International Business When Walmart Conducts

International Business

When Walmart conducts international business, what kind of strategic goals do you think they are considering as they select both location and mode of business?

WalMart has made several attempts to expand globally, with the Chinese expansion being the most successful and the German one, the least. WalMart concentrates on how effectively they can build a local supply chain, how the local infrastructure can support the information systems and logistics processes they rely on, and how available the skills they need are in the workforce. WalMart also considers the role of local Chinese entrepreneurs from the standpoint of investing in their long-term growth as part of the regional and global WalMart supplier network as well (Lin, Tao, 64). WalMart learned a valuable lesson in Germany, and that was that they had to thoroughly understand labor laws and government regulations before attempting to enter a new market. Since then, WalMart has pursuing legal and government consultancies and advice.

Compare and contrast equity and non-equity entry modes for international business. Do not list advantages and disadvantages. Your first step should be to identify bases for comparison (at least five).

The very first step in defining if an equity vs. non-equity entry mode should be used to enter a foreign market is predicated on understanding the specific laws, nuances, requirements and values of a given market first. The depth of knowledge is this specific area of a foreign market is critically important to thoroughly understanding and making full use of the bases of comparison. The five bases of comparison need to include a relative risk assessment, availability of infrastructure and technologies, scope of innovation (Jamali, Yianni, Abdallah, 375), government policies and programs that enable both localized and global business development including FDI policies (Lin, Tao, 50) and long-term viability of the market segments and audiences served. All of these factors need to be taken into account in determining if equity or non-equity modes of international business expansion should be undertaken or not.

3. Describe some factors you would consider when selecting a strategic alliance partner. Explain what you would do to insure the success of such a partnership.

Starting with financial viability and moving into the specific areas of expertise in a given market, potential strategic alliance partners need to be evaluate on their ability to continually innovate as well (Jamali, Yianni, Abdallah, 383, 384). In addition, their role in the overall market of the region or nation of interest, reputation, customer service record, level of influence with the government, and potential to open entirely new markets also must be considered. Previous experiences with managing international relationships, roles of their senior management team earlier in their careers in managing global alliances, and track record with equity and non-equity forms of expansion all need to be considered