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problem1) Identify and discuss at least nine (9) trade barriers that may influence international markets. In your explanation ensure you provide a relevant ex to show your understanding.

problem2) Provide your understanding of the six (6) economic risks that businesses may be confronted with in the international marketing environment.

In your explanation provide relevant exs of each economic risk to support your understanding.

problem3)

3.1 Identify and discuss legal resources to resolve an international dispute.

3.2 Discuss and analyse protection of intellectual property rights. Refer to legal terms and discuss the different conventions and agreements in different countries.

problem4) “The 21st century has been called the Century of the Environment.”

4.1 Discuss the effect of green activities and the Kyoto Protocol on the business of Walmart in South Africa. In your discussion list some of the advantages and disadvantages green activists have on business performance

4.2 Based on your arguments, analyse the case of Walmart and consult the company on which social responsibility strategy it should follow.

WALMART

Walmart Stores Inc. is considered the largest retailer in the world and is also the second largest retail company in the world. Walmart is a public U.S. company founded by Sam Walton in 1962 and was registered as a limited liability company on October 31, 1969. Walmart reported net income of $ 11.2 billion, with sales revenue of $ 316 billion. For the fiscal year ending January 31, 2011, Walmart reported a net income of $15.4 billion on $422 billion of revenue with a 24.7% gross profit margin). The corporation's international operations accounted for $109.2 billion, or 26.1%, of total sales. Further, Walmart employs 2.2 million associates worldwide. The company serves customers using retail shops offering good value for money. Their current slogan is save money–live better. Previous slogan which was in use for more than 19 years was always low prices, always.

Recently Walmart decided to entre Sub-Saharan Africa. It means that existing players in the South African market will have to face new challenges from the world’s biggest retail company. However, since Walmart has a lot of experience in the retail business they, South African retailers can learn a lot Walmart strategies on how to drive creative and use different retail strategies. In South African Walmart model will be “everyday low prices” which will be achieved through “everyday low costs”. Low costs will be based on global sourcing and international trade. Based on this strategy, Walmart will be able to offer South African consumers the lowest price using different promotions to guarantee low prices always.

Global sourcing enable Walmart getting quality products in reduces prices. The global network deals with a wide verity of products, from food, through electronics to high and low end consumable goods. The very same products that are sold in America are offered to the South African market as well. Despite the low prices that are offered to consumers, Walmart managed to keep quality standards at a satisfactory level, maintain good service and mainly good value for money.

SOURCES:

1) United States Securities and Exchange Commission.2012.[Online] Available at:
http://www.microsoft.com/investor/reports/ar11/docs/MSFT_FY11Q4_10K.docx

[Accessed: 3March 2013]

2) Walmart. 2012.[Online]Available at:
http://corporate.walmart.com/our-story/locations/south-africa

[Accessed: 3March 2013]

Marketing Management, Management Studies

  • Category:- Marketing Management
  • Reference No.:- M93112

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