Jul 26, 2017

How will economic reform in China impact the success of Walmart`s expansion plans?

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The Effect of China`s new Economics Reform to Walmart`s Market Expansion to the Country


Walmart has recently announced plans for expansion to China.  Already a retail giant in the U.S., they now hope to tap into a growing and potentially lucrative new market.  However, such expansion is not without risks.  Doing business in China is a much different environment than doing business in the U.S.  Furthermore the Chinese government has announced plans for a series of ambitious new reforms that add to the level of uncertainty and may change the business environment for international firms.

Case Assignment

Read the following two articles and do some of your own additional research on Walmart and the new enviornment in China:

Roberts, M. (October 24, 2013). Walmart China Expansion Aims to Tap Urbanization, Business Week,http://www.businessweek.com/articles/2013-10-24/walmarts-china-expansion-aims-to-tap-urbanization

Yao, K., Blanchard, B. (November 15, 2013) China unveils boldest reforms in decades, shows Xi in command, Reuters,http://www.reuters.com/article/2013/11/15/us-china-reform-idUSBRE9AE0BL20131115

After researching these issues, write a four to five page paper answering the following question:

How will economic reform in China impact the success of Walmart`s expansion plans?

In your answer, consider the following issues:

A. The risks involved in expanding to China

B. How specific aspects of China`s economic reform will impact the business enviornment that Walmart will face

C. The potential benefit of Walmart`s expansion to China

Helpful Tips:

  • Please first read in-depth the background materials for module 1.
  • Identify key concepts in the background materials write a list,  and study them
  • Read the case in-depth and conduct additional research, if necessary
  • Develop arguments by applying  the concepts of international business from the background materials to Walmart`s expansion plan in China


Case 1 Assignment Expectations

  • Answer the assignment question directly
  • Stay focused on the precise assignment question, don`t go off on tangents or devote a lot of space to general background materials
  • List supporting references and cite sources in proper format

Use appropriate writing style in essay form (organization, grammar, & spelling- see Writing Guidelines)

THE EFFECT OF CHINA’S NEW ECONOMIC REFORMS TO WALMART’S MARKET EXPANSION TO THE COUNTRY Name:Course title:Instructor:Institution:Date Due: Introduction Walmart is the largest grocery retailer in the world established in 1962. Walmart, which is also regarded as the highest valued grocery globally, deals with a broad range of fresh food products. In its initial stages, the Company confined itself in US where it received intense competition from similar firms. The intense competition in the American market mandated the company to think of expanding and look for “greener pastures” in places where competition was not as high. By 1995, the company had already penetrated in 50 states of the U.S. The company decided to venture the global market in 2000 owing to their market saturation in America. As of 2012, Walmart stores were operating in such countries as Costa Rica, Canada, Argentina, El salvado, Honduras, Japan, India, Nicaragua, Puerto Rico, UK, US, Brazil and Chile (Zook, 2012).According to Robert, (2013) Walmart is also focused on entering China market as part of its global expansion strategies. In fact, it has already drawn a plan of adding more than 110 stores in the next three years in order to increase its market base in the country. According to the company’s CEO, Mr. Doug McMillon, this decision was reached after seeing the potential for growth in the country. This according to him, is depicted by a large population, which could in turn provide a huge market base plus the constant economic growth in the country. The purpose of this paper is ...

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