Wal-Mart Essay Example | Topics and Well Written Essays - 4750 words

Wal-Mart - Essay examplePorters generic strategy provides a clear linkage between strategic circumspection and strategic finance. Wal-Marts decisions had a clear linkage between strategic management and strategic finance. all the same when entering a foreign country, a firm needs to assess which markets to enter, the timing and the scale of accession (Hill, p488).Whether the strategy is to maintain cost leadership or product differentiation, the ultimate strategy is to gain war-ridden advantage and enhance profitability. Wal-Mart focused on cost leadership and their low-cost model served them well in spite of appearance the US but the same strategy did not help them in their international operations. In the US they had achieved organic offset but when they decided to expand their ventures overseas, they did not look beyond the low-cost model. harmonize to Mintzberg (1987), a strategy must essentially have two characteristics it is made in advance of the run undertaken and it must be devised purposefully and consciously. Wal-Mart did not follow this principle of strategic management.Wal-Mart did none of these and merely move to replicate the business model that had brought them success in the US. Another important factor when entering some other country is the pickaxe of entry mode which must be based on long-term growth and profit potential. There are four different modes of entries - exporting, contracts (licensing) joint ventures (JV) or wholly owned subsidiaries (WOS) and the choice depends upon the level of control required.