Wal-Mart International Essay -- Business Management, Case Study, solut

Wal-Mart globalIntroductionIn 1993, Wal-Mart had become Americas leading retailer, with last(a) sales of $67 billion from its Wal-Mart stores, surface-to-air missiles Clubs, and Wal-Mart Supercenters. The bon ton had bragging(a) at a rate of 25% per year since 1990, and it was clear that to dwell at its current rate of return, Wal-Mart would have to seriously consider continuing its recent outside(a) expansion. During 1992, Wal-Mart had entered into a joint venture with CIFRA, Mexicos largest retailer, which presently operated 24 stores in Mexico and had plans to open 70 new stores by 1995. The Company had also recently completed the acquisition of 122 Woolco department stores in Canada. apiece of these expansions had presented unique challenges for Wal-Mart to adapt its operations to suit local market demands, just now Wal-Mart had successfully risen to the challenge. Given the Companys successful cut across record, it seemed logical to continue to expand internationall y. If Wal-Mart didnt expand internationally, David Glass, Wal-Marts CEO, mat that companies would start to come to the US and increase competitive pressures interior(prenominal)ally. International expansion would drive growth and help in maintaining Wal-Marts dominant domestic position. Namely, entrance into foreign markets would force competitors to focus on their primary markets. If Wal-Mart be after to maintain its dominant position in the U.S., international expansion would not only drive growth, but it would also keep potential competitors laborious to operate stores in their home markets rather than expanding into the U.S. Wal-Mart Company BackgroundSam Walton began his retail career working at J.C. Penney while in college and ulterior leased a Ben Franklin franchised dime store in Newport, Arkansas (1945). In 1950, he relocated to Bentonville and opened a Walton Five and Dime. By 1962, Walton own 15 Ben Franklin stores under the Walton Five and Dime name. Walton felt tha t big supermarkets would at last destroy the smaller, traditional five and dimes and in 1962, Walton opened his own supermarket ignore store. Eight years later, the Company was trading on Wall thoroughfare and had 30 stores. Wal-Marts growth accelerated greatly during the 1970s. The Company precipitously marketed itself to middle class shoppers by advertising Everyday Low Prices. Walton actuate his employees by impleme... ...ring Argentina with a local partner, analysts expected the new stores to be able to capture additional market share and initially chance on lower operating and administrative expenses than if Wal-Mart entered on its own.Martin wondered which of these alternatives would be most skilful to Wal-Mart.SummaryThe annual shareholders meeting was coming up, and Bob Martin unavoidable to receive a recommendation to Glass on how to proceed. Although Glass agreed with Martin that international expansion needed to continue, he wasnt convinced Argentina was the to p hat choice. Glass wanted to be sure that they had considered all of the risks involved earlier making such a large investment in a new country. If Martin did decide that Wal-Mart should invest in Argentina, Martin wondered which alternative to recommend. He needed to finish his analysis and prepare a report for Glass that compared the alternatives. some(prenominal) Martins recommendations, he knew they needed to be presented with a compelling argument. This was a critical year for Wal-Mart, and Glass would want to be able to butt to Wal-Marts investors that the Company could overcome its slow down in growth during the last year.