Purpose Walmart achieved extraordinary success and growth in its home country before embarking on a strategy of international expansion. While most of Walmart¹s international expansion efforts were successful, the retailer experienced some challenges in Germany and South Korea, exiting both less than ten years after initial entry. In 2016, Walmart announced the closure of 269 stores worldwide. Although most Walmart stores are now outside the USA, the performance of these stores lag their US counterparts. Walmart has not been able to simply export its “Everyday Low Price” approach. It is important to understand cultural differences in the way people shop in addition to understanding the market, economy and laws of various regions around the world. Design/methodology/approach Walmart’s successes and missteps in each country are analyzed. The studies looked at each country’s culture, shopping habits and discuss what worked and what did not in each country. The authors hope that managers planning international expansion will learn from the successes and failures of this giant retailer. Findings Walmart has a significant presence in Mexico, the UK, Brazil, China and Canada. It has been successful in countries where it has adapted the Walmart model to the local market. International expansion for Walmart, along with other retailers, is now being highly impacted by the growth in online shopping. However, the use of technology for shopping is not a homogenous global experience. The increased demand for online retailers suggests that firms slow down (but not stop) brick and mortar international expansion. Practical implications Considering the projected growth in online shopping, retailers with global aspirations need to have a strong and sustainable competitive advantage (e.g. products, operations, marketing and brand name reputation) in addition to a clear internationalization plan. The same factors critical to brick and mortar expansion are applicable to online growth. Having a successful, long-term presence in selected countries requires a clear understanding of each country’s infrastructure, demographics, political and economic systems, in addition to cultural awareness and an understanding of shopping practices. Social implications The growth of online shopping internationally will also fundamentally alter international expansion for Walmart and other retailers. Interestingly, Chinese shoppers may be leading the trend in online shopping, as nearly 65 percent of Chinese shoppers use their mobile phones for online shopping, are more likely to buy from off-shore online retailers and are more likely to use their mobile phones to compare prices than either Canadian or US shoppers (PWC, 2016). Walmart’s recent acquisition of Jet.com is sending a clear signal that brick and mortar shopping is not the only way to expand internationally. Originality/value This original work about Walmart’s growth strategy internationally is unique. This work will be of great value to managers thinking of expanding internationally. The non-embracing of local cultural habits and use of non-local managers is something that can be easily overlooked when thinking of expansion. Serious financial consequences can be easily avoided by being aware of the mistakes that others have made.
PurposeThe purpose of this research is to examine the relationship of perceptions of organizational justice on the ranking of candidates for incentive bonuses and the impact of organizational culture on these perceptions.Design/methodology/approachA questionnaire was developed which asked respondents to rank a set of seven candidates for a sales bonus based on deservingness for the bonus. Descriptions of the candidates included information not only on whether they achieved a pre-established metric for the bonus, but on how they achieved (or failed to achieve) the metric. Hypotheses related compliance with norms of organizational justice, both by candidates and the organization, to candidate rank. The survey was administered to a sample of 204 employees of business organizations at all levels obtained through a survey research firm, as well as a sample of 52 employees of organizations in the Christian publishing industry. Nonparametric statistics were used to analyze the results. A comparison was made between the respondents sourced through the research firm, seen as representing the general population and those from the Christian-oriented group.FindingsHypotheses that respondents will seek to punish violators of justice norms, reward compliers and compensate victims of organizational unfairness were generally supported. More interesting were differences between the groups of respondents from the general population and the group representing Christian-based firms.Originality/valueThis article reveals the impact of organizational culture on the acceptance of incentive systems. The research employed a practitioner survey, rather than more common experimental approach.
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