Walmart Cultural Barriers - Assignment Example

These countries contain severe regulations and rules which hinder the company’s operations. Also, its inability to conform to cultural notions of these countries contributes to its operational problems. Introduction Globalization entails pursuing economic activities in a number of regions in the whole world. It incorporates the free movement of services, goods, knowledge and capital, competition, and open markets. Globalization has made the world trade to be more adequate than before. Both international and local companies transverse each other’s markets, as regional organizations enter worldwide markets, international companies trade in local markets.

The ensuing competition among different companies reduces the prices of goods and services, increases the range of services and goods, and enhances the quality of services and goods. Cultural and geographical distances have also decreased significantly due to globalization. Nevertheless, cultural issues have also had an impact on the growth and development of companies (Luthans, 2002). This paper will look at cultural issues in Walmart. Question 1 Walmart is perceived as one of the world’s largest retailers in the globe.

It is also considered to be one of United States of America’s largest nongovernmental employers. . Walmart has a statement of ethics which restricts relations among workers. This matter elicits a public discussion in the German media ensuing into an unpleasant repute for the company among clients. This is because the German culture permits relations between workers and the company does not condone such relations. Also, Walmart holds a supercentre notion. This concept cannot be applied in an area such as Brazil.

This is because many Brazilians have little storages and live in extremely tiny places. The reputation in making large amount of sales does not have a significant effect in Brazil as it does in America. Question 2 The managers have taken different actions so as to overcome these cultural barriers (Luthans, 2002). First, the management has tried to control situations that have not gone well with the locals while at the same time trying not to alienate the clients. For example, in areas where the Walmart greeters who meet the clients at the entrance of the stores have not been appreciated, managers have removed the greeters from the entrances of the stores and given them different roles, such as assisting clients find the commodities they need or advertising services and goods being offered in the store.

Second, managers of Walmart china have employed the supercentres market and neighborhood markets designs that go well with the Chinese culture, thus meeting the requirements of the clients. They have attempted to make the store flexible and give the clients what they need. Third, the company’s management has distributed power from the headquarters to the stores in different parts of the globe. This promotes freedom in the stores, thus making the stores conform to the different cultures. Question 3 There are a