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Effects Of Globalization On Wal Mart


Wal-Mart has been termed as the poster child of globalization as it has been impacted by changes brought about by globalization at all degrees of its expansion. However the success of Wal-Mart can be attributed to its commercial culture, deeply organised values, philosophies and management expertise, additionally it is true that the business has been hugely influenced by the makes of globalization in the forty years of its procedures. Wal-Mart is not only the biggest retailer of the world; it would be ranked at par with Saudi Arabia if it possessed an overall economy of its own. 19% of Wal-Mart's sales result from its international functions, and a Wal-Mart stores opens up every 38 hours. This mother nature of expansion and Wal-Martization of the world would not have been possible minus the makes of globalization securely helping out the retail large at every step. This could not have been possible minus the economic liberalization, improvements in transport, technology, supply chain and logistics. This would also not have been possible without outsourcing to low-cost countries. Therefore, the success of The Wal-Mart Empire has been credited to globalization, and in this newspaper we explore how globalization has effected Wal-Mart, and exactly how it offers helped to deliver the promises of 'each day low prices' to millions of customers around the world.


I wish to extend my very best gratitude to all those who helped in the making of this article. I am thankful to all or any, whose work has formed the literature of this report.

I am grateful to my instructor for the continuous support and direction through the making of the article and throughout the course. I am fortunate and blessed, for the professional direction from my trainer. I devote this report to my instructor whose direction was instrumental in the shaping of the survey and helped me in the execution of my ideas.

Table of Contents



Globalization has enveloped the planet and impacts all facets of life today. Before we unveiling into the effects of globalization on an organization, let us determine what globalization is, within an economic context.

Globalization is the transformation towards a borderless world, where countrywide and regional limitations seem to have been removed, and the planet has become a global village. This has been facilitated by the advancements in information and communication technology. This allows a greater motion of goods, people, capital and other resources across countrywide edges with extreme simplicity, as never experienced before. The nations are engaging in economic and politics integrations, like the E. U whereby all obstacles to trade and investment have been reduced between your member countries. We may say that the economies and businesses have grown to be integrated in a worldwide network. The US Economic and Social Commission for European Asia make reference to globalization as the reduction and removal of obstacles between national borders in order to accomplish the circulation of goods, capital, services and labor.

Globalization has endemic and significant impacts on the world economy. Whether it is the job market segments or the professional sector, all attended under the collapse of globalization. A country now produce matching to appropriate factor endowments and looks forward to economies of other countries. World production is better in open economies than when the economies engage in protectionism. Today we've worldwide production marketplaces with consumers access both local and foreign products. You will discover greater resources of funds available with the emergence of worldwide financial markets. Health facilities have become a common commodity and criteria of living are enhancing in general. Globalization is even impacting the entire world politics. Thus, we see that globalization has quite definitely affected the economic dynamics of marketplaces in businesses. However, we limit the scope of the dissertation to the effects of globalization on a specific organization i. e. Wal-Mart.

Globalization is the intensifying expansion and get spread around of any business, beyond borders in respect to changing intense federal and technology guidelines amendments in the overdue part of the 20th century. It has lead to as much intense amendments in the goals and strategic ideas of companies in the U. S. as well as far away. Although all entities understand that we are just in the beginning of what seems to be a transformational time from that which we were to what we can and will become. Inside the latter area of the 20th century we had perception in what Freidrich Hayek (1988) referred to as the prolonged order, that set of traditions and proven principles constituting the heart and soul and breath of the socioeconomic setup. The "setup" conveyed to multinational companies what these were in a position to do and what they would not do and made their global push look legitimate. The design of the model is a good one in that, they have lead to amazing progress in the strengthening companies in the West and now they have started to be put in place in the East. However, it includes its defects one, people who defend it must carry out the beauty that hard competition has, individualism among consumers, and ethics involved with usage of goods by consumers. Regardless of how much value they could have -and their value is alot-they are difficult to digest.

By enough time the century finished, voices were being elevated on the streets, it was being comprehended that some things were wrong. Some said that the existing paradigm was unfair; others thought that it caused the instability. It had been perceived as something of any hazard to the autonomy of an individual and identity considered collectively. Its requirements were that folks rely on calculation instead of persona with each other in all dealings. It was doing no good to the earth. Almost all of the criticism was not prepared, but it was collecting across the five basic areas of justice, order, virtue, sovereignty and personal information. Regarding to Karl Polanyi (1989) in THE FANTASTIC Change (1944), the society's market as we've come to know it, where the functions of the market is involved with social habit, only surfaced in the 19th century. Before that, syndication and development were ruled by ratios of affiliation and reciprocity instead of economical exchanges where there is only self-interest. Before the start of 19th century people supposedly made food, goods, and services in a reflexive response to social values which had the requirements of such tendencies and in fear of becoming cultural outcasts, if they didn't. They did not are present in horizontal buyer with retailer relationships however in 'vertical" systems in the culture where the elite class loved allegiance from the classes below and gifted benevolence by the circulation of goods and food. As the model by Polanyi's evidently showed that marketplaces which have been overstated and exchanged have been around the globe for a long time-he suggested an excellent world, which earlier thinkers and poets were much taken up to.

Goldsmith (1996) spoken of the disappearing of the "old" and traditional order, when a highly organized, steady agricultural system offered the gift of your "happy" rather than "splendid" land. This semi-paradise, in his point of view, was rapidly decomposing, partially as a result of globalization of production as products from "all around the globe" made local companies walk out business.

Whatever the truth was to the village model of world, it started to deteriorate in the 19th century, and replaced by what Hayek referred to as the "extended order". Although an individual is genetically made for tribalism such as villages and its own certain unchangeable webs of norms and allegiances that are in charge of regulating creation and circulation, Hayek offered the arguments that individuals would go for a splendid, wealthy life instead of a happy yet poor life if indeed they can acquire it, plus they attended to the realization they can achieve it by sticking to learned values together with competitive action, property rights defense, investment and deposition of capital, and the always increasing dynamics of business beyond edges. This style of the paradigm financially as learned and converted into an organization was based on the 18th-century writings of Bernard Mandeville and was at sharp contrast recover of Adam Smith, who gave the argument that individuals are obviously willing towards market exchange tendencies which stands to be changed by a fellow's thoughts and inclinations of virtue. John Maynard Keynes (1964) added an effective elaboration to the Smithian model by realizing that humans also have an all natural tendency when planning on taking risks, led by an inclination towards keen optimistic methods. The naturalist attitude of Smith and Keynes paved the way for administration interventions to keep human inclinations from pondering off into inefficiencies or abnormal outcomes. Since nothing at all can alter human nature, a little of government disturbance would be harmless.

The Smith-Keynes model was effective in the middle of the 20th century, but by the finish of the so called long order seemed to have acquired. Government's manipulative ideas were considered a preferably avoidable complication to what was already an extremely complicated yet understandable system, and leaders in nations that happen to be producing begged for assist in learning the techniques of the capitalist way, which possessed seemingly lead to advancements in living criteria. However, the greatest flaw in the prolonged order was that it progressed only due to its final results, not its first-time elegance. Among the critics who spoke upon this, John Gray, submit the argument that we must view the market economy "not as a state of natural liberty produced by deregulation, but as a subtle and complex organization, which needs recurrent reform if it is to be maintained in good repair" (Grey, 1998). Here he made Hayek's model stand on its brain, giving the browse the reason that the extended order was well learned and imprinted in the society's corporations, the federal government possessed the to regulate its distressing aspects so that security, democracy, justice and other such appealing things would soften its unattractive parts.

Moreover, Donald McCloskey (1994) in The Rhetoric of Economics (1985) and other such writings of impact collected that the techniques of exchange on the market, is highly recommended a continuous group of discussions in a lifestyle which is communal, filled with emotion and persuasion, interests and ideals, affiliations and computations, and future-oriented patterns driven by traditions. This sort of existence is like that of a village-at least a good-functioning village-where identity and trust rather than expectations of gain usually dominate cost-effective encounters

American companies now find themselves pressed between both past trends and expectations from the future. Among the changes that the firms can expect can be an increased emphasis on the localization of resources predicated on rules of fairness decided democratically, rather than merely being limited to exchange, so that all company can get her scheduled. Advocates of justice like Ralph Nader and market leaders of countless NGOs are choosing the web to demand that economic effects should be "rational" for female staff, small farmers, those dislocated by global trade, indigenous individuals, the impaired, and just about anybody who even marginally fits the description of an "sufferer. " NGO leaders will seek to diversify the idea of private property as the right to dispose off resources, but the right which is constrained by concerns of justice. Thus a person who is the legal possessor of any private property, may be redefined to add abstract things like the ecosystem, a competition, or a specific class. NGOs will demand settlement from MNCs for unfair infringements on those "people's'" property protection under the law. They will also bring forward the claim that personnel in a country are likely to "own" their careers which justice states that another country's staff cannot eliminate careers even because of global trade expansions.

Corporations should now also expect more frequency of critiques regarding the supposed chaos caused by capitalism and asks for a stabler world. This yearning for order is associated in numerous ways with Western european Third Position advocates, Asian Way fans, and radical environmentalists. THE 3RD Position is also referred to as capitalism for welfare, public democracy, and the market of the cultural market. Individuals who supporter it want control on competition which is disorderly and labor markets, more inclusive models of corporate governance, reduction in the claims a firm can make on the autonomy of an employee, and a focus on employee's tenure of a job and high salary supported by intensive skills training financed by high taxes. Since the troubles of this system will probably dampen on technology, corporate revenue strategies of many companies may be forced to focus more on efficiency gains rather than development of services.

The Asian Way, again guided in the ages in the very near future, by the reemergence of Japanese ideas. As soon as Japan emerges from its current financial problems, it will stress paternalism and immersing employees within different commercial methods of supposedly communal and secure existence. They'll then turn to the government, seeking and getting support for techniques to keep prices high through regulatory routines and restrictions on enforcement of competition laws and regulations. As in the past, a rhetoric devoted to the theme of "orderly marketplaces" will attempt to persuade the general public that American-style models are destabilizing and asocial.

Globalization unites to form a strong relationship of legitimateness, concerns and morality for the amelioration of individuals. Multinational companies are functioning in elements of the globe need to work hard to get a better position. It requires extensive attempts and commitment in whatever they do. First they necessitate factor so people know about them and the next thing is acknowledgement for his or her business. Growth of belongings and organization management brings about expansion of capitalism that needs to deal with huge giants like the earth trade firm and International economic fund because they are a support for the free trade ideas. The effect of globalization results free trade and one currency where they can easily work things for common interest and it brings an overall better effect while talking about the economy. It is a period for MNCs showing their devotion and adapt themselves to the business enterprise environment of the country where they are simply operating. The largest example in this respect is set by IBM. It really is an American company but it appears as it is nationwide company of Japan. It's the result of thorough analysis of the culture, procedures and devising regulations that are aligned with certain requirements of country they can be functioning in. The charter of multinationals is different as they are partially independent and they belong to relationship of the countries where they may be operating. These are no more watched by stringent governance that made them do what that they had to by going into different boundaries other than their parent or guardian company where first it started its businesses.

Multinationals are facing multiple issues in the current situation. Economic paradigm is in favor of them as it gives them a chance to increase their business. There are several amendments in the internal structure of the business as both worker and the employers do the task in a unified form with America and the country where they are simply operating. Labor was exploited for the sake of own interest and tackling with humans was always a problem. In 20th century many conflicts of ideas contradicted one another. The economical theory needed work as free time fun and pleasure for future years. The management theory will take work as a response or response or an overall output. It refuses to take it as an operation or input. Both theories failed to gratify as they lacked unacceptable meanings and were imperfect. As per (Robert Dubin, 1976) he says it isn't sufficient content and more needs to be achieved while talking about the Global Employee Management Techniques of Multinational companies. To be able to participate in globalization these theories have to be modified and redesigned as they don't fulfill human resource conduct. Global growth is also an integral characteristic; the best plan is to expand and take companies to such locations where the workforce does not have any problem in participating the office and award them recognition because of their work.

The final band of order enthusiasists would be the Steady-State Way advocates among radical environmentalists. For the kids globalization and economical growth constitute threats to the natural order. A global citizen must be brought into being to aid the ecosystem's protection under the law over specific or country privileges, and "ecological commerce" must be recognized. This will involve proposals for heavy taxes to penalize nonconserving companies and also to support NGOs advocating the precautionary principle (in the absence of data on dangers, doing there is nothing much better than doing something) of risk management.

In a lot more just, secure world needed by critics of the extended order, a virtue ethics will be proclaimed for multinational corporations. This will not require remarkable changes, at least in lip service, generally in most societies, but the utilitarian ethics that burdened American business during the 20th century should come under strong strike. As People in the usa are starting to reassert the demand of the Puritan Compromise that the business enterprise system develop and compensation individual figure and moral depth, and they will be joined somewhat by Europeans, Asians, as well as others uncomfortable with the current American practice of determining what's right and good as the consequence of a benefits-minus-costs computation. Moreover, a return to virtue ethics in the United States-the ethics of the Founders-may solve the situation People in the usa will face as they globalize: a communitarian, bought world of Global Villagers does not have any place in it for individualist autonomy-seekers endlessly determining costs and benefits and starting "greater good" decisions that leave a good deal of destabilizing, community-threatening "smaller good" wreckage in their wakes. Us citizens focused on virtuous business procedures stressing individual prudence, courage, dignity, diligence, and a admiration for what most people can agree on as the right and good will never be considered (because they are now) as valued but troublesome associates of the global polity, no subject how much they discuss of autonomy and liberty.

The people at labor force demand employment description where their jobs are well defined and where they can get remuneration because of their standard of are people do nothing like uncertain decisions. A lot of people act adverse when they are reminded again and again by their managers. Such models also have failed to meet their Negro brothers from obtaining significant results. As these models do not suit the people more recently and not even in history. Thus it results chaos and communal assault of work. Many voices are elevated to establish social and business institutes that can work for betterment of the relationship between company and his employees. Westerners want forwards for the betterment and the above explained model has all things which they desire for. Non traditional western people do not have much expectation since they are not operational and useful.

The subject matter of everyone's attention is to manage the workforce throughout the world. Employees not only want pay and want their boss to steer them. In addition to that they prefer to enjoy the work and the grade of life their administrator can give them. Encouragement at work is must and extensively work must be done in this regard. The process

Work bonuses and stimuli to evoke enthusiastic effort will be needed, because they are now, in the globalized work area, but greater emphasis should be located on process issues. In many jobs employees will expect creative and challenging jobs fostering "flow" conditions in which workers experience a highly pleasurable sense of timelessness. Where possible, furthermore, the frantic focus on change, so common today, can be muted, offering way to timeless rituals of toil and social engagement in the workplace. For both highly skilled and unskilled workers, then, the successful 21st century work place, whether it be in New Jersey or Bali, will be-or ought to be-a more steady, ordered place where people will feel secure in their specific and interpersonal identities yet comfortable in their employer's manifest recognition of their common humanity and its concerns. We thus ought to see globalization driven by multinationals as a way of evoking order by minimizing instability associated with mass migrations. Since most U. S. businesses for one reason or another have a tendency to be, with some lapses, free from corrupt practices and treat their personnel fairly, we ought to see them as fostering virtue and justice. And since these companies plan people as individuals yet are exquisitely very sensitive to community and culture issues, we ought to associate the U. S. -led march of global capitalism with autonomy and id. Every one of the things the Town model advocates want-order, justice, virtue, and identity-already are coming along quite very well. Emerson suggested that a world of business would advance into a commerce plus world, and it's really happening. We all should be offering three rousing cheers for the prolonged order.

Reason for choosing Wal-Mart

"Running a business, there may be big and there is Wal-Mart" (Business Week, 2003). Wal-Mart indeed is a 'Cathedral of Consumption' like McDonalds, Coca-Cola, Walt Disney or Apple, and looks forward to unprecedented levels of global success.

Charles Fishman in his book 'The Wal-Mart result' explains how Wal-Mart is not just a store, an enormous company or a happening any more. It really is so huge that this details lives of billions of individuals across the world. Wal-Mart is increasing its international reach, and creating its stores in several countries. Wal-Mart not only influences its suppliers and customers, but also the lives of the personnel and economies of the countries where they track down. 'Wal-Mart reaches around the globe, shaping the task and the lives of men and women who make gadgets in China, or increase salmon in Chile, or sew tee shirts in Bangladesh, even though they may have never visited a Wal-Mart store in their lives'(Fishman, 2006). Therefore, Wal-Mart is a company, which includes truly been affected by globalization around the world.

Wal-Mart is so big that its wide ranging influence details global businesses, local neighborhoods, inflation rates, wages etc. The reason of choosing Wal-Mart as a business effected by globalization is the absolute scope and period of its functions:

Wal-Mart is the world's most significant retailer with net sales of $405billion in 2010 2010.

Wal-Mart uses over 2. 1million associates worldwide

Wal-Mart has 8500 stores in over 55 countries which include Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom.

Retailers go global

Advances in technology, logistics, information and communication systems and trade and financial liberalization add towards globalization. However the frenzy towards globalization in the retail industry is overpowering. The world will not seem big enough to accommodate the enlargement of merchants such as Wal-Mart, who are building gigantic stores worldwide at first class speeds. As we shop around ourselves, we find retailers going global. Justin and Carla( 1995) so rightly identify it, " Struck the sights in Mexico City, and you'll find great museums, hip nightclubs, and the world's major Wal-Mart, with from tortillas to Pop-Tarts. Catch a journey with English Airways this summer, and you'll find a virtual store in your seat's interactive, satellite-linked gaming console, ready to sell you the material of stores like Harrods right there and then if you've got cheap aplenty. Just east of Shanghai's harbor, japan retailer Yaohan programs to welcome one million consumers each weekend to the most significant shopping mall in Asia, the 21-report Nextage Shanghai Tower".

Advancements in transportation, logistics and ICT with the bringing down economic obstacles has armed stores such as Wal-Mart to exceed their saturated home market segments and project across borders to create stores wherever there exists demand from customers and market has potential. The quest of Wal-Mart's mega spree into the globalization also started with the same factors. However, Wal-Mart was quick enough to help make the most of all the opportunities the marketplace shown it with, which proactive approach combined by the pushes of globalization managed to get the incredible business it is today. Actually, Wal-Mart capitalized on these advances and technologies to achieve incredible growth in the 1980s, progress which occurred prior to its global sourcing of suppliers (Clark and Irwin, 2006). Wal-Mart is synonymous with the lowest prices in the retail industry. Wal-Mart can achieve this because of its cost and functional efficiencies by managing their supply string effectively by using computer aided syndication and logistics system which is strengthened by the causes of globalization. This way Wal-Mart can pass on the price savings to consumers in the form of affordable prices.

Wal-Mart - initiator and device of globalization

The impact of Wal-Mart over America's culture alone has been huge. Wal-Mart is a source of globalization not only in the us, but also in every the countries where it has businesses.

The spheres of influence of Wal-Mart are monetary (affecting local, regional and countrywide economies), societal (structuring of the labor force and effect on consumer spending and purchase behavior) and politics (impacting local and community level techniques). Wal-Mart, itself also has to use in the same environment it has created for itself which in turn reinforces globalization.

Wal-Mart indeed is "a powerful image of the monetary and social impact that globalization can have on countrywide, community and person identities ".

Wherever Wal-Mart is situated, be it suburbia to urban America, towns, towns or countries- all have observed social and economical changes, and the accelerated tempo of globalization that Wal-Mart brings with its operations. Wal-Mart creates a complete new ecosystem using its operations, which isn't only about the lower prices and the significant volume of products which it sells, but also about markets, preferences, economics, career, suppliers, collaborators, infrastructure etc.

The strategies followed by Wal-Mart through 1960's to 1980's which were fuelled by the individuals of globalization not only revolutionized the global retail industry, but also made Wal-Mart what it is today- an undisputed market head in the retail industry. Embracing Wal-Mart into their midst has given communities occupations and income.

Sam Walton's strategies for Wal-Mart include :

"Locating stores in towns of significantly less than 25, 000 people, where little comprehensive retail competition existed

Extensive use of information technologies to connect to manufacturers and reduce distribution costs.

Locating stores near its circulation centers and Bentonville, AK head office.

Saturating the rural discount retail market within the close radius to its distribution centers before starting new warehouses.

Entering metropolitan and suburban markets located in stressed out, low income areas with low-cost, easily available real real estate.

Targeting low to middle income earners as its consumer platform, leading to the segmentation of the client market to avoid competition with service-oriented suppliers.

Offering its ''associates'' a profit-sharing program to offset the limited benefits and career range of motion opportunities that its sales staff receives"

Therefore Wal-Mart is using one side a symbol of economic progress, but on the other side additionally it is a push that in-filters the economic, social and political notions of people in locations where Wal-Mart locates.

Wal-Mart and Globalization

Positive ramifications of Globalization on Wal-Mart

Wal-Mart today isn't only the biggest shop of the world, but also one of the largest businesses of the world. Its International procedures were only available in 1991 and encompass Wal-Mart discount stores in Canada and Puerto Rico; Wal-Mart Supercenters in Argentina, Brazil, China, Germany, Mexico, Puerto Rico, South Korea, and the United Kingdom; and Sam's Night clubs in Brazil, China, Mexico, and Puerto Rico. In Mexico, Wal-Mart also manages Bodegas discount stores, Suburbias specialty shops, Superamas supermarkets, and Vips restaurants. Furthermore, the company operates Todo Dias supermarkets in Brazil, Community Marketplaces supermarkets in China, ASDA merged grocery and clothes stores in britain, and Amigo supermarkets in Puerto Rico. Wal-Mart also keeps a 36 percent stake within the Seiyu, Ltd. , a respected Japanese retailer. In every, more than one-quarter of Wal-Mart's stores are located outside the United States, and international procedures make about 18. 5 percent of total revenues.

Wal-Mart truly is the poster child for corporate and business globalization. The complete Wal-Mart Empire's international success can be contributed to the globalization forces.

Supply Chains

Economic globalization and improvements in it are in the crux of Wal-Mart's logistics and offer chain that have revolutionized the retail industry. Wal-Mart has been successful in changing the nature of bargaining ability that it loves over its suppliers and manufacturers. The Wal-Mart's strategy of each day low prices hinges on importing goods from low-wage countries like China, and compelling suppliers in North America to achieve operative and cost efficiency to lower costs. Wal-Mart's company viewpoint ('The Wal-Mart Way') is to be at the industry leading of logistics, circulation, travel, and technology. The Wal-Mart business design would are unsuccessful instantly without its advanced technology (Wal-Mart has the greatest IT systems of any private company on earth) and supply chain (Wal-Mart has made significant investments in supply string management). The resource string at Wal-Mart rests on advancements in technology, and being able to procure goods at lower prices from surrounding the world. This is powered by globalization.

Global procurement

Wal-Mart also relies on global procurement as a basis of its cost efficiency. Globalization helps direct purchase of goods from wherever they can be procured from across the world, where they can buy the lowest prices and the very best quality. This of course cannot have been possible by the advancements in ICT and the monetary liberalization. Global Procurement is responsible for overseeing the sourcing of goods from thousands of provider factories worldwide

Outsourcing by Wal-Mart


"Wal-Mart's vitality and affect are awesomeBy determining how to exploit two powerful causes that converged in the 1990s--the climb of information and the explosion of the global economy--Wal-Mart has significantly changed the balance of power in the wonderful world of business. Retailers are now stronger than manufacturers, and they're forcing the decision to move production offshore. "

80% of Wal-Mart's global suppliers are located in China. "From the beginning, Walton experienced bought goods wherever he could get them cheapest, with every other considerations supplementary Increasingly searched to imports, that have been usually cheaper because manufacturing plant workers were paid so significantly less in China. " From toys and games to apparels to household goods, most of the Wal-Mart's products are either made in China, or have Chinese components in them.


Wal-Mart has its sight on India following the currency re-evaluation issues with China, which could make producing goods in China costlier. Apparels from India constitute 30% of sourcing from India and its likely to go up even more. Andrew Tsuei, Walmart's vice-president and handling director Global procurement elaborates that, "Cheaper uncooked material and availability of trims allow Indian companies to reduce production lead time, which is important to the retail industry. " Therefore, a lot of development may switch to India in the approaching years.

With China's higher duty on exports and Yuan revaluation, the Chinese textile suppliers to Wal-Mart have already relocated to India for creation. Wal-Mart itself buys $1billion worth of goods from India. Not merely the Chinese language, but also suppliers from Singapore and Midsection East are opting to shift creation to India. Vice-president and taking care of director of Global Procurement, Wal-Mart Stores, Andrew Tsuei said that the removal of textile quotas has made India more competitive in clothing and textile creation.

It is clear that Wal-Mart depends closely on outsourcing to low cost countries such as China, India and Bangladesh. It is also true that without such considerable outsourcing to these countries, Wal-Mart would not have had the opportunity to accomplish its promises of 'every day low prices' by simply working from the U. S. Such dynamics of global operations would not have been possible without globalization driving a vehicle the business completely.


Technology is another force which has contributed greatly towards Wal-Mart's success which include implementation of bar-coding, posting information with suppliers and associates, just-in-time inventory management and RFID technology. Technology has also helped Wal-Mart stay innovative in international market segments as well like the use of PhotoBooks in Canada.

Lowering trade barriers

One important feature of globalization remains the minimizing of trade obstacles and protectionist policies which allows an easy movement of goods and services between countries. Most of the goods sold at Wal-Mart stores across the world are produced in China.

Globalization - two edges of the same gold coin?

Implications from Wal-Mart's expansions

While in one perspective, globalization affects the business, additionally it is true that huge organizations such as Wal-Mart become motorists of globalization. Although such motorists are mostly pleasant by local areas as they bring huge monetary and social benefits with them, they sometimes may need to face amount of resistance from the local people who wish to protect their culture. This is so because, large organizations such as Wal-Mart and their corporate and business culture come as a storm, and blow away the ideals organised by the locals.

Globalization does not have any doubt enveloped the planet we reside in, and touches all areas of our lives from the daily information to the brands we shop. All over, things make us aware that the globe indeed has shrunk to become global village. Influences of globalization do serve to delocalize local communities which want to hold onto their local identities. Wal-Mart has also met with pushes in its enlargement which are in head-on opposition to the changes globalization bring with them.

But globalization is a sensation which can't be stopped. Whatever obstacles that the countries built against it, it is going to seep in. And countries who make an effort to stop globalization and its influences will be at the dropping end. However, my point here's to focus on that companies as large as Wal-Mart are also met with resistance and their growth and progress, although fueled by globalization and its pushes, is not smooth sailing for them each time. Basically, the resistance isn't only towards Wal-Mart, but also towards globalization in an attempt to stop these makes from invading the local cultures.

As it has been so rightly said, "(We) can't stop it. In the event that you stop it, if you try and withdraw from it, try and put up edges, try and conceal from it, it's going to continue without you. Either you want to be in it and become together with it or it'll become bigger than you are ".

Two cases identified below will highlight examples of Colchester, Connecticut and China. One where local resistance avoided Wal-Mart from establishing itself, and another where Wal-Mart was required to tailor its ways of adapt to the neighborhood culture.

Colchester, Connecticut

Colchester, 'where tradition meets tomorrow' is a New England town teeming with maintained cultures and colors. The city was characterized by traditional 'mother and pop' stores and the proposed beginning of Wal-Mart compelled the individuals to ponder after their vision of the city, and how it could be retained within an period of globalization. Wal-Mart of course does not fit into the 'rural and historic' image. In order to stave off criticism and familiarize the residents of Colchester along with the Wal-Mart Supercenter concept, Wal-Mart representatives decided ''the best way to head off any gossips or speculation was to bring Wal-Mart to the residents of Colchester ''. Benefits (which range from increased tax revenue, the creation greater than 300 new careers for the town of Colchester, and the availability of outstanding consumer beliefs) were layed out for Colchester residents through videos, handouts, open public informational conferences, telephoning polling, and pep rallies. Wal-Mart representatives made extensive efforts to market its commercial views by web host a pro-Wal-Mart rally where the design plans for the new building were unveiled and type from local residents was inspired.

Local companies and oppositions launched a mass protest against Wal-Mart's ideas of locating in the city. The local people were torn between their passions in the issue from the role of different stakeholders: taxpayers, consumers and guardians of the ethnic heritage of the city. As the city had been isolated from the consequences of financial globalization, they were unaware of the potential political and monetary changes that Wal-Mart could bring with it. In all, the Wal-Mart starting was annulled by the opposition. This shows the issue of people torn between protecting the local and choosing the makes of globalization.

Glocalization in China

Globalization is not only the cutting down of trade barriers and economic liberalization. In addition, it identifies the relationship of different cultures. One particular example is the Wal-Mart's attempt to tailor its ways of mesh up with the Chinese culture where we see an amalgamation of the global and the local, where Wal-Mart contained the components of Chinese culture into its products and/or services.

This is a perfect example to comprehend the globalization process as understanding and adaption of cultural differences can be an inherent area of the globalization process. Moreover, China is the quickest growing market of the world and a host to most of the biggest companies of the world. Most companies have to tailor their strategies most for Chinese language culture when compared to other parts of the world.

The case of China and Wal-Mart provides new dimension to conversation of the global and the local which we refer to as 'glocalization'. A portmanteau of the words 'globalization' and 'localization', glocalization constitutes the interaction of the global and the neighborhood (Andrews & Ritzer, 2007), a conflation of the global and the neighborhood (de Nuve, 2007; Swyngedouw, 1997), the dynamics of ethnic homogenization and heterogenization (Eric, 2007), and the co-optation of both universalizing and particularizing tendencies (Robertson, 1994). So, glocalization refers to a culture that is both global and local at the same time (Ingleby, 2006).

China is the fastest growing market of the world with 170 places and over 1. 3 billion inhabitants. China is one country where Wal-Mart has as big a opportunity that it looks forward to in the United States. Currently, Wal-Mart functions lots of store forms in China including Supercenters, Sam's Golf clubs, and Neighborhood Markets. By August 5, 2010, Wal-Mart got 189 systems in 101 cities, and created over 50, 000 job opportunities across China (Wal-Mart global website). China offers Wal-Mart an usage of an enormous market which is already powered by cost efficiencies. Wal-Mart imports around 7000 categories of U. S goods into China, which allows the Chinese language consumers to enjoy the same variety and quality of goods at Wal-Mart stores as their U. S counterparts. Wal-Mart knows that to be able to prosper in a market as big as China it has to adapt to the local worth and gain a thorough knowledge of the Chinese language shopping patterns. . It isn't just a process of adapting to improve and adopting new strategies of managing across civilizations; it is also a process of accepting dissimilarities (Wang, Zhang & Goodfellow, 2003).

The glocalization of Wal-Mart in China encompass

the glocalization of Wal-Mart shopping practices

the glocalization of Wal-Mart products

the acquiescence of the store to the Communist Get together of China-supported trade unions

the version to local employees' values

Wal-Mart's retailtainment in China- fusion of retail and entertainment

Wal-Mart can offer its everyday low prices to the Chinese language consumers with different store formats, rack heights, layout strategies, wider aisles etc. Since Chinese customers shop on a regular basis because of their inclination of fresh food, and also choose smaller deals because of limited places in their vehicles or storages does not mean Wal-Mart must let go of its distinctive competence in China. It could continue steadily to cash its competencies and provide the Chinese consumers with inexpensive goods even if indeed they sell the same goods in smaller deals. Wal-Mart has also made modifications as it is aware of that Chinese likes are at a stark contrast with remaining world. Chinese people usually eat fish, plus they judgemental for selecting from live sea food rather than frozen products. China is the one country where Wal-Mart allows it employees to be members of trade unions as a result of workforces' acquiescence to trade unions. Retailtainment initiatives not only provide customers, but also the employees with entertainment opportunities combined with the shopping at retail stores. For instance, Wal-Marts in China offer space for local university groups to give performances and daily activities for the Chinese older. Wal-Mart in China has fashion shows and karaoke get-togethers, jugglers beyond your store, roping in purchasers to provide them a far more interesting shopping experience, as well as local party troupes and traditional Chinese entertainment functions that feature performers (Matusitz and Leanza, 2009). Therefore, we see that Wal-Mart goes with the true soul of globalization, by not only Wal-Martizing the areas it operates in, but also glocalization for the neighborhood cultures.


Wal-Mart is a genuine example of a corporation being influenced by and effecting the area of globalization. It stands both at the acquiring and the initiating end of globalization. It is a company which has built its global empire based on globalization. The motorists of globalization have taken Wal-Mart international i. e. advances in ICT, source chains and logistics and financial liberalization. Wal-Mart, subsequently has put together globalization and its own culture and businesses in the countries it operates. Wal-Mart's glocalization is in true spirit the substance of globalization by adjusting and adapting to the neighborhood cultures. Wal-Mart has learned that the globalization can be localized to match the needs of the time and location. "Truly, a good knowledge of local conditions may assure success in virtually any overseas markets. It really is a success predicated on the sort of overall flexibility that Wal-Mart has recently exemplified; the necessity of going native. Out of this vantage point, global competitive advantages is accomplished not only through economies of scale and range, but also through relocation, social adaptation, and adaptation to local conditions" (Matusitz and Leanza, 2009). Wal-Mart has shown that globalization for the company is not only 'Wal-Martization' of the world, but also the respect for both local prices and global strategies, with the theme of self-concepts, representations and lifestyles reigning supreme.

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