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MGT101 Principles Of Management For Walmart Company

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  • Course Code: MGT101
  • University: Saudi Electronic University
  • Country: Saudi Arabia

Questions:

Q1. Why do you think it is important to analyse the existing strengths and weaknesses of a business before taking strategic decisions?
Q2. Explain, from Walmart’s point of view, the strengths, weaknesses, opportunities and threats in the case of its expansion in China.
Q3. Explain why it would be important to consider the major differences between China and the USA before going ahead with this expansion.

 

Answer:

A1. Strengths and weaknesses analysis of a business before taking strategic decisions is helpful in identifying and understanding key issues that affect the business. It is equally important to consider the benefits and limitations of conducting strength and weakness analysis. It is beneficial when one does not has much time to address a complex situation. It helps in improving the business without causing expenses of an external consultant. This analysis helps in understanding the business better, deter threats, take advantage of one’s strength, address weaknesses, capitalise on opportunities, and create business goals and strategies to achieve them (QueenslandGoverment, 2017).

A2. Walmart has identified one of its strength as its huge economies of scale for its expansion in china. It also identified its major drawback or weakness as it is being seen mainly as a US retailer. Company discovered that China can provide great opportunities for the retail market as it has the largest population of the world and it is the fastest-growing economy too. From the analysis Walmart identified threats for its business in China is expansion of Carrefour, already a major multinational retailer and has dominated sales in China since years.

A3. It is important to consider the major differences between China and the USA because China’s legal, political, administrative and bureaucratic tasks are different from that of USA. Everything in China is time consuming weather it is opening a bank account, registering a company, or gaining product approval. Other issues also effects the business such as economic factors, social and cultural factors as these decides the demand for certain goods, technological change on retailing practices, and the consumer buying habits (US-PacificRimInternational, 2010).

 

References

QueenslandGoverment. (2017, 07 18). SWOT Analysis. Retrieved from Business qld: https://www.business.qld.gov.au/starting-business/planning/market-customer-research/swot-analysis/benefits-limitations

US-PacificRimInternational. (2010, 12 13). The 5 Biggest Challenges Businesses Face When They Expand To China. Retrieved from Business Insider: https://www.businessinsider.com/the-five-biggest-practical-challenges-for-foreign-smes-in-the-chinese-market-2010-12?IR=T

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