Wal-Mart began expanding internationally in the early 1990s by entering Mexico. It became Mexico's largest retailer by hiring local managers, understanding Mexican culture and preferences for fresh foods, and keeping prices low. When entering China in 1996, Wal-Mart also studied the culture and found that offering fresh meats and fish, rather than packaged, helped gain acceptance. Wal-Mart struggled when entering Germany in 1998, failing to understand cultural differences in management and customer preferences, and ultimately withdrew in 2006. Understanding cultural differences is key to the success of international expansion for organizations.

1. Wal-Mart’s Foreign Expansion
Presented By:
Saad Saleem
Hafiz Hammad Ameen (hammad.ammen.khan@hotmail.com)
Muhammad Mubeen Raza (mubeen_raza110@hotmail.com)
“Save Money. Live Better”

2. Introduction
Wal-Mart having some of 2.2 million peoples
employed.
Operating 4,200 stores in United States and
3,600 in the other part of the world.
Wal-Mart began it’s international expansion in
early 1990’s by entering Mexico.
Later Wal-Mart become Mexico’s largest
retailer.
http://en.wikipedia.org/wiki/Walmart

3. Wal-Mart Expansion Era
Wal-Mart in its expansion era entered Mexico,
discovering shopping habits different as
compare to US.
Hired local managers who can understand
Mexican Culture.
Wal-Mart founded that Mexican preferred
fresh commodities at stores.
Commodities includes, meats, tortillas and
pan dulce.

4. Wal-Mart Expansion Era
Lower their cost and translate that cost in
terms of discounts to their Mexican
customers.
Mexicans having low income attracted
towards Wal-Mart’s low price strategy.
Wal-Mart with deep understanding to
Mexican Culture become largest retailer in
Mexico.

5. Wal-Mart Expansion Era
Wal-Mart entered China in 1996 after study
their Culture.
They founded that China’s middle class is
some how like Americans.
Founded that they are bargain hunters and
preferred low prices.
Wal-Mart offered packed meats and dead
fishes where they face resistance from
customers.

6. Wal-Mart Expansion Era
Chinese customers preferred fresh
commodities like meat and fish which killed in
front of them.
Wal-Mart replaced packed meats and dead
fishes with uncovered meat and with alive
fishes in fish tank.
Wal-Mart stopped resistance for labor unions
and agreed to make labor unions in China.

7. Wal-Mart in Germany
Wal-Mart entered Germany in late 1998 by
acquiring two German retailers Wertkauf and
Interspar.
Wal-Mart re-hire their best managers cream
from America to become Germany’s biggest
retailer as well.
Managers boost employees morale every shift
by repeatedly telling them Wal-Mart Success.
http://www.kwintessential.co.uk/resources/Wal-Mart-germany-cultural-problems.html

8. Wal-Mart in Germany
Managers stay with employees most of the
time to help them.
American managers hold feedback of
employees without forwarding it to top
management.
After big strategies, Wal-Mart followed by
series of failures.
In 2006 Wal-Mart announced its withdrawal.
http://www.kwintessential.co.uk/resources/Wal-Mart-germany-cultural-problems.html

9. Reasons of Wal-Mart Failure in
Germany
Cultural Factor
Mismanagement
Customers Perception
Attempt to change shopping habits.
http://arunkottolli.blogspot.co.uk/2006/08/trans-cultural-business-failure-wal.html

10. Conclusion
Culture play an important role in the survival of
an organizations come from expansion.
It describes some of the underlying
Characteristics of a country that help define the
values and norms of a society.
This affects not only how an individual from one
country must adapt to work in another country,
but also how organizations must recognize how
cultural differences affect the way they work with
other organizations.