上游充通大 SHANGHAI JIAO TONG UNIVERSITY 供应链设计与管理 Designing and Wanaging the Supply Chain Name: 赵千里 No.: 5087149035 First Report Title: Globalization of Wal-Mart Grade: Second Report Title: The adoption of RFID on the airplane Grade:
供应链设计与管理 Designing and Managing the Supply Chain Name： 赵千里 No. ： 5087149035 First Report Title： Globalization of Wal-Mart Grade： Second Report Title： The adoption of RFID on the airplane Grade：
Globalization of Wal-Mart 1.The incentive for globalization a.The market in America is saturated.Because of "marginal effect", it's much harder to enlarge its portion in American market. b.The rapid development in other countries brings new opportunities in oversea market.Compared with local retailers and supermarkets,Wal-Mart has advantages in many aspects. 2.How to enter a new market? There're many ways to do this.However,correct decisions should be made based on the local circumstances.Here're some aspects which should be contemplated. a.Cultural differences.If the cultural differences is negligible, company acquisition or direct entrance is a good choice. Otherwise,joint venture with local companies is advisable.In the first case,it's a lot easier to copy the model in America,while in the second case joint venture with local companies can save Wal-Mart a large "tuition fee"and reduce the possible risks. b.Maturity of the new market.Because immature market is easier to enter,the decision of direct entrance can be considered.While in mature market,company acquisition and joint venture are
Globalization of Wal-Mart 1. The incentive for globalization a. The market in America is saturated. Because of “marginal effect”, it’s much harder to enlarge its portion in American market. b. The rapid development in other countries brings new opportunities in oversea market. Compared with local retailers and supermarkets, Wal-Mart has advantages in many aspects. 2. How to enter a new market? There’re many ways to do this. However, correct decisions should be made based on the local circumstances. Here’re some aspects which should be contemplated. a. Cultural differences. If the cultural differences is negligible, company acquisition or direct entrance is a good choice. Otherwise, joint venture with local companies is advisable. In the first case, it’s a lot easier to copy the model in America, while in the second case joint venture with local companies can save Wal-Mart a large “tuition fee” and reduce the possible risks. b. Maturity of the new market. Because immature market is easier to enter, the decision of direct entrance can be considered. While in mature market, company acquisition and joint venture are
preferred. c.Perturbations of local politics.Joint venture can provide necessary protections if local situation is not very steady. 3.Incentives of localized operation. a.Reduction in cost. b.Government and political factors.Localization can help Wal-Mart establish good relationships with local government,because Wal-Mart can bring more jobs. c.Local staff can reduce the negative effect of cultural difference. Meanwhile,they can enhance Wal-Mart's local influence and reputation. 4.Localization a.Localization of staff. 1 Localization of managers.Although most senior managers are from America,Wal-Mart is carrying on the localization of managers, because decisions by local managers are more suitable for local situation. 2 Localization of common staffs.Employment of local staffs can reduce the expense of staff wages. b.Localization of public relations. Local staffs have more acquaintances in local society.Besides, they will not be puzzled with problem caused by cultural
preferred. c. Perturbations of local politics. Joint venture can provide necessary protections if local situation is not very steady. 3. Incentives of localized operation. a. Reduction in cost. b. Government and political factors. Localization can help Wal-Mart establish good relationships with local government, because Wal-Mart can bring more jobs. c. Local staff can reduce the negative effect of cultural difference. Meanwhile, they can enhance Wal-Mart’s local influence and reputation. 4. Localization a. Localization of staff. ○1 Localization of managers. Although most senior managers are from America, Wal-Mart is carrying on the localization of managers, because decisions by local managers are more suitable for local situation. ○2 Localization of common staffs. Employment of local staffs can reduce the expense of staff wages. b. Localization of public relations. Local staffs have more acquaintances in local society. Besides, they will not be puzzled with problem caused by cultural
differences.For example,after the Earthquake in Wenchuan( 大地震)，the companies which donate a large sum of money won praise and advocate of the public.But most foreign companies are faced with boycott in China because they didn't donate much money.Carrefour's supermarkets were even smashed by Chinese citizens in some places.Localization can avoid those things by the greatest extent. c.Localization of purchasing. 1Localization of purchasing can reduce costs. 2 Localization of purchasing can be seen as another way of enhancing public relations,and it can help establish good relationships with government and enterprises. d.Localization of operation. Here're two examples."Special counter"cannot be seen in any Wal-Mart outside China,and it's made especially for Chinese customers.Wal-Mart's target customer is individuals in China. While they're more like wholesalers outside China,small retailers and organizations are their major clients. 5.Information technology's influence on globalization Wal-Mart's information system is the greatest in the world.And it's also the first company to use IT to manage inventory.POS,EDI, and RFID made a great contribution to Wal-Mart's development
differences. For example, after the Earthquake in Wenchuan(汶川 大地震), the companies which donate a large sum of money won praise and advocate of the public. But most foreign companies are faced with boycott in China because they didn’t donate much money. Carrefour’s supermarkets were even smashed by Chinese citizens in some places. Localization can avoid those things by the greatest extent. c. Localization of purchasing. ○1 Localization of purchasing can reduce costs. ○2 Localization of purchasing can be seen as another way of enhancing public relations, and it can help establish good relationships with government and enterprises. d. Localization of operation. Here’re two examples. ”Special counter” cannot be seen in any Wal-Mart outside China, and it’s made especially for Chinese customers. Wal-Mart’s target customer is individuals in China. While they’re more like wholesalers outside China, small retailers and organizations are their major clients. 5. Information technology’s influence on globalization Wal-Mart’s information system is the greatest in the world. And it’s also the first company to use IT to manage inventory. POS, EDI, and RFID made a great contribution to Wal-Mart’s development
Wal-Mart even uses commercial satellite to connect its information system across the world.In America,Wal-Mart's suppliers have to connect their information system to Wal-Mart's. It's not difficult to imagine that Wal-Mart's advanced information system will be of great help in its process of globalization.However, in fact,the system's power is greatly hampered in the less developed countries.The level of IT application in these countries is far behind Wal-Mart.As a result,the information Wal-Mart could get from the suppliers is not sufficient.The use of commercial satellite is under close monitor and control in some counties,such as China 6.My opinion on the Wal-Mart's development in China. a.Without any doubt,the market in China has become increasingly important for the transnational corporations. However,many successful foreign companies are defeated in the battle with Chinese companies.For example,Taobao() is widely known in China,while few Chinese have ever bought things on E-bay.So,localization is of most significance in China.Culture in oriental society is quite different. b.Establish good relationship with the government.Chinese government is very powerful and has decisive impact on any aspect in society.Google's failure in China is a good example. c.Flexibility is important.Advanced technology still works in
Wal-Mart even uses commercial satellite to connect its information system across the world. In America, Wal-Mart’s suppliers have to connect their information system to Wal-Mart’s. It’s not difficult to imagine that Wal-Mart’s advanced information system will be of great help in its process of globalization. However, in fact, the system’s power is greatly hampered in the less developed countries. The level of IT application in these countries is far behind Wal-Mart. As a result, the information Wal-Mart could get from the suppliers is not sufficient. The use of commercial satellite is under close monitor and control in some counties, such as China. 6. My opinion on the Wal-Mart’s development in China. a. Without any doubt, the market in China has become increasingly important for the transnational corporations. However, many successful foreign companies are defeated in the battle with Chinese companies. For example, Taobao(淘宝) is widely known in China, while few Chinese have ever bought things on E-bay. So, localization is of most significance in China. Culture in oriental society is quite different. b. Establish good relationship with the government. Chinese government is very powerful and has decisive impact on any aspect in society. Google’s failure in China is a good example. c. Flexibility is important. Advanced technology still works in