1. Walmart Strategic development
Presented By
Gary Tarafder

2. Preview Introduction Internationalization Process Strategic Alliance
Subsidiary Level Strategy
Head Quarter Level Strategy
Diversification Strategy
Global Diversification
Our Recommendation
Report Progress
Main Tools
References

3. Introduction
Sam Walton’s first open store in 1962 at Rogers, Arkansas.
11000 store, 27 countries and 2.2 million casual, part time and full time employees.
200 million customers each week worldwide.
In 2013, annually sale $446 billion
147 distribution centres with serve 75 to 100 stores.
Introduces super market centre in 1988.
2700 super centre as concept of neighbourhood market and became a largest food shop in United State.
First international store was Mexico in 1991
Now 3859 international branches.

4. Internationalization Strategy
Export-based entry
Manufacturing-based entry
Relationship-based entry

5. Export-based entry
Licensing
Franchising

6. Manufacturing-based entry
Joint venture
Acquisition
Greenfield Operations

7. Relationship-based entry
Contract manufacturing
Offshoring

8. Strategic Alliance An agreement Separate business entity
Mutually beneficial project
Walmart and Stanley works
Walmart and Bharti retail

9. Subsidiary Level of Strategy
Support and Implantation
Mini replica
Global product compulsory.

10. Support and Implantation
Corporate level of strategy dominated by multinational firm
Localization of product rather than adaption
Design common and reduce extra cost
Environment is uncertain
Korea in

11. Mini Replica
Decentralize strategy with not hampering global addition between corporate parent and subsidiary
Suitable for high uncertain environment
Decision speed up

12. Global Product Mandate
Production, marketing, promotion and develop the products
Subsidiary get power to add value in product
Approve tariff are high and company follow the local production

13. Head Quarter Level Strategy
Cross cultural challenge
Local VS Global
Subsidiary level challenge
Altered agendas
Withholding info
Head quarter level challenge
Lack of local knowledge

14. Diversification Strategy
Related diversification
Unrelated diversification

15. Related Diversification
Economic scope
Market power
Knowledge capabilities

16. Unrelated Diversification
Key business not develop
Weak knowledge
Government behaviour not predictable
Weak law enforcement
Lack of knowledge

17. Global diversification
New market and exploit the business
Lower cost with high quality and create economic scale
Benefited value of shareholder increase
Production and operation flexibility
Tax offset or tax benefit (India)
Rise power and spread risk

18. Our recommendation Lowest price leadership
Company need to focus on cultural practices
Europe and Asia are strong opportunities to expend market
Should focus on customer demand
Low wages

19. Report Progress What When Progress Report Presentation Week- 8
19/06/2014
Ongoing
Report
Submitted
At 5pm

20. Main Tools Web Site Journal Article Article in a Periodical Report
Text Book
Document from Web site

21. Reference
A strategy for Subsidiaries. (2014, January 25). Retrieved June 5, 2014, from IP Research and Communication:
Diversity & Inclusion. (2014, June 11). Retrieved June 11, 2014, from Wal-Mart:
Global Strategic Management. (2014, May 29). Retrieved June 6, 2014, from Strategic Management:
Head Quarter Level Strategy. (2013, Juky 13). Retrieved June 10, 2014, from Scribd:
Kinnunen, R. M. (2009, October 30). Multinational Corporate's Headquarter Subsidiary Relationship. A Potential Barrier to Internationalisation, 55. Retrieved June 11, 2014, from
Wal-Mart Cuts Taxes By Paying Rent to Itself. (2014, June 5). Retrieved June 5, 2014, from The Wall Street Journal: