WalMart's Global Strategies. This Power Point Presentation was prepared for MGT 340 Class at Pace University.
This Presentation will help you answer the following questions:
What was Walmart’s early global expansion strategy? Why did it choose to first enter Mexico and Canada rather expand into Europe and Asia?
What cultural problems did Walmart face in some of the international markets it entered? Which early strategies succeeded and which failed? Why? What lessons did it learn from its experience in Germany and Japan?
How would you characterize Walmart’s Latin American strategy? What countries were targeted as part of this strategy? What potential does this region brings to Walmart’s future global expansion? What cultural challenges and opportunities has Walmart faced in Latin America?
What group of countries will be targeted for Walmart’s future growth? What are the attractiveness and risk profiles of these countries? What regions of the world do you think will be vital for Walmart’s future global expansion?
This is our Principle of practices and management presentation which we gave in our pgdm program at srms ibs, lucknow. i would like to thnk our professor ekta mam and my group members
This is our Principle of practices and management presentation which we gave in our pgdm program at srms ibs, lucknow. i would like to thnk our professor ekta mam and my group members
Haier: Taking a chinese company global in 2011Ilaria Fiore
Corporate strategy for HAIER business case. This presentation is based exclusively on informations and data provided in Harvard Business School's case study "Haier: Taking a chinese company global in 2011" and Wikipedia.
The presentation provides information about Haier, evaluates the situation, problems and opportunities of the company; then it describes the possible options avaiable to Haier and selects the best, according to the group's ideas.
Haier: Taking a chinese company global in 2011Ilaria Fiore
Corporate strategy for HAIER business case. This presentation is based exclusively on informations and data provided in Harvard Business School's case study "Haier: Taking a chinese company global in 2011" and Wikipedia.
The presentation provides information about Haier, evaluates the situation, problems and opportunities of the company; then it describes the possible options avaiable to Haier and selects the best, according to the group's ideas.
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2003, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic or mechanical, without
permission.
To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna
Hills, Hyderabad 500 082, India or email [email protected] Website: www.icmrindia.org
This case was written by P. Mohan Chandran, under the direction of Vivek Gupta, ICFAI Center for Management
Research (ICMR). It is intended to be used as a basis for class discussion rather than to illustrate either effective or
ineffective handling of a management situation.
The case was compiled from published sources.
WAL-MART'S SUPPLY CHAIN
MANAGEMENT PRACTICES
OPER - 020
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This case was written by P. Mohan Chandran, under the direction of Vivek Gupta, ICFAI Center for Management
Research (ICMR).
2003, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic or mechanical, without
permission.
To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna
Hills, Hyderabad 500 082, India or email [email protected] Website: www.icmrindia.org
OPER/020
WAL-MART'S SUPPLY CHAIN MANAGEMENT PRACTICES
“When you start to collapse the supply chain, accuracy in execution becomes critical. Any lack of
accurate information and processes creates costly bottlenecks in the flow of goods and materials.”
-- Bruce Richmond, Global head, Andersen Consulting.
INTRODUCTION
The US-based Wal-Mart ranked first in the global Fortune 500 list in the financial year 2001-02
earning revenues of $219.81 billion (Refer Table I). Wal-Mart was the largest retailing company in
the world. The company was much bigger than its competitors in the US – Sears Roebuck, K-
Mart, JC Penney and Nordstrom combined (Refer Exhibit I). In 2002, Wal-Mart operated more
than 3,500 discount stores, Sam’s Clubs and Supercenters in the US and more than 1,170 stores in
all major countries across the world. The company also sold products on the Internet through its
website, walmart.com.
TABLE I
GLOBAL FORTUNE 500 LIST (2002)
Rank Company Revenues (in $ millions)
1 Wal-Mart Stores 219,812.0
2 Exxon Mobil 191,581.0
3 General Motors 177,260.0
4 Ford Motor 162,412.0
5 Enron 138,718.0
Source: www.fortune.com
Wal-Mart was one of the largest private sector employers in the world, with employee strength of
approximately 1.28 million. The company’s founder, Sam Walton (Walton) ha.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
2. Wal-Mart Stores, Inc., branded as Walmart, is an American multinational
retail corporation that runs chains of large discount department stores and
warehouse stores. The company is the world's secon
d largest public corporation, according to the Fortune Global 500 list in 2013,
the biggest private employer in the world with over two million employees, a
nd is the largest retailer in the world. Walmart remains a family-owned
business, as the company is controlled by the Walton family, who own a 48
percent stake in Walmart. It is also one of the world's most valuable
companies.
The company was founded by Sam Walton in 1962, incorporated on October
31, 1969, and publicly traded on the New York Stock Exchange
in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the
largest grocery retailer in the United States. In 2009, it generated 51 percent
of its US$258 billion sales in the U.S. from grocery business. It also owns and
operates the Sam's Club retail warehouses in North America.
http://en.wikipedia.org/wiki/Walmart
3. Walmart Early Internationalization
During 1991-1995 Walmart decides to concentrate on the following markets in the Americas:
Mexico
Brazil
Argentina
Canada - easiest entry because of the similar business environment
European market imposed difficulties:
Its Retail industry was mature which meant that a new entrant would have to take
market share away from an existing player
Competition (Metro A.G. in Germany, Carrefour in France...)
Lack of strong local customer relationships
Asian market difficulties:
Logistically too far away from USA
Different Culture
Higher entrance costs
3 largest populations in Latin America
4. Success in Mexico
1991 - Walmart entered into a joint venture with Cifra and opened Sam’s Club in Mexico City.
1997 - Gained the majority position in Cifra.
2001 - Renamed the store to Walmart de mexico aka “Wal-Mex”.
2005 - Walmart opened 93 new stores and saw 13.7% increase in net sales overall.
2006 - Opened its own bank in Mexico
2007 - Walmart operated 889 stores and had plans to open another 125 same year. Opened first
consumer bank.
2010 - 1,479 Retail outlets in Mexico
5. Success in China
1996 - Entered Chinese market by opening Sam’s Club and supercenter.
2006 - Opened 73 stores in 36 cities. Signed a deal with Bounteous in which Walmart would acquire
100 Trust-Mart’s stores. Introduced credit card with Bank of Communications Ltd.
Highly competitive retail market - $841 billion
Since 2009 - Walmart opened nearly 40 new outlets in various provinces in China, and hence its total
number of stores exceeded the number of stores of its competitor Carrefour.
2010 - New wholly owned subsidiary in Hebei
6. Walmart in Europe
Germany
Germany
1998 - Entered European market through Germany by acquiring 21 Wertkauf hypermarkets with a
similar operations like Walmart
Struggles:
Stores were situated in poor locations and geographically dispersed.
Cultural differences
Errors like hiring American managers who implemented the same strategies as they would at
home
Competitors like Aldi and Lidl - with lower prices.
Losing profits of about 200 million euros a year
2006 - Walmart sold the stores to Metro and took a pre-tax loss of about $1 billion
“germany is the home of the discounter”
7. United Kingdom
1999 - Entered UK market by acquiring ASDA Group PLC.
229 stores smaller in size than Walmart supercenters but this approach is more practical in Europe
because of lack of space.
More successful despite the fact that the competition is high in UK.
8. Walmart in Japan
2002 - Entered Japanese market by purchasing 6% stake in the 371-store Seiyu chain.
2008 - made Seiyu a wholly owned subsidiary
Struggles:
Resistance from Japanese managers
Tendency among Japanese shoppers to associate low prices with low quality products.
Small living space of consumers prevented them from shopping in large quantities.
Corrupted grocery distribution system in Japan.
Edward J. Kolodzieski reformed the Seiyu by firing 29% of corporate staff, removed in-store
butchers, boosted the direct import of products from manufacturers, promoted its own private-label
brands.
2010 - stabilized situation in Japan with bright future for expansion through acquisitions.
9. Refocusing on Latin
America
2004 - 118 Bompreco stores were bought in Brazil
2005 - Walmart bought 331/3 % interest in Central American Retail Holding Company (CARHCO)
with 363 stores in
Guatemala (120)
El Salvador (57)
Honduras (32)
Nicaragua (30)
Costa Rica (124)
2006 - additional 140 stores - Sonae chain - were purchased from Portugal-based company.
2009 - Expansion into Chile by acquiring 224 store chain D&S (Distribucion y Servicio).
2010 - increased budget from $150 to $250 million in order to open another 70 stores.
11. Walmart and BRIC
Brazil
Brazil
Walmart is only 3rd in Brazilian market after its 2 major competitors Companhia Brasileira de
Distribuicao Grupo Pao de Acucar and France’s Carrefour.
Walmart plans to invest more in this market because of great potential of increased profits and less
barriers to business than other BRIC countries.
Walmart plans to become #1 in this market and it has all the possibilities. For example, its advantage
before Carrefour is that it doesn’t have to battle the economic recession because its major profits are
not coming from Europe.
12. India
Walmart has 1 Wholesale outlet in India.
Teamed up with Bharti Enterprises in order to open cash-and-carry operations (Best Price Modern
Wholesale) in the city of Amritsar because alone it is hard to bypass government restrictions.
Planning to open 10-15 stores through the partnership.
India has overall great potential because of high level of educated workers
13. Russia
Walmart only has 30-person development administrative office in Moscow.
Corruption is #1 problem that prevents Walmart from entering the market.
The way Walmart is planning to enter the market is by acquiring local retailers. Some of the retailers
Walmart had in mind is Lenta and Kopeika.
Competition from Metro and Carrefour who already established their presence in Russia.
14. Walmart in Canada
1994 - Walmart Canada established its first store and now has 317 outlets
2010 - The company announced it would open another 35-40 stores .
Investing in its first sustainable refrigerated distribution center.
Walmart is ranked 3rd largest employer in Canada generating great number of jobs.
15. Walmart in South
Africa
2010 - Walmart was doing a research about Massmart which has 288 stores in 14 African countries
Negotiations - $4.63 billion was suggested to own Massmart outright. If Walmart establishes its
presence in South Africa, it would be ahead of its European competitors.
2012 - Walmart closed the deal at roughly $2.4 billion with Massmart buying 51% of shares.
2013 - Walmart is already in African market. It plans to open 90 new stores.
“Walmart to Open more Stores in Africa” Devon Maylie
http://online.wsj.com/article/SB10001424127887324619504579028572693052040.html
16. Walmart’s Global.com Challenge
to Amazon.com
2010 - Walmart created new unit Global.com to establish its online presence - E-commerce.
Large Project Investment - “multi-billion dollar opportunity”
Main competitor Amazon.com. The major advantage that Walmart has over Amazon is the strong
association of the e-commerce/website with actual Walmart stores.
17. Questions for
Review
What was Walmart’s early global expansion strategy? Why did it choose to first enter Mexico and
Canada rather expand into Europe and Asia?
What cultural problems did Walmart face in some of the international markets it entered? Which early
strategies succeeded and which failed? Why? What lessons did it learn from its experience in
Germany and Japan?
How would you characterize Walmart’s Latin American strategy? What countries were targeted as
part of this strategy? What potential does this region brings to Walmart’s future global expansion?
What cultural challenges and opportunities has Walmart faced in Latin America?
What group of countries will be targeted for Walmart’s future growth? What are the attractiveness
and risk profiles of these countries? What regions of the world do you think will be vital for Walmart’s
future global expansion?