Wal-Mart

Wal-Mart

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Wal-Mart

Introduction

In for multinational companies to have a sustainable profitability as well as to maintain impressive levels of market share internationally , establishment of international branches would be a good venue to realize the said goals (Gogoi 2007 : 1 . In this case , it looks like it is too much easy for these multinational companies to put up their international branches to countries that they want especially if they have all the resources to make the said goal into

reality like capital . But is it really that simple ? Of course it is not , for there are a lot of factors that still has to be considered before successfully establishing new stores into the host country . One of the said possible factors that must be considered would be the political status of the prospect country . When we speak of politics here , it would pertain to the policies of the government of the host country that has an indirect and direct effect on the operation of the business . How ? Well , this will be tackled later on . But for now let us first identify another factor that also affects the operation of this multinational companies into their host country and it is the culture of the country where they wanted to operate

As we all know , consumer behaviour can be traced its roots in the type of culture that they have and in to fully penetrate the market of these consumers , producers must be able to understand how culture affects the consumption behaviour of their target customers as well as on how their culture affects the rate of change of market 's mainstream In short , this is just some kind of predicting the consumption pattern of the target customers and at the same time gives the producers ample data on when and where to launch their product . The fact that multinational companies is new to the market , it would be helpful on their part to know the culture of their target customers to secure the success of their investments in the host country because if not multinational companies would be having a hard time dealing on how to penetrate successfully their target market as well as they will be defeated by the domestic companies that already been operating in the market and established brand loyalty to their customers . In this regard it would be justifiable to say that aside from the economic stability of the host country , multinational companies also has to determine and evaluate the possible effects of the political structure as well as the culture of their host country

As for the scope of this , Wal-Mart will serve as the main character and will represent the entire multinational business community to make the analysis simpler yet scientifically sound and structurally strong . Wal-Mart , as most of us know , is currently the top multinational companies in the world as per volume of profit . Moreover , Wal-Mart has around 6 ,200 facilities around the globe...