Explain why Walmart has had most of its international success by entering country markets through acquisition. O Acquisition provided a low cost method of entering other country markets. O Acquisitions enabled Walmart to enforce its American way of doing business in its global operations. Acquiring an existing retailer in a country allowed Walmart to begin with managers who understood the local culture and the existing distribution system. O Acquisition allowed Walmart to avoid the need to adjust to international economic, political, and cultural environments. Walmart's leadership team wants your advice on how to be more successful in Brazil. What management function do you recommend Walmart focus on? O Focus on the management function of planning. Conducting research on competitors in the Brazilian market will explain current losses. Focus on the management function of organizing. Redesigning the organizational structure to better centralize operations will be less risky. O Focus the management function of leading. Encouraging mployees be loyal the company will translate loyal tomers. O Focus on the management function of control. Control will provide the benefit of operational efficiency, which will enable Walmart to be the low cost leader in the Brazilian market.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Explain why Walmart has had most of its international success by entering country markets through acquisition.
Acquisition provided a low cost method of entering other country markets.
O Acquisitions enabled Walmart to enforce its American way of doing business in its global operations.
O Acquiring an existing retailer in a country allowed Walmart to begin with managers who understood the local culture and the existing
distribution system.
on?
Acquisition allowed Walmart to avoid the need to adjust to international economic, political, and cultural environments.
Walmart's leadership team wants your advice on how to be more successful in Brazil. What management function do you recommend Walmart focus
Focus on the management function of planning. Conducting research on competitors in the Brazilian market will explain current losses.
Focus on the management function of organizing. Redesigning the organizational structure to better centralize operations will be less
risky.
Focus on the management function of leading. Encouraging employees to be loyal to the company will translate to loyal customers.
Focus on the management function of control. Control will provide the benefit of operational efficiency, which will enable Walmart to be
the low cost leader in the Brazilian market.

Expert Solution

Step 1

Walmart has had most of its international success by entering country markets through acquisition because it is a low cost method of entering other country markets, it enables Walmart to enforce its American way of doing business in its global operations, it allows Walmart to begin with managers who understand the local culture and the existing distribution system, and it avoids the need to adjust to international economic, political, and cultural environments.

Walmart's strategy of entering international markets through acquisitions has proven to be highly successful for several reasons:

Lower Cost: By acquiring an existing retailer in a new market, Walmart was able to save on costs associated with setting up operations from scratch, such as building new infrastructure, developing a local supply chain, and establishing a customer base. Additionally, Walmart was able to leverage the existing operations and reputation of the acquired retailer, which helped it to gain a foothold in the market more quickly and cost-effectively.
Established Operations: When Walmart acquires an existing retailer, it gains access to a team of experienced managers and employees who are already familiar with the local market, culture, and distribution system. This allowed Walmart to quickly integrate its operations and begin selling products to customers without significant delay. Moreover, the local employees' knowledge of the market and their connections with local suppliers, allowed Walmart to streamline its supply chain and reduce costs.
Easier Adaptation: Entering a new market can be a challenging process, especially when it involves adapting to a new culture, economic environment, and political system. By acquiring an existing retailer, Walmart was able to avoid some of these challenges as the local retailer was already adapted to the local environment. Additionally, Walmart was able to take advantage of the local retailer's established relationships with suppliers, government officials, and other key stakeholders, which helped to smooth its integration into the market.
Consistency: Walmart is known for its low-cost business model and standardized approach to retailing. By acquiring existing retailers in new markets, Walmart was able to maintain this consistency across its international operations, which helped to establish a strong brand and attract customers who valued Walmart's approach to retailing. Additionally, this consistency allowed Walmart to streamline its operations, reduce costs, and improve efficiency across all its international locations.

In conclusion, Walmart's strategy of entering new markets through acquisitions has been highly effective because it allowed the company to lower its costs, establish operations quickly, adapt more easily to new environments, and maintain consistency across its international operations.