upon entry. Tying into these international business factors, specific aspects of international economic integration, monetary systems, social responsibility and corruption have also been reviewed. While being part of one continent and a common trade bloc (NAFTA, the North American Free Trade Agreement), considerable differences between Canada and Mexico are apparent. These differences are individually analyzed on the following pages. Inevitably, they...
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...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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...1. How has the implementation of NAFTA affected Walmart’s success in Mexico? Walmart’s marketing campaign has been “everyday low prices”. This was not the case in Mexico prior to NAFTA. Walmart was paying higher tariffs to import American goods. Once NAFTA was implemented, Mexico became a free trade zone. This made it possible for Walmart to reduce its tariffs from 10% to 3% creating a level playing field with its competitors. With the signing of NAFTA, it also opened up the doors to foreign investment in Mexico. Walmart was also paying huge fees for goods to be shipped from Europe and Asia into Mexico. Once these companies knew that building manufacturing plants in Mexico they could keep the costs low by using Mexican labor, they facilitated it. This allowed Walmart to purchase these products without paying high import tariffs. “NAFTA resulted in better suppliers due to an increase in competition, competitiveness and efficiency among the companies in order to gain the trust of their clients. Better supplies also increased the variety of products available to consumer with wider price ranges, which allowed Walmart to offer customers better savings and thus increase their purchasing power. NAFTA also helped Mexico achieve greater economic growth at a lower rate of inflation, which also added to the purchasing power of consumers.”(Daniel & Radenbaugh, pg. 321) 2. How much of Walmart’s success is due to NAFTA, and how much is due...
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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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...Management Across Cultures 1 March 2015 Abstract Walmart is one of the world’s largest and most well-known retailers in the world today. It has achieved great success in areas like Mexico and Canada; however it has also seen failures in other areas like Germany and Hong Kong. This paper will discuss a brief history of Walmart’s global expansions and the strategies it chose to enter these markets. It will answer the following specific questions: When did Walmart enter the global expansion? What international markets did Walmart enter? What cultural challenges has Walmart faced? How did Walmart overcome these challenges? Where future expansions and opportunities are possible? To answer these questions, this paper will have four basic sections: A brief history of Walmart’s global expansion, what was their strategy with each expansion, cultural differences they faced, and where is Walmart going in the future. This paper will attempt to examine the strategies of its global expansion and how it used the challenges to continue success in future expansions. Walmart is the most well-known and largest retailer in the world today; with sales worth more than $200 billion, $35 billion of that from Walmart’s International Division. The company grew incredibly fast both in the United States and abroad. By tweaking entry modes, and studying the cultural differences and local threats, the core business strategies Walmart chose to build its business on in America would...
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...Walmart’s Foreign Expansion Walmart store Inc, is the largest retail company in the United States, has built its success on a strategy of everyday low prices and highly efficient operations, logistics, and information system that keep inventory to a minimum and ensure against both overstocking and understocking. Walmart began its international expansion in the early 1990s to grow their company’s commission. They first teamed in a joint venture with Cifra, Mexico’s largest retailer, to open a series of supercenters that sell both groceries and general merchandise in Mexico. Although they faced some challenges, such as understanding their culture and buying preferences, they quickly managed to change their marketing and merchandising strategies to meet the local conditions. As they built up their distribution systems in Mexico, the Mexicans started to change their shopping habits, and now Walmart is Mexico’s largest retailer and Mexico is considered to be the company’s most successful foreign venture. Walmart continued its international expansion by establishing operations in Europe and South Korea, however the company had less success. Consumers in Europe and South Korea, seemed to have a preference for higher-quality merchandise and were not as attracted to Walmart discount strategy as consumers were in United States and Mexico. Regardless of how, Walmart had greater success in China where they have learned to adapt the Chinese culture and changed their merchandise and operations...
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...1. Do you think Walmart could translate its merchandising strategy wholesale to an other country and succeed? I do think Wal-Mart could translate its merchandising strategy to another country, but it would depend on the country. While Walmart might be able to successfully operate in some countries, it might fail in some. For instance, Wal-Mart translated its merchandising strategy whole sale to both Mexico and China and succeeded and yet they failed in South Korea and Germany. To succeed in a certain country, Walmart needs to understand the country’s culture, their customer’s purchasing habits and preferences as well as do some research on their competitors in that country before they enter into a new market. Without taking all these into consideration and adjusting their strategy to the particular market, Walmart could fail in that country. 2.Why do you think Walmart was successful in Mexico? When Walmart hit some headwinds in Mexico, they quickly discovered the differences between shoppers in Mexico and the US which is why WalMart adjusted its strategy to meet the country’s local conditions, first by hiring local managers who understood Mexican culture, and then letting those managers control merchandising strategy, building smaller stores that people could walk to, and offering more fresh produce. At the same time, the company believed that it could gradually change the shopping culture in Mexico, educating consumers by showing them the benefits of its American merchandising...
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...Background 3 II. Case Analysis 3 1. Detail the growth of Walmart and its international experience. 3 2. Describe the growth strategies of Massmart in the African Continent. 5 3. Detail Walmart’s acquisition of Massmart and expected strategic advantages.5 4. Analyses the challenges Walmart have to face in the African Continent. 6 5. What happened to Walmart’s operations after taking 51% share in Massmart in 2011? 7 References 2 I. Introduction I. 1 Company Background Walmart Stores, Inc., is an American multinational retail corporation that operates a chain of discount department stores and warehouse stores. Headquartered in Bentonville, Arkansas, United States, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. (Winston-Salem Journal, 2010) From the humble beginnings as a small discount retailer in Rogers, Ark., Walmart has opened thousands of stores in the United States and expanded internationally. Through the model of business global expansion, which brings the right store formats to the communities that need them, Walmart are creating opportunities and bringing value to customers and communities around the globe. Today, Walmart operates over 11,000 retail units under 65 banners in 28 countries. Employ 2.2 million associates around the world –1.3 million in the U.S. alone. (Walmart Store Inc., 2015). II. Case Analysis - Walmart’s Expansion in Africa:...
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...Walmart’s Global Expansion 1.How does expanding internationally benefit walmart? Wal-Mart needed international expansion critically to remain a successful company. The main reason Wal-Mart needed to go global was because they could no longer achieve the growth needed in the US. This market was saturated. The United States represents only four percent of the world’s population, which meant Wal-Mart was missing out on ninety-six percent of the world’s potential customers. (Govindarajan, par. 7) Also, Wal-Mart needed to continue to make their US employees satisfied. With Wal-Mart’s aggressive stock purchasing programs, this meant that employee satisfaction was directly correlated to their stock prices. Walmart also realized that there were many emerging markets with lower levels of disposable income, which offered a large potential for discount retailers. (Govindarajan, par. 7) Therefore, Wal-Mart’s only option to achieve the growth needed was to enter the global environment. After its beginning in 1962 Walmart ever since had constant growth rates and successfully gained market share in the merchandise and food retailing markets. “By 1990, however, Walmart realized that its opportunities for growth in the United States were becoming more limited”. To keep steady growth rates and profits the company decided to expand globally. The core competency of Walmart is the price. Selling merchandise and food for low prices made them earn market shares and continue the growth...
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...Aubrey Weekes Cross Cultural Perspectives The Walmart Corporation is a large, major, and successful retailer in the United States. Walmart’s attempt at branching out in countries such as China, Mexico, Brazil, and Germany has failed. Globally Walmart is not performing well; they have had difficulties in these countries. Their global revenues, “grew by a mere 1% in 2013, and its revenue per square feet declined by 4.2%” (Team, 2014). The China market does not add much to Walmart’s profits, but it is important to Walmart in regards to enduring perspective. Mexico is a principle global site, but there are many problems there also. In Germany, Walmart failed basically because they thought they could implement American standards in the stores. Walmart is handling these issues, and solving them would be their main concern (Team, 2014). Walmart Culture Issues Hong Kong, Indonesia, and South Korea are failures for Walmart, mainly due to not adhering to the cultures of these countries, and abiding a code of ethics. A couple of obstacles are food and products were placed on shelves, not in line with the country, and stores were constructed a long distance from the cities making it difficult for people to reach them. Foreign people many of them walk to stores or take public transportation. American people will travel to buy food stocking up for a month or more. Buying in bulk is a major issue in Walmart. Foreign people either walk or take public transportation...
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