Case Analysis- Wal-Mart Introduction The implementation of Wal-Mart’s strategy in China has failed to achieve the desired sales results. Despite being the leading retailer in the world, Wal-Mart’s model of success that provides a key competitive advantage in the U.S. does not equally translate to diverse international communities. Likewise, Wal-Mart struggled in Germany and eventually withdrew by selling its stores to rival Metro. Despite the challenges currently being faced in China, Wal-Mart has experienced international success in Mexico, Canada and Britain. What long-term strategy should Wal-Mart adopt in China?
This makes it difficult to know for certain what exactly what went wrong and why. Any analysis requires reliance on speculation and raises as many, if not more, questions than it answers. It is still worth looking into because it shows some important points that other companies can learn from. Background Caterpillar has had difficulty establishing a position in China comparable to its position in the rest of the world. In order to grow its operations China, Caterpillar decided to take a route that has proven successful for many MNCs operating in the PRC and use M&A rather than build things from scratch.
Kraft Foods Finds a Chinese Face for Oreo --Oreo localization in China 学院：外国语学院 班级：24150102班 学号：2012041501065 姓名：徐佳媛 Until the mid-1990s, Oreo largely focused on the US market - as reflected in one of its popular advertising slogans from the 1980s, "America's Best Loved Cookie". But the dominant position in the US limited growth opportunities and encouraged Kraft to turn to international markets. Oreo launched in China in 1996 as a clone of the American version.The China launch was based on the implicit assumption that what made it successful in its home market would be a winning formula in any other market. However,doing the same thing repeatedly and expecting different results did not happen in China, after almost a decade, Oreo cookies were not a hit as anticipated because of insufficient understanding of local preferences. By 2005, it controlled a mere 3% of the Chinese cookie market and the team even considered pulling Oreo out of the Chinese market altogether for the long-term losses.
Still other cultures critics and citizens groups in some countries say that it is arrogant to simpleminded to assume that American culture is “conquering” the cultures of countries around the world. (Johnson, June. Global Issues Local Arguements 2014, Pearson Education) It is not simpleminded to think and plainly see that China, while still communist, adopted a capitolism mindset when they started to allow capitolist companies to open manufactureing plants within China, but why the American companies left for China is for another paper. A better example is McDonalds and since McDonalds has grown globally, and it has been introduce to almost all of the largest populations’/cultures.
Legal, Cultural and Ethical Challenges For Google, the legal, cultural and ethical challenges they faced in China turned out to be insurmountable. Censorship by the government is an acceptable cultural practice in China. The ruling political party of the People's Republic of China demands it and has done so for as long as the internet exited in China. The government does not want any mention of the Tiananmen Square protests, ethnic independence movements, corruption, police brutality, anarchism,
1. Mattel’s global sourcing in China, like all other toy manufacturers, was based on both low-cost labor, and a growing critical mass of factories competitively vying for contract manufacturing business. Do you think the product recalls and product quality problems are separate from or part of pursuing a low-cost country strategy? No, I do not think that the product recalls and product quality problems are separate from or part of pursuing a low-cost country strategy. There are many industries have been using the low-cost country strategy for their sourcing for many years, so when there are any cost increases on the cost producing the products, the suppliers will try to reduce their cost by using all the ways.
Being the world’s largest contract manufacturer of computers and electronics (The China Post, 2010) – serving huge companies such as Apple, Dell, Sony and more, Foxconn may not be able to serve its clients if it is unable to maintain its aggressive cost-management policies. However, Guo and the management of Hon Hai Precision have a moral obligation to address these issues and criticisms. The ethical dilemma (and decision) Guo faces is whether he should place the group’s interest of being the top supplier to most of the world’s electronic brands by keeping wages low, ahead of the well-being of the factory workers. KEY STAKEHOLDERS AND JUSTIFICATIONS The factory workers are one group of key stakeholders which Guo should consider in the decision making process. The well-being and morale of the workers are clearly affected due to the low wages and work environment.
Electrowide wishes to sell their equipment to Motosuzhou hoping that it will be able to be more successfully distributed throughout the world and across automotive industries, especially to those in China. However, the first few weeks of negotiation was spent on small talk and sightseeing, not business relations. The US team made up of Tom Sherman, Barb Morgan, and Mark Porter, were more interested in sight seeing and late night partying than getting down to business. At one point, Tom even began to skip the meetings all together. Barb took notes during the meetings and made several observations regarding the Chinese teams mannerisms, which may have been false.
Timbuk2 is handling the problem correctly by making sure that the bags are being made in China are up to the standard of the bags that are made in San Francisco. To ensure that customers should not have concerns or worries, Timbuk2 visits China every four to eight weeks to ensure superior quality standards and working conditions. For Timbuk2’s custom messenger bags, the key competitive dimensions that are driving sales are the durability and the affordability of these bags. With a combination of high quality and affordability, items tend to sell at a higher margin. The competitive priorities of the custom the laptop bags produced in China are no different than the messenger bags produced in San Francisco.
Difference between business behavior in USA and China I always thought the best business is an honest business and as far as you keep this way you’ll success in any type of business. Trawling in different countries made me feel that to have a good reputation is not enough for your business success. People misunderstand each other due to different cultures and business practices. Many a business deal falls apart due to fundamental misunderstandings. What is different between USA and Chinese’s business?