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