Wal-Mart had such a difficult time connecting with consumers in Germany because they did not understand the cultural differences in other countries. Wal-Mart appointed a wrong person to oversee the company in Germany. Ron Tiarks, an American, did not learn the culture and norms before he supervised 200 stores. He displayed ignorance in the complexities of retailing in Germany, especially the legal and institutional framework in the nation. Neither did he understand the shopping culture between America and Germany. Tiarks ignored advices from former German executives, and he made them quit the company. Then, he was replaced by Volker Barth, a German. However, Barth could not make the stores successful because he was required to establish Wal-Mart
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Wal-Mart needs to understand the cultural differences in other countries when they want to do business with them. They cannot force the American culture onto somebody else’s culture because it will create confusion. Wal-Mart could have asked the German experts feedbacks on what is right and wrong because this is a different market. The things we can do or cannot do will affect the business in other countries. Wal-Mart should have hired a German executive to run the stores in the beginning since he or she understands their own culture. In their culture, the German shoppers feel harass by the store greeters because it is not something normal in their daily lives. Also, having a grocery bag service is great, but some people do not like their groceries handle by strangers. This is a common knowledge in Germany, but Wal-Mart did not understand this difference. Furthermore, Wal-Mart was criticized for having frugal regulations on business trips. Executives were force to share rooms which is unheard of in German companies. Wal-Mart should have learned these business norms first because it showed that they understand German cultures and have respect for …show more content…
Saudi Arabia is a conservative country that preserves the religious values and ancient traditions of the region. Every business in Saudi Arabia closes at five for daily prayers. It does not matter what you are doing because it is a big part of the culture that you need to follow. Saudi Arabia will only do business if trust is established. This will take times for Westerners to meet them again in order to gain their trust. In Saudi Arabia culture, family and friends has a big position in career advancement. The Saudi will consult with family and friends first before making business decisions and their opinions has more weight than experts who is a stranger to them. Unlike the Saudi, Americans value individual success, and they listen to experts when it’s a business decision. Now, women are making up the workforce in Saudi Arabia as women rights are changing. However, women have little freedom when it’s come to doing business in the country. Thus, it is important to know each other’s culture before making business deals because it’s a sensitive issue in different
Wal-Mart needs to understand the cultural differences in other countries when they want to do business with them. They cannot force the American culture onto somebody else’s culture because it will create confusion. Wal-Mart could have asked the German experts feedbacks on what is right and wrong because this is a different market. The things we can do or cannot do will affect the business in other countries. Wal-Mart should have hired a German executive to run the stores in the beginning since he or she understands their own culture. In their culture, the German shoppers feel harass by the store greeters because it is not something normal in their daily lives. Also, having a grocery bag service is great, but some people do not like their groceries handle by strangers. This is a common knowledge in Germany, but Wal-Mart did not understand this difference. Furthermore, Wal-Mart was criticized for having frugal regulations on business trips. Executives were force to share rooms which is unheard of in German companies. Wal-Mart should have learned these business norms first because it showed that they understand German cultures and have respect for …show more content…
Saudi Arabia is a conservative country that preserves the religious values and ancient traditions of the region. Every business in Saudi Arabia closes at five for daily prayers. It does not matter what you are doing because it is a big part of the culture that you need to follow. Saudi Arabia will only do business if trust is established. This will take times for Westerners to meet them again in order to gain their trust. In Saudi Arabia culture, family and friends has a big position in career advancement. The Saudi will consult with family and friends first before making business decisions and their opinions has more weight than experts who is a stranger to them. Unlike the Saudi, Americans value individual success, and they listen to experts when it’s a business decision. Now, women are making up the workforce in Saudi Arabia as women rights are changing. However, women have little freedom when it’s come to doing business in the country. Thus, it is important to know each other’s culture before making business deals because it’s a sensitive issue in different