1. “World’s Biggest Retailer Wal- Mart Closes Up Shop in Germany” Presented by: Ken Munch, Mohammad T. Hossain, and Shane Stuart

2. Wal-Mart entered Germany in 1997 Only 85 stores ! Too small for the market ? Accepted defeat and left Germany in 2006 Sold to rival Metro with 550 stores in Germany

3. The Death of Wal-Mart Competitors Poor locations Poor labor practices and poor track record Ethnocentric / American-style management practices in the workplace Poor attention to target market detail Cultural differences Lack of Experience with acquisitions and mergers Merchandising mistakes Refused to acknowledge the differences in customer behavior in Germany

4. Losses Incurred Retreat from Germany, incurred a loss of $1 billion Lost hundreds of millions of dollars every year Selling store locations to Metro below value Psychological hit to global market confidence

5. Lessons Learned “Mistakes were made”. "It does no good to force a business model onto another country's market just because it works well somewhere else.“ -Wal-Mart Germany's CEO David Wild 85 stores not enough to gain foothold on market Concentrate on local traditions, conform to local laws and regulations, German customers don't like receiving American-style service when they're shopping Cross-cultural business is a challenge even for the biggest companies Firms must localize their marketing strategy, not to ignore the local culture, local buying habits

6. Bibliography World's Biggest Retailer Wal-Mart Closes Up Shop in Germany. Deutsche Welle http://www.dw-world.de/dw/article/0,2144,2112746,00.html Giant Lessons for Wal-Mart Behemoth By Dr. Uwe Napiersky, Director of Intercultural Management Training, Echo International http://www.translationdirectory.com/article1122.htm

7. Thank You for Your Attention Questions & Comments?