BUS 499 Grantham University Week 4 Culture Exchange and Marketing Strategy Paper Project Part 2: Cultural Exchange and Marketing Strategy
Assignment Requirements:
Now that you have your approved idea for the project it is time to begin the second part of the project, which builds on Project Part 1. Using the same company of choice that is proposing an expansion opportunity overseas, conduct research on the country. Specifically focus on the culture and cultural exchange. For the culture, review the web site http://geert-hofstede.com/ to compare the cultural differences between the countries. Identify the cultural differences and consider the cultural exchange. In addition, research and choose the best distributions method: Product/Market, Pricing, and Positioning.
Identify the following:
Cultural differences
Cultural exchange
Distribution Methods
Submission Requirements:
Submit a two- to three-page Word document using 12-pt. font and APA format
references must be found in the Grantham University online library. Only the body of the paper will count toward the word requirement. Please see attachment on part 1 Running head: BUSINESS PROPOSAL
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Business Proposal
Sarah B. Howard
Grantham University
24 May 2020
BUSINESS PROPOSAL
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Walmart is a United States company that will seek an expansion opportunity in the near
future, to an overseas area of choice. Most companies seek to expand internationally for the
reason that they want to expand their operations. As it is with the case of Walmart, the company
aims to expand for a number of reasons. The different objectives should yield different strategies,
forms of market participation, and performance goals, at the time of entry. The benefits of
expanding and being part of international markets include competing for new sales, generating
additional revenue, recruiting new talent, diversifying, seeking investment opportunities,
reducing costs, among others. Walmart’s decision to expand overseas is a strategy that is
influenced by several factors and normally executed over time. From time to time, a government
might incentivize corporations to enter their nation’s market aiming at building their economies
(Coetzee et al., 2020).
Walmart seeks to expand its operations in South Africa. While the company operates in
more than fourteen nations, it has no branches in Africa. Walmart has used several approaches in
other countries such as opening supercenters in Brazil and China and purchasing stakes from
existing retailers in El Salvador and Chile. This time, however, the company seeks to use a new
mode of entry; purchasing foreign assets. Walmart bids for a well-known company, Massmart to
expand into Africa. Instead of initiating an entirely new venture in South Africa, the company
will secure an existing business establishment in the country (Gunning, 2018). While this is often
considered to be costly, direct investments will allow Walmart to reap the profits of Massmart,
which is a company that has already integrated into South Africa’s local market. According to a
Walmart executive, South Africa offers a captivating growth prospect for Walmart. It presents a
huge platform for the development and expansion of the company in other African states.
BUSINESS PROPOSAL
Walmart conducted an initial analysis of the reasons to enter into a new market place
with the aim to provide a growth opportunity for the company. To begin with, the main agenda
was increasing sales. Since the company is already succeeding in the United States, expanding
overseas will most likely improve its overall revenue. Almost 96 percent of the global populace
does not live in the United States. Ninety percent of the same does not speak in English. This
issue suggests consumers are global, and if a company looks beyond the boundaries of a local
market, it might have some significant upside potential (Gunning, 2018). In addition, Walmart
seeks to increase its revenue.
According to (Coetzee et al., 2020), numerous overseas markets do not present the same
competition index as it is in the United States. It is for that reason that price pressures are
dramatically less. Short-term and long-term security are additional advantages. Walmart will be
less vulnerable to the periodic downturns and fluctuations in the United States marketplace and
economy. The United States is a huge mature marketplace with high competition from its
domestic as well as foreign competitors. Also, the country has too much capacity, so, overseas
trade is essential for a company to keep up with the increasingly global market and enjoy the
possibility of saving on costs.
Walmart anticipates growth opportunities as well in South Africa. This growth will be
achieved by increasing their innovation. By means of extending their consumer base
internationally, a company will have the capability to invest in new product development
(Coetzee et al., 2020). Besides, Walmart’s management will have exclusive an marketplace
know-how about foreign consumer prospects and market scenarios that are still unknown to
other companies. In short, growth of an organization not only considered financial motives, but
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BUSINESS PROPOSAL
also learning. Walmart’s expansion in an overseas market will present many learning
opportunities that will be utilized for formulating future business operations.
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BUSINESS PROPOSAL
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References
Coetzee, Z., Bezuidenhout, H., & Mhonyera, G. (2020). Effective strategies followed by
multinational enterprises expanding into Africa. Journal of Economic and Financial
Sciences, 13(1), 12.
Gunning, J. W. (2018). Trade Shocks in Developing Countries: Volume 1: Africa. Group, 1, 1.
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