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Global Business

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The Company I will use to describe is Wal-Mart.

The founder of Wal-mart was Sam Walton. Sam had a business called Ben Franklins in the 1940's before he started Wal-Mart in Newport, Arkansas. Ben Franklins is a variety store. Sam had a simple significant idea that was constantly looking for deals from suppliers. Even though he managed to get a good arrangement from a wholesaler that would leave his store prices unaffected and pocket the extra money. Sam had realized he could do better by passing on the investments to his customers and earning his profits through volume. This approach would shape the business strategy when Sam started Wal-Mart in 1962.

(Reclaim Democracy, 2006)

Wal-Mart Stores are based in the U.S.A. Wal-Mart stores are the largest retailer and corporation. Internationally, Wal-Marts operations are located: El Salvador, Mexico, United Kingdom, Guatemala, Japan, Nicaragua, Argentina, Brazil, Canada, Puerto Rico, China, Costa Rica, Honduras, and South Korea. Wal-Mart has sold it's retail operations in Germany and South Korea.

Wal-Mart is also apart of Sam's Club, it is a chain of warehouse clubs that sells groceries and general merchandise in large quantities. In July 2006, Wal-mart withdrew operations from Germany due to sustainable losses.

(Answers, 2007)

Wal-Mart's once a year report in 2006 reported that the company faced 57 wage and hour lawsuits. These lawsuits have been won or are working their way through the legal process in states such as California, Indiana, Minnesota, Oregon, Pennsylvania and Washington. Wal-Mart's Chinese factory workers are treated poorly. The workers making clothes for Wal-Mart in Shenzhen, China filed a class action lawsuit against Wal-Mart in September 2005 claiming they were not paid minimum wage, not permitted holidays, were forced to work overtime and was withheld the first three months of their pay.

(Wal-mart facts, 2005)

Obstacles that Wal-Mart faces with technological issues are their credit card scanners, computers, camera's, scanners, self check out machines, theft, RFID/barcodes, and automatic deposit machines or ATM's. If any of the machines break down Wal-mart would face more theft, loose customer satisfaction, lawsuits, longer waiting lines, loss in profits, inventory, delays, legal fees, and development plans.


Wall Street Journal says "The activist group Wal-Mart Watch, which calls the retailer an irresponsible corporate citizen, says its polling shows the company's favorable rating dropping to 50% from 59% in March." Favorable 59% unfavorable 31% in the July's Survey. Four months of data reveals 14% of dramatic negative net in community perceptions at Wal-Mart. The Executive Director has quoted " For a company that spent $841 million on advertising in 2004 alone, these polling numbers are a reality check for Wal-Mart. Despite their efforts at image-enhancement, more Americans are recognizing that Wal- Mart is, in fact, a meager employer, a poor neighbor, and an irresponsible corporate citizen."

July March

Favorable 50% 59%

Unfavorable 36% 31%

Neither 9% 5%

Don't Know/Refused 5% 5%

(Walmart watch, 2005)

Cultural issues with Wal-Mart had a tendency to follow the U.S. cultural cues in Brazil but there was a mixed customer acceptance of Wal-Mart stores that insisted on doing things the "Wal-Mart way" and divided many local suppliers and employees.

A Wal-Mart in Britain had culture and price strategies were similar to Brazil yet there differences were in size and product mix of the store.




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