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Essay example - Wal-Mart: Cross-Cultural Perspectives
Pages 4 (1004 words)
Wal-Mart was founded by Sam Walton in 1962 (Frank, 2006). The firm since then has become a global leader in the retailing industry. Sam was a charismatic leader that was deeply involved in the day to day operations of the company. The business model used by the firm is cost advantage…
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Corporate culture can be defined as ethical and behavioral standards and how they are communicated and reinforced (Corporatecomplianceinsights, 2012). Cultural issues can be detrimental to a company because they create friction, morale problems, and interpersonal conflicts. The company in Germany had disastrous results due to the poor leadership and incompetence of its managerial staff. During the nine years that Wal-Mart operated in Germany the company loss billions of dollars as a consequence of its ill advice expansion of 85 stores in a market that the company was not penetrating adequately due to its lack of cultural adaptation. Some of the reasons that Wal-Mart failed in Germany were strong competition, poor store locations, and ill-conceived acquisitions, cross-cultural mistakes, and miserable planning (Nipiersky, 2009). It is often tough for companies to accept that what worked in one marketplace may not easily transfer into another market. The ethical perspectives of Wal-Mart in other countries were put into question by its actions in Germany. In Germany the unions hold a lot of power, thus retailers have to work with them to become their allies instead of their enemy. “Germans generally see a closer link between labor unions and democracy” (Nipiersky, 2009). ...
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