Foreign Direct Investment Global Business Issues Chapter 7 Shantel P. Taylor
Jan 18, 2018
Foreign Direct InvestmentGlobal Business Issues Chapter 7Shantel P. Taylor
In The Beginning Wal-Mart was started by Sam Walton in
1962 in Rogers, Arkansas. One of the first Discount Retail Stores of
its time. (Ex. Target, K-Mart) First Sam’s Club was opened in 1988. Currently 10,130 stores that span over
27 countries.
Wal-Mart of Today Current President and CEO: Michael T. Duke Corporate Office is located in Bentonville,
Arkansas and houses over 11,000 employees.
Senior management consist of 33 employees. Global Powerhouse in the International Retail
Market. International Management Team created by
Michael Duke.
Purpose Mission: “Saving People Money So They
Can Live Better” Culture is based on morals and values. Respect is one of the most important
part of Wal-Mart’s culture (employees, customers, and suppliers)
Strong and healthy relationships
Weakness Wal-Mart is a very large company that
has a lot of employees working under the direction of more than one manager.
Wal-Mart is not known nation wide Lack of employees especially on
Holidays
Wal-Mart's Investment in Japan Restructure retail sector,
boost productivity, gain market shares &profit
2002. 6.1% : 2007. 95.1% “Seiyu bogged down in
old customs that are wasteful”
Wal-Mart transfer best US practices to improve Seiyu performance
2010 profits indicate reap of return on investment
Opportunities strategic alliances. strengthen global
presence expand consumer market new locations & store types “If you keep doing what you’re doing,
you’ll keep getting what you’re getting.”
WHICH FORM OF FDI ???• Acquisitions are quicker to
execute• Prefer acquired firms with
valuable strategic assets• Belief of increased efficiency
through transferrabe skills
Threats to Wal-Mart Department stores and groceries
stores, such as, Publix Target
Publix Publix Why is Publix a threat? The quality of the
foods. How their items are
organize. More organic food
items.
Target Target Why is Target a
threat? Their Customer
service. Their anyway
employees around to assist customers.
Everything is anyway in the correct spot.
Criminals Shoplifting It’s losing lots of
merchandise. Every employee on the
shift is not supervised. This causes the stores
to hire more security and conduct more internal control.
Lose of money for Wal-Mart .
Grand Strategy MatrixRapid Market
Growth
Slow Market Growth
WeakCompetitivePosition
StrongCompeti
tivePosition
Grand StrategyThe recommended Grand Strategy for Wal-Mart:
•StabilityWal-Mart has various products to compete
against many company.
To aide with economy down fall in America; Wal-Mart should increase the amount of local produce they sell.
Conclusion What we have learned:
-Wal-Mart has grown over the years
-Major strengths, weaknesses, opportunities,and threats of its market in Japan
- Importance of teamwork especially in a multicultural environment