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Services

Geography

Global stimuli

OUTLINE

Outsourcing definition

• Outsourcing can be done domestically or

abroad and always involves work done

externally.

outsourcing

• Benefit• Drawback

Benefit

•Less capital expenditure

•Less management

headache

•Focus on core

competencies

Drawback

• Less managerial control

• Outsourcing company goes out of

business

• May be more expensive

walmart’s outsourcing

OUTSOURCING FACT

• manufacturers outsourcing

•70% merchandise Chinese

component.

• global leader of outsourcing.

EXPANSION

OUTSOURCING

profit

Content:

• Imports China Manufacturing.

• > $11 Billion Of Textile Manufacturing To India.

• Purchases India (30%).

•Expects To Source Goods Worth $5 Billion (2010).

• India’s Markets Not Come Without A Price.

Efficiency

Services

• Financial services

• Insurance and real estate

• Transportation and communication

Financial services

• Payroll check cashing

• Money orders• Money Transfers• Bill payment• Walmart branded

credit cards 

Insurance and real estate

• Credit card and billing services• Balance Protection Plan• Extensive Coverage through every

Stage of your Life• Unbeatable Price for all this

Protection• Additional Details of Coverage

Transportation and communication

• Safety• Economic competitiveness,• State of good repair,• Livability• Environmental Stability

GEOGRAPHY Wal – Mart:

_ comprise 4,263 stores ; 660,000 workers in 15 countries outside the US.

_ ranked No.2 (Fortune 500 list of largest companies in America 2009)

_ add to the more than $400 billion in annual company revenues .

_ sales were $100 billion, or 24.7% of total sales (2010).

Varied Strategy

HOWEVER

series of acquisition (Germany, Argentina, and Canada).

Wal-Mar hypermarkets(Mexico and China)

WAL-MART try to:

_ Satisfy customer’s needs. _ Company’s unique culture and effective retailing concepts each new countries.

How could Wal-Mart be so successful overseas ?

Wal-Mart go overseasWal-Mart go overseas

adapt to local cultures

become involved in the local community

GEOGRAPHY

- Wal-Mart has been able to run an international business, maintaining the advantages of huge economies scale and buying power, whilst at the same time being flexible on the local level.

Glocalisation and the success

GEOGRAPHY

Canada Mexico

NORTH AMERICA

CENTRAL AND SOUTH AMERICA

Brazil Chile

Russia UK

EUROPE

ASIA

China Japan

WHERE?

WHY?

CHINA

>= 80% of Wal-Mart’s Global Suppliers Are Based in China

Imports Could Be As High as $30 Billion A Year

70% of Goods Sold at Wal-Mart Contain Components Manufactured in China

8th largest Trading Partner.

• Growth in technical education• Cheap Labor• Language• Labialisation of laws and

government policies• Existence of offshore manufacturing

and physical proximity to major markets

• In March 2004, Business Line reported that Wal-Mart intends to outsource $11 billion in textile merchandise over the next few years.

• Wal-Mart Operates an 80 Person Sourcing Office in Bangalore.

• Wal-Mart Is Increasing Purchases From India By 30%.

INDIA

• High-quality and cost-effective services

• High-end technology and best-of-breed infrastructure

• Skilled, talented and experienced professionals

• Wide range of services• Save on time, effort and

infrastructure• Latest software and technologies

GLOBAL STIMULI

Distribution of labour:

The largest private sector recruits and uses the amount of employment all around the world.

Provide the great number of jobs.

For any position and hierarchy: manager, accountancy, research & development, marketing & advertising, public relations.

Decrease the proportion of unemployment and solve the career problem.

Enhance the world economy.

International Trade:

Leave with radical reductions in fixed assets and exuberant dark store expenses related to the discontinuance of the international stores

60% of Wal-Mart products are imported from such countries as fast-growing South Korea, Philippines, Malaysia, Cambodia, Thailand and Vietnam.

The company's biggest trading partner is China. 

Sales from stores outside the U.S. are growing faster than Wal-Mart's American retail operations.

GLOBAL STIMULI

Income of workers

Impact on Wal-Mart workers

Impact on Wal-Mart Shoppers

GLOBAL STIMULI

Impact on Wal-Mart workers:

What if Wal-Mart put in place a $10 per hour minimum wage for all its hourly employees in the U.S.?  

How much would it cost Wal-Mart ?

how much of the increase would benefit workers in poor and low-income families?

GLOBAL STIMULI

GLOBAL STIMULI

GLOBAL STIMULI

Impact on Wal-Mart Shoppers

GLOBAL STIMULI

Not only concerned with the average Wal-Mart shopper, but also with the low-income Wal-Mart shopper

How would these low-income shoppers fare if Wal-Mart were to increase its prices to recoup the costs of a wage increase?

GLOBAL STIMULI

GLOBAL STIMULI

THANKS FOR LISTENING

http://en.wikipedia.org/wiki/Walmart http://walmartstores.com/ http://

www.vnbrand.net/Cau-chuyen-doanh-nhan/cau-chuyen-cua-wal-mart-giau-nhat-nho-ban-hang-re-nhat.html

http://www.answers.com/topic/wal-mart-stores-inc

http://www.zerohedge.com/article/why-wal-mart-embodiment-economic-stimulus

http://www.businessweek.com/news/2011-04-02/wal-mart-said-to-plan-test-of-online-grocery-delivery-service.html

REFERENCE