Dear students, get latest MBA Solved assignments by professionals.
Mail us at: help.mbaassignments@gmail.com
Call us at: 08263069601
International Business
April 2022 Examination
Q1. “The growth of Multi-National Corporations has had a major impact on the economic and social environment of a country.”
Discuss this statement with example of a Multinational Corporation doing business in an overseas country of your choice. (10 Marks)
Introduction:
Multi-national corporations or MNCs are companies that have set up their business in a country one of a kind from the beginning. For instance, an enterprise originated in the USA and is now set up in India. That employer would be referred to as an MNC in India. While these companies have been set up in some other kingdom,
Q2. “The whole world is increasingly behaving as a single large market having interred dependent production where people consume similar goods.”
In the light of above statement discusses the advantages and disadvantages of Globalization. (10 Marks)
Introduction:
Globalization is a kind of interdependence and interconnection among diverse countries with subjects related to change. It has become popular in the overdue 20th century while maximum decolonized nations opened their economies for interconnection with the rest of the world. They have got opened their economic system to change family members with the relaxation of the sector. Like every other exercise or coverage, globalization has its benefits and disadvantages
Q3. Walmart in Japan and Their Failure to Differentiate:
In 2018, Walmart brought in more than $500 billion in sales globally out of which, 3/4 of those sales came from the U.S.
But, overseas — particularly in Japan — things are not going so well for the American retail giant.
Recent reports have shown that Walmart may be looking to exit Japan nearly 17 years after its initial expansion into the Japanese market. This expansion involved purchasing a minority stake in Seiyu — a Japanese grocery store — in 2002, which then turned into a fully-owned subsidiary in 2008. Like Walmart, Seiyu uses the “Everyday Low Prices” mantra to market to their consumers.
In between then and now, not much has gone right for Walmart in Japan. Aeon, the top supermarket in Japan, owns 45% of the market share. Meanwhile, Walmart’s Seiyu sits at 12%.
That may not sound terrible, but to put it into perspective, another U.S. supermarket that has expanded into Japan with much more success —
Costco. Costco only has 26 stores in Japan, but in 2017 they brought in just over $3 billion in revenue. Seiyu, on the other hand, has 331 locations and brought in $7.1 billion in revenue.
The low price strategy that both Walmart and Seiyu abide by is not nearly as effective in Japan as it is in the United States.
While consumers in the U.S. appreciate the convenience of being able to find great deals at one central location, Japan consumers are not as concerned with this convenience, making it less of a differentiator in the Japanese market.
Michelle Grant, the Head of Retailing at Euromonitor International, outlines this issue in a CNBC video, titled “Why Walmart is Failing in Japan.”
In the video, Grant describes how Japanese consumers “enjoy the treasure hunt of pricing” and will go to multiple stores while shopping in search of the best deals. Also, as this Bloomberg Businessweek article points out, Japanese consumers often associate low prices with cheap quality.
In addition to all of that, Japan’s retail market was already so congested with everything from your stereotypical supermarket to online retailers and mom-and-pop shops by the time Walmart expanded into that region.
Now, this doesn’t mean that the barriers to entry were impenetrable. It just means that to enter that market, you need to have a strong differentiator that was effective to the market. This was something that Costco did well, while Seiyu failed.
Japanese consumers typically aren’t used to shopping in bulk, so going to Costco offers them a totally new shopping experience. Meanwhile, Seiyu was no different than any other supermarket that Japanese consumers were already familiar with.
Last, Walmart also failed to recognize that Japanese consumers enjoy fresh, locally sourced food — which is something Seiyu does not offer a lot of.
It remains to be seen whether Walmart will be able to turn it around or if they’ll ultimately end up selling Seiyu. But, one thing is certain, the U.S. supermarket’s lack of understanding their consumers in Japan has set them pretty far back.
a. What are the different views of Japanese people that Walmart should have taken into consideration while entering Japanese market? (5 Marks)
Introduction:
There are various factors that one employer desires to attend to the way of life, language, flavor, and preferences of consumers, and the notion of consumers on specific enterprise techniques. When the company understands and researches this variety of factors, the penetration into the market will become very smooth and brings sound effects.
Qb. What are elements of an overseas country’s culture which are to be understood for making entry strategy in that market. Explain with reference to the case study above. (5 Marks)
Introduction:
Globalization has opened a path for all the organizations to get the installation in different nations. However, it isn’t always handiest required that with sufficient recognition and a significant number of stocks in the other marketplace, you would also be able to take over a
Dear students, get latest MBA Solved assignments by professionals.
Mail us at: help.mbaassignments@gmail.com
Call us at: 08263069601