You have been working on an organization (Walmart) for your course project and should have done considerable research to complete the first two parts of the project (Part 1 and Part 2 is ATTACHED). Co

Running Head: WALMART 9

Student’s Name:

Professor’s Name:

Topic:

Institution:

Date:

Name of the Company: Walmart

Mother Country: United States of America

Host Country: Japan

Cultural Differences

In globalization, culture is a very important aspect because it is one of the core factors that determine whether a company will be successful or no. In this case, culture is viewed as a product of values and norms. For any company that is thinking of operating abroad, the ability to understand the cultural difference enhances the success of that company in the new environment (Hutchison, 2015). There is a need for such a company to understand the cultural values of such a country, the likely differences and come up with elaborate techniques of how to offset those differences. For example, the Walmart company has experienced cultural differences while trying to get stabilized in Japan. These are in such aspects as habits. In Japan, the Company is targeting the middle-class and at the same time opening its stores for 24 hours.

According to the Japanese culture, perishable and fresh produce has got high demand as compared to processed foods that Walmart usually stock. Japanese market goes for top quality and high-cost bulks. Walmart, on the other hand, has been trying to forcefully push to the Japanese market its low-cost products which are rather of bad quality.

Governmental differences

In Japan, the government is democratic and much stable when compared to the US. This is due to the dominance of the Liberal Democratic Party and the current prime minister. This has seen no major changes in terms of business regulation and ease of doing business in Japan. In the US, elections for the president take place every four years and power is interchangeable between the Republican Party and the Democratic Party. This has contributed to major changes in terms of business regulation. For example, when the current president won power, he changed the US policy on the phrase "Americans First". This has seen the enactment of policies that favor home companies in the US, then the multinational companies.

Legal Differences

The legal policy on foreign investment in Japan is more liberal in comparison to the US. Due to this, Walmart faced few formal restrictions in establishing their company in Japan (Frank, 2016). Unlike in the US where business policies are made by Congress and respectful states, in Japan, business policies are highly influenced by the ruling party, bureaucracy and interest groups. Due to this, the corporate tax imposed in Japan for multinational companies is higher than in the US for multinationals.

Managing these differences

After close monitoring of the above differences faced by Walmart in Japan, I have come up with various suggestions. One is to reduce the big floor size and introduce smaller ones, which would operate in multiple neighborhoods. This would make the company operate under a sub-brand. In this case, would be possible for the company to raise the price of its brand to align it with the Japanese culture of high-income products. Another solution is for Walmart to stop using its Japanese name, Seiyu, and use its brand name which has built a reputation for decades. The company needs to seriously understand the Japanese customer culture relating to fresh products and invest in it. In this case, they need to focus on localization especially in the local supply of groceries. This would ensure they increase customer relations and thus cultivate customer loyalty.

Communication Styles

Communication is one of the most aspects of conducting business. The misunderstanding may result in loss of business opportunities for foreigners operating their businesses in Japan (Caraway, 2015). In the US, contacting customers is done usually on phone or by emails. This seems to be a more natural way of conducting and enhancing business relationships. In Japan, communication with customers is usually direct, where the customers meet face to face with the seller. To the Japanese, it is an important aspect as far as the conduction of business relationships is concerned. In this case, an optimal plan that would make it easy to avoid miscommunication is very important, especially where cultural differences arise. One such plan is to adopt a high context.

In Japan, the communication context is founded on assumptions. In this case, one is expected to know the obvious unlike in us where communication is straightforward. Japanese business culture avoids conflict and, therefore, it would be good for the adoption of consensus as arguments in Japan are seen as personal matters, unlike in the US where they are seen as mere business culture. Punctuality is another aspect that may act to avoid miscommunication. Japanese are known for their strictness in timekeeping, unlike the Americans. In Japan, lateness is never entertained and if slightly done, an apology is Offred immediately. In relation to this, there is a need to keep time with the Japanese to promote customer confidence and honesty.

Negotiation Styles

Language forms a very important negotiation style in business. Knowing the connotations of cultures very important in communication. A misunderstanding of even word may lead to a rise in misunderstanding. In both Japanese and American styles, negotiation changes from one situation to the other. American style is basically on the aspect of personal success, short term future orientation, low context, private space, competition low structure, and informality. Japanese style is in the bases of being part of the organization, long term future orientation, high context, public space, cooperation and high structure and highly formal. For the Americans to understand the Japanese general rule would better their communication in business (Kenny, 2018).

For countries to cooperate well with multinationals, it is important for the countries involved to understand the pattern of cultural differences. Hofstede Cultural dimension analyses the cultural difference between various countries. Hofstede's Cultural Dimensions is effective in developing a negotiation style for the US to use in negotiating with Japan. Among the five styles, I would propose the Masculinity. This is because this style depicts a society that is driven by aspects like success, competition, and achievement. In this aspect, feminine only applies when individual life and work are in balance.

Leadership Style

No organization can survive without effective management. This role is usually designated to a core person, usually the Chief Executive Officer (CEO) of that company. The current CEO of Walmart us Mike Duke is a committed leader and commands a very effective management team is a humble manager who does not flaunt. Scot Lee is his predecessor and it is Scot who appointed Mike as his successor. It is felt by many people that the two are very similar in their management style. The only noticeable difference is that when it comes to establishing social relations with employees and other business associates, Mike Duke is much better. He is also more ambitious and this is what has seen the company establish branches all over the world. I would propose Duke's leadership style when it comes to relating with employees in the host country.

Management Skills in the host country

A manager for the Walmart company transferring to work in a host country would require to be armed with the following skills:

Teamwork. The ability to work in a new cultural environment requires a manager who can make the employees relate to each other and work well (Schwartz, 2016). This is because of the different voices and opinions that might lead to conflict. All employees need to pull together to serve the customers diligently and at the same time be able to respect each other. Planning. The manager should be in a position to make goals and decisions that align with the new environment. In this case, they should stage for actions and achievements as well. Organizing. The manager should be able to coordinate the human resource and information relating to business.

The desire to succeed should be the best priority for such a manager and concerning this, they need to organize the ideas and business resources to achieve this goal. Values. The manager needs to highly regard such values as respect for everyone and efficient service delivery to the customers. Finally, there is a need for the manager to believe in openness. In this case, the manager needs to make the employees feel free to share or express ideas and voice their concerns as well. Concerning this, the manager should be prepared to keep the confidentiality of such information if need be.

Conclusion.

Walmart has dominated the retail industry for many years. The company has effectively determined strategies that have helped it create and uphold a healthy business culture. However, there are indications that there is still room for improvement. As a discount retail industry with many branches all over the world, the company has resources and the numbers that make the company offer products at low prices. This is a strategy that makes the company continue fetching more customers. For a retail shop of Walmart caliber, it takes teamwork, servant leadership, and skills for success. As long as the company will continue implementing their current business strategy and adapt to the different desires and expectations of their different markets, they have the potential to grow and retain their overall retail shop number one.

References

Caraway, B. (2015). Our Walmart: a case study of connective action. Information, Communication & Society, 917.

Frank, T. (2016). A Brief History of Walmart. Washington Monthly, Retrieved July 28, 2016.

Hutchison, D. (2015). Principles of Management. Cambridge University Press, Retrieved 6 March 2017.

Kenny, B. &. (2018). Walmart in the Global South: Workplace Culture, Labor Politics, and Supply. London: University of Texas Press.

Schwartz, D. (2016). Introduction to Management, third edition. New York: HBJ Media Systems.

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