Walmex

In: Business and Management

Submitted By tmacpherson24
Words 566
Pages 3
TJ MacPherson
Wal-Mex case analysis

In this case study, Wal-Mart, or known as Wal-Mex in Mexico was facing some forward challenges upon entering and expanding in the Mexican market. The brut of the challenges faced were derived internally from its employees and operations. There were five key issues and they were known as the “five key syndromes”. I will further explain in depth about the adversity these syndromes can cause on Wal-mex operations. The first syndrome is known as the blue ink syndrome. Second is the lost key syndrome. Third is the cookie syndrome. Fourth is the been there done that syndrome and fifth, the don’t blame me syndrome. Within my analysis of these key syndromes, I found that the most important ones to tackle first are; the lost key syndrome, cookie syndrome, and don’t blame me syndrome.

The “lost key syndrome” is a key example of how not to operate a retail store location. A key was lost to a glass cabinet that contained electronics and instead of having it repaired or replaced, employees put a sign up stating that nothing can be purchased in this case due to the key being misplaced. How can a company expect consumers to purchase products when they can’t even have access to the items? As of 2005, retail sales were estimated to make up $220 billion of Mexico’s $770 billion GDP. That is roughly 28% of the entire countries GDP and if Wal-Mex plans to capture as much market share as possible, they sure won’t be able to do it if they can’t solve a simple misplaced key issue. Operations are efficient in the USA for Wal-Mart and I highly doubt this would ever happen in that market. Next is the “cookie syndrome”. In this case, a manager had not replaced some high-priced cookies with a lower-priced equivalent that had enjoyed much better sales. He left the high-priced cookies in place on a prominent end cap because his superior had asked him to.…...

Similar Documents

Wal-Mart

...Walton family who own a 48% stake in Walmart.[4][5] It is also one of the world's most valuable companies.[6] The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business.[7] It also owns and operates the Sam's Club retail warehouses in North America.[8][9] Walmart has 8,500 stores in 15 countries, under 55 different names.[10] The company operates under the Walmart name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Walmart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, whereas ventures in Germany and South Korea were unsuccessful....

Words: 279 - Pages: 2

Walmart Organizational Structure

...according to the Forbes Global 2000 for that year.[6] The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered in Bentonville, Arkansas, is the largest majority private employer[7] and the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business.[8] It also owns and operates the Sam's Club retail warehouses in North America. Wal-Mart has 8,500 stores in 15 countries, with 55 different names.[9] The company operates under its own name in the United States, including the 50 states. It also operates under its own name in Puerto Rico. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda Wal-Mart" in some branches), in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Wal-Mart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. CEO Mike Duke Chairman of the Board Rob Walton Director James Cash Director Aida Alvarez Director Roger Corbett Director Allen Questrom Director Linda Wolf Director Gregory Penner Director Jim Walton Director Douglas Daft Director Steven......

Words: 297 - Pages: 2

Fianacial Statement Analysis

...controlled by the Walton family, who own a 48 percent stake in Walmart. It is also one of the world's most valuable companies. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51 percent of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. Walmart has 8,500 stores in 15 countries, under 55 different names. The company operates under the Walmart name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Walmart's investments outside North America have had mixed results: its operations in the United Kingdom, South America, and China are highly successful, whereas ventures in Germany and South Korea were unsuccessful....

Words: 961 - Pages: 4

Trabajo Pricing

...servicios complementarios); y D) competidores directos. f) Identificación de los principales problemas de selección adversa (adverse selection) y daño moral (moral hazard) que se presentan en la compañía (extensión sugerida: 2 páginas a renglón cerrado). Algunas de las preguntas que le guían a preparar esta sección son las siguientes: * Explique las características de 5 problemas de selección adversa que enfrenta su organización y, para cada uno, sugiera formas de corregirlos o de reducir sus efectos negativos. * Explique las características de 5 problemas de daño moral (moral hazard) que enfrenta su organización y, para cada uno, sugiera formas de corregirlos o de reducir sus efectos negativos. Empresa: Walmart Mexico (WALMEX) Wal-Mart de Mexico SAB De CV (WALMEXV.MX) Filosofía Walmart de México y Centroamérica es una empresa dedicada al sector comercio. Operamos en seis países: Costa Rica, El Salvador, Guatemala, Honduras, México y Nicaragua. Tenemos una amplia variedad de formatos, que incluyen tiendas de descuento (Bodega Aurrera Express, Despensas Familiares y Palí), supermercados (Superama, Supertiendas Paiz, La Despensa de Don Juan, La Unión y Mas x Menos), bodegas (Bodega Aurrera, Mi Bodega Aurrera y Maxi Bodega), hipermercados (Walmart, Hiper Paiz e Hipermás), clubes de precios con membresías (Sam´s Club y ClubCo), tiendas de ropa (Suburbia), restaurantes (Vips, El Portón y Ragazzi) y Banco Walmart. Gracias a esto tenemos la oportunidad......

Words: 3566 - Pages: 15

A Comparative Study of Walmart

...branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. Walmart is the world’s second largest public corporation, according to the Fortune Global 500 list in 2012 (Fortune 500, 2012). It is also the biggest private employer in the world with over two million employees, and is the largest retailer in the world. However, Walmart remains a family-owned business, as the company is controlled by the Walton family who own a 48% stake in Walmart. The company was founded by Sam Walton in 1962, and was incorporated on October 31, 1969. It is now the largest grocery retailer in the United States. The company operates under the Walmart name in the United States, Walmex in Mexico, Asda in the United Kingdom, Seiyu in Japan and as Best Price in India. It also has wholly owned operations in Argentina, Brazil, and Canada. 3. Walmart and the Canadian Marketplace    Walmart has vast influence on the Canadian political and economic environment, while it is also subject to widespread scrutiny. Walmart first entered Canada in 1994 buying 122 of 142 Woolco stores. Today, the company has 337 stores across Canada, employing over 85,000 full and part-time Canadians. (Walmart, 2012) The company announced a $750 million, 73-store expansion plan in early 2012. A. Country Competitiveness    A large multinational company such as Walmart experiences different opportunities and challenges in the countries in......

Words: 6771 - Pages: 28

Wal-Mart Marketing Mix

...➢ Walmart Tire And Lube Express ➢ Walmart optical ➢ Walmart vacations ➢ Walmart pharmacy ➢ Walmart used and fixture auctions Innovative thinking, leadership through service, and above all, the commitment to saving people money have made Walmart the business they are today and are shaping the company for tomorrow. Global Presence: Wal-Mart Stores, Inc. (Walmart) operates retail stores in various formats globally. Wal-Mart has 8500 stores in 15 countries, with 55 different names. The Company operates in three segments: the Walmart U.S., the Walmart International and the Sam's Club.in the United States, including the 50 states. It also operates under its own name in Puerto Rico. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda Wal-Mart" in some branches), in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. During the fiscal year ended January 31, 2013 (fiscal 2013), its Walmart U.S. segment accounted for approximately 59% of its net sales and operated retail stores in various formats in all 50 states in the United States and Puerto Rico, as well as Walmart's online retail operations, walmart.com. Its Walmart International segment consists of retail operations in 26 countries. In fiscal 2013, this segment generated approximately 29% of its net sales. The Walmart International segment includes a range of formats of retail stores, restaurants, Sam's Clubs and......

Words: 1266 - Pages: 6

Regression Analysis

...everything including food, medication, clothing, and even electronics. Customers admire value this company because of the wonderful customer service and its low prices that make all of the products affordable. Business Background Walmart is the largest retailing company located in the world. Having operating stores with over 100,000,000 customers per week, Walmart earns over $400 billion dollars per year. Walmart has over 2,000,000 employees within over 11,000 stores. These stores are located in over 27 countries. Some of these countries include the United States, China, and Uganda. In the United States alone there are over 5,000 Walmart brand stores. Within the different countries, the company of Walmart operates under 55 different names. Walmex, ASDA, Best Price, and Seiyu are all in the Walmart family. Walmart began as a five and dime store founded by Sam Walton. The five and dime store became greatly successful; however Sam Walton visioned bigger dreams. Sam Walton wanted to support his customers by helping them to save by lowering his prices. The first Walmart was then opened in 1962 in Rogers, Arkansas. After the opening of Walmart, there were other stores that were brought into the family like Walmart Supercenter and Sam’s Club. Description of Literature “Quantitative research design is the standard experimental method of most scientific disciplines (Shuttleworth, 2008).” Also known as true science, quantitative research uses math Running Head:......

Words: 796 - Pages: 4

Walmart’s Expansion in Africa: a New Exploration Strategy

...available in the stores. As the initial step, Walmart aim to expand their business, they decided to concentrate on neighboring countries like Mexico, Canada, Brazil and Argentina during the 90s through joint venture, acquisition or subsidiary. Walmart entered Mexico as the first international expansion through joint venture with Grupo Cifra SA 3 de CV (Cifra) and was called in short Walmex. After a span of 6 years with clear understanding of Mexico market, Walmart acquired a majority stake in Cifra and consolidated its position. Walmex soon promoted its retail activities in Mexico. Walmart implemented its low price model in Mexico, and concentrated in urban area. Though it faced initial hurdles from local purchasers, Walmex was successful to attract and retain its customers through daily discount strategy and offer different retail formats catering to different class of customers and different products that had demand in Mexico. While the banking business was not successful in for Walmart in the US, it turned out to be successful in Mexico. In October 2010, Walmex operated 1,578 units across Mexico. In 1994, Walmart entered Canada market by acquiring the local retail chain Woolco, and that times Woolco were in financial crunches and had high operating costs. As the Mexico, US and Canadian Market are similar the expansion turned out to be very successful. Walmart further expanded to Brazil and Argentina in 1995 with a joint venture together with......

Words: 1756 - Pages: 8

Globalization and Hrm Strategies

...employer within the United States and one of the largest in Canada. In 2010, international sales were over one-hundred billion dollars. Canadian Wal-Mart supercenters opened in 2006 in Hamilton, London and Aurora, Ontario and in 1997, Wal-Mart took over the supermarket chain in German. However, Wal-Mart withdrew from Germany due to substantial loss because numerous companies used a low price strategy so no advantage was seen. Wal-Mart’s corporate culture was also not seen well among employees and customers in Germany locations. German culture did not agree with the Walmart’s ethical statement that there were to be no relationships among employees. Wal-Mart also has several locations in China and Japan but is known as other names such as Walmex and Seiyu. Wal-Mart’s investments within the United States, United Kingdom, South America, have been extremely successful; however, business in Germany and South Korea was not mainly due to differences between cultures. Analyze the international business strategy and discuss specific human resources requirements The international business strategy for Wal-Mart is very similar to the U S strategy. Every organization will establish business strategies that are designed to support their mission, vision and values, and achieve goals specific to their market, business and industry. Business leaders who take the time to analyze and understand their market, industry and the external environment can develop strategies that are most......

Words: 930 - Pages: 4

Walmart Analysis

...“Wally-World”, is said to serve at a rate of about 200 million times per week at more than 9,029 retail units under 60 different banners in 15 countries. Wal-Mart currently employees an estimated 2.1 million associates worldwide and continues to grow. A leader in sustainability, corporate patronage and employment opportunity, Wal-Mart ranked in the top ten among retailers in Fortune Magazine’s 2010 Most Admired Companies survey. [ (About Us, 2010) ] In 2010, Wal-Mart was named the largest public corporation by revenue. The company was founded by Sam Walton in 1962. Wal-Mart is headquartered in Bentonville, Arkansas, they are also known as the largest grocery retailer in the U. S. Internationally, Wal-Mart operates under different names. Mexico as Walmex, United Kingdom as Asda, Japan as Seiyu, and India as Best Price. Wal-Mart has high-volume relationships with several companies whose success depends on its association with the retailer. For instance, twenty-eight percent of Dial Corporation’s business comes from its affiliation with Wal-Mart. Other large suppliers include Revlon, Proctor & Gamble, Kraft Foods, General Mills and Kellogg’s. These companies sell more than twelve percent of its product through Wal-Mart. [ (Adam, 2008) ] Wal-Mart’s ultimately goal is to keep prices low and the customers satisfied, and it expects their suppliers to do the same. The push for low prices has caused affects on a global economic scale. In order to keep up with Wal-Mart’s......

Words: 1501 - Pages: 7

Walmart

...is also among the biggest private employer in the world with over 2 million employees, and is the largest company in the world. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Wal-Mart is also the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. Wal-Mart has 8,500 stores in 15 countries, under 55 different names. The company operates under its own name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex , in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Wal-Mart’s investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, whereas ventures in Germany and South Korea were unsuccessful. Operating divisions Wal-Mart’s operations are organized into three divisions: Wal-Mart Stores U.S., Sam’s pub and Wal-Mart International. The company does business in nine different retail formats: supper centers, food and drugs, general merchandise stores, bodegas (small markets), cash and carry stores, membership warehouse clubs, apparel stores, soft discounts stores and......

Words: 1867 - Pages: 8

Wal-Mart

...Student: Thong Nguyen ID : 863621 Case study. WAL-MART Store, Inc. I. Summary. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Wal-Mart is also the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business.[4] It also owns and operates the Sam's Club retail warehouses in North America. Walmart has 8,500 stores in 15 countries, under 55 different names. The company operates under its own name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Walmart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, whereas ventures in Germany and South Korea were unsuccessful. Wal-Mart is one of the world’s leading retailers, but there are many competitions with other retailers such as: Target, Kmart and convenience stores. But the strategy of Walmart is lower prices, better variety and good quality, it’s one of the factors to satisfy customer needs. Customer is the most important factor for success of the company. II. Question. 1. Should Walmart sell more......

Words: 711 - Pages: 3

Walmart Financial

...Overview Wal-Mart Stores, Inc. (NYSE: WMT), is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. The company founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972 is headquartered in Bentonville, Arkansas. Wal-Mart is also the largest grocery retailer in the United States. Wal-Mart has 8,500 stores in 15 countries, under 55 different names. The company operates under its own name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Wal-Mart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, whereas ventures in Germany and South Korea were unsuccessful (Zimmerman, 2010). Wal-Mart's operations are organized into three divisions: Wal-Mart Stores U.S., Sam’s Club and Wal-Mart International. Wal-Mart stores come in one of three traditional formats: Supercenters average about 185,000 square feet in size and carry general merchandise and include a supermarket. Discount stores average approximately 108,000 square feet in size and carry a wide assortment of general. Neighborhood stores are usually about 42,000 square feet in size and carry a limited assortment of......

Words: 492 - Pages: 2

Wal Mart

...a family-owned business, as the company is controlled by the Walton family who own a 48% stake in Walmart.[4][5] The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business.[6] It also owns and operates the Sam's Club retail warehouses in North America.[7][8] Walmart has 8,500 stores in 15 countries, under 55 different names.[9] The company operates under the Walmart name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Walmart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, whereas ventures in Germany and South Korea were unsuccessful...

Words: 275 - Pages: 2

Walmart

...earn less than men and hold fewer managerial positions. ENVIRONMENTAL ISSUES: in 2001, the environment protection agency and justice department fined walmart for violating newly adopted standards for storm water runoff. In 2004, walmart faced fines fines for violations of environmental laws in nine states and paid the government $400,000 to settle claims that it had violated air pollution regulations in eleven states. It was also fined in Georgia for allowing polluted storm water to run into states waters and in Florida for failing to adhere to safety restrictions on petroleum storage at its auto service centers. Currently walmart is under investigation for ignoring hazardous waste laws in several states. BRIBERY: Walmart’s Mexican arm, Walmex, stands accused of greasing local officials’ palms over several years to speed the granting of permits to open new stores. WORKPLACE DISCRIMINATION:Millions of women have been discriminated against in terms of pay and promotion at Wal-Mart stores. Walmart promoted fewer women than men, and fewer women than its competitors did....

Words: 522 - Pages: 3