IML1_rpl

Please read and respond to the attachment(s).

Note: Only up to 20% of the written response content can be quotes from third parties.

Assignment Details:

· Please reply to the presented statement(s) below.

Deliverable Length:

 

250 words (minimum) per reply

ONE:

Walmart Failed in Germany

Walmart wanted to operate the way they did in the United States in Germany and that did not work well at all in Germany. Although Walmart may be a household name in the United States in Deutschland that name did not have a good reputation. After losing around $1billion 

Some of the ramifications were that Walmart did not strategize properly, even though they are known for low prices, Walmart price their prices lower than other businesses in the German market. German business owners did not like that and would not stand by and be “bullied” so to speak. The German courts had to get involved and ordered Walmart to raise its prices.  Germans were prepared to fight. Germans also did not take well to the friendly customer service that they felt Walmart was imposing on them. It was just not the German way. Walmart seemed to be imposing unconventional behavior on German employees that made them uncomfortable and embarrassed. Walmart did not take the time to understand German culture in how they conduct their daily and social lives or when it came to companies and unions, they were micromanaging employees as far as keeping an eye on who was dating who and required other employees to report it.

 

Forbes.com/sites/warrenshoulberg/202007/28/the

 great -walmart-worldwide-redo-continues 

medium.com/bettermarketing/whywalmart-failedingermany

TWO:

Find a story in a global journal/newspaper about a US-based company that had a business issue in a foreign market.

Describe the situation in your own words and make sure to cite and reference the news item and site.

In your own words, itemize some of the ramifications, both positive and negative, of this plethora of information?

 
 

Starbucks is a well-known brand in the US market.   They attempted to expand in Australia in 2008 but were not successful because of the appetite for different variations and types of coffee on local menus.  Starbucks offered simple and basic coffee.  Starbucks lost over $105 million in its early expansion into Australia.

The positive ramifications of this taught Starbucks the importance of understanding the market and what the consumers were satisfied with.  The negative ramification is loss of revenue and profit as well as brand recognition since they will be remembered for basic coffee and no thaving many options like local cafes in Australia.

 
 

Turner, A. (2018).  Why there are almost no Starbucks in Australia.  Retrieved from https://www.cnbc.com/2018/07/20/starbucks-australia-coffee-failure.html

THREE:

A story in a global journal/newspaper about a US-based company that had a business issue in a foreign market.

Walmart creeps out the Germans.

 Walmart is a US-based company like Home Depot which is on of the big box of retailers. Walmart failed refused to consider about the cultural nuances. Chain opened about 85 stores so they can too into frugal country’s lucrative discount department market. The business hours were cut along with red tape being placed up; this was intricate with the labor laws. The marked was harder to crack than the American retail giant anticipated (Seale,n.d.). Customers started tad bit and becoming freaked out by Walmart greeters and the propensity to bag any of the customers items for them, both was practices in Germany. The year of 2006 Walmart pulled out a cost of $1 billion dollars. 

Seven Epic Cases of Companies That Failed Internationally | Firmex Resources

 

FOUR:

Wal-Mart is a well-known establishment and is as American as sweet tea. Being “American” was Wal-Mart’s biggest downfall. Wal-Mart has made many ventures into introducing their chain in the foreign markets. Wal-Mart discovered that the “American” way is not the best way to reproduce its creative achievement. The failure was caused by Wal-Mart not investigating how the consumers/ culture shopping experience.

For instance, in South Korea, the Wal-Mart did not take into consideration the inclinations for purchasing small products at different local stores. Wal-Mart could not compete with the native discount chains and appealing preferences among South Korean consumers. Related complications contributed to its closing their stores in Germany, Wal-Mart could not compete with the low grocery prices at the native stores.

In Japan, Wal-Mart purchased a share of Seiyu company and tried to operate its business the same way in America with the motto “Everyday Low Prices” operation. However, that plan backfired because the citizens of Japan view low prices with second-rate quality, making them reluctant in buying merchandise from Wal-Mart.  

FIVE:

Information technology has allowed outreach and made knowledge of global English speaking and non-English speaking countries accessible to businesses large and small. Furthermore, the Internet offers links to media sources world-wide. Find a story in a global journal/newspaper about a US-based company that had a business issue in a foreign market.

 
Describe the situation in your own words and make sure to cite and reference the news item and site.
In your own words, itemize some of the ramifications, both positive and negative, of this plethora of information?
 

In 2006 Home Depot opened 12 stores in China due to China’s booming economy.  Six years later, all 12 stores were closed.  The China market only accounted for 0.3% of Home Depot’s sales.   “Not only do the Chinese not like to DIY, or do it yourself, they also simply don’t know how.  In 15 years home ownership when from 0% to 70%.  They have no idea how to decorate, fix or build as this is all new to them” (Bhasin, 2012).  Another thought in to the failure is that maybe Home Depot does not understand the China culture.  Labor is so cheap that even the middle class in China do not fix things themselves, they hire it done.  

I believe one of the biggest ramifications that Home Depot experienced is that they did not know the culture.  They did not realize that where they were going the people there would not appreciate their stores.  China is not like the US where we love to DIY everything we possibly can, good or bad.   Weather we should or not!  They do not want to do the work, they want to hire it done.  It is cheap enough so that they can.  One of the positives is that while they closed their 12 stores, they did open much smaller stores for paint and flooring.  They were able to adapt.  They also left a team over there to research the culture and needs.  

 

Bhasin, Kim (September 14, 2012).  Why IKEA took china by storm, while home depot failed miserably.   Business Insider.  Retrieved from 

https://www.businessinsider.com/ikea-home-depot-china-failed-2012-9