StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Management Strategies Wal-Mart should undertake for Successful Global Presence - Essay Example

Cite this document
Summary
This paper focuses on human resource management strategies that Wal-Mart must undertake and support to create a successful global presence to ensure the success of an organization in meeting its goals and mission. The paper will mainly focus on what Wal-Mart requires to do to gain acceptance in China…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Management Strategies Wal-Mart should undertake for Successful Global Presence
Read Text Preview

Extract of sample "Management Strategies Wal-Mart should undertake for Successful Global Presence"

Download file to see previous pages

Decrease in government restriction resulted in increased opening up of the China retail market. Global retailers such as Wal-Mart took advantage and opened store in China. Though Wal-Mart started as a small, store in Arkansas, it spread rapidly and dominated the retail sector in United States. Wal-Mart’s founder, Walton, believed that discounting was crucial in retail business. He opened stores in neglected areas and sold goods at considerably cheap prices (Glass, 2012). The use of “Everyday low prices” gave Wal-Mart a competitive advantage over its competitors.

Additionally, Wal-Mart developed a strong marketing culture such that it remained popular even when its competitors, Kmart and Woolco, closed down. However, Wal-Mart’s entry into China was not successful. China opened up its market for foreign retailers in 2005, which Wal-Mart saw as a great opportunity. This is because China’s thriving economy provided a great opportunity for profitable retailing. Despite Walton’s insistence on discount prices, Wal-Mart remained less popular in China (Farhoomand & Wang, 2006).

One of the main drawback was the resignation of Cassian Chueng, the president of Wal-Mart China, which happened at the time when the entry plan was at the initial stages of implementation. Irrespective of being the world largest retailer, Wal-Mart is ranked at position twenty in China in terms of its sales (Glass, 2012; Wang, & Jha, 2011). One of issues facing Wal-Mart is managements’ refutation of employee’s unionization. Sam Walton opposed formation of union by War-Mart employee’s rights from the initial stages. . The Wal-Mart employees have attempted to demand for salary increment and they feel that such grievances have not been clearly addressed (Wang, & Jha, 2011).

To create a successful global presence and ensure the success of Wal-Mart in meeting its goals and mission, the management must address the issue of Unionization. This issue has been criticized strongly, which could affect Wal-Mart performance. Additionally, the success of any organization greatly depends on the level of satisfaction among the employees. It is thus inevitable that Wal-Mart should consider accommodation unionization to ensure the employees’ grievances are addressed accordingly (Glass, 2012; Farhoomand & Wang, 2006).

Another issue that has affected Wal-Mart’s entry into China is their expansion strategy. In United States, Walton preferred opening stores in small towns, which gave Wal-Mart a competitive advantage. However, Chinas economic growth is more rampant in large cities, particularly those along the coastal region. It is thus significant for Wal-Mart to reconsider the positioning of its store in China. Although there are existing barriers such as resistance from China authorities to let Wal-Mart expand in large cities, the management should consider forming venture in such regions (Glass, 2012; Farhoomand & Wang, 2006).

An alternative that would enable Wal-Mart to retain cheap prices and expand its operations would be to change their marketing strategies. The US market environment is quite different from that of China. This is mainly due to cultural differences. Wal-Mart should thus consider exposing its employees to Chinese culture to understand the needs of their consumer appropriately. As opposed to US where the

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Management Strategies Wal-Mart should undertake for Successful Global Essay”, n.d.)
Retrieved from https://studentshare.org/business/1458948-management-strategies-wal-mart-should-undertake-for-successful-global-presence
(Management Strategies Wal-Mart Should Undertake for Successful Global Essay)
https://studentshare.org/business/1458948-management-strategies-wal-mart-should-undertake-for-successful-global-presence.
“Management Strategies Wal-Mart Should Undertake for Successful Global Essay”, n.d. https://studentshare.org/business/1458948-management-strategies-wal-mart-should-undertake-for-successful-global-presence.
  • Cited: 0 times

CHECK THESE SAMPLES OF Management Strategies Wal-Mart should undertake for Successful Global Presence

Suitability, Feasibility and Acceptability of the International Strategy of an Organization

global and multinational strategies.... The retail organisations which implement the global strategy follow the same format and strategies all over the world.... Apart from this the company is known for its rapid and successful international expansion in different regions (Palmer, 2005).... Tesco is a successful multinational retail organisation and is the third largest retail organisation in the whole world on the basis of revenues....
9 Pages (2250 words) Assignment

Walmart and Age UK - Strategic Management Analysis

This paper recommends that if Wal-Mart has to keep up with the viciously competitive reselling industry, it must pay its workers well to avert the prevalent strikes to restore its public image, it should also leverage on its financial background to increase global presence.... Apart from being the most successful retail stores globally, it has been a model among many top-level companies.... It should also branch out to new sectors including pharmacies, warehousing, automotive repair and grocery sale....
10 Pages (2500 words) Essay

Strategy Audit - Wal-Mart Stores

eb based presence.... (The geographic view of Wal-Mart can be label as global) * "The Strategic Position and Action Evaluation (SPACE) Matrix is another important stage 2 matching tool with four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization.... According to Ajayi " Several factors such as distance time, culture, history, demographics and the internal and external forces are needed to adjust in order to undertake an effective change process....
11 Pages (2750 words) Essay

Wal-Mart International Expansion Strategies

They also cite Wal-Mart global strategy, which has assisted the firm in its expansion, ease of trading, and technology.... ? One of Wal-Mart… ks in its highly successful growth strategy is the use of a very efficient innovative sophisticated supply chain management that is particularly unique in having an inventory tracking system.... QUESTION 1: With reference to the experience of wal-mart (case study plus additional information you can gather), provide one example which clearly illustrates a link between two topics or theoretical concepts drawn from two, distinct, previous modules....
16 Pages (4000 words) Essay

Wal Marts Midlife Crisis

The author of the present coursework "Wal Marts Midlife Crisis" comments on how with $245 billion in revenues, wal-mart is the biggest company in the US.... As the text has it, wal-mart exports from China accounted for one-tenth of the US exports … Yet marked by slow growth and a change in customer preferences the ground beneath wal-mart is slipping and other small organizations with slick business machinery are rising fast.... nbsp;We carry out a quick look at the mission, goals, and objectives of wal-mart and how well they are aligned to meet the needs of the customers and the investors....
25 Pages (6250 words) Coursework

Wal-Mart Competitive Advantages

This study will be guided by the following research questions: What are wal-mart's competitive advantages?... nbsp; Which of wal-mart's advantages are transferable overseas?... Which of wal-mart's advantages are not transferable overseas?... hellip; This research will begin with the statement that in the present day, wal-mart has to conduct their mode of operation in an efficient manner to keep going the company's competitive advantages....
4 Pages (1000 words) Case Study

Wal-Mart Environmental Management Capabilities

wal-mart made substantial efforts to try to operate a sustainable business that is supportive of the environment.... The dissertation "wal-mart Environmental Management Capabilities" presents an examination of the efforts that wal-mart has made to try to decarbonize its logistics and operations.... Multinational retailers like wal-mart must transport very large volumes of manufactured items and finished goods to numerous stores and the energy consumption involved in operating stores is substantial....
44 Pages (11000 words) Dissertation

The Generic Strategy Followed by Wal Mart and Leadership by Sourcing from Suppliers

hellip; A powerful retail brand and discount stores, Wal Mart is a global company with several units located outside the USA where it is headquartered at Bentonville in Arkansas State.... wal-mart sells a variety of products like fresh food, health and wellness products, office products and consumables.... wal-mart thus sells health and beauty aids, family apparel, electronic items, fabrics, toys, crafts, shoes, jewellery, and other general merchandise....
17 Pages (4250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us