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International Corporation Walmart
Because of the abilities of the internet and the expansion of global interests, there are many more international corporations today than there were in the past. One of the largest and most recognized of those corporations is Walmart. It operates in nearly all developed countries in the world, and is one of the largest retailers on the planet (Fishman, 2006; Zook & Graham, 2006). While it started out small, the company has grown to enormous proportions. It has become so large that some countries and some communities have taken strong and significant steps to keep the company out. Not everyone is a fan of the company, and not all countries think Walmart is good for business. The way the company comes in and "takes over" is sometimes a problem for much smaller, "mom and pop" businesses that are not able to sell as inexpensively as Walmart. For other communities and countries, having Walmart available to them and provided them with great, low-cost alternatives to their other shopping choices (Ingram, Yue, & Rao, 2010).
The market systems and legal systems that exist in the countries were the corporation operates are all different, but the company most commonly operates in countries with democratic systems (Lichtenstein, 2009). This means that the company can sue and be sued, and that it is innocent until it is proven guilty by having a trial. Generally, communist countries and those with similar structures are not good choices for Walmart because they do not encourage for-profit businesses that are not operated by the government. Walmart remains focused on countries that want it there and that welcome it, as well as countries that have legal systems and market systems in which it can work the most comfortably. Most countries that are highly developed and that are democratic or socialist (i.e. not communist) in nature are "targets" for Walmart, because the company knows...
Before it moves into a new market, it focuses on the market very carefully and does its research thoroughly (Vance & Scott, 1997). Ultimately, Walmart is out to make money. If it is not able to make any money in a particular market, or if there are market and legal systems that preclude it from doing business in the way it wants to in order to maximize profit, it will avoid that country and move into a different country where it can move forward more easily and where it has a better chance of being successful.
Political risk is another area where Walmart has to be careful. While it may not seem like Walmart is political at all, every country has a political leaning and every country's political agenda could affect companies that are already in the country and that are planning to move into the country. In the United States, the upcoming presidential election will affect Walmart. Depending on who enters the White House for the next four years, the economy may stagnate, get worse, or improve. While the election does not control the entire U.S. economy, there will…
References
Fishman, C. (2006). The Wal-Mart Effect: How the World's Most Powerful Company Really Works -- and How It's Transforming the American Economy. NY: Penguin.
Ingram, P., Yue, L.Q., & Rao, H. (2010). Trouble in Store: Probes, Protests, and Store Openings by Wal-Mart, 1998 -- 2007. American Journal of Sociology, 116(1): pp 53 -- 92.
Lichtenstein, N. (2009). The Retail Revolution: How Wal-Mart Created a Brave New World of Business. NY: Macmillan.
Vance, S.S. & Scott, R.V. (1997). Wal-Mart: A History of Sam Walton's Retail Phenomenon (Twayne's Evolution of Modern Business Series). NY: Twayne Publishers.
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