Foreign Direct Investment Global Business Issues Chapter 7 Shantel 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  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  % : %  “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 Matrix Rapid Market Growth Slow Market Growth Weak Competitiv e Position Strong Competiti ve Position

Grand Strategy The recommended Grand Strategy for Wal-Mart: Stability Wal-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