Walmart Strategic development Presented By Gary Tarafder

Preview Introduction Internationalization Process Strategic Alliance Subsidiary Level Strategy Head Quarter Level Strategy Diversification Strategy Global Diversification Our Recommendation Report Progress Main Tools References

Introduction Sam Walton’s first open store in 1962 at Rogers, Arkansas. 11000 store, 27 countries and 2.2 million casual, part time and full time employees. 200 million customers each week worldwide. In 2013, annually sale $446 billion 147 distribution centres with serve 75 to 100 stores. Introduces super market centre in 1988. 2700 super centre as concept of neighbourhood market and became a largest food shop in United State. First international store was Mexico in 1991 Now 3859 international branches.

Internationalization Strategy Export-based entry Manufacturing-based entry Relationship-based entry

Export-based entry Licensing Franchising

Manufacturing-based entry Joint venture Acquisition Greenfield Operations

Relationship-based entry Contract manufacturing Offshoring

Strategic Alliance An agreement Separate business entity Mutually beneficial project Walmart and Stanley works Walmart and Bharti retail

Subsidiary Level of Strategy Support and Implantation Mini replica Global product compulsory.

Support and Implantation Corporate level of strategy dominated by multinational firm Localization of product rather than adaption Design common and reduce extra cost Environment is uncertain Korea in 1999 -2006

Mini Replica Decentralize strategy with not hampering global addition between corporate parent and subsidiary Suitable for high uncertain environment Decision speed up

Global Product Mandate Production, marketing, promotion and develop the products Subsidiary get power to add value in product Approve tariff are high and company follow the local production

Head Quarter Level Strategy Cross cultural challenge Local VS Global Subsidiary level challenge Altered agendas Withholding info Head quarter level challenge Lack of local knowledge

Diversification Strategy Related diversification Unrelated diversification

Related Diversification Economic scope Market power Knowledge capabilities

Unrelated Diversification Key business not develop Weak knowledge Government behaviour not predictable Weak law enforcement Lack of knowledge

Global diversification New market and exploit the business Lower cost with high quality and create economic scale Benefited value of shareholder increase Production and operation flexibility Tax offset or tax benefit (India) Rise power and spread risk

Our recommendation Lowest price leadership Company need to focus on cultural practices Europe and Asia are strong opportunities to expend market Should focus on customer demand Low wages

Report Progress What When Progress Report Presentation Week- 8 19/06/2014 Ongoing Report Submitted At 5pm

Main Tools Web Site Journal Article Article in a Periodical Report Text Book Document from Web site

Reference A strategy for Subsidiaries. (2014, January 25). Retrieved June 5, 2014, from IP Research and Communication: http://www.freepatentsonline.com/article/Management-International-Review/80014263.html Diversity & Inclusion. (2014, June 11). Retrieved June 11, 2014, from Wal-Mart: http://corporate.walmart.com/global-responsibility/diversity-inclusion/ Global Strategic Management. (2014, May 29). Retrieved June 6, 2014, from Strategic Management: http://www.quickmba.com/strategy/global/ Head Quarter Level Strategy. (2013, Juky 13). Retrieved June 10, 2014, from Scribd: http://www.scribd.com/doc/153591022/Head-Quarter-Level-Strategy Kinnunen, R. M. (2009, October 30). Multinational Corporate's Headquarter Subsidiary Relationship. A Potential Barrier to Internationalisation, 55. Retrieved June 11, 2014, from https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=26&cad=rja&uact=8&ved=0CEEQFjAFOBQ&url=https%3A%2F%2Fhelda.helsinki.fi%2Fbitstream%2Fhandle%2F10227%2F460%2Fkinnunnen%2520r-m.pdf%3Fsequence%3D2&ei=iqyXU6SSCo6bkwXl94DACw&usg=AFQjCNHc4SLpes6 Wal-Mart Cuts Taxes By Paying Rent to Itself. (2014, June 5). Retrieved June 5, 2014, from The Wall Street Journal: http://online.wsj.com/news/articles/SB117027500505994065