Analyzing Walmart's Cross-Cultural Management in the Global Market

This report examines the cross-cultural differences that have affected Walmart's growth in Japan and the United Kingdom, applying theoretical frameworks such as Hofstede’s dimension model and the Iceberg model to compare these cultures with that of the United States. It identifies the challenges faced by Walmart during its international expansion, focusing on cultural issues encountered in Japan and the UK, and provides recommendations for improving international expansion strategies. The analysis includes a comparison of cultural dimensions using various models, an organizational approach considering cultural intelligence, and implications for future expansions, ultimately aiming to enhance Walmart's understanding and adaptation to diverse cultural contexts in the global market.

Running head: INTERNATIONAL INTERCULTURAL MANAGEMENT
International Intercultural Management
Name of the Student
Name of the University
Author note

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Table of Contents
1. Introduction............................................................................................................................3
2. Organisation and Culture Rationale.......................................................................................4
3.0 Comparison of Cultures through Theoretical Aspects.........................................................6
3.1 General Aspect of Cultural Differences Model 1: Iceberg and Cultural Onion Models. 8
Iceberg Model of Japan..........................................................................................................9
Iceberg Model of United Kingdom......................................................................................10
Iceberg Model of United States of America........................................................................10
3.2 Comparison of cultural dimensions Model 2: Hofstede’s Model Framework...............13
3.3 Comparisons of cultural dimensions Model 3: Lewis Behavioural Model....................17
3.4 Comparison of Frameworks...........................................................................................20
4.0 Organizational Approach...................................................................................................23
4.1 Cultural implications Model 5: Cultural Intelligence CQ Model Framework...............23
4.2 Cultural implications Model 4: GLOBE Model.........................................................26
4.3 Cultural implications – what they could have done using the model............................28
4.4. Key difference...............................................................................................................28
4.5 Culture issues of the countries.......................................................................................29
4.6 Culture Issues Adaptation..............................................................................................30
5. Implications for future expansions (Recommendations).....................................................32
6.0 Conclusion..........................................................................................................................32
References................................................................................................................................34

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1. Introduction
In the era of globalization and the globalized business environment, there are various
organizations operate in the different countries. The different international operations try to
provide the different firms with global type of competitiveness which will be helpful in
reducing the costs of production, there are different market opportunities, knowledge
diversity related to cross-cultural aspects of the other country, innovation along with
experience (Xing et al. 2016). On the contrary, it has been noticed that due to the rise in the
globalization, it tries to present the different managerial positions with the business
environment which is complex, dynamic and uncertain in comparison to the previous
scenario.
There are different kinds of political, economic and legal aspects which affect the
overall international operations in a negative manner, the influence of the culture of the
company can present various issues which are difficult to handle. The term culture is one of
the most complex aspect wherein the different opinions of the different individuals working
in the organization and it can affect the overall international business operations (Wang et al
2017). The respective assignment helps in examining and identifying the cross-cultural
differences have affected the overall growth of Walmart in Japan and United Kingdom.
With the overall application of the different theoretical aspects such as Hofstede’s
dimension model and Iceberg model, both United Kingdom and Japan is required to be
identified with the help of the cultural characteristics in comparison to United States of
America. It will be consisting of the different challenges which have been faced by the
company Walmart along with providing the different recommendations to improve the
scenario related to the international expansion.

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2. Organisation and Culture Rationale
Walmart is one of the American retail company which operates in the hypermarkets
along with grocery stores. The company is headquartered in Bentonville, Arkansas and the
company was founded in the year 1962. The founder of the company is Sam Walton and the
number of locations wherein Walmart is operating is 11348 and the areas served by them is
worldwide (Walmart.com 2019).
The number of employees working in the company is 2.3 million in the entire
worldwide and more than 1.5 million in the United States of America. The services which are
being rendered by Walmart is inclusive of Walmart MoneyCardPickup TodayWalmart.com
and the Walmart Pay. Moreover, the revenue which has been earned by the company has
been increased to US$514.415 billion till the year 2019.
The organizational culture of Walmart has major four components which should be
considered and these components are helpful in guiding the behaviour of the different
employees which will be helpful in determining the capacities of the organizational capacities
which will add value in provision of retail service along with other related services to the
customers in the market. The different cultural components are as follows:
 Service provided to the different customers
 Respect for the different individuals
 Striving for proper excellence
 Action with Integrity
Furthermore, in terms of the different services to the different customers, the
organization tries to prioritizes the different customers in the different operations. Moreover,
Walmart tries to recognize the different contributions of each and every employee for the
overall success of the business. Additionally, the firm Walmart strives for excellence in terms

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of the overall performance of the different individual employees, teams and the entire
organization. In terms of maintaining proper integrity, Walmart tried to promote virtues of
the different honesty, impartiality along with fairness in the process of decision-making
aspects (Venaik and Brewer 2016). From the overall aspects, it can be identified that Walmart
has been able to gain competitive advantage in the market through managing the different
operations, however there were different issues in the international expansion in Japan and
UK as there were various cross-cultural aspects that affected their potential to gain
competitive advantage in the market.
The main strategic goal of the company Walmart is to increase the overall presence
and monetize the franchisees in the international markets. However, in the era of
globalization and competitive business environment, there were different cultural differences
which affected the overall business of the company (Thomas, Alkizimand Mugwima 2016).
From the various reports, it can be identified that there are different issues which affected the
overall competitive advantage in the market inclusive of the following aspects:
In the overall competitive business environment, there are different cultural issues
which are being faced by the companies while expansion of the business. While expanding
their business in Japan market, it has been identified that Walmart can be one of the biggest
retailers in the United States market, however the story is different in Japan as instead of
adopting the different business operations in relation to Japanese culture, the company
assumed that the customers in the respective market will adjust to the operations of Walmart
as it is working in the Japan market.
As the customer behaviour is totally different in Japan, it affected the overall aspect of
Walmart to continue their business operations in the respective market. Therefore, the report
will be based on the overall analysis of the different aspects of the cultural aspects which is

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required to be followed while expanding the business operations in UK and Japan market.
However, with the help of the different theoretical models, the examination of the cultures of
UK and Japan will be analyzed in comparison to the culture of USA which can affect the
growth of the business (Thomasand Peterson2017).
3.0 Comparison of Cultures through Theoretical Aspects
USA Japan UK
Implications The cultural
implications of
USA are that
people in the
USA, prefer the
different kinds
of current
norms that will
be followed in
all the aspects
(Tekeş et al.
2018)
In Japan, the
individuals
prefer to follow
the innovative
approaches
while
commencing a
business in a
successful
manner
(Stankov 2015)
In UK, the traditional
and current norms are
being followed to
improve the overall
aspect of becoming
successful (Stahland
Tung2015)
Culture
Similarities
In USA, the
making
different
business-
related
decisions are
In Japan, the
business
aspects play a
major role
wherein all the
individuals of
In UK, the aspects of
commencing business
is the major aspect in
which the different
individuals are
included (Michael

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being taken
through
meeting the
individuals and
all age groups
are included
(Rohlferand
Zhang 2016)
all age groups
play a vital role
(Ollier-
Malaterre and
Foucreault
2017)
Clark et al. 2017)
Culture
Difference
Americans
prefer to keep
the
conversation
more informal
than formal and
they prefer to
be friendly in
their approach
(Mazanec et al.
2015)
Social
Hierarchy is
essential in
Japan and
culture of Japan
is collectivist in
nature
Furthermore,
Japanese people
prefer to follow
the traditional
cultural norms
(Matzler et al.
2016)
It is the constitutional
monarchy and the
people follow the
different traditional
aspects which will be
beneficial for the
success of the country
(Lokkesmoe,Kuchinke
and Ardichvili 2016)

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Walmart
USA Japan UK
Both USA and UK have distinct differences;however, USA and Japan have major
differences, Japan and UK has major differences as well explain them.
3.1 General Aspect of Cultural Differences Model 1: Iceberg and Cultural Onion
Models
In order to analyse the different kinds of cross-cultural issues which have been faced
by Walmart in the other two countries except USA, the proper understanding of the cultures
of UK and Japan is required to be analyzed with the proper application of the various
theoretical aspects. As commented by Lifintsevand Canavilhas (2017), Iceberg Model of the
Culture helps in highlighting that the culture comprises of the different kinds of elements
which are visible in nature inclusive of learned, conscious and easily changed, on the other
hand the invisible elements which are unconscious, difficult and implicit to change.
Furthermore, the respective model helps in oversimplifying any kind of culture, on the
other hand, Li et al. (2017), have emphasized that in order to appreciate the visible aspects of
the culture, there should be proper understanding of the invisible aspects by researching as
well as experiencing them appropriately. The proper understanding of the invisible elements
assists in analysing the invisible elements which is helpful in minimizing the different
miscommunication and misunderstandings of the cross-cultural aspects as these are
immensely valuable and important for the international businesses and the same models have
been applied for Japan and UK market to understand their culture and improve the overall
scenario (Laitinenand Suvas 2016).

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Iceberg Model of Japan
Manners- Very well
behaved and they
greet individuals and
welcoming
Language-
Japanese
Religious- All Buddhists in
conversion to other
religion
Nature of friendships-
Handshake and
greeting someone
politely
Personal space-
Lacking in nature
Concept of beauty
Importance of
time- Arriving on
time
Communication styles-
Epitomised by subtlety
and nuance,
Literature- earliest recorded
Japanese poetry is in
the Manyoshu
Work of art-
Less
Developed
Clothing-
Traditional
Kimonos
Music- Soft and
polite
Food- Rice, Noodles and
Tofu
People’s motivation-
Bosses motivate the
employees
Working styles-
Formal Approach
Negotiation styles-
Formal approach
Concepts of fairness- All men and women are
treated equally
Religious beliefs-
Strong

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Iceberg Model of United Kingdom
Iceberg Model of United States of America
The country
follows to respect
all individuals
Manners-
Shaking hands
with all the
people
English
language
Religious-
Christianity and
mainly Catholic
Nature of friendships-
Not too friendly s
Personal space- It is a
huge issue as they feel
awkward
Importance of time-
Etiquette followed
when they are late
Communication styles-
encompassing both
understatement and
direct communication
Literature- Famous
writers and poets are
from UK
Arts- Graphics and Performance
related arts
Clothing- Stylish
and good quality
clothes along with
the accessories
Music- progressive rock and British folk-rock
and punk music is being entertained
Food- They prefer the
food which is prepared
with rich ingredients and
locally grown
People’s motivation-
Self-motivation
Role expectations-
All the male and
female employees
prefer to work in all
the fields
Working styles-
Professional
approach
Negotiation styles-
professional and at
times friendly
Concepts of fairness-
All the workers in the
organizations are
treated equally

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From the overall analysis of the Ice-Berg Model, it can be identified that it helped in
analysing both the cultures of Japan and United Kingdom in comparison to United States of
America. Moreover, the Hofstede’s cultural Onion Model can be applied and implemented in
The country
follows to respect
all individuals
Manners- Polite
and sober
English
language
Religious-
Christianity and
mainly Catholic
Nature of friendships-
Friendly approach
Personal space- It is a
huge issue as they feel
awkward
Importance of time-
Etiquette followed
when they are late
Communication styles-
encompassingdirect
communication
Literature- Not so
strong Arts- Performance related arts
Clothing-
Traditional clothing
Music- Classical, Jazz and CountryFood- Boiled food as
people are health
conscious
People’s motivation-
Managers motivate
employees for
improved
performance
Role expectations-
All the male and
female employees
prefer to work in all
the fields
Working styles-
Professional as well
as informal approach
Negotiation styles-
Professional
Concepts of fairness-
Male workers are
provided with more
opportunities

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analysing the deeper levels of the Iceberg model and define each of the culture of the
different countries appropriately which have led Walmart to different kinds of problems in
the United Kingdom and Japan. Through the overall analysis of the Ice-berg Model, it has
been noticed that in Japan, the mindset of the customers during purchasing the different
products and services are different from United States of America.
In Japan, the culture of the individuals is different as customers feel that high price
means the quality will be high as well and the respective mentality causes them to buy more
than 40% of the luxury goods annually (Kozhin et al. 2018). Furthermore, in the United
States Market, it has been noticed that the packaging and appearance of the products did not
matter to the customers, however the case is different in Japan, as the customers provide
100% importance to the appearance of the products which was one of the cross-
culturalclashes and it affected the overall brand image of the company.
Therefore, while looking at the different products which are being sold by Walmart, it
can be noticed that Walmart does not cater to the different luxury brand customers, and these
kinds of cultural misunderstandings led to the failure of Walmart in Japanese culture and it
was a huge mishap for the business of Walmart (Koch et al. 2016).
On the other hand, the failure of Walmart at United Kingdom was the other cultural
issue which was faced by them and it affected the overall profitability of the firm. From the
iceberg model, it has been noticed that the culture of Walmart does not fit in all the other
countries and they need to take the steps after a careful survey about the cultural aspects of
the different countries wherein they prefer to expand their business operations (Kim 2017). It
has been noticed that in Europe, there are strict along with high minimum wages aspect
which affected their store presence. Moreover, Walmart could not hack the pro-labour union
culture of Germany and the other aspect of failure of Walmart in the Germany market is that