A Critical Analysis on Wal-Marts Failure in Germany Essay Example for Free

A Critical Analysis on Wal-Marts Failure in Germany Essay After eight unprofitable years, Wal-Mart backed out of Germany in July 2006 and sold the entire retails outlets to Metro AG. After dominating the US market for quite a long time, Wal-Mart expanded its market to Germany in 1997. In 1997 Wal-Mart continued its strategy of globalization, and acquired two German retail chains for $1. 6 billion. After eight unprofitable years, Wal-Mart backed out of Germany in July 2006 and sold the entire retails outlets to Metro AG. The Essay examines why Wall-mart was a big failure in its international operations in Germany on a Cross-culture perspective. Inadaptability and ignorance f local culture can become a big problem in global business, even for a Corporate giant like Wal-Mart with proven success formulas. Being number one in the United States does not always guarantee for being number one elsewhere in the world. It is very important to understand the pulse of the local market and culture of the clients exactly and should make strategies accordingly and exactly that is where Wal-Mart went wrong in Germany. COMPANY PROFILE Wal-Mart Stores, Inc. s the largest retailer in the world, the worlds second-largest operates retail stores in various retailing formats in all 50 states in the United States. The Companys mass merchandising operations serve its customers primarily through the operation of three segments. The Wal-Mart Stores segment includes its discount stores, Supercenters, and Neighborhood Markets in the United States. The Sams club segment includes the warehouse membership clubs in the United States. The Companys subsidiar y, McLane Company, Inc. rovides products and distribution services to retail industry and institutional foodservice customers. Wal-Mart serves customers and members more than 200 million times per week at more than 8,416 retail units under 53 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Wal-Mart employs more than 2. 1 million associates worldwide. Nearly 75% of its stores are in the United States (Wal-Mart International Operations, 2004), but Wal-Mart is expanding internationally. The Group is engaged in the operations of retail stores located in all 50 states of the United States, Argentina, Brazil, Canada, Japan, Puerto Rico and the United Kingdom, Central America, Chile, Mexico,lndia and China Wal-Marts entry and operation in Germany Wal-Marts initial entry into German market was through the acquisitions of renowned 21 store Wertkauf chain for an estimated $1. 4 billion in December 1997. 1t was followed one year later by the acquisition of In-terspars 74 hypermarkets from Spar Handels AG, the German unit of the French Intermarch © Group , for ‚ ¬560 million. Thus Wal-Mart immediately became the countrys fourth biggest operator of hypermarkets. However, with a turnover of around ‚ ¬2. 9 billion, and a stagnating market share of Just 1. 1 per cent, the US giant still was a negligible one in the German retail market. Even worse, with estimated accumulated losses of more than ‚ ¬ 1 billion, it is literally drowning in red ink although, according to Wal-Mart Germanys CEO, Kay Hafner, its non food assortment, which accounts for around 50 per cent of its revenues, is profitable.. Instead of expanding its network of stores by 50 units by early 2001 , as originally planned, the company has been forced to close two big outlets, while at the same time it was only able to fully remodel three locations into its flagship Super center format. Due to its problems the company also had to lay off around 1. 000 staff. On July 2006,Wal-Mart announced its official defeat in Germany and would sell its 85 German stores to the rival supermarket chain Metro and would ook a pre-tax loss of about $1 billion (E536million) on the failed venture. A Critical Analysis of Reasons for Wal-Marts failure in Germany: There were several factors that contributed to Germanys unsuccessful business ride. Amazing management blunders have plagued Wal-Marts German operation from the very start.. Wal-Marts major mistakes on the German market may be summarized as follows. Cultural Insensitivity was the major reason of failure Entry to German market by acquisition strategy, Failure to deliver on its legendary every-day low prices and excellent service alue proposition. ? Bad Publicity about the company due to breaking of some prevailing German law In January 1997, Wal-Mart had first entry in Europe market with the acquisition of Wertkauf hypermarkets in Germany. Later in that year, Wal-Mart also acquired Interspar, another German hypermarket chain.. While its first move the 1997 takeover of the 21 Wertkaufstores was indeed a shrewd one, given that companys excellent earnings, its competitive locations, and its very capable management. Wal- Marts 1998 follow-updeal with Spar for 74 hypermarkets was widely Judged an ill- nformed, ill-advised act, for several reasons: Spar is considered to be the weakest player on the German market due to its mostly run-down stores, very heterogeneous in size and format, with the majority of them located in less well-off inner-city residential areas. Wal-Marts cultural insensitivity led to its failure in Germany. This Study focuses only on the flaws made by the Wal-Mart in its International operations in Germany from a Cross-cultural Managements perspective. Wal-Marts failure in Germany- A Case of cultural insensitivity: Most of the Global mergers and acquisitions failed to produce any benefit for the shareholders or educed value, which was mainly due to the lack of intercultural competence. Lack of sensitivity and understanding of language barriers, local traditions, consumer behavior, merchandising, and employment practices irreversibly damaged Wal-Marts image in Germany. One of the main reasons that failed Wal-Mart in Germany is when it attempted to transport the companys unique culture and retailing concept to the new country. The top management refused to even acknowledge the differences in customer behavior and culture in Germany when compared to its US customers, and the top management failed to listen to the feedback from its employees. Not every new cross- border retailer can be a retail giant outer its home. The mistake of exporting its culture wholesale, rather than adapting to local market, leads Wal-Mart failed in Germany market. Wal-Marts ambitions to position itself profitably in European markets through Germany have been hit badly by their inability to fully understand and to adapt to the specific conditions of doing business in other countries. This exposed their obvious lack of intercultural competence and management skills. The main challenge of post-merger integration is further complicated significantly if it is in a Cross- order Merger or acquisition, with all issues frequently being compounded by a lack of language and culture bridging skills. Failure to accomplish this task satisfactorily, results in mutual distrust, de-motivation and negatively impacts the merged companies competitiveness, profits and shareholder value. This is exactly what happened to Wal-Mart Germany. Following are the main two factors that Contributed to the Wal-Marts unsuccessful efforts in Germany: 1)Specific Difference in German Consumer behavior and Culture in comparison with US consumers: and impose an American boss on its German operations. Wal-Mart stores are esigned for customers who are willing to spend lot of time shopping. But in Germany, the shopping hours are shorter: Shops close by 5 PM on weekdays, and no shopping on Sundays. This meant that customers dont have the habit of spending lots of time in a store wandering around for the things they need. Coupled with this problem, German customers do not like to be assisted by Wal-Marts friendly store assistants. Germans prefer to do their own search for bargains. Instead of understanding and adjusting to the culture of its clients, Wal-Mart tried to impose their Culture on to the Customers, which never worked out. Germans like to see the advertised discount products upfront without having to ask the store assistant. This implies that the discount products must be placed at the eye level. Instead Wal-Mart chose to use its US style merchandise display strategy where premium priced products are kept at eye level and discount products are kept at higher shelf or in the bottom racks. This irritated the German shoppers. Wal-Mart also got its store inventory wrong, Wal-Mart stocked its store with clothes, hardware, electronics and other non-food products were given much bigger floor space than ood products, as a result more than 50% of the revenue was from non-food products. But other German retailers stock more of food products. For example for Metro, food products constitute more than 75% of the revenue. Germans prefer to bag groceries themselves into reusable carriers, or at least to pay a small fee for the avoidable sin of needing a plastic bag. Germans are introvert in nature and doesnt like display of emotion in public, as they always care for their private personal space. Employees, like the reserved customers, didnt care for Wal-Marts public displays of corporate moral such as the morning heer. The German Customers even didnt liked to be accompanied by the Cheerful employees either, as they would like to make choices by themselves. These are cultural misunderstandings as well, but one could say the cultural philosophy of Wal- Mart could not survive in the context of a German culture with a Happy Planet Index significantly higher than Americas 2)lnefficient Top Management which ignored the relevance of local Culture: It was clear that the cultural insensitivity of Wal-Mart started right at the top management. To begin with, it appointed four CEOs during its first four years of peration. The first head of German operations was Rob Tiarks ,an expat from the USA who did not understand Germany or its culture. He had previously supervised around 200 Supercenters in America. Not only did he not speak any German. Due to his unwillingness to learn the language ,English was soon decreed as the official company language at the management level. He also ignores the complexities and the legal framework of the German retail market, ignoring any strategic advice presented to him by former Wertkauf executives . This has resulted in the resignation nsuccessful in integrating German Outlets with the Wal-Marts Business model and culture. Suggestions and Recommendations: Cross-border, Cross-cultural business is a challenge even for the biggest companies. Companies have to be sensitive to the local cultures and tailor their offerings to local market. To localize their offerings, Wal-Mart and other Companies that are going global companies must carry out cultural assessment of the Citizens of the Country before acquisitions. All their Corporate Business and Communication strategies should be based on this cultural assessment. This will help companies measure the ffectiveness of its localization efforts and make adequate changes in local strategy ; tactics as and when required. Considering the following steps would help Wal-Mart or any other Company while they are on lookout of Global alliance or business. 1)Political, Social, Economic and Cultural Analysis of the Country Before expanding its business operations to a new country, the Company should understand the Political, Social, Economic and cultural aspects of the Country in depth. Wal-Marts case, Germany was selected primarily because of a central European location and economic attractiveness of the Wertkauf acquisition. But a serious research would have shown that Germany had strong national values resistant to change; possibly the most deeply rooted retail traditions in Western Europe. This could have avoided either Wal-Marts selection of the Country or the strategies it has adopted in Germany. 2)Go global and think they are local After conducting an in depth research about the prevailing trends in the customers Country, the Company should be ready to modify its own identity to suit itself to the cultural differences without compromising much on its Corporate Mission. This step will also force organizations to clearly define globalization goals. Wal-Mart put the company name on many German stores before being fully established. Immediately, the run down stores left an impression on consumers who formed a negative image of the Wal-Mart name. 3)Employment of Cross-cultural Management approaches like Hampden-Turner and Trompanaars Analysis: Employement of Hofsteds Culture Dimensions or HT;T Analysis will help Companies in understanding the minute cultural differences between the countries. For example, Communitarianism over Individualism Germans degree of communitarianism is on the higher side mainly because Germans prefer participating on a team. Most Germans see business as a group of related persons working together. But, most of Americans see their company as a set of difference in Cultural dimensions between the 2 countries has resulted in inside management conflict among the employees, which also resulted in resignation of efficient German executives from Wal-Mart post integration. Understanding the cultural dimensions of a Country through proven Cross-culture models will always help a company to formulate a specific approach that will encourage team spirit and joy among the Global Team. 4)Continuous Updation of Strategies to successfully ithstand the local competition It is very important for a Global firm to continuously analyse the impact of their various strategies on the local market. Understand the shortfalls, and modify it in such a way as to cater the local market in a much better way than the competitors. It is always better to scrutinize the strategies adopted by them with a panel of Local experts, as they will be having a better picture about the local consuming behavior and culture. Perceptions do matter a lot, So a surveys to find the customers perception about the company will also help them to change their trategies accordingly. Conclusion: Even though Wall-Mart was the Biggest of the companies, while going Global understanding the culture of customers, employees of the new Country is very critical for the success. The achievement in the U. S. market cannot always guarantee that Wal-Mart will also success in anywhere else. Companies need to understand the local culture in order to capitalize on the local market. The lessons learned from Wal- Marts experience in Germany, can be applied by other retailers who are planning to go global for expanding its market.. If the worlds largest retailer had taken the time o analyze the German mindset, it could have avoided a very painful lesson when Germans rejected Wal-Marts American-style which was highly successful in home country.

Rites Of Passage :: essays research papers fc

Rites of Passage When an individual experiences movement, or a change from an affixed position in society to another position, that individual can easily describe their change as a passage into a new realm of living. A new realm of living is the way in which the individual and society views, acknowledges, and proceeds with their life. Their changes are monumental not only for the individual, but for his/her society as well. Many changes take place during the span of a persons life. They become rites of passage and rituals of initiation-which are more than just simple changes. A plethora of come with these rites and are found in all corners of the globe. Going on vision quests, by the plains Indians of North America, to circumcision by certain Australian cultures, rites of passage present a vast table of religious comparisons(Eliade, p. 287-88). This essay will examine two rites of initiation, by comparing and contrasting their importance to each culture, and discussing how that importance affects that particular individual as well as their society. Finally, the essay will explore possible reasons as to why these initiation rites hold a deep meaning in their respective societies. The Kurnai of Australia have an initiation rite for the sons of married men in their perspective villages. Within a section by A. W. Howitt, in Eliade's book, From Primitives to Zen: A thematic Sourcebook of the History of Religions , a ceremony known as the "Showing the Grandfather" is described(Eliade, p. 288) In this initiation the Kurnai have a formal way of bringing a man's son into the highest, and most secret realm of their religion. By incorporating the use of the father and son relationship, this particular ritual involves the revelation of the central meaning, or "mystery" of their religion. The men and women are separated. Secrecy is one the most important traditions in this initiation. The initiation is not revealed to the women, or anyone else not of their society. The sons, or "novices" as Howitt calls them, are taught the proper religious traditions that they need to know for the ceremony, and for the rest of their lives, as this initiation will conclude their step into religious righteousness, and manhood. This all takes place the day before the ceremony, while other men, who have already been through the ceremony, prepare by hunting for food and arranging a site, not too far from the village, where the initiation will take place. The next morning, a new day at hand, the novices are taken to the site at which time the ceremony commences.

Gary Mckinnon Report

Professional Practice Ethical Case Study for Part 2 Gary McKinnon Introduction This report discusses about ethical issues that has been quoted from the Guardian â€Å"the biggest military computer hack of all time. † Gary McKinnon a Systems administrator from Glasgow; born 10 February 1966 who is suffering Asperger’s Syndrome and has been blamed upon of hacking into the United States Government computer systems. He presumably â€Å"states that he was merely looking for evidence of a UFO cover-up, the suppression of Free Energy, and other technologies potentially useful to the public. However the damages have resulted from this incident cost more than $800,000 of the Military and NASA’s computer security. This all first began in 1983 when Gary went to go to his local cinema to watch the movie WarGames, about a whiz kid who had hacked into the Pentagon, from an interview with Jon Ronson; The Guardian, Gary said that from this movie he did not mean it to actually c ome true, and had a thought in mind that he would work for the department of defence or NASA, on the other hand this is not the case for Gary’s case.Between the years 2001 and 2002 Gary McKinnon was arrested under the Computer Misuse Act in the UK just after the 9/11, and got bail by 2005. During that year the US government had started the â€Å"extradition proceedings,† Gary would face up to 70 years jail in the US, which would of exceeded to be sent to Guantanamo Bay, yet comparing the US punishment towards the UK it is considerably less. This case is still active, and McKinnon’s mother has prevented extradition from a long campaign.This report will look further in detail of what has been discussed above, as well as: * Gary’s Supporters/Appeal * Issues on his Disability * Damages on the US security These are the Ethical Issues which I think that should be discussed about Gary McKinnon’s case. Ethical Issues Surrounding Gary Mckinnon On August 200 8 Gary McKinnon’s Legal team settled on yet another appeal, this then lead onto finding out the fact that Gary McKinnon was diagnosed with Asperger’s Syndrome, but before the appeal Gary’s legal team made sure that the appeal would be granted first.Asperger’s Syndrome’s symptoms can come across â€Å"repetitive patterns of behaviour and interests,† and I think that this can clash against what has been mentioned before about the movie that Gary had seen when he was 17 about the whiz kid that hacked into the Pentagon. This may have affected Gary’s thoughts and even quoted from an interview â€Å"I didn’t mean it to actually come true. † From his interests and curiosity of UFO’s and other aspects, I do not think that anyone expected the result from all that has happened.Gary McKinnon was accused of hacking into 97 different NASA and the United States computers in the years 2001 and 2002, he had used the name ‘S olo’ and had additionally got accused of hacking into various networks that was used by US Army, Navy, Air Force, Department of defence and NASA. In the USA Gary McKinnon currently have up to 20 charges which include: * Obtaining USA Top Secret Documents * Intentionally damaging Computer protection software’s * Interfering with maritime navigation equipment * Stealing computer files * Deleting critical computer files * Deleting Navy Weapons logsThe list that is shown above is just a few out of the damage that Gary caused USA. With all this that has been accused upon Gary McKinnon, he denied of causing any damage arguing against his search of UFO information. However he did admit that he left a threat on one computer, this referred to how useless the USA computer security was especially after the 9/11 attacks, he will carry on disrupting at high levels. His statement represented his belief that the 9/11 attacks was an inside job. What Gary attempted to prove was that on ce you’re on the network called ‘NetStat’, this would list the connections to that system of the US army/NASA etc.And Gary was not alone; there had been hackers from Italy, Denmark, Turkey, Thailand and more doing the same as Gary. Hackers from all over the world were just simply going through files without any of the military realising. He had been doing this for more than 5 to 7 years just looking through files until the day that he got caught. Gary had been through many unfair trials such as McKinnon Vs United States 2008 which the defendant disputed â€Å"that the plea bargain constituted ‘unlawful pressure’ and had amounted to an abuse of process†.This case was then dismissed because the case was not proven enough to oppose extradition. On the other hand with another case in 2009 McKinnon Vs Secretary of State of Home Affairs it was discovered that Gary is suffering Asperger’s Syndrome and he claimed that it would clash against the European Convention on Human Rights. The Outcome There have been many supporters for Gary McKinnon, with websites, and even grown to be supported by the National Autistic Society and Liberty, this campaign that is been running by groups of people would hopefully end the extradition.There are groups online from Facebook, Twitter many web forums to show that the public believe that he should not be extradited. More with cross party politicians supporting and ‘high profile individuals’ such as Stephen Fry and Jonathan Ross. To get more people to support Gary, a petition had been arisen to support him to stop his extradition before it is too late. With the entire case in hand, the two countries have come across a huge disagreement, the US is simply wanting the extradition to take place so that Gary McKinnon can get up to 70 years in prison, with the UK trials 70 years is undoubtedly not close to that number.But without finding out that he has suffered Asperger’s Syn drome, for the people who have supported Gary McKinnon has said that he is â€Å"less blameworthy for his crimes†¦ does not necessarily mean that he can distinguish right from wrong. † There are still many questions for Gary and the future, Will Gary McKinnon’s Asperger’s Syndrome get worse and end up change his sentencing? Should people with mental disabilities be treated differently under our legal system? Conclusion For different people there are different opinions about Gary’s entire case, many people found him guilty as they seen him as deleting and intruding on mportant files from the US. Others had and still are supporting him to prevent him from getting extradition. What is the case with Gary McKinnon till this day? Currently Gary would have to face an extradition case during May 2010 just after the general election for the UK; this would mean that after the election this would leave a new government which could possibly lead into Gary McKinn on’s favour, in support of Gary; the opposition ‘Tories’ have tabled against UK-US extraditions.Also Gary’s mother ‘Janis Sharp’ has announced her candidacy to stand against ‘Jack Straw’ former Labour Home Secretary and current Minister in Blackburn (Lancashire) but confusingly Jack Straw is the least person to blame for the situation that Gary is in, he was the foreign secretary with the UK government who which negotiated with the US government that resulted in the Extradition Act 2003. Personal ReflectionWhen I first went through this case study, I was surprised and shocked in the situation that Gary McKinnon was in, I had never heard of this even though it was all over the international news and had a huge effect on the US government. With my initial thoughts I was against Gary McKinnon that he had hacked into the US and deleted important files and I immediately thought that he would be sent to prison. However I read on with th e case study that was given, researched on his situation and his court cases and then realised that this was a two way condition with arguments from two countries, whether he should have to face extradition or not.I had read on the Guardian with an interview with Gary from Jon Ronson and read along the lines that he did not mean to delete any files; it was just a matter of researching his quest of finding information on UFO’s. Then in the Wikipedia information it stated that he did admit on showing a threat referring that the US Governments security was not safe at all and many people had hacked in it many times from all over the world.With my thoughts I would support Gary McKinnon, there are many people from around the world that are hacking into the US Army, Navy, Air Force, Department of defence and NASA. With Gary’s case he had been through a lot, with the United States after him, suffering Asperger’s Syndrome and having to trial against the US for up to 7 y ears. I think that it could possibly end for him if the May 2010 British elections go the right way for Gary McKinnon.

Western Apache Language and Culture - Free Essay Example

Sample details Pages: 3 Words: 900 Downloads: 7 Date added: 2019/06/24 Category Culture Essay Level High school Tags: Ethnographic Essay Did you like this example? From what I read, I understood that the Apache people, just like most if not all societies, have an emphasis on using the past to teach future generations to moral lessons using stories, gossip and sagas passed down from ancestors. The Apache language is featured in all these methods of communication. Not only does this help keep the language alive throughout the years, but it also establishes and maintains a stronger bond with their ancestors. Don’t waste time! Our writers will create an original "Western Apache Language and Culture" essay for you Create order When it comes to naming places, the Apache do not take any detail for granted. Descriptive specificity is a common characteristic of place-names (47). The name chosen had to be able to give members of the tribe a clear image that, once spoken, would help them remember the place accurately (12). An example is Tiis Sikhadade meaning a Groove of Cottonwood Trees (16) or Kai?‚b?- ye Bi?‚ Naagozwode meaning Gray Willows Curve Around A Bend; a point on a stream (23). Also, after the name has been given, it continues to hold significant value for later generations because they are words that were spoken directly by their ancestors in their language. They are essentially repeating their speech (10) and as Charles mentioned to Morley, to rush through trying to say the place name or not acknowledge the significance of the name, would be considered disrespectful (10). In addition to all this, the explicit place names in the Apache language, offer evidence of changes in the landscape (13), which can then be used to identify and explain any differences seen in the appearance of the place after many years. They show what is different and what has remained the same (16) For the Apache, history is no farther than ones imagination; it is very near (32). People known as place-makers formulate place-worlds in which the ancestors lived in, to bring history back to life. A place-makers primary objective is to speak the past into being and essentially produce an experience (32) where an apache listener can build a credible image in their heads. Apache constructions of place reach deeply into other cultural spheres, including conceptions of wisdom, notions of morality, politeness and tact in forms of spoken discourse, and certain conventional ways of imagining and interpreting the Apache tribal past (xv) The stories are designed to attempt to instill admirati on and empathy for the ancestors (33) who arrived in a foreign land, identified what would be useful, described areas so that others would know about it and toiled to make an environment capable of sustaining life. Unless of course, what they did was immoral or unethical, in which case their stories served as a lesson of how not to act and showed possible consequences that may occur if you ignore the advice. My opinion of the role of an anthropologist studying another culture would be to watch, listen, be respectful and record everything either in notes or recordings and this corresponds with Basso. During one of the tours Basso took with a place-maker named Charles, and a translator named Morley, he described his role as driving the jeep, providing coffee and Reeses peanut butter cups for Morley and recording everything on paper and audiotapes (10). As for his methods, he differentiated himself from other anthropologists who have ignored the fact that groups of people, like American Indians, maintain complex symbolic relationships with their surroundings, which hold a significant place in their culture (66). As for Bassos main findings, one of them was that historical stories could change peoples ideas about themselves and force them to admit to their poor behavior and concentrate on the significance of it (60). He concluded this when he observed people who were shot by stories (60) and were therefore flooded by a wave of shame and guilt, after which they would analyze their behavior and alter it accordingly. The book was an excellent resource to look into the lives of a group of people that a lot of the American public may not take the time to learn enough about, despite sharing their surroundings. It has also emphasized on the value of learning from the past and not just from generations that are still around, but from the original settlers in a place you may call home, and in this aspect, I can personally relate. Passed down from generation to generation, are the stories, myths or legends that have lessons that can still be applied to today. For example, in Uganda, one legend that is well known is the origin story of one of the largest tribes, the Baganda, featuring a man named Kintu and the various struggles he had to overcome in order to win the hand of the creators daughter, Nambi. In our generation, and some before us, we ignore the advice given to us by our parents and assume we know better. When I was younger, I did this because I did not understand why we had to listen to old st ories, when other cultures did not. I considered it an African thing that was not necessary or applicable. However, as I grew older, this quickly changed and I appreciate books, such as this one, that shows us our history and culture is essential and must be treasured. Wisdom does indeed sit in places and these places are in the minds and words of the people who came before us. REFERENCE PAGE Basso, Keith Hamilton. Wisdom Sits in Places: Landscape and Language among the Western Apache. University of New Mexico Press, 2010.