...Walmart’s Global Challenge, November 2014 Executive Summary Walmart Stores, Inc. is the world's largest retailer whose mission is “to help people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices” (Corporate Walmart2, 2014, p.1). Samuel Walton founded Walmart in 1962 as a small chain of stores in rural towns and today Walmart is a multi-national retail corporation with “11,100 stores under 71 banners in 27 countries and e-commerce websites in 11 countries” (Corporate Walmart2, 2014, p.3). Walmart Stores topped Fortune Magazine’s “Fortune 500” list for 2014. “For fiscal year 2014, Walmart’s net sales totaled $473.1 billion, up 1.6% from the year-earlier period” (Fortune, 2014, p.1). Walmart is a publically traded company, with the second and third generation Walton family owning 51% of Walmart’s shares via a family holding company called Walton Enterprises LLC (Yahoo Finance, 2014, p.1). Walmart has enjoyed unprecedented growth in the span of 52 years, even in the face of negative publicity and threats from competitors like Family Dollar and Amazon. Walmart’s CEO, Doug McMillon, has laid out strategies to reduce their reliance on physical stores as they move towards expanding the e-commerce aspect of their company and on improving their overseas expansion plans. His four-part growth strategy provides the framework to enable a “company prepared to win on four key customer dimensions – price...
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...Time Warner, Disney, Vivendi) and their diversification strategies Amazon’s tablet business Shangri-La Hotels: strategy for regional growth Cemex: strategy for globalization P&G and Unilever in China (or India) Walls icecream’s (owned by Unilever) growth in Asia Nestle’s growth in emerging markets Globalization strategy of Whirlpool Whirlpool and GE’s strategies in appliances in Asia Walmart’s globalization; experiences in Latin America, Asia, Europe Carrefour: successes and failures in globalization Mittal’s growth in steel industry; industry consolidation AES growing in electricity generation industry; globalization; industry restructuring Consolidation in the electric utility industry in the US Consolidation in the aluminum industry Consolidation in the automotive industry: Fiat+Chrysler, Daimler + Chrysler, Renault + Nissan Alliances in the international airline industry New airlines in Europe, such as Ryanair, Easy Jet, Go, Virgin Express Lenovo (China) in PC and Internet Haier (China) in appliances Ebay’s acquisition of Skype Chipotle’s growth: past, present and future Disney’s acquisition of Lucasfilm Inditex and fast fashion industry Paypal and mobile payment industry Schneider Electric’s acquisition of Invensys Online instant video industry Growth and decline of Blackberry Globalization of McDonald’s Intel and vertical integration Microsoft’s acquisition of Nokia Uniqlo Big tobacco, growth strategy for Reynolds American Green Mountain Coffee ...
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...1. Walmart's three major areas of external environment 1.A. The General Environment of Walmart can be summarized as follows: a) Economic:Despite the general weakness in the world economy and the uncertain environment that prevailed, Walmart had reported sales growth of 11%, amounting to $6.4 billion. The company's associates were indeed doing the Walmart cheer in faraway places like Germany, South Korea, China and United Kingdom. In three decades, it had grown from its rural Arkansas roots to become the world's largest company, and quite possibly the most powerful retailer. b) Socio-cultural: Walmart stores were geared toward the low-income customer segment; headquarters were reflective of the company's tendency to be tightfisted as they were housed in warehouse style buildings with minimalist decor. Frugality was a central tenet at the company, and every associate was expected to fully adopt this value in all its manifestations. It was also said that the company is homogenizing the marketplace by letting smaller towns dictate popular culture. c) Global: Walmart worked globally under the philosophy: Different store for different folks. As it grows around the world, it is important to its success that it exchange best practices among all the countries where it operates. Walmart launched its globalization efforts with an initial foray into Mexico, then to Brazil, as well as Argentina. It then penetrated Europe with its stores in Germany and in the United Kingdom. Its Asian...
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...Walmart E-Commerce Prepared by: Ahmed Abdel Moneim Kamal Walmart E-commerce Arab Academy for Science & Technology Ahmed Kamal Contents Introduction to Walmart ............................................................................................................................... 3 Criticism of Walmart ................................................................................................................................. 3 Walmart VS Amazon ..................................................................................................................................... 5 Wal-Mart.com become the dominant e-tailer in the world, replacing Amazon or vice versa ..................... 6 Shopping aids offered at walmart.com Compared to those at amazon.com ............................................... 7 Online services can be purchased at walmart.com ...................................................................................... 7 Buying a song from walmart.com versus buying it from Apple’s iTunes ...................................................... 8 Common features and unique features of online marketing in walmart.com, target.com, marksandspencer.com, and sears.com ........................................................................................................ 8 The options for international customers on the Wal-Mart Web site ........................................................... 9 References ..................................
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...Walmart’s Global Strategies Jennifer D. Wright National American University: 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...
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... Executive Summary Walmart is one of the world’s largest retailers, serving communities worldwide and employing millions throughout their growing organization. This global organization has faced large amounts of scrutiny over the years and has seen legal repercussions from failure to comply with labor laws. Continuing to grow and rise above competitors, Walmart’s strategic HR plan needs to address some of these key opportunities and set the right employees in place to deliver on the company mission and vision. An effective strategic plan will also benefit the organizations reputation and image, both internally and externally. Ongoing pressures and cultural HR issues Walmart faces includes environmental preservation and the companies initiatives to “go green”, as well as the organizations reservations and discouragement towards unionization. These are issues Walmart can address through communication and training. In addition, Walmart faces many emerging HR issues including topics such as diversity, training, retention, and staffing. The majority of Walmart’s positions include entry-level work at minimum wage pay and fluctuating hours as a result of the businesses seasonal sales increases. This results in decreased...
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...Walmart’s Successful Globalization Into The Chinese Market Stanley Armstrong Southern New Hampshire University Abstract There has been an increasing enthrallment over global expansion across the globe. Likewise, there are many things that factor into making such an enormous decision a successful one. Some of these factors include, the strategies to which the business will use, what modes of entry they will take, and what are possible threats and opportunities that may arise. Choosing the right strategy to enter into a new market is key in determining the success of the company now and in the future. I. Introduction “Walmart Stores, Inc. was founded by American retail legend Mr. Sam Walton in Arkansas in 1962. Over nearly 50 years of development, the company has served customers and is now the world’s largest private employer and retailer, on the top of the Fortune 500 list. Walmart is among the most recognized global brands.” (Walmart China Factsheet) II. Global Expansion Lately, many large companies within the retail division who seek to increase their profits and hold a greater market share have decided to expand their companies globally. Global expansion has grown to the point where its not only attacking large companies, but has increased the efforts of those small-scale companies, those who are foreign to expanding internationally, and even those who have already ventured into international markets. There have been...
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...Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51 percent of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. In the late 1980s and early 1990s the company rose from a regional to national giant. By 1988, Wal-Mart was the most profitable retailer in the US and by October 1989 it had become the largest in terms of revenue. Geographically limited to the South and Lower Midwest up to the mid 1980s, by the early 1990s Walmart's presence spanned coast to coast - Sam's Club opened in New Jersey in November 1989 and the first California outlet opened in Lancaster on July 28, 1990. A Walmart in York, Pennsylvania was opened in October 1990 bringing the main store into the Northeast. Walmart has 8,500 stores in 15 countries, under 55 different names. The...
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...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, an international firm may use more than one entry mode simultaneously (bishop, 2006). According to Wei et al (2005) there are many factors affecting the entry modes, such as host country factors, resources commitment and cultural distance. In this era, the forces of globalization derive firms to go to international market. When a firm thinks to expand its business outer surface of the...
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...Han Yuh Ding A0110466N Do Trans-national Corporations Help More or Harm More? “Globalization” is a popular term that originated in the 1980s to describe the process of increased interconnectedness among nations, through the movement of people, information, investments and goods across national borders. The presence of Trans-national Corporations (TNCs) in many economies today has sped up the process of globalization and the impacts of TNCs is a hotly debated issue now. From an economic viewpoint, TNCs bring about more benefits than negatives to host nations and I will be illustrating this in the remaining part of my essay by bringing in TNCs like Nestlé, Nike, Monsanto and Walmart, just to name a few. One undisputed economic benefit that TNCs brings is that it creates jobs and helps to alleviate the problem of unemployment in developing countries. TNCs actively exploit the principle of comparative advantage and often produce in a country or a region with lower costs of production input, for example, labour costs or material costs. Due to the cheaper labour costs that can be found in less economically developed countries, many TNCs choose to set up their manufacturing plants in these countries and it has opened up more jobs for the locals, especially for the low skilled workers. Nestlé, for example, operates 28 factories in the African continent today and provide direct employment to 14000 Africans and indirect employment to more than 50,000 (Nestlé, 2012). In...
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...Han Yuh Ding A0110466N Do Trans-national Corporations Help More or Harm More? “Globalization” is a popular term that originated in the 1980s to describe the process of increased interconnectedness among nations, through the movement of people, information, investments and goods across national borders. The presence of Trans-national Corporations (TNCs) in many economies today has sped up the process of globalization and the impacts of TNCs is a hotly debated issue now. From an economic viewpoint, TNCs bring about more benefits than negatives to host nations and I will be illustrating this in the remaining part of my essay by bringing in TNCs like Nestlé, Nike, Monsanto and Walmart, just to name a few. One undisputed economic benefit that TNCs brings is that it creates jobs and helps to alleviate the problem of unemployment in developing countries. TNCs actively exploit the principle of comparative advantage and often produce in a country or a region with lower costs of production input, for example, labour costs or material costs. Due to the cheaper labour costs that can be found in less economically developed countries, many TNCs choose to set up their manufacturing plants in these countries and it has opened up more jobs for the locals, especially for the low skilled workers. Nestlé, for example, operates 28 factories in the African continent today and provide direct employment to 14000 Africans and indirect employment to more than 50,000 (Nestlé, 2012). In...
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...companies. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51 present of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. In the late 1980s and early 1990s the company rose from a regional to national giant. By 1988, Walmart was the most profitable retailer in the US and by October 1989 it had become the largest in terms of revenue. Geographically limited to the South and Lower Midwest up to the mid 1980s, by the early 1990s Walmart's presence spanned coast to coast - Sam's Club opened in New Jersey in November 1989 and the first California outlet opened in Lancaster on July 28, 1990. A Walmart in York, Pennsylvania was opened in October 1990 bringing the main store into the Northeast. II. Wal-Mart Foreign Market Entry Strategy Walmart has over 11,000 stores in 27 countries, under 55 different names. The company operates under the Walmart name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmart de México y Centroamérica, in...
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...Walmart’s Strategy Walmart’s Current strategy In Walmart's thinking, there are three types of shopping trips (Depillis, 2013): The stock-up mission- this kind of shopping trip brings families to Walmart's 3,200 nationwide Supercenters. The basic grocery run- where shopping trip shoppers want to go someplace nearby, such as one of Walmart's 300 neighborhood markets. The "immediate access" stops - where shoppers head for the traditional convenience store. As of today, Walmart hasn't really touched the third segment, except for a handful of "express" stores in Arkansas. Bill Simon, Walmart’s chief executive, vision to put all three segments together on what he called “ecosystem”. Walmart believes that “tethering” is the key to make this system work. From tether hiring and back- office functions, to tether inventory distribution systems, and even online orders, for greater efficiency and quick response to demand. In other words, instead of having one huge store with endless goods, Walmart will offer three kinds of stores with most of those goods, at the time and place customers need them. Walmart’s current strategy includes more emphasis on smaller-format stores and more e-commerce. (Cheng, 2012). Competitive Advantage Walmart enjoys several of competitive advantages that are the source of the company’s market dominance. However, Walmart’s primary competitive advantage is low costs. Low cost culture and leadership initiated by the company’s founder, Sam Walton...
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...------------------------------------------------- like you:…………………………………………. Date:……………………… | 1. Walmart’s focus on supply chain management is responsible for its leadership in the retail industry. Discuss the distribution and logistics practices adopted by Walmart. How far has Walmart’s supply chain contributed to its competitive advantage? Explain. The retail biggest giant, retail supermarket chain “Walmart” serves customers and members more than 200 million times per week at more than 10,130 retail units under 69 different banners in 27 countries. With fiscal year 2012 sales of $443 billion, Walmart employs 2.2 million associates worldwide. And the organization is one of the fortune 500 companies. Walmart Stores, Inc., is the world’s largest public corporation by revenue and the largest private employer in the world (about 2.1 million employees in 2008). In 2008, the company operated about 4,000 stores in the United States (discount, supercenters, neighborhood markets, and Sam’s Clubs) as well as more than 2,200 stores in other countries, mostly in Mexico, Canada, Brazil, and the United Kingdom. Its revenue exceeded $400 billion, with net income of about $15 billion. Sam Walton said it best, “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life. During the initial years, Walton focused on establishing new stores in small towns, with an average population...
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...BS/FO/76 Institute Of Personnel Management Sri Lanka NAME OF THE PROGRAMME :- Professional Qualification Resource Management in Human TOPIC OF THE CASE STUDY :- Strategic Human Resource Management in Walmart stores MODULE NUMBER : - 19 NAME OF THE LECTURER : - Mr. Ruwan Egodage Name of the Student D.M.C.S.Dissanayake Index Number T-PQ/KR/03/KDY/10/07 Contact Number 071 0954739 E-mail chathushkas@gmail.com Date of the Examination 31.05.2015 Date of Submission 07.06.2015 For Office Use Only: 1. Final Marks : ……………………….. 2. Remarks : ………………………… (To be filled by the Examiner) LATE SUBMISSION NO OF DAYS Executive Summery Wal-Mart is the biggest retailer in U.S. and also one of the biggest multinational companies in the world. It is well-known for its low-cost structure and has been doing very well despite of the current market instability. Walmart maintains its competitive advantage through its satellite-based distribution system, and by keeping store location costs to a minimum by placing stores on low-cost land outside small to medium-sized towns, no matter in the US or in its abroad affiliations. Since, Walmart Company is obviously taking the cost leadership strategy, it uses the efficient stock control system and imports many goods from China for low cost which helps to make its operating costs lower. So the company-level strategy of Walmart is low cost and low cost, with little differentiation...
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