Walmart Expansion Strategy in KSA

This assignment analyzes Walmart's planned expansion into the Kingdom of Saudi Arabia (KSA), examining key aspects such as ethics, legal compliance, organizational culture, and the company's value chain strategy. It highlights the importance of adapting to KSA's cultural norms while adhering to Walmart's global standards. The analysis also sets SMART objectives for the expansion and considers the environmental factors and profit goals influencing the decision.

Running head: MANAGEMENT
Wal-Mart in Kingdom of Saudi Arabia
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
1.a. Introduction...............................................................................................................................3
b. Services and Products of Walmart...............................................................................................3
c. Mission of Walmart at KSA........................................................................................................3
d. Vision of Walmart at KSA..........................................................................................................4
2. The four important managerial functions, in the Walmart of Kingdom of Saudi Arabia,..........5
3. Stakeholders of Walmart.............................................................................................................6
4. Managerial planning....................................................................................................................8
5. Goals of Walmart.........................................................................................................................9
6. Value chain analysis of Walmart at KSA..................................................................................10
7. Organizational Culture...............................................................................................................12
8. Ethics and Laws of Walmart at KSA.........................................................................................13
9. Conclusion.................................................................................................................................14
References......................................................................................................................................16

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1.a. Introduction
Walmart is a multinational corporation, which operates as departmental stores, grocery
stores or hypermarkets (Walmart.com. 2017) It is situated in America and having its headquarter
at Bentoville. It was found in the year 1969 and was founded by Sam Walton. It has its wings in
the other countries as well. By revenue, Walmart is said to be the world’s largest company and
the supermarket is also having the largest private employer in the world. The business is family
owned as the family of the Walton is controlling the company. It is also regarded as the largest
grocery store in United States. By taking into account the business environment, the firm is as
well looking forward to set up their branch in Kingdom of Saudi Arabia (Walmart.com. 2017;
Laszlo et al.2012).
b. Services and Products of Walmart
With the services of Walmart, one can find smarter solutions for everyday’s life at a very low
price. The service of the Walmart can induce memories to life through the photo services, photo
cards and albums and this even would not hurt the budget (Walmart.com. 2017). The Walmart
through their services also take care of health of customers and their families. The Walmart’s
grocery service can come in use while one can online order the groceries, even the pantry and
food staples would be handpicked by the Walmart associate (Laszlo et al.2012).
c. Mission of Walmart at KSA
The strategic decision of the company is also a direct understanding of the business or the
mission of the company. The mission of the Walmart is “Saving people so that they can live

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better”. This statement at the same time is similar to the slogan of the company “Save money.
Live Better” (Laszlo et al.2012). Through the statement of the business makes the business in
today’s world much better and this statement as well looks forward to make the company better
tomorrow. It is being the largest retail store in the world, it means more than 260 million
customers each and every week (Walmart.com. 2017).
d. Vision of Walmart at KSA
The company owes its success to the founder’s idea, Sam Walton. These ideas are being taken
into consideration as the vision statement of the company (Fassin 2012). It focuses on becoming
the best retailer in the minds and hearts of both employees and consumers. The company has set
its aim to achieve the topmost position in the retail industry (Walmart.com. 2017). Based on the
current situation of the company, the firm has fulfilled to become the best retailer as mentioned
in the vision statement. The vision of Walmart also indicate the hearts and minds of the people,
which matter the most in the sphere of business, that is to say both employees and consumers.
Realistically, the company has influenced the consumer’s minds based on the financial benefits.
e.The strategies of the Walmart company is to expand the initiatives of multi-channel, improve
the returns and grow its market.
Expanding multi channel initiatives
 Executing and developing the international strategy of e-commerce.
 Enhancing the growth of the online channel worldwide
 The market is having the availability of accessible stores in order to meet needs of the
customers (Fassin 2012).

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Growth of market
 Maintaining the excellent services of the customers, which incorporate the needs of the
customers at the affordable prices.
 Implementing the productivity initiatives
Improving returns
 Balancing the commitment to the aggressive growth along with their plan of long term
 The company is enhancing the values of the shareholders (Alvesson 2012).
2. The four important managerial functions, in the Walmart of Kingdom of Saudi Arabia,
are
 Planning: The concept of diversity is needed to be included in the workforce. In United
States, such inclusion of the diversity was included and the firm hopes for “Respect for
the individuals”. The Walmart, according to the diversity and inclusion report helps to
increase the independent living and the employment opportunities for the people who are
suffering from disabilities in United States of America. Similarly, such organization or
planning can be well implemented in the KSA (Walmart.com. 2017).
 Organizing: While setting the vision and goals in order to manage the better form of
workforce diversity, it is also important to ensure that the company is practicing the
appropriate job while organizing the business in a way that it encourages the process of
including diversity (Walmart.com. 2017). However, the management of the diversity of
workforce can be done before the establishment of offices, there would be no doubt that
the establishment of the offices has given the diversity issues in the higher priority in the

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daily management work. It provides the structural support to the management of diversity
(Bera 2015).
 Staffing: In terms of staffing, the strategic human resources are needed in the long run.
Walmart used special ways in order to make sure that the workforce diversity have been
included into the strategic recruitment and the process of human resource planning. In
terms of the training of diversity and encouraging the better functioning of the team, the
means of increasing the awareness of the culture, relative skills can be enhanced the
working of the employees in the organization (Walmart.com. 2017).
 Controlling: In order to make sure the diversity in the workplace of the Walmart is
respected and the company would enforce Equal Employment Opportunity through
adopting major controlling mechanisms, evaluating the feedback from the employees
(Walmart.com. 2017). Firstly, it is important for the company to check the disparities in
gender, race by checking into the differences of pay in the Gender. The second
controlling system is the evaluation manager and the supervisors regarding their
contributions in the organizations. Third controlling system is the monitoring o the
perception of employees through the means of survey.
3. Stakeholders of Walmart
The probable stakeholders for Walmart in KSA are having their different levels of
priority. The following are the group of stakeholders who are arranged according to the priority
and they are
 Investors
 Customers

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 Employees
 Suppliers
Investors: Investors always take interest in the profits. They demand that the Walmart to earn
more profits, which would convert to dividends of the higher, rate or share of per earnings. In
relation, the investors are taking interest in minimizing the cost of operations of the company.
Walmart gives importance to the investors and this is why, the company would continue to
minimize cost by minimizing wages (Walmart.com. 2017).
Customers: They are basically included in the group of stakeholder in the business forum. In the
case of Walmart, customers take part in buying things in low prices as long as these goods have
the quality of acceptability (Walmart.com. 2017). This is quite visible among the American
consumers. The company in KSA has to address the interest of the customers as the stakeholders.
The company through the maintenance of cost leadership involves while offering the lowest
possible prices to their customers.
Employees: The employees of the Walmart are also considered as an important stakeholder. The
employees working in the organization opt for two prime interests such as higher wages and
security of jobs. The company would provide in KSA, programs and policies which would
provide a greater or the considerable degree of job security (Walmart.com. 2017).
Suppliers: Suppliers are interested in achieving their products sold at the stores of Walmart in a
more profitable way. This interest incorporates not only the selling of the products of the
suppliers but also the selling of the products at profitable rates. Suppliers are in the bottom in
terms of stakeholders at the priority level of Walmart (Walmart.com. 2017; Freeman and
Moutchink 2013).

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4. Managerial planning
The different types of planning in the different levels of management incorporate strategically,
tactical, and operational. Operational plans are required to attain the tactical strategies, which
leads to the development of the goals of organization.
 Strategic plans: In order to understand the link in between the different types of plans,
strategic plan is being one of them and it is designed for the entire Walmart Organization
of KSA. The top level managers such as presidents or CEO, would design and yield
output of the strategic plans in order to pain the picture of the future which is desired and
the organization’s long term goals of the firm (Willaims 2013). The time frame of the
strategic plans where the organization wants to be in three, five or even ten years. The
top level managers provided strategic plan, serves as an outline for the planning in lower
level. The Walmart’s strategic growth incorporates bringing improvements in the
productivity, profitability and encouraging return on the investments. It requires the
involvement in the multi levels so that each level of the firm is playing a significant role
while trying to achieve the objectives.
 Tactical plans: Next comes the tactical planning, which looks for the next level of the
planning. The tactical planning renders support by converting the plans into certain
logical plans, which are distinct to the area of organization (Willaims 2013). The tactical
plans are concerned with the functionality and responsibility of the departments in the
lower level in order to fulfill their parts of the plan of strategy. Tactical planning might
take one year or less than one year. In compare to the strategic planning, it is far more
detailed than the strategic planning. It might take one year or less than that. The Walmart

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in KSA needs to develop the flexibility in this plan for the maintenance of the
breakdowns of machinery (Willaims 2013).
 Operational Plans: These are the plans which are framed by the low line managers or
front line managers. The front line managers focused on the particular procedures, which
happen in the lowest levels of the organization. Managers must come across some
routines of the departments who are using details of higher level. Operational plans can
be either ongoing plans or single use. Single use plans are those, which can be used only
once. The plans incorporate activities could not be repeated more than once. Through the
creation of the monthly budget and developing the promotional advertisements for the
quarter in order to increase the sales of the products is an example of how a company
must run. Walmart is an important example in United States (Willaims 2013). The
ongoing plans are those plans, which are constructed to experience the test of time. They
are constructed with the intention to be used many times and undergo transformation
whenever it is necessary. Outlining the performance goal of an employee could be taken
into consideration as an ongoing plan that Walmart at KSA must develop update and
assess. The ongoing plans are typically rules and procedures, which gives help to a
manager while understanding the responsibilities his role as a manager. The time frame
of this plan is 1 year maximum.
5. Goals of Walmart
The goal of the Walmart would be sustainability goals as KSA always look forward for the
environmental sustainability and the goals are described in SMART procedure.

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 Specific: The goal has targeted to create a zero waste, carry out its operation with 100
percent energy, which is renewable in nature, and sell the products, which would
sustain environment and resources (Walmart.com 2017).
 Measurable: It is measurable from the point of view of powering 50% sources of
renewable energy and 100% recyclable packaging for the brands, which are privately
labeled.
 Achievable: The goal is achievable as the goal is both measurable and specific as the
plan is not ambiguous and must be practically implemented.
 Realistic: The plan is realistic as the Walmart in KSA has planned to open up the
environmental and labor groups.
 Time period: The company planned to implement the work within the stipulated
period of time and that is in 11 years (Walmart.com 2017).
6. Value chain analysis of Walmart at KSA
Kingdom of Saudi Arabia develops comprehensive approaches and strategies that take into
account all the elements, critical in nature, which is required for the organizational success.
Accordingly, Value chain analysis of the Walmart can be utilized in this case
Primary activities:
Inbound logistics: KSA believes in punctuality and against this that the suppliers of the Walmart
would be responsible for giving materials on time. The Walmart at the same time would also
apply a code of conduct for the suppliers. The Walmart always focused on the long term
relationships for the serious sourcing and keeping the prices low (Gereffi and Fernandez 2016;
Wallmart.com 2017).

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Operations: Walmart has targeted to create more than 100 retail stores in the KSA. There wuld
be 100 Walmart stores in a small format and later on the firm has opened 700 neighborhood
markets in KSA.
Outbound logistics: At the main centre of the Walmart’s Inventory management technique
practices is known by the name cross docking (Gereffi and Fernandez 2016). The products that
have been received from the suppliers would be cross- docked at the centre of distribution and
then it would be forwarded to the stores. This would keep the transportation and inventory costs
low and cuts down.
Marketing and Sales: The Walmart needs to keep in account the living standard of KSA and can
increase their cost of their items. The strategy of low price is an essential part of the marketing of
Walmart. For the promotional activities, Walmart can use the promotion of brands (Gereffi and
Fernandez 2016).
Support Activities
Technology: From the point of technologies, Walmart has made the supply chain management as
well as the customer care services. From the smarter apps to the e-commerce websites, the
Walmart can obtain the use of technology in order to gain improvements (Walmart.com 2017).
HR management: The company faced several criticisms for the poor HR practices. In KSA, it
can promote people who are having better pay and higher responsibilities.
Procurement: As the strategy of the market of KSA is to maintain relationships with the suppliers
in order to maintain its cost, the Walmart there must follow the same rules and procedures with
the suppliers (Walmart.com 2017).

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7. Organizational Culture
The Walmart organization in Saudi Arabia needs to cooperate with the organizational
culture of the company. The organization needs more foreign labors working for their form. It
has been argued that hiring decisions made the private organizations are not based alone on the
mandates of the government. As the organization of United States is a family owned, the country
would welcome the family owned business in their country (Allverson 2012). The business of
Saudi Arabia is family based and they believe in the loyalty culture with the employees. Every
contact within the organization, the company needs to take into consideration as important. The
leader of the firm would often include the group in the discussion based on consensus style. It is
important for boss in the firm to have respected. The company of KSA encourages diversity,
therefore, the managerial style can be well implemented through the mode of planning.
The visitors to Wallmart are even expected to dress up in the conservative manner and
must wear smart fashion. In any meetings, the women must wear skirts ,which should well below
the knee. (Alvesson 2012). Therefore, the company needs to adapt to these particular changes
and it carries difference from that of the culture of United States. The Walmart would carry the
culture of Kingdom of Saudi Arabia where the employees would be treated as family and
accordingly, they need to wear cloths in a more traditional way. The employees will be given the
prestige of being a superior part of the company. Unlike in USA, the lower levels of the
employees must be given constant organizational support and generally in the organizations of
Saudi Arabia, the middle managers as well get the prior importance in terms of their work. They
also give approval to the workings of the employees. The Walmart would focus on rendering the
greater services to the customers, giving respect to the individuals, it must strive for excellence
and the company must take actions with the integrity.

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8. Ethics and Laws of Walmart at KSA
Wal-Mart is a well known retail organization of U.S.A. However, there is some ethical
issues in Wal-Mart working place one of the most important is the favoritism in the workplace.
There is no promotion for the female candidates to upper level portion in Wal-Mart. That is a big
ethical issue in this organization. On the other hand, the employees having only college degree
fail to get promotion in Wal-Mart (Gereffi and Fernandez 2016). There is an Acquisition against
Wal-Mart for being anti-union that hampers their ethics. On the other hand, the corporate
responsibility is good in the context of Wal-Mart, which often affects the decision of
management. The management of such organization often fails to make planning due to the
strong and rigid corporate responsibility of Wal-Mart. Wal-Mart provides financial support to the
charity across the United States. They donate for hunger relief, healthcare, natural disaster,
military outreach, education and healthcare (Corporate.walmart.com 2017).
Their business ethics in KSA includes the maintenance of environmental sustainability by
creating zero waste (Godkin 2017). However, the global ethics is associated in promoting the
culture of Wal-Mart. Culture of integrity is established by the global ethics in context of Wal-
Mart. The most important is to increase the awareness regarding the ethic policies. On the other
hand, this organization aims to provide channel to the stakeholders to understand the concern
regarding ethics. Global ethics of Wal-Mart must focus on the confidential reporting and it also
acts as a resource to make any ethical decision. Regarding the quality of product Wal-Mart
focuses on the development of goods, which are ethical and sustainable to environment.
However, maintenance of the environmental sustainability is the main ethic of Wal-Mart. They
focus on the CSR activities to reduce the wastage from their organization.

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The policies and law of Wal-Mart include video monitoring. However, the pork supplier
should have their firm monitoring video in the context of Wal-Mart. The Sow firms should have
video monitoring and a third part audit by the help of technology before supplying the product to
Wal-Mart. If the firm does not maintain the rules then they may get notice for 72 hours.
Therefore, the fresh pork supplier needs to maintain an audit of annual animal welfare and must
consist of grading system as well as the corrective action tracking system. According to the
policy of Wal-Mart the suppliers should comply with local federal and state regulatory
requirement. They need to follow the food and safety standard of Wal-Mart (Friedman and
Gerstein 2017). This organization follows conflict mineral policies. The suppliers of this
organization deal with the mineral sourcing policies. Therefore, they follow the OECD guidance
to develop mineral policies. The coupon policy of Wal-Mart allows them to accept only the
legible coupon. They maintain anti-corruption policy, which resists the method of corrupt
payment while dealing with their clients in private sectors and the government. Wal-Mart
develops policy to comply with the FCPA or US Foreign Corrupt Practice Law. By the
implementation of such policy, any person that may act on behalf of Wal-Mart will not able to
give or receive any kind of illegal payment (Corporate.walmart.com 2017).
9. Conclusion
Therefore, to conclude it can be stated that, various aspects have to be taken into account
while implementing the functions of Walmart in Kingdom of Saudi Arabia. The introduction of

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Walmart gives an overview of the company and against this, in the topic, the vision and mission
is being noted which describes about the goals or objectives of the company. In this context, the
managerial functions, the contributions of the stakeholders, organizational culture, goals ethics
and values of the company have been taken into account while addressing the important elements
which are needed to be inculcated in the walmart business. Along with the business, the ethics
and laws of the business have also been taken into account. Like the other walmart stores, the
SKA must as well incorporate the same diversification, rules and regulations of the company,
which would lead the firm to gain competitive advantages finally. In terms of culture, the KSA
follows different rules and regulations in terms of organizational culture. As the organization has
to be family oriented, where the employees would be treated in a much more respectable manner.
The strategic management process of Value Chain is being analyzed by keeping in mind the
environment of the organization of KSA. Ultimately, the laws and ethics that Walmart follows
must be aligned with the cultural structure of the organization in general. Therefore, against this
background, such aspects are needed to be taken into account while building Walmart in KSA. In
the topic the important goal and objectives of the company is also being noted and such objective
has been aligned with the SMART process. By considering everything, the company needs to go
through the valuable details of the strategic management, which is being followed in KSA
depending upon the standard of living as well as the profit that the company is looking forward
to earn in the future.

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Laszlo, C., Brown, J.S., Sherman, D., Barros, I., Boland, B., Ehrenfeld, J., Gorham, M., Robson,
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