Wal-Mart International Business: Assignment

Running Head: International Business 0
Wal-Mart
International Business
Wal-Mart acquires Flipkart
8/23/2018

International Business 1
Introduction
Wal-Mart Stores, Inc. is an American communal organization that operates a chain
of warehouse supplies and a vast discount retail stores. In 2010, it was the world's
biggest public corporation by revenue, according to the Forbes worldwide 2000 for
that year. Sam Walton founded the company in 1962, amalgamated on October 31,
1969, and operated on an open market on the New York Stock Exchange in 1972. It
headquartered in Bentonville, Arkansas, is the leading majority private employer and
the biggest supply retailer in the United States (Deresky, 2017).
It also possesses and controls the Sam's Club retail distribution centres in North
America. It had turned out to be one of the biggest grocers in the United States.
They give prominence on cost controls (e.g. Low-cost imports), customer
consideration (e.g. Direct mail advertising), and efficacies in its distribution system
(e.g. provincial warehousing) assisted to turn into the main retailer in the United
States in 1990 (Bureau, 2018). It relocated into international markets with the
opening of a hoard in Mexico, and development sustained, through either new stores
or the attainment of established retailers, in countries, for example, the United
Kingdom, China, Canada, and Germany (Kaelberer, 2017.).
In the following, an effort has been made to describe the event/action related
concepts, shareholders involved and critical analysis to relate it to international
business practice.
Background
US retail huge Wal-Mart Inc. will pick up a 77% stake in largest online retailer
Flipkart for $16 billion, effectively analysing which is the country’s biggest acquisition
and the world’s major acquisition of an e-commerce organization. It will incorporate
$2 billion of a renewed venture as looks to take on rival worldwide development,
securing the worth of Flipkart at $22 billion. Plans to use Flipkart’s capability to
develop internationally and assured personnel that its start-up philosophy will be
strengthened (Bloom and Hinrichs, 2017).
It presently holds approximately 77 per cent of a Flipkart, while other stakeholders,
comprising co-founder Binny Bansal, Microsoft Corporation, Tencent, and Tiger

International Business 2
Global, hold the rest of the business. Wal-Mart’s investment incorporates $2 billion of
new equity funding to aid in accelerating the development of the Flipkart business
and both the two organization will hold their unique brands and working structures.
Both the companies will accomplish the objective by working together than
separately to contribute effectively to the economic growth and creating a strong
framework. It will benefit by providing quality, reasonable goods for customers while
creating new talent and prospects for suppliers. As an organization, they are
changing globally to make life considerably less demanding for customers (Spicer
and Hyatt, 2017).
Stakeholders involved
One of our commitment series of forums are devoted to progressing our stakeholder
engagement, which includes-
 Employees- The first group to contemplate relates to the impacted personnel,
as even the best approach will fail if it does not reflect the people needed to
perform it. Flipkart personnel have a purpose to applaud as they can now
assume enormous expenses in the form of employee stock options becauseEmployees
EmployeesCompetitors
CompetitorsCustomers
CustomersAdvisors
AdvisorsAssociatesAssociatesCommunities
CommunitiesGovernment
Regulators
Government
Regulators

International Business 3
of the organization assessment growing from $11 billion to $20 billion. There
is also the possibility of better career progression for employees. Employee
commitment to an amalgamated firm is lowest following an acquisition and
enlarged employee turnover, which is an essential suspect in deprived
acquisition act. In other words, they have to take the necessary steps to
address the distresses of their personnel so that they will likely to discover the
associated issues (Dorobantu and Odziemkowska, 2017).
 Competitors- Often competitors are the main stakeholders that treat the
inevitable distraction of joining firms as a prospect. Wal-Mart’s biggest
opponent and one of the market leaders is Amazon, which offered a rival deal
to FlipKart. Accordingly, competitors also effectively recruit from the personnel
and customers of firms associated with a merger when those organizations
are most vulnerable (Martínez, Galván and Alam, 2017).
 Customers- The firms often give attention to internal issues during
incorporation at the expense of peripheral market issues, and customers of
both target and acquirer firms are sometimes disregarded. The consequences
could be beneficial to the consumer; superior improvements and philosophies
will lead to enhanced products and services. Wal-Mart power will help to
moderate costs and therefore get down the expenses of products. They may
also capitalize in infrastructure like warehouses, expertise and delivery
solutions that will give benefit to customer satisfaction, faster delivery of
goods and reach to the customer.
 Advisors- Advisors are also an important stakeholder, which incorporates an
external viewpoint, can empower better acquisition decisions. This turns into a
significant consideration as the primary advantage involves faster access and
speed to needed assets than internal development. A group of specialists can
enhance this move (Chidananda, Sagnika and Sahoo, 2017).
 Associates- It will provide better opportunities and build a strong business with
a committed and experienced management team having a strong market and
e-commerce proficiency. It may essentially open up a very viable path for
Wal-Mart to develop its business in the nation and to become a leading player
in the retail business.
 Communities- It will enhanced Job-creation and support farmers and advance
supply chains. They will now presently support women entrepreneurs and