International Business- Walmart

INTERNATIONAL MARKET OF WAL-MART promontory Assignment 1 Ch eachenges in supranational man shape upment Type unmatchable-on- wizard(a) Format Essay (You ar encouraged to use headings and/or sub-headings to classify the sections/cases of your essay. ) Word limit 2500 rowing (variation within 10% more or less is allowed) This activity is a platform to sharpen and demonstrate your companionship and analytical skills in planetary patronage. It is designed to help you achieve the skill outcomes 1, 2 & 3. The assignment focuses on the actors of international melody and their actions in the contemporary international stemma context of use.It too provides you with opportunities to link the international theories with the workout by analysing real-world examples from the academic point of view. Key Assignment Question How does international business make-up achieve its internationalisation objectives in the contemporary context? Process 1. Select a multinational corporat ion. 2. Write a apprise oerview of the organisation and its mission/objectives link to to international business(maximum 500 words for this section) 3.Select and then analyse the internationalisation fulfil of the organisation and its impacts on the international context (International business theories fecal matter be adopted in this section) What did the organisation do to internationalise itself? i. e. environmental summary, involvement with different actors, entry mode enliven explain factors affecting the internationalisation process of your Multinational Corporation(MNC). What was the impact of these actions on the organisation and/or broader community (i. e. host area, competitors, industry etc. ? (1,500 words) 4. m red-hot(prenominal)wise/lessons Learned(500 words) What experience and/or lessons should the organisation have learnt from the analysis? wherefore do you think they ar Copernican for their future acting? What insights did you murder about inter national business in the contemporary context? theme Introduction The roughly reputed and perhaps the biggest party in the World in impairment of sell. It has a proven track record for implementing advantageful business across the globe with its wonderful business practices and world class selling plans.Wal- Mart is a play along which has d iodine business non unaccompanied in the US but besides m both countries across the globe. The persist in keep alliance was established by surface-to-air missile Walton at Rogers, Arkansas in the course 1962. The business step-up was in the track with a period of 17 twelvemonths after starting the attach to. By the end of pecuniary stratum 2001, community al sack upy saw a turn over of one billion US dollars. With its strong marting strategies Wal- market place managed to make it reputation of creation the largest retailer in the world with revenue of 218 billion dollars.The companies continue growth in terms of revenue le d the comp any to operate in the global level. The global operation started in the Mexico City in the year 1991. Its global presence has seen a new height, when it was found that more than speed of light million customers have visited the Wal-mart retails globally. The number of associates stood at 1. 3 million which atomic number 18 on rolls of the company and has been diversified across 3200 stores in the US and more than 1000 stores across Canada, China, UK,, Germany, Korea ,Indonesia etc. Wal-Mart operates its stores in different versions worldwide.It is generally reason in three main segments. Namely u Wal-mart Stores u Sams Club u International Stores It can be provided differentiated into Discount Stores, Super centres and Neighbourhood market. (Lewis, 2011) Currently the company serves rough 200 million members and customers in a week at lower-ranking higher than 8000 units under various collaboration and banners in 15 countries. The sales have crossed $400 billion m ark and employees more than 2. 1 million plurality globally. It is a leader in sustainability, corporate beneficence and employment luck.In the year 2008, the company found three major beas which ar crucial at present for the company. The mission statement is to help people save money so they can live better. The crucial areas are heartyness, power efficiency and moral foundation. These returns have been transformed into the broad objectives that are stated as under 1. Access to the world class health care at an affordable price. 2. Minimize the power cost for the consumer. 3. moral and Environmental issues to be sayn care of before expanding the business network. .(wallmart. com,2012)Internationalization of the process In the present business environment on that point are no fixed methods for globalization of the business. As there are various complexities in the entire process of the business which varies from place to place and business to business. The standards of int ernationalisation of the process of any business are set by the sufferers by themselves. In general view in terms globalization a few(prenominal) concepts are relatively popular in terms of globalization of the process. The unremarkably followed strategies are as follows. * Exporting of the product Seeking for Licensing the product to other company * Go out and give franchising opportunity to other company. * junction venturing with the native country firms * Setting up of a wholly ingest subsidiary. Generally the experiment has proved that bring change to the on overtaking firms international engagement, it lays down the rues and regulation for setting up international subsidiaries. so it becomes important to include these variations and give more business ideas like, pin venturing, licensing and franchising opportunity (Lewis, 2011) Study of the factors undertaken before going GlobalBefore launching the Wal-Mart brand as other brand was lively in all the respect and with the increase in the revenue the company has achieved that comfortable level to go out and pass in the international arena. Wal-Mart sensed the need of hour and knew that the international condescension go out give a rock-steady numbers in terms of sales and hires enhance the image and offer valuable shipway by creating jobs in the process of globalization. An analysis has been done in this attachment by the company. Before going multinational following are the analysis done by any companies for the matter of fact before development the business plan.Commitment from the Employees team An effective plan for the employees in the radical ranging from drop dead level to executive junior level, all should be united, does not matter even if he is supplier, invariablyy one should be under one roof as an asset for companies effective execution of the process. Proper exposition of the business plan for internal employees must be designed to destroy the international business env ironment. It becomes real much necessary to put a plan of action defining companys present status, objectives and commitment.It will help to measure the results as whole. Very prominent factor is the investment funds how much the company is investing in the process of globalization whether it is 10-15% of the profit form the domestic market or options like pay as you can afford formula. The company analyzed the proper time bound required for the launch of the company in the global market. It took time and persistence to built and lasting world enterprise. Thus it has paid a bent to the wall mart in the long run. The best thing they did is the hosting of website guardianship the international market in their mind.Though English is the most popular expression in the world, but less than 30 % people can read it in the European continent. The numbers are further lower in Asia and South the States. Multi lingual website has become the first choice of the MNCs so that they can effec tively transmit the information without any barrier. Decision over the Product and function for the nations- It is very important to decide which product to conjure up in the global market. Many substantiallys substantiateed in the countries like America may be shoped in Indonesia.The company has also launched an wide market research. It is one of the proven tool for identifying the growth, developments and scope in the market. This enabled the company to find what kind of product is demanded in the market and major markets were targeted. research connect to the geographical berth- In this volume based economy the company has selected the areas where the growth is relatively higher compared to the areas where the sales are at all time low. Thus the company has considered this factor before selecting the countries in particular.A good research was conducted in this regard for identifying the customers so that it can postulate the location effectively. It has also taken care of the factors like the curb over the business ventures. A perfect plan was prepared before hand in this regard. WalMart always followed a system related to the export of the goods the companies effective style of displaying the product and other things has led the company to touch new heights in the retail sector in many countries. effectual factors- Any companies before going global always necessarily to act the legal requirements and other issues related to the compliances.Thus the strategy of the company was designed in such a way, that they inducted layers, bankers and people from various legal and financial supports. This was one of the priorities of the company as they knew that without meeting this factor you cannot afford to run the company. The keep and the approval from the government and other trade bodies were taken before incoming in any country premises. Appropriate channels were used to get more and more out of the process. Pricing Factor- It is very importa nt to discharge the price in the market.How the people receive the price in the real situation? Then negotiate and determine the final determine building for the product. Terms and conditions were researched and designed suitably for the customers as well as the company. overhaul and replacement strategies- Wal-Mart knew that the customers satisfaction is the samara to the success of the business. The relationship with the customer should not end after the sales process, an effective feedback and after sales services were or so of the key issues that were determined by the company.Cultural Aspects- it was one of the key agendas of the Wal-mart to take care of the cultural specific information and general courtesy related to the job and sustainability. The goal of the company was designed in such a way that it will be easier for the company to adapt and make it into their own culture. . Factors related to global alliance and matchship- retail giants like Wal-mart had an extens ive countersign and formulated policy regarding the alliances and partnership of the company in the different nations. It is an important matter of concern for the companies like Wal- mart to enter into the retail market.Many aspects are related in this matter like joining hands with company of similar capacity who are already in the market or search for any other alliance on profit communion basis. The key policy Wal-mart implemented is that they treated employees as a most important valuable asset and business cannot survive without them, in this age of rapid development it is the emotional touch which helps the companies to grow. Taking the best thinkable care of company and employees, your suppliers and your customers, and your future will be bright, prosperous and happy.Going global doesnt have to be a scary proposition. By considering and evolution these twenty essential factors before going global, your organization can realize the full potential of globalization and cap ture dramatic revenue growth. (Dalaney, 2004) major(ip) problems and hindrances faced With the ongoing process of globalisation, it is obvious that there will be competition in every aspect. Moreover, with perfect strategies and clever decision can enable the company to witness some robust growth. In the retail business Wal-Mart has also faced a lot of issues running the business.The key problem to mention is the competitor in the field of retail. It is the Kmart, who gave competition to the Wal-Mart. Kmart in US is considered to be the second largest retail chain after Wal-mart. two(prenominal) the retailers are highly successful in their business. Though, the strategies differ for both the players. Wal-Mart strategy is to set up stores in small towns and within small group of people, while Kmart is focused on to set up stores in live places. The kmarts strategy is to gain a larger market allocate , rather than the volumes.However Wal-mart has proved it from its sales figures w here the sales are estimated to be greater by four times than that of Kmarts figures. The difference between both the companies sales figures stood at around $37 billion. The discount stores of the Wal-mart faired fairly well where the sales were about $385 per square feet considered as twice the amount of Kmart. go withs like Wal-Mart has proved it credibility in the field of success in not reliant on the size and quantity. Initially Wal- mart has also witnessed problem many good professional in the company says company lacked strategic vision.It has been widely argued that the company was unable to meet the expectation, that company popularised the mission statement where it was mentioned that customers expectation will be met by delivering quality products at lower price in the market. The company was concentrating to meet the basic necessities. (Global Strategy analysis, ivythesis) Wal-Mart in the Indonesia Once the company has at rest(p) International . It was one of the majo r challenge to the Wal-Mart was to find appropriate partner or companies who can popularize or make some human body of business understanding.In Indonesia being a good potential market. Wal-Mart had a discussion with the largest Indonesian retailer Pt Matahari Putra Prima to develop the concept of the hyper market asset. At the same time, Lippo Group an Indonesian Business group which controls Matahari by PT Multipolar, was also looking for global partners like Wal-Mart to expand its business. Howe ever the strategies of Walmart were very clear. Wal-mart wanted to acquire the hyper markets, along with a French retailer Casino Guichard Perrachon SA.In this process Lippo has hoped to generate a substantial amount of $ one billion. The partnership will give the Wal-mart to gain a significantly and control over the assets of Matahari Hypermarkets. The main reason for Wal-mart in this regard is that, Indonesia is one of the most populated countries in the world and largest nation in te rms of Muslim population. This deal could be a golden deal as the Wal-mart wants to keep on moving by opening its stores in the middle eastbound and South East Asian countries in the world. (Wal-Mart in Indonesia, The writingonthewal) Conclusion and RecommendationIt has been a great experience studying the entire issue and a good number of lessons are was learned. Expanding the business to other nation can be attractive only when it is planned properly, it will add the value to the business. thither are few vital points which we should remember to sustain the business in the international level which are outlined as follows. Is the company a business leader at home, these days the transformation of messages are very unfaltering. Thus we can say that if it is popular brand in the country that means greater chance of doing business outside the nation.Followed by the business model in use- Each and every business model has its own pros and cons. Thus, the company should decide which mode to follow whether it will go for franchising, licensing, joint ventures or wholly owned. Choose the right partner for the process- It is important to choose the right business houses for the success of the business. In this matter verification of financial status, influence and reputation are some of the key aspect needs some special attention. In relatively smaller nation also check the political scenario which may be helpful.Study the country where to set up the business- It is important to study the rules and regulation that are imposed by the country. The tariffs and taxes related to the international business is also a matter of concern. Infrastructure related to the business- It is also an important factor before doing business in the foreign land. All the supporting infrastructure should be in line to support the business Key issues are whether you will get home support for the logistic and supply chain form home or any other alternatives needs to be used in this regard. Is the companys financial efficiency financial department to handle the foreign achievement and exchange in the currency? Moreover, once you are operating globally, there must be a department who can handle any kind of queries and suggestion round the clock. Moreover operating model is also very important before going out for business. The cost in terms of supply, real estate and seasonality are also important. (ceoonline. com) Competitive pricing for the product, price drop is also necessary to study and offer the customers with some outcomes.A very close supervision is required in this regard for the fast and stable results. (BSAG,2011) References G. lewis, Researching International strategies of Australia viewed on April 12th,2012 www. Business. flinders. edu. au/research/ papers/01-3. doc Global Strategy Analysis Wal-Mart, viewed on April, 13th,2012 http//ivythesis. typepad. com/term_paper_topics/2010/03/global-strategy-analysis-wal-mart. html Laural Delaney, declination 16, 2 004, 20 Factors to Consider before Going Global, viewed on April 13th, 2012 http//www. ntrepreneur. com/article/75138 Walmart in indonesia round 2, viewed on April 14th,2012 http//thewritingonthewal. net/? p=12269 Expanding Internationally 8 Points To Consider Before Going Global, 2007, viewed on April, 13th,2012 http//www. ceoonline. com/pages/id22292. aspx Business strategy BSAG, viewed on April 13,2012 http//bsagweb. com/clients-stories/retail-company Daniel D. Bradlow, The Changing International Business Context, viewed on April 13,2012 http//www. ialsnet. org/meetings/business/BradlowDaniel-USA. pdf