Question

HR Management

Walmart’s Global Strategy

Walmart’s international division has an important job. With 80% of the retail industry’s growth coming from outside of the United States, WalMart international’s $137 billion in international sales in 2014 -  29% of sales overall - is a key driver of overall revenue growth. To drive this performance, David Cheesewright, CEO of WalMart’s international division, is focusing on current operations in growth markets and e-commerce.

Shopping trends indicate that what customers buy is changing fast, and that they are quickly switching to online shopping platforms. After decades of work trying to develop a foundation in the Chinese market, Walmart is consolidating its portfolio of stores in that country, closing nonperforming retail stores and investing in successful ones. To enter the Chinese e-grocery market, Walmart holds a 51% stake in Yihaodian, which has posted triple-digit growth—twice the market rate.

The company’s operations in Brazil and Mexico are experiencing slowing growth, in part a result of economic cycles and their brand’s lifecycle, but they still offer the opportunity to develop strong, mature

businesses. International expansion comes with country specific challenges. After experiencing too many regulatory difficulties in India, Walmart canceled plans to open retail stores there. Instead, Walmart India is focusing on business-to-business sales.

Although Walmart has successfully dominated the U.S. market, it has found that expanding its reach across the globe does not always fit with its strengths. In addition, navigating the variety of economic and regulatory requirements across different countries adds significant complexity to the company’s operations. Finally, gaining access to and managing workforces with different values, cultures, and languages present tremendous challenges.

1)    What strategies should a company use to determine which countries it should expand into?

2)    How can a company assess how cultural and economic differences might impact its ability to succeed in different countries?

3)    What things can companies do to manage a global workforce more effectively.

Answer 1

1. The organization should above all else survey the interest of its items in the nation it needs to venture into. For this, organization must lead a study or accumulate auxiliary research information about the client inclinations in the other nation. At that point the organization must build up a methodology to enter, it very well may be an establishment model, association or setting up it's own stores in the other nation. This choice relies on the dangers in question and returns picked up by development. Organization must utilize these measures of hazard of business, costs included, client inclinations, expected income and so on before development.

2. Organization can survey how social and financial contrasts may obstruct it's capacity to prevail in various nations by evaluating the neighborhood culture and inclinations of clients in these nations. Likewise the organization must survey the salary level of these clients and the sum that they can spend on it's items. It should likewise survey money saving advantage investigation by extending to these nations. In light of this evaluation just, obstructions to prevail in various nations can be determined.

3. Organizations can deal with a worldwide workforce all the more adequately by drawing in with them all the time, obliging their preparation needs, hrlpingbthem create ranges of abilities, detailing a system to have open correspondence among the workforce and with the administration too, rousing the representatives to accomplish authoritative objectives and mission and so on.

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