We have selected a case study from the University of Hong Kong, "Wal-Mart in China" (2012). This is an updated case on Wal-Mart, the world's largest retailer. The company entered the Chinese market in 1996 and remains actively committed to rolling out and refining its Every Day Low Price ("EDLP"), while making smaller, yet important strides to be locally relevant to its Chinese consumers. As recently as April 2012, then-CEO Scott Price shared his enthusiasm about Wal-Mart's growth and expansion in China. However, only a few short months later, by mid-summer 2012, the company announced it would cool the rate of its expansions in China. Some of the issues sited were the hard economic climate in the United States and abroad, difficulty securing real estate on mainland China to allow for better laid-out stores, and a desire to hone the EDLP strategy. This case uncovers issues that, to some foreign retailers, might be unsolvable, forcing an exit or, as was recently announced, a slow-down. At the same time, the case data suggests that Wal-Mart will do whatever it must to prevail in China, one of the largest markets in the world.
Your report should contain the following:
- Analysis of Wal-Mart as an MNE and its international position using concepts learned in class (for example, CSA/FSA, Hofstede's model etc.) Discuss factors considered in developing international business in China including the political environment, culture, economics etc. Discuss production and marketing strategies in China.
- Discussion on issues/challenges the company currently faces in China and elsewhere and how they relate to the learning above. What went right and what went wrong and why.
- Conclusions and recommendations for medium and long term development and implementation.
Objectives
Analyse a specific company and its history in International Business. This analysis should deepen their understanding of the choices available to MNEs as they expand internationally and the factors that could lead to success or failure.
Reference style: business-style report format
The report contains important parts:
1. Introduction
2. Objectives
3. Analyses
4. Discussion of issues
5. Recommendations and implementation
6. Conclusions