the environment of management

1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why has management chosen this approach?

FDI-walmart-001Walmart’s primary strategy to enter foreign markets is by using Direct Investing. This is due to the fact that the goals of the company is similar in every parts of the world. To clarify the objectives of Walmart, which is to help consumers by making their products super affordable to be purchased in order to improve the living costs of consumers. Besides delivering cheap prices of their products, Walmart also makes sure that their products marketed are sold in an ethical as well as in an efficient way.

2. What challenges do Walmart China managers encounter in the international business environment?

crocodiles-china-walmartDue to the fact that Walmart is an American company, they are facing a few challenges while being operated in China. Firstly, they are challenged by the culture differences in China because China has a variety of unfamiliar products to be sold in a normal such as raw materials like frogs, fishes, fermented vegetables and so forth more specifically to China’s food products.wal-mart-responds-to-chinas-allegations-it-circumvents-quality-control-processes Besides that, they also have to be wary of their own products, American products to show positioning and recognition of their company. Thus, Walmart managers in China must have high people skills in order to cope with the environment which is so diverse.

3. Which of Walmart’s sustainability initiatives do you believe will have greatest positive impact on China? Explain.

Walmart based on sustainability initiatives which will bring positive impact towards China is by familiarizing themselves with the cost factors in China. AI-BN958_CWALMA_NS_20111010122234China is well known for their easy access to set up a business due to the low currency and a huge range of market. Positive impact by Walmart towards China can be explained by the company themselves having a very largely social business which is simple and good in terms of waste reduction as well as energy efficiency. This will in turn will lead the company in China to gain higher profits. 870414-pictureFurthermore, interacting with local factories in China to make their products instead of making it themselves saves Walmart China tons of money instead of making products themselves. Since there are manufacturing companies which varies of many kinds of products ranging to almost anything, this will save Walmart’s cost and there will be less cost factors and overheads to product their products. In conclusion, Walmart’s positive impact on China is that of being able to save up cost as well as to make social interactions towards other companies in China which ends up saving up a lot of cost.

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