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Case Study: Walmart In China

Case Study: Walmart In China. Alexandria Ryan. History on Walmart in the U.S. Walmart, founded by Sam Walton in 1962, is one of the most profitable retailers in the United States. The first Walmart opened up on July 2, 1962 in Rogers, Arkansas.

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Case Study: Walmart In China

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  1. Case Study: Walmart In China Alexandria Ryan

  2. History on Walmart in the U.S. Walmart, founded by Sam Walton in 1962, is one of the most profitable retailers in the United States. The first Walmart opened up on July 2, 1962 in Rogers, Arkansas. By 1967, the Walton family owned 24 stores, with 12.7 million dollars in sales. In 1970 Walmart had gone national and became a publicly traded company where their first stock was $16.50 per share Finally in 1996, Wal-Mart opened its first stores in China

  3. 10 Rules for Building a Better Business • Commit to your business • Share your profits with associates, and treat them as partners • Motivate your partners • Communicate with your partners • Appreciate associates, and what they do for the business • Celebrate your success • Listen to everyone in your company • Exceed customer expectations • Control your expenses better than your competition • And lastly, swim upstream

  4. Walmart Stores in China Walmart in China began in 1996, with the opening of a Supercenter in Shenzhen Walmart currently has 433 stores in China Walmart is planning to open up 115 new stores by 2017, which will be in bigger more popular areas like, Shanghai, Shenzhen, and Wuhan Walmart China believes in Local Sourcing, and they have established partnerships with more that 7,000 suppliers in China

  5. Shopping at Walmart in China vs. United States Shopping at Walmart in China is completely different From what we are used to. Walmart China stores include: • People picking up raw meat with bare hands, unpackaged. • Extreme crowds • No “bulk” items • Alligator meat • Fish, Frogs, Turtles (to eat)

  6. 2014 Recall on Donkey Meat! In 2014, There was a recall on Donkey meat in some outlets in China, after DNA tests showed that the product contained DNA of other animals Also in 2011, Walmart China was fined for selling duck meat past expiration date. -Closure of 13 stores and dozens of employees suspended.

  7. Walmart China Price Discrepancies -A report in 2016 addressed that store in China Continued to make “Bulk” Sales which are usually unprofitable and without authorization of management -Booked many sales without any merchandise leaving the shelves. -Inventory Issues, storage rooms becoming more and more full -2010, inventory was 12.3% higher than in 2009, addition of warehouses across the country. -Inventory growing faster than products being sold.

  8. Walmart China’s major Competitors -Shanghai Bailan Group Co. Ltd -Sunning Appliances Chain Store group Co. Ltd. -Beijing Wangfujing Department store -Dailan Dashing Group Co. Ltd. -Carrefour One of Walmart in China's major problem is that they did not adapt to the “Chinese way” they stuck with the “American way”.

  9. Walmart is committed to helping Chinese people live a better life • Women Economic empowerment-increase gender diversity, empower women through education and jobs. • Children’s Food Safety: Improvement of healthy growth of Chinese Children, • Sustainability and Community: Energy saving, Sustainable consumption, environmental protection.

  10. Walmart’s Chinese Employment -Walmart China has around 100,000 Associates working for them. -Walmart Wages and benefits have been dropping lower and lower dramatically. -Walmart’s salary packages were being outrun by inflation and minimum wage. -Denying workers overtime even if they worked an excessive amount of hours. -2016 strike against flexible scheduling system. -Only good parts about working at Walmart seemed to be that they would pay you on time and never late, and that they were strict about health and safety regulations. -Walmart employees working full-time would make roughly around $25 to $28 per week.

  11. Chief Executive Officer of Walmart China Dirk Van den Berghe -Former CEO of Walmart in Canada. -Credited with strengthening Walmart in Canada’s food business - Holds a Ph.D in Economics and speaks many different languages. -Working towards improving e-Commerce solutions for online purchasing. -Move faster to improve overall customer service. -”well-positioned” from previous roles in Asia and Japan with knowledge of retail business.

  12. Walmart’s Awards From China -In 2010, they earned best corporate award of China by the Chinese Red Cross. -China’s Women Charity award by All-China Women’s Federation and China Women’s Development Foundations. - Best Retail place to work and retail innovation award. -China best employer enterprise by International Human Resource Association.

  13. China at a Glance Total retail units=433 Walmart Supercenter=398 Trust-mart hypermarket=18 Sam’s Club=15 Neighborhood market=2 Smart Choice=0

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