International Business Of Walmart Stores Inc.

Running head: INTERNATIONAL BUSINESS
INTERNATONAL BUSINESS
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1INTERNATIONAL BUSINESS
Part one: (3500 words)
Question No. 1:
Walmart stores Inc. is a multinational retailing corporation, which manages, operates
and distributes goods and services through a combination of a supermarket as well as a
departmental store and mainly deals with grocery stores1. It is headquartered in Bentonville,
Arkansas in the United States. The organisation was first introduced in the year 1962 by Sam
Walton and also has been the owner of Sam’s Club retail warehouse2. The multinational
corporation has been distributed in twenty-seven countries by collaborating eleven thousand
five hundred and three shops all across the world in fifty-five different names3.
The company has been operating by the name of Walmart, especially in Canada and
the United States and other names like Walmart de México y Centroamérica situated in
Mexico along with Central America4. In the United Kingdom, it has been known as Asda,
and in Japan, it is known as the Seiyu Group. The company has been mainly dealing with the
retailing industry and earned a total revenue of US$514.405 billion in the previous year. The
daily operating income is about US$21.957 billion in the year 2019 and, it has been working
with 2.2 million employees all across the globe according to the report of the year 2018.
The investments that have been made by the company has gained a mixed set of
reactions and has continued to serve the customers effectively for so many years. There might
1 Walmart.com. 2020. "Walmart.Com | Save Money. Live Better.". Walmart.Com. https://www.walmart.com/.
2 Ellickson, Paul B. "The evolution of the supermarket industry: from A & P to Walmart." In Handbook on the
Economics of Retailing and Distribution. Edward Elgar Publishing, 2016.
3 Ellickson, Paul B. "The evolution of the supermarket industry: from A & P to Walmart." In Handbook on the
Economics of Retailing and Distribution. Edward Elgar Publishing, 2016.
4 Ghazzawi, Issam A., Marie Palladini, and Teresa Martinelli-Lee. "The Wal-Mart stores, Inc.: An American
dream that touched the world." Journal of the International Academy for Case Studies 20, no. 1 (2014): 9.

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have been some complaints regarding the organisation, but they have never failed in
attracting the customers especially in the United States.
According to the factor mobility theory, it is referred to as the ability to transfer the
factors of production including labour, capital or land from one process of output to another
production5. On the other hand, International trade pattern is defined as the exchange of
goods and services transferred from one country to another through the process of imports
and exports6. Therefore, the company, Walmart, has been monitoring trade legislation as well
as political ideologies that will disturb the supply chain of goods and services7. The
company’s importing business of products and services are more than its exporting business
in the retailing industry and will support free trading facility8. Therefore, the border
adjustment tax looks quite imminent and if it gets approved, then there will a significant
increase in the costs of importing goods and services.
The strategies such as managing skills in the supply chain, along with, cost leadership
which has provided the organisation with various sustainable comparative advantages such
as, low-cost products, diminishing delivering costs, developing and improving the varieties
along with selection9. Therefore, the heavily competitive pricing for the customers may
disturb the marketing structure in that company and may provide a chance to the other
companies10. The company is famous for delivering low prices and reducing costs that have
5 Redding, Stephen J. "Goods trade, factor mobility and welfare." Journal of International Economics 101
(2016): 148-167.
6 Siegfried, Patrick, ed. International Management in Practice: VW, Google, H&M, Wal-Mart, IKEA, Inditex,
Nike, Red Bull. Vol. 2. Akademische Verlagsgemeinschaft München, 2015.
7 Chaney, Thomas. "The network structure of international trade." American Economic Review 104, no. 11
(2014): 3600-3634.
8 Ghosh, Debabrata, and Janat Shah. "Supply chain analysis under green sensitive consumer demand and cost
sharing contract." International Journal of Production Economics 164 (2015): 319-329.
9 Peters, Malte L., and Stephan Zelewski. "Competitive strategies their relevance for sustainable development in
the food industry." J. Mgmt. & Sustainability 3 (2013): 148.
10 Peters, Malte L., and Stephan Zelewski. "Competitive strategies their relevance for sustainable development
in the food industry." J. Mgmt. & Sustainability 3 (2013): 148.

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led them to the road of success in the retailing business11. The company has embraced
advanced technology as well as adapted innovation in their supply chain12. They always keep
a record of the inventory along with seamlessly restock shelves and transferring the savings
to the customers13.
Question No. 2:
The agreement that has been proposed in between the United
States, the states of Mexico along with Canada (USMCA) have been
attached in a free trade agreement and it has obtained another mark of
significant supporter from the retailing industry14. It has been marked as a
whole new agreement and introduced as “NAFTA 2.015.”
It will help in developing environmental as well as working
regulations and incentivises for the domestic production of trucks and
cars. The agreement has also provided upgraded protection towards
intellectual property in which the United States will acquire more success
to the dairy market in Canada and has imposed a quota for the
automotive production of Canada and Mexico16.
11 ROY, SUVENDU NARAYAN. "COST LEADERSHIP STRATEGY ENHANCING COMPETITIVENESS:
A CRITICAL STUDY ON MNC RETAILS." Journal of Cross-functional Business Research (JCBR): 10.
12 Ghosh, Debabrata, and Janat Shah. "Supply chain analysis under green sensitive consumer demand and cost
sharing contract." International Journal of Production Economics 164 (2015): 319-329.
13 Peters, Malte L., and Stephan Zelewski. "Competitive strategies their relevance for sustainable development
in the food industry." J. Mgmt. & Sustainability 3 (2013): 148.
14 Walmart.com. 2020. "Walmart.Com | Save Money. Live Better.". Walmart.Com. https://www.walmart.com/.
15 Heineman, B. W. "Who's Responsible for the Walmart Mexico Scandal." Harvard Business Review 15
(2014).
16 Heineman, B. W. "Who's Responsible for the Walmart Mexico Scandal." Harvard Business Review 15
(2014).

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Walmart is famous for the giant discount and has publicly asked
Congress in order to approve the agreement of USMCA17. This agreement
has been designed to update the North American Free Trade Agreement
(NAFTA) that was ratified in the year 1994 and allowed the exchange of
goods as well as services among the countries like the United States,
Mexico along with Canada. Walmart explained a statement on a corporate
website, in which they have discussed the position on USMCA and has
tried to impose a positive impact on the jobs, consumers and e-
commerce. In short, Walmart has claimed that North America is the core
of their operations and it has been a global organisation having more than
two thousand eight hundred Walmart retailing units in the countries
including Canada and Mexico. Thus, the company has been supporting for
about four lakh thirty thousand jobs, five thousand the U.S. stores and
clubs, along with 1.5 million U.S. jobs. Therefore, the company was trying
to making them understand that it will be easier for the organisation along
with its respective customers will receive a direct free flow of products
along with services as per the agreement, the USMCA is concerned. Thus,
an entirely new set of commitments on digital media and trade along with
trade facilitation will be quite helpful to assure the advantageous side of
an integrated e-commerce market in North America.
17 Tan, Zekuang. "Application of Discounted Cash Flow Model Valuation–Wal-Mart." Available at SSRN
3100702 (2017).

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Question No. 3:
Internal audit is required to evaluate the organisation’s internal
controls, which will include corporate governance as well as processes of
accounting. In this way, it will help to ensure compliance along with the
laws and regulations, which help to cultivate adequate as well as financial
report and collection of data in the desired time18.
The internal audit of Walmart is monitored through the audit
committee, and the essential functions are: overseeing the processes of
audit analysis by assuring all the laws and regulations that are related and
followed according to the operation of internal audit19.
In this way, the analysis will assure the auditors and will adhere
them to guide about the audit control regulations as given by the GAAP. It
will benefit them to determine whether the processes of the audit is
accomplished appropriately to develop the desired goals and objectives20.
The internal audit will establish the levels of communication along with
interaction in between internal as well as external auditors.
There are some essential strengths that have been highlighted in
the internal audit such as simple formula of allowing goods and services
at a lower price range and this strategy itself makes the organization an
effective one for the customers to walk in and have their desirable
18 Tang, Fengchun, Carolyn Strand Norman, and Valaria P. Vendrzyk. "Exploring perceptions of data analytics
in the internal audit function." Behaviour & Information Technology 36, no. 11 (2017): 1125-1136.
19 Seago, Jane. "A unified approach to compliance: businesses benefit from a proactive partnership between
internal audit and the compliance function." Internal Auditor 73, no. 5 (2016): 49-54.
20 Seago, Jane. "A unified approach to compliance: businesses benefit from a proactive partnership between
internal audit and the compliance function." Internal Auditor 73, no. 5 (2016): 49-54.

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products. Therefore, the company is setting aside their competitors such
as target, far behind this strategy and they have assured a steady road to
success and have gained a swift flow of customers that have been
attracted to their stores for so many years. Walmart has been given points
out of five, and they have gained four out of five because of their
remarkable services. They have highly scored in the field of discount
pricing along with a diverse range of goods and services21.
Question No. 4:
Every company is linked with a different set of vision, and even, Walmart has set its
own vision in order to lead the organisation. The vision statement of Walmart is “Be the
destination for customers to save money, no matter how they want to shop.” In this vision
statement, two things are clearly visible and that is saving money and providing the
customers with a new destination so that they do not leave the company and be guided with
some other company22. The statement claims the primary reasons due to which they desire to
showcase the position of the organisation and be successful in the retailing industry and be
the leader for the rest of the years. The vision statement of the organisation has been
recognized as to what the organisation want to obtain in the upcoming year’s and earn profit
in the long run.
The mission statement of the Walmart company mission is stated as “to save people
money so they can live better.” Therefore, it can be easily recognised that how the desired
organisation has been finding out ways to apply the essential strategies and it will discover an
outstanding difference in anything it touches23. The vital elements are accurately related to
21 Tan, Zekuang. "Application of Discounted Cash Flow Model Valuation–Wal-Mart." Available at SSRN
3100702 (2017).
22 Ferguson, Edward. "Walmart's Vision, Mission, Generic & Intensive Strategies." (2015).
23 Ferguson, Edward. "Walmart's Vision, Mission, Generic & Intensive Strategies." (2015).

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the mission statement, including improvement an individual’s life, financial liberation, along
with expanding one’s expectations24.
Now coming to the mission statement, it conveys a set of critical strategies that the
organisation wants to find out in order to exploit as well as to obtain the desired vision. The
mission statement of the company Walmart is associated with the practical ways so that it can
provide adequate satisfaction to its customers. The existence of the desired principles is
interlinked with the core and important values of the organisation that generates a significant
made a difference in the functions and operations of Walmart. Altogether, it produces the
cogs, which benefit the company in coordinating the vision along with the mission of the
organisation. Therefore, it has been confirmed that it is going form the desired shopping place
that it is going to be the desired location as well as after applying significant strategies.
In the first aspect, the company Walmart has highlighted its vital values along with its
utmost essential objective are utilised to satisfy the necessities of the customers so that they
do not leave the company25. Walmart has always kept clear about the feelings of the
customers, along with making their experiences the best in every possible way. Therefore, the
company has always set attractive pricing, which is still reflected in its saving centre of the
organisation in order to associate with the sheer determination so that they can meet the
aspect.
The second aspect is defined as the direct outcome of the previous one, and that is
associated with gaining the customers’needs through shopping by expanding their savings.
The organisation has recognised this mission as an effective strategy for allowing more
chances to the customers so that they can enjoy their shopping experiences effectively. The
24 BARBERÁ MARCILLA, L. A. U. R. A. "Business analysis for Wal-Mart, a grocery retail chain, and
improvement proposals." PhD diss., 2014.
25 Ferguson, Edward. "Walmart's Vision, Mission, Generic & Intensive Strategies." (2015).

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organisation has also stated that they have been open in providing various options to all the
customers. The diverse range of goods and services have been accompanied has already
proved that Walmart is an incredible player while ruling in the retailing industry.
Question No. 5:
There have been quite a few criticisms regarding the company, Walmart and it has
provided the desired answer to all the objections and has transformed the face of the retailing
industry in the United States and several other countries in the whole world. The company
has been known for its innovative and effective strategy “the cost leadership strategy.” The
company has managed to expand its business all across the globe and has been quite
successful in extending in the international borderline26. Rapid growth has been recognised in
this set of business and has managed to upgrade the brand value in the field of the retailing
industry. The brand has secured enough customer’s attraction towards their goods and
services and has been offering several deals, which merely unmatchable compared to other
companies. It has been more than eleven thousand and five hundred units are operating all
across twenty-eight countries. In so many countries, eleven countries have been coordinated
with operational e-commerce websites.
The retail brand has employed over 2.3 million globally and successfully seen
immense financial profits of the company leaving behind Sam Walton’s values along with
leadership skills have turned out to be profitable in the value chain management27. The
analysis of the value chain of the company Walmart has showcased that the brand has
operated several activities and managed them effectively by involving extraordinary values.
A value chain also consists of all those activities and are also associated with the production
26 ROY, SUVENDU NARAYAN. "COST LEADERSHIP STRATEGY ENHANCING COMPETITIVENESS:
A CRITICAL STUDY ON MNC RETAILS." Journal of Cross-functional Business Research (JCBR): 10.
27 Fernandez-Stark, Karina, and Gary Gereffi. "Global value chain analysis: a primer." In Handbook on Global
Value Chains. Edward Elgar Publishing, 2019.

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as well as sales department of the respective brand from a certain conception28. The
conception also includes raw materials for the final sales along with its respective services29.
Thus, it has been identified as the analytical tool, which has been utilized for optimizing the
value chain that may seem efficient and benefit in generating such sources for the competitive
advantage in the field of business30.
The company is more focused on primary activities, and they are as follows:
1. Inbound logistics31.
2. Operational functions.
3. Outbound logistics32.
4. Sales and Marketing.
Supporting activities such as:
1. Technological advancements.
2. Human resource management33.
3. Procurement.
4. Company’s infrastructure.
28 Fernandez-Stark, Karina, and Gary Gereffi. "Global value chain analysis: a primer." In Handbook on Global
Value Chains. Edward Elgar Publishing, 2019.
29 Gereffi, Gary. "A global value chain perspective on industrial policy and development in emerging markets."
Duke J. Comp. & Int'l L. 24 (2013): 433.
30 Chekwa, Emmanuel, Johanna Martin, and Kathy Wells. "Riding on the waves of sustained competitive
advantage: Consumers' perspectives on Walmart Corporation." International Journal of the Academic Business
World 8, no. 2 (2014): 13-25.
31 LeCavalier, Jesse. The rule of logistics: Walmart and the architecture of fulfillment. U of Minnesota Press,
2016.
32 LeCavalier, Jesse. The rule of logistics: Walmart and the architecture of fulfillment. U of Minnesota Press,
2016.
33 Xie, Yuhua, and Fang Lee Cooke. "Quality and cost? The evolution of Walmart's business strategy and
human resource policies and practices in China and their impact (1996–2017)." Human Resource Management
58, no. 5 (2019): 521-541.

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Question No. 6:
The porter’s generic strategies model has been defined as the combination of three
primary strategic options that are available to all the organisations for obtaining a competitive
advantage34. The three primary strategic alternatives are cost leadership, differentiation, along
with focus35. All of the basic strategic options have been achieved by diminishing the costs to
a certain level that will be lower than the company’s competitors36.
Walmart has been effectively attached to the generic strategic is associated with cost
leadership. The strategy of cost leadership is referred to as the generic competitive strategy
that will be focused on acquiring low costs. Walmart Inc. has been applying a generic set of
policy, and that is cost leadership. Therefore, a theory can be utilised effectively in order to
obtain a definite goal, and that is Michael Porter’s Model. It is one of the essential ways to
define the cost leadership that constitutes a set of generic competitive strategy that will only
focus on obtaining low-costs. Therefore, sustaining as the low-cost producer of the retailing
services along with business outputs, will provide the company to compete, which will be
associated with low-selling prices.
Walmart has always utilised this strategy to construct sustainable competitive
advantage, and mainly it is focused on keeping the prices of all the goods and services quite
less than the other competitors37. It is primarily known for its lower prices daily, and Walmart
34 Chekwa, Emmanuel, Johanna Martin, and Kathy Wells. "Riding on the waves of sustained competitive
advantage: Consumers' perspectives on Walmart Corporation." International Journal of the Academic Business
World 8, no. 2 (2014): 13-25.
35 Folkers, Eric, Alfonso Francisco, and Joel Frey. Walmart supercenters a suitable alternative to shopping at
the commissary for eligible military patrons. NAVAL POSTGRADUATE SCHOOL MONTEREY CA
GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY, 2014.
36 ROY, SUVENDU NARAYAN. "COST LEADERSHIP STRATEGY ENHANCING COMPETITIVENESS:
A CRITICAL STUDY ON MNC RETAILS." Journal of Cross-functional Business Research (JCBR): 10.
37 Chekwa, Emmanuel, Johanna Martin, and Kathy Wells. "Riding on the waves of sustained competitive
advantage: Consumers' perspectives on Walmart Corporation." International Journal of the Academic Business
World 8, no. 2 (2014): 13-25.

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has successfully kept all its prices quite more economical than the other rivals along with
more economical economics in the field of the retailing industry38. It has produced a robust
long-term relationship that too with the vendors from which they purchase the bulk of raw
materials. Therefore, long-term relationships, along with the suppliers that are beneficial for
the other parties as well.
Other aspects have been maintained throughout such processes, and they are now
operational as well as production costs39. The company has managed to provide an excellent
set of supply chain management along with logistics management, have benefitted the
organisation by reducing the operational costs40. In the previous years, Walmart used to pay a
quite lower wage to their employees, and after the protests, the brand has minimised the
payments for all the employees41.
Question No. 7:
The selection process is defined as the method of shortlisting of the appropriate
candidates, who will possess the desired qualifications along with practical skills are eligible
for the vacancies in the organisation. The process of selection always varies from one
organisation to another organisation and even from one industry to another industry and in
separate departments in the same organisation42.
For the selection in Walmart situated in Canada, the primary criteria are having
education as well as training regarding the background, the candidates have applied for in
38 Peters, Malte L., and Stephan Zelewski. "Competitive strategies their relevance for sustainable development
in the food industry." J. Mgmt. & Sustainability 3 (2013): 148.
39 Natto, Hassan. "Wal-Mart supply chain management.“." International Journal of Scientific & Engineering
Research 5, no. 1 (2014): 1023-1026.
40 LeCavalier, Jesse. The rule of logistics: Walmart and the architecture of fulfillment. U of Minnesota Press,
2016.
41 Ghosh, Debabrata, and Janat Shah. "Supply chain analysis under green sensitive consumer demand and cost
sharing contract." International Journal of Production Economics 164 (2015): 319-329.
42 Thomas, Steven Edwin. "Automated Statistical Analysis Job Chunking." U.S. Patent Application 15/381,568,
filed June 22, 2017.

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Walmart. The organisation will definitely check whether the individual does have any records
in the criminal background43. Thus, for the positions in the sales department on an hourly
basis, Walmart utilizes knowledge retention, for example, product details so that they will
require interpersonal skills.
The company has a different set of criteria, and they can specifically be linked with
the industry and optimizing employee retention. Human resource management has been
recruiting the necessities by utilising various recruitment sources along with different
strategies as per the diverse range of positions are concerned44.
The company also takes a written test in order to appoint new employees and they
always conduct a process of recruitment every single year so that they can select new
candidates. There are three rounds that the company selects the candidates through those
three rounds and that is:
a. Written Test.
b. Interview session.
c. HR interview session.
There is a criteria based on the individual’s academic score and it is a vital factor in
order to pass the eligibility criteria and that is, the individuals need to score sixty per cent in
class X, XII along with their graduation. There should be no backlogs during the time of
applying at Walmart. In the written test, the pattern will be provided by introducing about
some relevant topics such as aptitude along with the coding. There will be ninety minutes for
interested individuals to get selected for job purposes. The section will be divided under two
43 Thomas, Steven Edwin. "Automated Statistical Analysis Job Chunking." U.S. Patent Application 15/381,568,
filed June 22, 2017.
44 Xie, Yuhua, and Fang Lee Cooke. "Quality and cost? The evolution of Walmart's business strategy and
human resource policies and practices in China and their impact (1996–2017)." Human Resource Management
58, no. 5 (2019): 521-541.

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sections such as aptitude and coding and there will be questions from mathematics, logical
reasoning, and coding will have three questions and they are allowed to choose their
preferred language in order to write the programs.
Question No. 8:
There can be many reasons behind such a choice of entry mode and the process of the
selections of the market can differ starting from occupying new stores, acquisitions, alliances
along with joint ventures. Walmart has established its existence in the local market after
understanding the individual features of each and every market. Finally, after adapting the
different ways of its business model in order to suit the market45.
Walmart has established a strategic partnership, which has been collaborated with the
company Microsoft in order to accelerate the digital market along with innovation and
technology in the retailing industry. In the year 2018, Walmart Inc. has announced its
emerging strategic partnership with the company Microsoft Corporation so that they can
empower the technological advancements and could empower its associates all across the
world. In this way, the experiences of shopping can be quite quick and easier for all
customers. In this partnership, Walmart has successfully chosen Microsoft Corporation
because they wanted to fulfil its vision and mission by incorporating strategic cloud provider
tapping in the whole range of Microsoft’s cloud outcomes.
Walmart has always shared its commitment towards technology, which was the
central part of its implementation process and has been producing extraordinary efficient
ways for all the consumers so that they can shop as much as they can and to empower its
associates as conveyed by Doug McMillon, the CEO of Walmart46. Walmart has given all the
45 Chatterjee, Sayan. "Two efficiency-driven networks on a collision course: ALDI’s innovative grocery
business model vs Walmart." Strategy & Leadership (2017).
46 Hwang, Minha, and Sungho Park. "The impact of walmart supercenter conversion on consumer shopping
behavior." Management Science 62, no. 3 (2016): 817-828.

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customers a chance to shop freely and by utilising technology and the CEO has claimed that
they are very excited to introduce such innovations for their own people as well as associates.
Some primary economic factors are responsible for influencing the conditions of
Walmart. The economic factors are pertaining the economy of every country that Walmart
has been facing such as the various changes in the rate of inflation, the rate of foreign
exchange, the interest rate, the gross domestic product, along with, the present stage of the
economic cycle. The economic factors of Walmart can be analysed such as:
a. The rate of the gross domestic product in most of the countries will definitely
affect how rapidly Walmart is expecting to expand its growth in the upcoming
years.
b. The rates of interest in every country will influence how many individuals will
think about borrowing and investing. The rates are quite high and it will serve
more investments, which will show considerable growth in Walmart.
Question No. 9:
The marketing mix of Walmart is the product based on strategic choices that are
consistent with the level of business, along with corporate strategies. They have applied 4P,
which can be revolved around the nature of the retailing industry. The company is linked with
its strategic objectives and the situation of the industry. This kind of situation has presented
several opportunities for approaching different types of strategic decisions regarding the
market structure. The marketing mix helps to get associated with the local, regional along
with the conditions of the international retailing industry47. The generic strategy of cost
leadership of Walmart has been quite successful in the field of attracting customers and
joining the competitive strategies, along with the intensive growth strategies of the company.
47Siegfried, Patrick, ed. International Management in Practice: VW, Google, H&M, Wal-Mart, IKEA, Inditex,
Nike, Red Bull. Vol. 2. Akademische Verlagsgemeinschaft München, 2015.

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In this way, it has influenced the main introduction of the marketing mix and the 4Ps are
connected with the organization’s strategic choices. It has led the organization to become the
largest retailers in the whole world. This marketing mix has been one of the essential parts of
the organization so that they can flourish its company adequately and appropriately.
The 4Ps are product, price, place and promotion, and these have constituted as the
significant elements in the marketing mix. The marketing mix will define the planned mix of
those elements that can be controllable according to the marketing plan. Walmart is the
powerhouse in the field of business, and one of the significant aspects is the marketing mix.
In the field of larger businesses, it acts as a strength for the organisation. It may take huge
investments or capital in order to succeed beyond the competitors. So the huge success of
Walmart has been occupied by this strategy and it has been providing effective results all
across the world.
Therefore, some essential aspects should be kept in mind and that is:
a. Effective pricing strategy of goods and services is the appropriate way to generate
demand among the customers.
b. The supply chain has allowed the retailers to position its goods and services to set
the price accordingly in order to target the demographic structure.
c. In this high-pace moving world, digital existence is as essential as physical
existence.
d. The organisations have utilised promotions so that the demand gets increased and
the trust along with confidence will increase among the buyers, and mainly, about
return policies along with warranties.

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Question No. 10:
Walmart has adopted various strategies, in which it is based on low-cost positioning
as well as cost leadership. The scope of the market is focused on global operations among the
diverse range of customer’s necessities. In the United States, low rate of prices has been kept
that the consumers can purchase goods and services at an affordable pricing strategy48. In the
smaller towns, not all the consumers can buy expensive products so they have kept the prices
low and they feel to keep the prices low is necessary49.
Some essential aspects have been kept in mind during setting up the strategies and
therefore, the company has been focusing on those strategies:
a) The scope of the market.
b) The sources of the competitive advantage.
c) Dominating the retailing space in the whole world.
In the recent condition, the business ambience has been developing every single time
and it has been quite a successful venture for Walmart’s business. In this way, the company
has stood out and have performed well. It has given tough competition to its rival and has
enhanced its processes about its marketing strategies in all the countries. The company has
taken the responsibility to approach the market value and marketing research in order to make
its best choice in the field of developing businesses.
As the policy is concerned, the department of marketing is represented as the head
office that helps in coordinating the roles in advising the organization for its betterment.
Therefore, the company has applied every possible way to direct its production in the right
48 Pope, Devin G., and Jaren C. Pope. "When Walmart comes to town: Always low prices? Always?." Journal
of Urban Economics 87 (2015): 1-13.
49 Hwang, Minha, and Sungho Park. "The impact of walmart supercenter conversion on consumer shopping
behavior." Management Science 62, no. 3 (2016): 817-828.

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way and has helped in improving the quality of goods and services. The primary plan of the
company is to satisfy its consumers and the company has been successful in doing that along
with developing its operational functions.

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Part Two:
Question No. 1:
Firstly the case study is based on the Morgan Stanley has introduced a joint venture in
one of the developed country, China. It is the first international investment in the banking
sector. It has been stated that the joint venture will provide the country to create the
enhancing of financial markets. The only foreign investment bank has given a massive stake
based on China’s investment banking aspects. This new joint venture named as China
International Capital Corporation has given a chance for the approach to developing
appropriately with the capitalization of hundred million dollars focusing in Beijing.
It will help in developing a new prolonged system of communication as well as
negotiations so that the joint venture can be associated with several international businesses.
Even it can help in improving the issues that are related to the cross-culture business and will
help in developing and coping up with the problems and rectifying it.
The main motive that new venture will establish is that it will serve a significant
influence on the enhancement as well as globalization in the market of China. It will develop
as a model by improving the investment banking industry as well as it will train the managers
of China.
Question No. 2:
The joint venture has been adapted in order to establish some significant aspects such
as it will help in improving the system of communication as well as to keep right and healthy
communication for international businesses. The venture will benefit them in solving
international as well as a cross-cultural business venture so that they can be ready for serving
the market.

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Communication has been the major medium through all the businesses have been
improving or diminishing due to some undesired consequences50. The principle of clarity
along with the principle of feedback, are the two most essential aspects in any business
venture and will help the clients and the owners to deal with the problems adequately51.
Therefore, all the organisation should maintain clarity with their clients regarding any deals
in the field of business52.
The principle of feedback will also provide clarity as the individuals along with the
desired companies, will quickly get to understand the strategies and may work in those
areas53.
The essential aspect that comes after the area, as mentioned above is establishing
partnership through the desired networks. As shown in the case study, Lim was set to access
all the higher authorities along with bankers in order to thank them for providing such great
experience with the World Bank. The Chinese government allowed passing the joint venture
in their country, only if they will gather several players from different countries. Now coming
to the government policies of Singapore Investment Corporation, where Lim along with Cha
was deciding on the desired strategies of introducing the foreign investment bank, and have
been quite successful to earn hundred million dollars in the convertible bond in the year 1993.
50 Oostinga, Miriam SD, Ellen Giebels, and Paul J. Taylor. "‘An error is feedback’: the experience of
communication error management in crisis negotiations." Police Practice and Research 19, no. 1 (2018): 17-30.
51 Weiss, Edmond H. "Principles of Clarity." In The Elements of International English Style, pp. 56-80.
Routledge, 2015.
52 Taghavi, Atefeh, and Carson Woo. "The role clarity framework to improve requirements gathering." ACM
Transactions on Management Information Systems (TMIS) 8, no. 2-3 (2017): 1-16.
53 Tian, Mei, and John Lowe. "The role of feedback in cross-cultural learning: a case study of Chinese taught
postgraduate students in a UK university." Assessment & Evaluation in Higher Education 38, no. 5 (2013): 580-
598.

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Question No. 3:
The toughest challenges that the joint venture had faced was through the field of
management, and they tried to merge all the possible ways to develop and enhance its ways
in the management styles. The compensation for the American along with Chinese employees
were different at various levels and it influenced in its salary system and plan for bonuses.
The business of the bank was looked upon and it continuously slowed down due to many
issues and have been due to some personal connections. In this way, a negative impact fell
upon the strategies and that has resulted in creating issues related to legal considerations.
Among the principles of cross-culture communication, the prime most aspect is the
impact of hierarchy that includes the differences one country faces with another country
including status, age, race, seniority, superiority and so on54.
Another significant principle that can be highlighted in the case study is that direct
and indirect communication, it will rise in significant conflicts such as not been able to
understand the exact message or tone of the desired context or subject. In this way, many
policies and strategies can disrupt the system of communication between both countries.
The everlasting cultural issues that have been struggling between America and China,
had become the severe most barrier in introducing the joint venture. Morgan Stanley gave a
better plan so that he can dissolve the management issues regarding the agreement.
Therefore, a discussion was held that can dissolve the issues as well as the differences that
will help to solve the problems peacefully.
54 Kaur, Avneet. "Maslow’s need hierarchy theory: Applications and criticisms." Global Journal of
Management and Business Studies 3, no. 10 (2013): 1061-1064.

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Question No. 4:
As being the rival nations, it is impossible to deal with cross-cultural issues and
management styles. Therefore, the joint venture should have been planned out along with the
underlying problems such as the impact of time, and conflict avoidance55. The joint venture
has been the cause of many issues and has, unfortunately, have gained enough issues between
bothe the combatant countries China and America. If different cultures have been
collaborating in the development of one joint venture then certain conflicts should be avoided
such as drawing attention to the roots of the primary causes56.
The most effective way to dissolve all the matters and to successfully handle any
venture needs a lot of time and attention towards the desired and undesired situations that
may occur in any field of business. Therefore, communication skills and cross-culture
business will jointly benefit the business if they can utilize it adequately in order to gain
success in the business venture57.
The organisers can also apply six principles of management in order to maintain their
business transactions and therefore, they can use to coordinate as well as controlling their
functional areas58. If the plan needs to successful, then they should organize and plan
practical ways to support their business venture.
55 Yang, Inju. "Perceived conflict avoidance by managers and its consequences on subordinates' attitudes."
Business Ethics: A European Review 24, no. 3 (2015): 282-296.
56 Gordon, Amie M., and Serena Chen. "Do you get where I’m coming from?: Perceived understanding buffers
against the negative impact of conflict on relationship satisfaction." Journal of Personality and Social
Psychology 110, no. 2 (2016): 239.
57 Quirke, Bill. Making the connections: using internal communication to turn strategy into action. Routledge,
2017.
58 Lichtenthaler, Ulrich. "Six principles for shared management: a framework for the integrated economy."
Journal of Business Strategy (2016).

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