The Human Resources Strategy for Expansion of Walmart in Indonesia

This report provides a detailed analysis of Walmart's human resources strategy, specifically focusing on its expansion into Indonesia. The report begins with an overview of the retail industry, outlining current challenges such as keeping up with customer expectations, maintaining customer loyalty, and managing internal communication. It then explores the developments in the retail sector, including the online and in-store customer journey and the increasing role of technology. The core of the report centers on Walmart's HR practices, including training and development, particularly cross-cultural training for expatriates, and reward management strategies. It also examines the economic, social, technological, environmental, and legal factors specific to Indonesia that will influence Walmart's expansion. The report further delves into comparative human resource management, providing examples, and concludes with a summary of the implications of these HR practices on organizational performance, employee commitment, workforce flexibility, and quality. The report's recommendations focus on how Walmart can navigate the complexities of the Indonesian market to achieve its expansion goals effectively.

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THE HUMAN RESOURCES STRATEGY FOR WALMART EXPANSION
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Contents
Introduction:...............................................................................................................................3
Overview of the retail industry.................................................................................................3
Challenges in retail industry.......................................................................................................4
1. Keeping up with ever-changing customer expectations..........................................4
2. Maintaining customer loyalty..................................................................................4
3. Managing internal communication..........................................................................5
Developments In the retail industry...........................................................................................5
1. The online and in-store customer journey...............................................................5
2. The rise of technology in retail................................................................................6
HR Practices: Training and Development:................................................................................7
Cross-cultural training for expatriates........................................................................................7
Reward Management:................................................................................................................8
Economic factors affecting Indonesia................................................................................9
Social factors affecting Indonesia....................................................................................10
Technological factors affecting Indonesia.......................................................................11
Environmental factors affecting Indonesia......................................................................11
Legal factors affecting Indonesia.....................................................................................12
Comparative Human Resource Management...........................................................................12
Examples of Comparative HRM......................................................................................13
Conclusion:..............................................................................................................................13
REFERENCES.........................................................................................................................14

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Introduction
Over many years Walmart has managed to maintain the leading spot on the Fortune 500 list.
The success of the company is largely guided by its policy of' everyday low prices.' His
internet revenues also expanded quickly in the United States. The Rogers, Ark brand which
began in 1945 as a small discount dealer has expanded to different parts of the world.
Heavily invests in infrastructure so that his clients can buy from anywhere. This seeks to win
market share away from its rivals Amazon and Costco. Although the Sam club has continued
to compete with Costco, the earlier acquisitions made by the company in the food business
appear to pay off (Kaufman, 2016)
Price competitiveness is at the center of Wal-Mart’s business model. The company
contributed to the lowest rates on the US supermarket industry. It runs today more than
11.300 retail stores and many platforms for e-commerce in over 27 markets, including 58
banners (Walmart Annual Report, 2019). Walmart is also concentrating on providing a
smooth shopping service whether you buy from your smart devices or in shops.
The company has nearly 2.2 million staff, whom it considers associates. 1.5 million of them
are working in US. It is a conversation on Wal-Mart’s corporate plan and whether it has made
the company succeed.
The purpose of the report is to develop the new policies for the company Walmart while it is
expanding its business in Indonesia and also to know the impact of it on the organization as
well as it practices (Kaufman, 2015).
Overview of the retail industry

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In 2018 retail market amounted to 13 percent at CAGR to 950 billion USD which is forecast
to hit 1.1 billion USD by 2020. The estimated increase in online retail revenues in 2018 is
31% year on year, hitting 32,70 billion USD in 2018. Online shopping sales are projected to
rise to US$ 60 billion by 2020. by 2020. Rs 10,000-12,000 crore (US$ 1,39-2,77 billion) are
projected to raise the turnover of offline retailers, also known as Brick and mortar retailers
(B&M) in FY20 (Collings, Wood, and Szamosi, 2018).
India, which is powered by significant investments and exponential growth in the number of
internet users, is projected as the world's fastest growing email sector. Various organizations
anticipate the Indian market for e-commerce to expand strongly.
The luxury market of India, backed by an growing foreign brands of Indian youth and a
higher buying power of the high class in tier 2 and three cities according to Ascham, is
expected to cross US$ 30 billion at the end of 2018 from US$ 22.8 billion in 2017.
Challenges in retail industry
1. Keeping up with ever-changing customer expectations
The tastes of consumers are often changing and much sooner than you expect. As a
supplier, you need to be in a place to observe the patterns and the buying habits of
your clients. With any season, you don't have to totally modify your goods, only
incorporate a few specific elements according to the pattern in your goods. You never
have to overlook creativity, in short
2. Maintaining customer loyalty
Despite the positive consumer service, client loyalty is a crucial element. One of
retailers ' growing errors is thinking they can quickly lose their current customers.

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You will consider it impossible to continue your market success if you maintain this
mind-set (Guest, 2011).
Although marketers tend to utilize exclusive deals and exclusive events to keep their
clients, personalization is the true secret to an outstanding consumer experience. You
ought to take a specific strategy, for example by giving them mails that are tailored to
their tastes and desires, in order to keep the customers loyal. A CRM program can
help you retain consumer information and more quickly submit customized e-mails.
3. Managing internal communication
Retail functions complexly and handling the internal contact is not an obvious job.
Mainly big supermarket corporations with many branches meet this obstacle.
Inadequate coordination between departments may interfere with business processes.
Retailers can use a program to improve internal contact. An ERP program would be
the best way to handle supermarket businesses ' internal contact. The program will
centralize all corporate operations, produce detailed reports from each division in real
time, optimize job delivery through departments and insure that the whole operation
operates correctly.
Developments In the retail industry
1. The online and in-store customer journey
While the conventional highway shops will fight their online rivals, we agree that the
high-street retail experience remains here. Distributors must carefully evaluate their
consumer experience online and in the store to build an optimized and exclusive
consumer path. Below are few valuable ideas to boost the consumer travel.

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 In store wallet rewards
 Store Variations
 In store workers changes
 Shop configuration
 Selling merchandise
2. The rise of technology in retail
Retail, in particular where innovative innovations are developed, is one of the fastest-
developing industries. At the core of this transition are BI and computer technology.
 Locational analytics –Watch the actions of the consumer when in shop. This
knowledge is important and will improve the way customers communicate
with retail stores.
 AI and machine learning –This will touch points of communication during
the consumer experience in the context of personalization, recommendation
engines and chatbots. This improves consumer service and through revenue.
 Predictive and explanatory analytics –Retailers will compare patterns they
see from their data and use them in anticipation of availability, demand or
consumer perceptions to make small changes. It is an important price
management method.
 Embedding technology and teams into your business –In its seamless
deployment and the incorporation of new staff into a developed IT system it is
important to benefit from the capacity of technology

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HRPractices:
Training and Development:
Cross-cultural training for expatriates
1. Establish Norms for the Team
The next move is to create guidelines for the team until cultural gaps and standards
are identified. The aim is to help us build the norms. Having their buy-in improves the
expectations and guarantees that everybody is dedicated to them.
Growing team would require its own set of rules and norms based on their structure
and other factors influencing teamwork. You will want to look into topics such as
regular e-mail answers working processes, e-mail / document models in order to
facilitate consistent coordination, team duration meetings, project monitoring
structure, etc. The development of criteria unique to the team promotes teamwork and
optimizes team efficiency (Wright, and McMahan, 2011).
When team guidelines are defined, consult periodically with the team for
performance. Be pragmatic when amending guidelines that may not fit properly;
anything in principle may sound nice does not work in reality, so listen to the input
from the staff.
2. Over-Communicate
This is one of the most important things that the company Walmart needs to follow
while expanding into Indonesia as the main issue will be to make diverse employees
understand the needs and wants of the organization and the employees might as well

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face issues in a different culture. Over communication will help the company to know
the issues faced by employees and will also make the employees feel highly valued
Reward Management:
Award policy for a high-quality staff and for inspiring the average amount to work more
intensely is the key stage of developing a compensation scheme. So the processes must be
developed to better attract, maintain, involve so develop workers, in order to reach and
optimize their ability, thus rendering the company effective.
People work for their self, family and community needs and they receive money. Such
individuals are the basic elements of survival; all humans physiologically require to live.
Maslow identified the hierarchy of needs with the essential physiological needs and enhanced
protection, social needs and self-fulfilment in the first case, Herzberg differentiated between
extrinsic influences such as compensation and corporate structures and processes that, if
missing or inadequate, trigger in satisfaction at the workplace. Satisfying persons that are
accountable and development opportunities that can inspire citizens differently. As more than
50 years ago the publications of Maslow and Herzberg show two variables of interest and
chance, another one as expectation theory is (Renwick, Redman, and Maguire, 2013).
People enjoy the compensation as long as their protection and social recognition, satisfaction
and autonomy criteria are fulfilled. Inevitably various items are worth to customers, which
ensure that a combination will be included in the product. Expectation is the expectation that
the more success the greater the incentive based on performance. The person must have the
right capability and understanding of its position in order to be beneficial to the organization.
It highlights the need for consistent concepts and comprehension of functions, innovative

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innovations and a relation between success and compensation.
Impact of HR practices
Following is the way in which the following things will be impacted through the above
recommendations
 Organisational Performance Effective cross-cultural schooling strengthens
interpersonal abilities helps the employees to appreciate and improve their talents and
ability to engage with cultural differences and their personal and commercial
advantages (Alfes, Shantz, Truss, C. and Soane, 2013).
 Employee Commitment: Effective multicultural activities allow employees to
develop a better appreciation of the societal complexities, the technical and
organizational benefits of culturally integrated know-how and intercultural skills.
 Workforce Flexibility: cross culture training and rewards helps in giving flexibility
to the workers
 Workforce Quality: The strategy of rewards helps in increasing the quality of
workforce Employees respond to their gratitude by recognizing their productive
work, as it affirm that others enjoy their performance. Employee happiness and
efficiency increases as workers and employee jobs are respected, and they are
encouraged to retain or enhance their job.
Key economic drivers in Indonesia
Economic factors affecting Indonesia
Indonesia is the world's sixteenth largest country. In 2018, its estimated GDP was 1,02 billion
dollars. In the same year, GDP per individual totalled $3,871, $14 lower than the average in

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2017 (Country Economy, 2019). Over the last two decades, the world's gdp has improved
tremendously, while the Asian financial crisis of 1997 has struck the nation hard.
The Indonesian economy is controlled by private corporations and international investors, but
it should be remembered that the state is one of the main owners of enterprises. Agriculture,
oil and gas, manufacturing, housing, automotive and hydrocarbons are the main industries in
the world. Indonesia imports from China, Singapore, Japan, Malaysia and Thailand a range of
commodities (Farndale, Scullion, and Sparrow, 2010).
In Indonesia, income tax is 25 percent (Trading Economics, 2019). The largest proportion of
the exports are to China, the United States, Japan, India and Singapore. The income tax rate
shall be determined in compliance with the individual's residential status. The country's
inhabitants pay a fixed tax of 30%, based on their salary. Non-residents bill their taxable
profit at a fixed rate of 20 percent revenue. Indonesia's unemployment rate is 5.78%. This is
an annual figure determined by bringing the usable data over the last 20 years into account.
Social factors affecting Indonesia
After December 2019, there have been 271,936,596 inhabitants in Indonesia, comprising
3.51% of the world population (World Meters, 2019). Indonesia is the world's largest Muslim
nation, with around 10% of Indonesians Christians. The Constitution ensures freedom of
worship and the country is ethnically diverse. People are projected to live for 67 years while
females are expected to live for 71 years (BBC, 2018). The dominant language is Indonesian;
but, it has over 300 local languages.
In Indonesia, the literacy rate is around 95%. The government invests heavily on schooling as
well as on health care. In the world, the middle class is rising rapidly, and customer behavior
has shifted at a clip (Liu, Gong, Zhou, and Huang, 2017).

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There is a steady rise in demand for western food and technical goods, ready meals, frozen
and processed food, balanced food and apparel. It should be remembered, however, that
Indonesia faces some major societal problems, such as abuses of human rights, inequality,
nepotism, heavy smoking levels, malnutrition and hunger.
Technological factors affecting Indonesia
The technical climate is the next thing to be discussed in the PESTEL study of Indonesia. The
primary source of mass media is television; but, it is still important to utilize electronic
channels. Indonesians are one of the most active Twitter users in the country. YouTube,
WhatsApp, Twitter, Pinterest and Instagram are all well linked throughout the region.
Throughout the years, Indonesia has seen major strides in technological acceptance. In five
main fields-food and drink, automobile, clothing, electronics and chemical goods-the
government has launched a program named Make Indonesia 4.0 to expand technological
utilization and improve manufacturing efficiency. Those are the five ways of which Indonesia
will in the future become a global leader. The government's main technological fields include
Twitter, artificial intelligence, interfaces between humans and computers, 3D printing and
robot technologies and sensor systems (Oxford Company Association, 2019).
It is worth remembering that the economic growth of Indonesia is highly contingent on the
availability of qualified staff. Data security, protectionist laws, and lack of payment and
distribution infrastructure are further challenges facing the region (Tarique and Schuler,
2010).
Environmental factors affecting Indonesia
Indonesia is a chain between Asia and Australia with thousands of islands. The country has
numerous local and foreign visitors to give. It's a wonderful country. In 2018, around 15.8
million foreign tourists visited the country, but the government's goal was 17 million. The

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key explanation the goal has not been met is attributed to many earthquakes and tsunamis
(Noe, and Kodwani, 2018).
Thousands were killed by the 2004 tsunami in the Indian Ocean, and homes, roads and
property were greatly damaged. Many environmental issues involve deforestation, increasing
urbanization, over-utilization of natural resources, contamination in the atmosphere, road
congestion and emissions by wind, in addition to earthquakes and tsunamis.
Legal factors affecting Indonesia
The legal framework of the nation is the last item to deal with in the PESTEL study of
Indonesia. But due to the complexity of the legal subject, the debate is somewhat restricted.
Labour rights in Indonesia are covered by statute. Firms will provide particular attention
about such items as breaks, sick compensation, operating schedules, vacations and social
security.
It should be remembered that it is a complicated and timely procedure to start a company in
Indonesia through international companies.
Comparative Human Resource Management
Similar nations, domestic areas and different parts of the world depend to comparing human
resource management. Countries typically have specific political and economic structures,
labour legislation, labour dynamics, and societal expectations; both of these problems must
also be addressed for the implementation of HRM policies and programs.
Despite globalization, numerous countries have diverse strategies on the handling of human
capital in position of businesses. People from diverse countries do have various traditions and

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views and principles that must be integrated in global companies ' management of human
capital.
Globalization has allowed many multinationals to go globally and to establish many affiliates
with diverse human resources from different parts of the world.
The roots of diversity of global companies ' human capital are triggered by the job versatility
that can quickly transfer staff across the globe. Human resources administration for
international corporations allows for comparable human capital to be integrated.
Examples of Comparative HRM
Many instances of the usage of comparable HRM in several organizations worldwide can be
given. Ford is an international corporation, but its home office is located in the U.S., so it is
globalized so works internationally in several other nations. The human capital of the
organization thus comes from many countries across the globe with a third of the human
resources (Daley,2012).
There is a need for efficient control of the human capital of the business to build a strategic
edge in the market. It includes comparable staff capital to be incorporated (Liu, Gong, Zhou,
and Huang, 2017).
Conclusion:
This study discusses the strategy of Walmart while expanding into Indonesia and in this
report the discussion is about the changes of HR policies like training and development and
reward management while expanding into a different place, further the report discusses the
about the ways in which these strategies can impact the Organisational Performance,
Employee Commitment, Workforce Flexibility and Workforce Quality. After this the pestle

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analysis of Indonesia is done to understand the market of Indonesia in a better ways, the last
thing that the report discusses is the comparative human resource management
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