Strategic Management of Walmart in Various Countries Assessment Answer
Strategic Management of Walmart in Various Countries Assessment Answer
The scope of management courses in Australia has grown so much that even students from other countries are coming to Australia to study management courses. One of the management subjects is strategic management. In strategic management, students learn about the strategies used in an organization.
To give a better understanding of this subject students have to prepare an assessment of the strategic management of Walmart in various countries. Students must have deep understating and knowledge of this subject to make this assessment successfully. But many students find it very difficult to complete on their own students assignment help is there to help those students.
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As you can see the growth of Walmart since it was founded in 1962. The company kept growing rapidly and also playing an important role in increasing employment as it is the world’s largest employer in the world with 2.2 million employees. Seeing this as a big pool of knowledge and experience, students are asked to prepare a Strategic Management of Walmart in Various Countries Assessment. To complete this assessment you must have certain skill sets like in-depth research about the company, creative thinking, patience, etc.
In this assessment you have to answer the following questions:
Question 1: In some countries, Walmart entered through acquisitions and in some countries through Greenfield investment. According to you which mode of entry was best? And why?
Question 2: In a joint venture with Bharti Enterprises Walmart decided to enter India in 2013. As per your analysis of Wal-Mart’s global expansion up to that point, according to you do you think it was a good idea to go to India? And to choose Joint-venture as the mode of entry?
Approaches to answer the question in Strategic Management of Walmart in Various Countries Assessment
The Growth of Walmart in countries like Mexico, Canada and China were the most successful ones. The company wanted to understand the demands of a culturally diverse market; usually, multinational retailers go for joint ventures with the local retailers. However, Walmart chose one of Mexico’s largest retailers called CIFRA. An opportunity to better understand the current Mexico market was given to Walmart at that time.
By providing the knowledge about the culture in Mexico, connection with the supplier and working with local authorities CIFRA helped Walmart in every way possible. In Exchange, Walmart was opening various membership Clubs named Aurrera. Both of the companies Walmart and CIFRA agreed on opening two joint ventures. The first was wholesale discount Aurrera stores and second, it was an import and export company so that Mexican suppliers of CIFRA can have access to other outlets of Walmart in the United States. This way Walmart influenced the Mexican market in a very short period.
In Canada, the international Acquisition method was used. In 1994, 120 well established Woolco Discount stores were bought by Walmart saving a lot of time which was required for building up the stores. Over the other retailers, it was a very smart move. Later in 2011, the announcement, about the acquisition of 39 store locations which was occupied by Zellers was released by Walmart. After acquiring Mexico and Canada Walmart next destination was China. The rapid increase in the economy supporting its 1.3 billion people was able to lure Walmart in China’s market. China was expected to become one of the most economically powerful countries, in the 21st century. To become the best player in the retail sector in China, Walmart wanted to acquire Trust-Mart.
Walmart’s decision of entering in India through a joint venture with Bharti
It was very ideal for Walmart and Bharti to conduct business together and engage cash and carry services. Bharti was aware of the rapid increase in countries’ population and economy, and it was also smart enough to take some advantages of that rapid growth.
In order to protect the country and keeping businesses from taking advantage of the rapid growth in the country govt. of India began setting rules and regulations. Non-domestic retailers with many brands were not allowed to sell directly to customers. There were many challenges faced by Bharti and Walmart while carrying out the partnership. The very first challenge was the policies of the Indian government. Bharti and Walmart had to change their wholesale strategy to provide smaller and middle-sized businesses that also had to agree with the terms and conditions of the Indian government.
This was just a quick example of one the approaches of answering the question asked in Strategic Management of Walmart in Various Countries Assessment. If you want to get a fully-fledged solution of this assignment contact our experts of Students Assignment Help.
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