Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Term Paper:
These shortages decrease the company's competitive position in the U.S., but even more so abroad.
Within the international setting, one additional strategic aspect is represented by the relatively low position of the retailer. While it is the undisputable leader of the American retailing industry, within the international arena, Wal-Mart's international position is rather weak.
The company had previously attempted to penetrate the European market, but had failed. The most eloquent case is represented by Wal-Mart Germany. The company opened the store in 1998 as a result of gradual purchase of local chain stores.
Wal-Mart Germany implemented the same business model as in the United States. There was the joyful morning cheer, the casual outfits and the expectation of intense social interaction. Still, this behavioral model was not applicable in Germany, where the population is more reserved and private. Additionally, the American retailer penetrated the German market with the same strategies as in the United States, without customizing them. But the German market was different, the consumers revealed different purchase behaviors and the competition was highly intense from established European retailers such as French Cora, German Metro or French Carrefour.
Wal-Mart "pursued a fundamentally flawed internationalization strategy due to an incredible degree of ignorance of the specific features of the extremely competitive German retail market. Moreover, instead of attracting consumers with an innovative approach to retailing, as it has done in the U.S.A., in Germany the company does not seem to be able to offer customers any compelling value proposition in comparison with its local competitors. Wal-Mart Germany's future looks bleak indeed" (Knorr and Arndt, 2006).
All in all, Wal-Mart failed in Germany because it did not understand the principles of the German market and it did not adapt to them. This ability to understand a foreign market and to develop a customized business model to serve its specific needs is a key success factor. In other words, the future success of Wal-Mart is directly pegged to its strategic ability to diversify its business model in order to integrate economic, social, political and other differences across the markets it serves.
In this setting then, the future of Wal-Mart seems uncertain and the uncertainties are pegged to the inability of its strategy to improve its image within the national market and its position within the global market. In the situation in which the company devises new strategic measures to address these two issues, then it is expected for it to ensure its sustainable growth. On the other hand however, if the company does not strategically strengthen its domestic image and international position, its success might be short lived and unsustainable within the long-term.
Wal-Mart is one of the largest economic agents in the world and the undisputable leader of the American retail industry. While it is blamed for numerous shortages in its approach of the various stakeholder categories, Wal-Mart remains the epitome of corporate success and an emblem of the American economy.
The future of Wal-Mart is expected to remain embedded in the long lasting culture of the lowest possible price, as this had been created by founder Sam Walton. The current analysis has however shown that while this strategy is successful in attracting customers, in the long-term it has to be supported by strategies which create sustainability. At this level then, it is recommended for Wal-Mart to pay more attention to the needs of its stakeholders and to better diversify its international strategic approach.
Blanchard, R., The digital challenge for libraries: understanding the culture and technology of total information, iUniverse, 2005
Knorr, A., Arndt, A., Why did Wal-Mart fail in Germany? Institute for World Economics and International Management, http://www.iwim.uni-bremen.de/publikationen/pdf/w024.pdf last accessed on November 10, 2011
Ireland, R.D., Hoskisson, R.E., Hitt, M.A., Understanding business strategy: concepts and cases, 2nd edition, Cengage Learning, 2008
Wilbert, C., How Wal-Mart works, How Stuff Works, http://money.howstuffworks.com/wal-mart.htm last accessed on November 10, 2011
Operating divisions, CIIPP, 2009, http://walmart.ciipp.com/en/article-list-303.html last accessed on November 10, 2011
Wal-Mart Stores Inc., Morningstar, 2011, http://quote.morningstar.com/Stock/s.aspx?t=WMT last accessed on November 10, 2011
Wal-Mart Stores Inc., Cogmap, http://www.cogmap.com/chart/wal-mart-stores,-inc. last accessed on November 10, 2011
Wal-Mart 2011 Annual Report, http://investors.walmartstores.com/phoenix.zhtml?c=112761&p=irol-reportsannual last accessed on November 10, 2011
Wal-Mart Website, 2011, http://www.walmart.com…[continue]
"Multi-National Corporation Major Multinational Corporation" (2011, November 11) Retrieved December 8, 2016, from http://www.paperdue.com/essay/multi-national-corporation-major-multinational-47324
"Multi-National Corporation Major Multinational Corporation" 11 November 2011. Web.8 December. 2016. <http://www.paperdue.com/essay/multi-national-corporation-major-multinational-47324>
"Multi-National Corporation Major Multinational Corporation", 11 November 2011, Accessed.8 December. 2016, http://www.paperdue.com/essay/multi-national-corporation-major-multinational-47324
Multi-National Report on Ford Motor Company: Ford Motor Company is a worldwide company that operates in both the Automotive and Financial Services sectors with its major operations being to build up, devise, produce and service cars and trucks. While Ford's automotive sector basically sells vehicles under various brand names such as Ford, Volvo, Mercury and Lincoln, the financial services sector provide several automotive financing products both through and to automotive dealers.
Multinational Corporations Globalization has a considerable effect on the way businesses are being carried out. With the tremendous growth spurred by technology and development of new business models, we see an increasing instance of corporate outsourcing. This shift is observed in the manufacturing sector also as many multinational corporations are relocating their production centers to offshore locations that offer cheap labor and material costs. The result is the loss of thousands
Acquiring ownership of a foreign company exposes the MNC to a wide range of factors and risks, including political risk, operational risk and more. Each of these risks carries costs or potential costs that will impact the profitability of the project. Another risk that the finance department must consider when expanding internationally is foreign currency risk (BNet, 2010). There are two sides to foreign currency risk -- transactional and translational.
However, if people were to fight in order to put across their principles they would have almost certainly had more to win out of the exploit. Instead, they ended up with no job and longing for the miserable derisory salaries they earned from working for Disney. It is obvious that developing countries need to be assisted in ways meant to help people understand their rights and the value of
They are used to the existing state-based system of commercial regulation, and there are several reasons why they might wish to maintain it. The advantage of using this system is that the MNCs know the system well, and the system uses effective tools for managing and currently provides them with significant leverage. They have proved adept at using leverage: globalization has forced firms to raise efficiency and adopt cost-minimization
Corporate Conduct Global corporations are often difficult to control because they operate in various countries throughout the world. As such actions that may be illegal in some countries are perfectly legal in others. Furthermore law enforcement officials and governments do not have the power to enforce laws that are outside of their jurisdictions. These issues call into question the effectiveness mechanisms that exist to control global corporate conduct. The purpose of
What possible restrictions might the business face in conducting its business operations? There are two types of foreign investment: indirect investment and direct investment. Direct investment involves placing physical assets in the foreign country such as building a plant, or establishing a store front. Indirect forms of investment involve activities such as financing, forming strategic partnerships, joint marketing efforts or other activities in which the foreign company does not physically