Wal-Mart: Capital Project for Expansion to New Countries

Wal-Mart is an American multinational corporation that is publicly traded. The company is known for its chain of large discount stores and warehouses. In 2010, the company was able to announce the title of 'World's Largest Public Corporation' in terms of its revenue. Since its founding in 1962, Wal-Mart has successfully built 8,500 stores in fifteen countries. However, despite such great success, the company has experienced a few failures; the company did not succeed in Germany or South Korea. Of the most success outside of the United States are stores located within South America and in Asia (WalMart.com, 2011).

Type of New Investment & Issues Surrounding It

Because of Wal-Mart's drive to expand its physical...

Among the many issues that Wal-Mart may have in entering a new country, it may experience issues with estimating cash flow or getting the expansion funded. When entering a country, Wal-Mart will need to complete extensive research on its politics and public relations. Not accommodating local laws or customs could quickly make the company fail abroad.
3.0 Initial Investment Estimates

After sixteen years of being in Argentina, Wal-Mart has invested roughly $500 million in its expansion project (WalMart.com, 2008). Based on these figures, Wal-Mart can expect to invest around the same amount when entering another country of the same population and economic status. Assuming this is the principle amount that Wal-Mart invests…