International Strategic Audit of Wal-Mart
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Sam Walton started with a single store in 1962. By 1990, the Wal-Mart chain had become the nationÆs number 1 retailer (ôWal-Mart Stores, Inc. Historyö). When it entered the international market in 1991, Wal-Mart was already a highly successful domestic corporation with 1,573 stores in 35 states and expansion plans in the works for spreading out into the adjacent states (ôWal-Mart Fact Sheetsö). Wal-Mart has since built over 1,500 international stores in nine countriesù Argentina, Brazil, Canada, China, Germany, Korea, Mexico, Puerto Rico, and the United Kingdomùand owns a 37.8% interest in Seiyu, Ltd., a leading Japanese retailer (ôWal-Mart Fact Sheetsö, Fig. 1). By building a global chain from that single store in less than thirty years, Sam Walton has outstripped his biggest competitors and prompted industry analysts to examine his strategies and methods.With a view to making the connection between Wal-MartÆs international beginnings and its situation today, a strategic audit of Wal-Mart International reveals the companyÆs current position, as well as its strategic intent and the other considerations that impact its success in the international market. Wal-Mart clearly intends to continue expanding in international markets; in fact, the companyÆs web site states: We view Wal-MartÆs expansion throughout North America, Latin America, Asia and Europe as a solid foundation with many promising areas for further growth. International sales reached $47.5 billion in fiscal y
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nd it uses the winning formula to maximum advantage.
Wal-Mart does have weaknesses, particularly in some of its international markets. In China, it has a primitive supply chain; in Japan it has to deal with ôa powerful but backward retail ecosystem;ö and in Brazil and Argentina it has encountered stronger competitors (Upbin 2000). In ôChina: The Slow Boat,ö Forbes writer Russell Flannery explains that doing business in China has been fraught with obstacles for Wal-Mart:
Despite a decade of effort Wal-Mart executives admit they still haven't created a strong supply chain. Under national law Wal-Mart can't buy from many of the same suppliers that feed its massive $15-billion-a-year export operation in Shenzhen. Centralized purchasing is also crimped by rules that require liquor and tobacco to be bought locally. A lot of the leafy vegetables the Chinese love must be bought nearby, too. Even for nonperishable goods, the limited road network and choked rail lines make sourcing and distribution unpredictable. Yet Joseph Hatfield, president of Wal-Mart Asia, has reason to be patient. "If you want to look for an opportunity five or ten years down the road, China will be an extremely important place to be. So much for my bandwagon," h
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Some common words found in the essay are:
International Division, Wal-MartÆs Levi's, Benefits Reapedö, SamÆs Club, Retrieved September, Wal-Mart Menzer, Wal-Mart International, Sam Walton, Wal-Mart Asia, South America, supply chain, 7 2005, retrieved september, september 7 2005, retrieved september 7, september 7, supply chain management, chain management, ôwal-mart sheetsö, international market, chain management practices, practices benefits, management practices benefits, wal-mart international, management practices,
Approximate Word count = 2308
Approximate Pages = 9 (250 words per page)
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