Web Delotte Research Consulting example essay topic

Globalization: Wal-Mart A near by neighborhood store where you run into acquaintances that you have not seen for a while, sits about less than 5 miles away from home. The other store is about 12 more miles away. Wal-Mart has built its family-owned company since 1962 by the late Sam Walton. The dream of Sam Walton was to provide high-quality products at affordable prices. Today, the Walton's Family grew a great empire of store around the United States. What does Wal-Mart have to do with globalization?

Wal-Mart has made their presents with the Internet utilizing e-commerce. This not only increased sales, but has given Wal-Mart the global business opportunity outside of the United States. The Walton's also own Sam's Club, which is a super store with membership fees for business members. In 1991, Wal-Mart created an International Division that would operate in seven different countries, such as: Argentina, Brazil, Canada, China, Germany, Mexico and Puerto Rico.

Wal-Mart adjusted well to globalization. They realized that their business ethics can be transferable to other countries in ways of cultural diversity, retail strategies and community involvement. Wal-Mart continues to seek out more venues in the upcoming years. They had increased revenue 10-fold after their global ventures and foresee future growth in the years to come. In the news today, Japan will be expecting Wal-Mart to be their next neighborhood shopping store. Wal-Mart has made efforts to make plans to build in Japan and an article called, "Retail Tsunami", written by Delotte Research Consulting, describes their resent ventures in globalization.

They are researching that accounts of opening up a market in Japan might have complications. There are considerations that are being researched, such as: Japanese retailers, competitive rates, difficult economy and merchandising. Wal-Mart usually sells your typical apparel for all ages and sizes, food, electronics, automotive, gardening and household essentials. For the United States, this is simple to gain retailers and compositeness. In Japan, this would remain a challenge because of the culture.

Wal-Mart would need to utilize their International Operations Team to research their prospective retail tsunami. They need to take onto the economy the cultural changes that need to be considered in location of the store and products to be sold. This would take logistics and creation of a distribution system which will provide a low cost and efficiency to build in Japan. This will be a challenge but Wal-Mart has proved to overcome these challenges, especially with other International countries. Wal-Mart has also utilized technology even further with retailer utilizing Retail Link. Retail Link is the system where retailer can get information across international borders for: o Downloading purchase orders o Checking the status of invoices o Inventory control and tracking o Sales reports, forecasts, and updates on a daily basis up to two years (Delotte, 2).

This is processed through the Electronic Data Interchange (EDI) system. EDI has been the key to their growth and success in productivity and financial excellence. Another global business barrier would ultimately be the real estate. Just like the United States, businesses grow on location. They have to research the area that they will build on and make sure it is affordable and will benefit the community and its consumers. Wal-Mart is a primary business example for globalization integration.

They have benefited countries such as Puerto Rico and Mexico where employment might be scarce. In Mexico, they had studied the market and culture, but it took 7 years before they became profitable. In conclusion, Wal-Mart had proved that globalization is possible and that adaptability and compromise between countries can build the economy in both countries. Wal-Mart continues to grow internationally and utilizes technology to communicate internationally. Pretty soon, we will be able to by online products that are only sold internationally through their online presence. We do see possibilities?

I believe so. web web Delotte Research Consulting. Retail Tsunami? 2003. Cited: 16 June 2003 web.