INTRODUCTION
This consultancy report is addressed to Walmart, the leading multinational retail company of the world planning to enter in recently liberalised and reformed Indian retail sector, where foreign direct investment has been allowed cent-percent in real terms. The report deals with four specified aspects. Firstly political system and risk of India is analysed from the perspective of Walmart. Next market potential is assessed with reference to opportunities and challenges. Further trade and investment barriers are detailed with reference to the observation of the World Bank. Finally entry mode and location choice is recommended for Walmart to operate in India, where the likely cross-cultural management point is also made.
MAIN BODY
Assessing Political System and Risk
Political risk assessment is a vital part of international investment by multinational companies, where political risk all concerns to the risk that a host country ctreate through its political decisions that might be dterimental for on the success and survival of the multinational companyies in profitable manner. Unfavorable political system or policies might result in detriments in the extensive damage because of revolution to those of a more fiscal nature, in the form of the formation of laws that put off the movement of capital (Phung, 2009). Naturally whilst investing in Indian market Walmart needs to close assess the likely political risk situation in the country, from the perspective various factors relating to political risk. As Dörrenbächer and Geppert .(2013) argue that multinational companies might be breeding grounds for internal political pressure in a host country where fight for control amid head quarters and their subsidiaries might dis...
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...minate the trade and investment barriers from the perspective of multinational companies such as Walmart. Hence, Walmart can hope a better trade and investment environment in Indian. It can work with the government in the country together with World Bank for negotiating maximum in its favour in the new policy environment, Walmart has more opportunities and challlenges, but opportunities may well be exploited only in the case of choosing the right entry mode. Walmart has two potential options in the forms aquisition or creating subsidiary in the country. The former would be comparatively more effective considering the unorganised nature of Indian retail sector. The success of this multinational company in India will be largely depend on cross-cultural management, particularly in the context of standardisation versus adaptation whether the later can be recommended.
Based on the Miles and Snow strategy typology, Dollar Tree would be categorized as a prospector and an analyzer. Dollar Tree initially started off as a prospector when it was created as an off-shoot of the retail chain K &K Toys (Parnell, 2014). Prospectors focus on intrapreneurship, which involves the creation of new business ventures within an existing organization (Parnell, 2014). When K & K Toys was divested in 1991, it was done so in order to focus their energies on developing the concept of the dollar store, which in turn gave them the first mover advantage for being first in that particular market (Parnell, 2014). Just as prospector companies places priority on new product and service development to meet the changing needs and
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last dime from its thousands of suppliers, who are left with no profit margin unless they adopt the Wal-Mart model of using nonunion labor and shipping production to low-wage hellholes abroad." (The Nation, March 4th 2002 www.thenation.com/doc.mhtml?i=20020304&s=hightower).
Wal-Mart is one of the world's greatest assets to most people. It provides consumer's a place they can go to virtually get anything they need from, car repairs, to groceries, prescription's, even the latest toys and electronics. With all that said, this paper relates to the different forces in business that affects business: competitive, economic, political + legal + regulatory, technological, cultural + social, demographic, and natural forces. Although there are technically seven we are going to focus on competitive, political, technological, and natural forces.
What core competencies do you think the company has and what is needed to exploit opportunity and counter threats.
A1: Dollar General's main business strategy is to focus on being the leading distributors of consumable basics, with 30% of the merchandise at $1.00 or less. Dollar General believes in maintaining an assortment of consumable merchandise and making shopping for everyday items hassle free and simplistic.
Sethi, Parkish. "The World of Wal-Mart." Carnegie Council. N.p., 18 May 2013. Web. 26 Jan 2014. .
For every $100 spent at a locally owned business, $68 of that will stay local compared to $43 if spent at a “big box store”. Even though people believe that local businesses are not as beneficial as a big box store, buying locally not only benefits the business but also the community because buying locally builds a strong community and the money you spend at a local business gets put back into the community.
The Harvard Business School case study Silvio Napoli at Schindler India summarizes the various problems and issues facing Schindler India regarding its entrance into the new foreign market, India. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators which is looking for potentially entering into the Indian elevator market. Main executive committee members predicted that the Indian industry showed great promise in terms of future growth potential. The company’s objective was to manufacture standardized elevators at a cost lower than current customized elevator market. Silvio Napoli, who is vice president of Schindler in Asia, was chosen to lead the new entry into India. To successfully enter and penetrate the Indian market, Silvio and company needed to consider a variety of factors like but not limited to: mode of entry and type of strategy to implement, organizational structure, outsourcing and logistics approaches, marketing, and domestic and global hiring procedures.
How does managerial planning for Project Impact take place at different levels within the organization?
Summarize and discuss the core issue in the case. Do not repeat the entire case details but only pertinent information at the heart of the case.
In this paper, TNA of Wal-Mart will be presented. The retail sector is facing numerous inter-related and urgent challenges predetermined by
From the consumer side, Amazon provides services like Amazon Prime, which delivers free two-day shipping on retail purchases, on-demand video streaming and a free access to the Kindle library, everything for an annual
...because it will affect shareholders interests if company not doing well their business. This paper discussed the reasons why Wal-Mart doesn’t doing well in global market. The main reason that Wal-Mart faced currently is internal and external problems. The internal problems included management and employees’ conflicts, while the external problems are suppliers and environment conflicts. These conflicts may cause Wal-Mart loss shareholders’ confidence to invest in their company and company’s share price also will affect. It will cause Wal-Mart difficulty to fight with their competitors in global market and spread their business to new market. To avoid these problems arise, Wal-Mart should find some solutions to resolve the conflicts. So that Wal-Mart can maintain a good relationship with their stakeholders and shareholders rather than break their relationship.
The paper focuses on the increased complexity of globalized organizations and methods of altering the process within the structure. Business and environment change constantly to sustain development in emerging markets and increase efficiency. Integration of relationships and processes of the world systems, help to manage local, regional and planetary balance to manage duplication of success become conceivable. The retail giant Wal-Mart exhibits its ability to transform the organization asynchronously with the increase integration of globalization.’ Wal-Mart unveils the type of integration possible between globalization, and business services as it adapts, eliminating redundancies and repetitive movement. It observes the effect and influence, propagated on business through it use of supply chains, and influence.