Support Activities
Human Resource Management
Wal-Mart’s HRM goal is to make every employee feel fulfilled, motivated and empowered in their job. However, many employees complain about low wages and medical insurance. The working conditions also lack of health and safety rules as one female employee forced to lift heavy boxes during her pregnancy. Walmart found that paid less wages than small retailer and its workers rely on governmental program to subsidize their expenses. Walmart do not manage to keep good image in media. The most significant negative media is coming from lawsuits filed by Wal-Mart employees against the company regarding discrimination. This is obvious as at Walmart will not find good number of helpful employees.
In …show more content…
Wal-Mart is such a big business that it exerts immense control over its suppliers. Cost leadership of Sam Walton who redefine the supply chain by getting stores to reorder items only when needed instead of maintain large inventories. This creates competitive advantage of lowering the inventory cost and enhance the Walmart ability to offer discount prices.
5- Evaluate Walmart international Expansion to where it has done well and where it struggled. What characteristics does it have in common, or what can help explain the differences?
Walmart decided to expand internationally in order to achieve high level of growth to continue survive. It also due to saturation of local market, Walmart decided to go global by using the core competencies of supply chain, technology and logistics. Therefore, Walmart experience in international expansion has success in some countries and didn’t work out in other countries.
Mexico:
- 1991: Through a joint venture with Cifra, a Mexican retail company with replication of same concept of Everyday Low Prices (EDLP) …show more content…
- Exited in 2007.
As per the analysis of international expansion experience of Walmart, Walmart faced internal cultural barriers which overcome by joint venture with local company and make subsidiaries this is common where Walmart success in the countries. Other challenge was the poor infrastructure in some countries.
But the experience it differs from country to country due to political issues, regulations, customer life styles and shopping habits. It also geographical locations and strength of competition existed in these countries make the journey of international expansion such as Metro AG Germany, Tesco in UK, South Korea, Alibaba in China and Carrefour in France.
Conclusion:
From all the analysis the ground for Walmart is so far doing well and maintains its competitive advantage over its competitors.
The Global expansion was required and that was well felt and Company went global but still lot is to be done. Walmart needs to zero in on the economies with thriving Middle classes which can be attracted. In the pursuit of expansion, Walmart should keep in Mind that culture is very important and local content is required in any case. Walmart remains a Western or American company and that should be changed into a Global company. Just take the example of Pepsi and Coke whose branding is done in such a manner that people take it as a local brand. The challenges in India, China, Japan are examples which require deep thought
Human Resource Management
Wal-Mart’s HRM goal is to make every employee feel fulfilled, motivated and empowered in their job. However, many employees complain about low wages and medical insurance. The working conditions also lack of health and safety rules as one female employee forced to lift heavy boxes during her pregnancy. Walmart found that paid less wages than small retailer and its workers rely on governmental program to subsidize their expenses. Walmart do not manage to keep good image in media. The most significant negative media is coming from lawsuits filed by Wal-Mart employees against the company regarding discrimination. This is obvious as at Walmart will not find good number of helpful employees.
In …show more content…
Wal-Mart is such a big business that it exerts immense control over its suppliers. Cost leadership of Sam Walton who redefine the supply chain by getting stores to reorder items only when needed instead of maintain large inventories. This creates competitive advantage of lowering the inventory cost and enhance the Walmart ability to offer discount prices.
5- Evaluate Walmart international Expansion to where it has done well and where it struggled. What characteristics does it have in common, or what can help explain the differences?
Walmart decided to expand internationally in order to achieve high level of growth to continue survive. It also due to saturation of local market, Walmart decided to go global by using the core competencies of supply chain, technology and logistics. Therefore, Walmart experience in international expansion has success in some countries and didn’t work out in other countries.
Mexico:
- 1991: Through a joint venture with Cifra, a Mexican retail company with replication of same concept of Everyday Low Prices (EDLP) …show more content…
- Exited in 2007.
As per the analysis of international expansion experience of Walmart, Walmart faced internal cultural barriers which overcome by joint venture with local company and make subsidiaries this is common where Walmart success in the countries. Other challenge was the poor infrastructure in some countries.
But the experience it differs from country to country due to political issues, regulations, customer life styles and shopping habits. It also geographical locations and strength of competition existed in these countries make the journey of international expansion such as Metro AG Germany, Tesco in UK, South Korea, Alibaba in China and Carrefour in France.
Conclusion:
From all the analysis the ground for Walmart is so far doing well and maintains its competitive advantage over its competitors.
The Global expansion was required and that was well felt and Company went global but still lot is to be done. Walmart needs to zero in on the economies with thriving Middle classes which can be attracted. In the pursuit of expansion, Walmart should keep in Mind that culture is very important and local content is required in any case. Walmart remains a Western or American company and that should be changed into a Global company. Just take the example of Pepsi and Coke whose branding is done in such a manner that people take it as a local brand. The challenges in India, China, Japan are examples which require deep thought