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WALMART’S DOWNFALL IN GERMANY

DUE TO CULTURAL MISTAKES


1. AHMAD RASHEED 2480417

2. EDWIN SOMMY 2480230


3. EMMANUEL ENEKWECHI 2481620
4. KAMRAN JAMSHAID 2475987
5. MOHAMMAD SHAHZAR BAIG 2467387
6. NOFAL AMIN 2457216 STRUCTURE
7. PRINCE AGYEMANG 2475028 1. Culture problems faced by Walmart
8. PRISCILLA GELI 2467008 2. Solutions to these cultural issues
9. SANA AZHAR RASHID 2480181 3. Effective Corporate strategy

INTRODUCTION
Walmart is a retail corporation that manages a chain of supermarkets, grocery stores, and discount stores, headquartered
in the United States. This case study about Walmart's downfall is really interesting given that Walmart is a retailing giant
with successful cross-border entrances however experienced a major defeat in the German market due to mismanagement
of cultural diversity. It shows how crucial attention to culture is for a multinational enterprise. Culture cannot be ignored!

ISSUES WALMART FACED


LEADERSHIP ISSUES CUSTOMER ISSUES EMPLOYEE ISSUES
Power gap caused by Authorial Walmart failed to analyze the Walmart imposed American employee
decision-making strategy. practiced culture in the local management practices to the German
Disregarding feedbacks from markets in Germany. workforce.
employees for the development of They failed to understand the Spying on employees was prominent
the company. German customer and their and employees were not allowed to
Wal-Mart leadership’s strategy in demands which led to poor build personal relationships with one 1.Proper analysis of German customers to identify
Germany was self-centred and not customer retention. another. [2]

The German customers felt that Negligence of German unions for


their taste and demands.
adaptive. [1]
the over-friendliness and chatty employee related matters.
behavior of store employees was Employees wages were reduced to cut 2.Extensive study of the German culture to
unauthentic. cost in order to lower prices to compete
against rivals in the market. [3] implement German-friendly policies.

3.Hire local leaders.

4.Frequent feedbacks from customers and


employees.

5.Recruitment of a customer experience team


dedicated to developing and implementing good
CONCLUSION customer experience strategy.

Considering the various issues Walmart faced as a result of negligence to cultural 6.Implement strategies to drive employee
diversity, it is evident that culture is crucial, powerful and requires care. engagement and retention.

Hence, the corporate strategy of Walmart should be focused on ensuring the

localisation of leadership for effective integration of local cultural values into


their organisational policies to ensure good management.

Additionally, decision-making powers should be decentralised to facilitate


flexible management of cultural differences for effective customer and employee
engagement .
REFERENCES
[1] MBA Knowledge Base, n.d. Case Study: Wal-Mart’s Failure in Germany. [Online]
Available at: https://www.mbaknol.com/management-case-studies/case-study-wal-marts-failure-in-germany/#:~:text=Cultural%20Insensitivity%20was%20the%20major,prevailing%20German%20law%20and%20regulations.
[Accessed 28 02 2022]
[2] [3] BohatALA, n.d. Walmart Cross-Cultural Issues Case Study Analysis. [Online]
Available at: https://bohatala.com/walmart-cross-cultural-issues/
[Accessed 28 02 2022].
[4] Banerjee, S. B. & Linstead, S., 2001. Globalization, Multiculturalism and Other Fictions: Colonialism for the New MIllenium. SAGE, 8(4), pp. 683-722.

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