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1.
- Cultural insensitivity was the main reason for failure.
- Entering the German market by acquisition strategy.
- Failed to deliver on the legendary "Low Price Every Day" and "Outstanding Service" value propositions.
- Bad publicity for the company due to some common violations of German laws and regulations.

2. Companies must be sensitive to local culture and tailor products to local markets. To localize products, Wal-Mart and other global companies must conduct cultural evaluations of the citizens of the country prior to the acquisition. All of their corporate business and communication strategies should be based on this cultural assessment. This allows companies to measure the effectiveness of their localization efforts and make appropriate changes to their local strategies and tactics as needed. Consideration of the next steps will help Wal-Mart or other companies monitor global alliances or businesses.

3. Wal-Mart, which entered Korea in 1998, sold 16 stores nationwide and withdrew. At that time, Koreans preferred neat and simple designs such as department stores, while Wal-Mart was a warehouse-type store and failed to recognize Koreans' consumer preferences.

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Question 1 - While penetrating the German market, Walmart failed to completely comprehend the host country's laws and regulations, and went against labour unions as a foreign investor. According to the German government, Walmart's "lower price" strategy is monopolising the market and driving out local small businesses.
- Walmart has a poor understanding of the cultures of the nations in which it has invested. The practise of "Americanizing" products, services, purchasing habits, and working lifestyles may not be appropriate for all countries.
Question 2:
I recommend that Walmart undergo extensive study on cultural variances, government demands, and strategies to localise their product to fit in any other country.
Question 3
THE EXPANSION OF HOME DEPOT INTO THE CHINESE MARKET IS AN EXAMPLE OF FAILURE TO EXPAND IN THE FOREIGN MARKET. During the expanding economy of China in 2006, HOME DEPOT chose to enter into the country in order to extend their market. In the western world, however, renovating one's house or making part of one's own furniture with HOME DEPOT's products is considered a pastime. In China, however, this is not the case. The Chinese like ready-made furniture and home products that do not require any extra assembly or DIY. As a result, HOME DEPOT has closed its outlets and failed to compete in the Chinese market.

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Question 1:
- Stiff competition who
gives lower prices
- Cultural problem (The
Germany culture are
unaccustomed by the
Walmart's morning
routine and find it creepy
that the workers are
smiling at them)

Q2.
Question 2: solution for
Walmart to succeed
- Understand foreior
culture, politics,
competitors before
entering

Q3.
Walmart's expansion
toward Japan

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Question 1: Consumer behaviour and cultural differences: Consumers in the United States and Germany have diverse lifestyles, purchasing habits, and spending patterns.

Walmart is recognised for its "low price" value proposition, although it is opposed to labour unions and German regulations.

Question 2:

To better grasp the cultural value of each market, Walmart should focus on conducting in-depth study on the behaviour and cultural differences in the foreign market before expanding.

Question 3:

Coors Brewing Company is a well-known American brewer. When it came to promoting their "Turn it loose" campaign in Spain, they neglected to double-check the slogan's translation before releasing it.

As a result, when translated into Spanish, the tagline was understood as "Suffer from diarrhoea." This is an example of a company's failure to adjust marketing messaging to new clients in foreign regions, as well as a lack of study into cultural differences and language in the international market.

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Q1

Cultural Differences: American and German consumers have different lifestyles, consumer behaviour, and spending pattern. The failure for Walmart comes from the act of applying the American work style or lifestyle to the German culture. For instance, German employees required to smile at the customers but this behaviour is being interpreted as flirting in Germany.

Pricing issue – Walmart’s value proposition, “every-day low prices”, was not applicable in Germany because it was against Germany laws.

Q2

They should practice thinking globally, act locally by doing comprehensive research and plan before expanding into Germany. They should understand well the country’s laws and regulations, German lifestyle and purchasing behavior prior venturing into it to succeed.

Q3

Starbucks failed to expand to Australia as they brought the American style coffee culture, where coffee is essentially a product or a commodity into Australia that contradicts with the local coffee culture. Besides that, Starbucks charged higher than local cafes thus the Australians instead opted to pay less for coffee they liked from a local barista they trusted.

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Question 1
-Failure to understand cultural differences: Walmart failed to understand that the American and German lifestyle is very different. People in America like to buy in bulk and get good value for their items, whereas in Germany people like to make more frequent trips to the store and buy in small quantities
-Misinterpret messages:
Small gestures such as smiling at customers or greeting them with a chant might be common in America, but in a place like Germany these gestures can make interaction between employees and customers awkward
Question 2
Walmart can attempt to take different approach where they try to learn more about the people's lifestyle and norm of a country before trying to capture their market. They can take note of consumers' buying behaviors and how they interact with people and hire more locals to understand them better. They can also try to switch up their approach when it comes to other countries. Instead of having one big store where they sell everything in bulk, they can have smaller retail store in multiple locations with smaller size options for products.
Question 3
Taco Bell is an extreme successful US based fast food chain that failed to conquer the market in China. They did not understand the nature of people there and failed to successfully market their brand in in China.

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1. The only main factor that comes into place is failure of recognising difference in cultures across countries. Which includes buying habits, and preferences etc.
2. The only solution would be to adapt more of a multinational approach to work on local preferences.
3. One good example is chevrolet. The company failed in India due to not taking into account local preferences on buying behaviours due to the country being a middle income country

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Question 1: Low costs in particular nations that have an impact on the local market - Misconceptions about work culture in other countries

- The failure of other countries to comprehend communication

- A code of behaviour is expected.

- Distinctions in lifestyle and tastes

Question No. 2: Walmart has to grasp the cultural distinctions between America and the nations where they intend to expand.

Question three: Starbucks did not grow into Australia because they assumed Australians' drinking habits were the same as Americans'. In Australia, Starbucks was similarly prohibitively pricey.

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Question 1
- Unfair trade practices such as selling goods  below the cost price was prohibited in Germany but Wal-Mart was found violating these laws as it randomly sold some products below cost.
-Ignored the local culture, local buying habits  and imposed an American culture such as asking the employees to smile at each customer, which Germans found it strange.

Question 2
- Before expanding its business to a new country, Walmart should understand the Political, Social, Economic and Cultural aspects of the country in depth.
-After the PEST analysis, Walmart should be ready to modify its own identity to suit itself to the cultural differences.
-Employment of Hofstede's Cultural Dimensions to understand the cultural differences between the countries.

Question 3
US DIY giant Home Depot had failed in China. The Western world where renovating your home is considered a bit of a hobby whereas developing countries have a tendency to see DIY as a sign of poverty.

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Question 1:
1. Pricing issues in Germany's market
- low price strategy are not allow by the Germany government
2. Misunderstanding on German culture
- Can't analyse German consumers needs.

Question 2:
- study on target market local culture. Eg. Lifestyle, beliefs and etc.
- Obey the law and regulations of the other countries.

Question 3:
H&M failed on continue expansion in China.

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Q1
Price: Failure to deliver on its legendary “every-day low prices” and “excellent service” value proposition.

Culture: Cultural Insensitivity was the major reason of failure. In the US, smiling and greetings are normal but not suitable in Germany because people feel it weird.

Q2
Before expanding its business operations to a new country, the Company should understand the Political, Social, Economic, and cultural aspects of the country in depth. Walmart needs to apply the strategy of localization if the company wants to expand globally and successfully.

Q3
Coors’ Messaging is Lost in Translation in Spain
Coors made an all-too-common mistake when it came to launching their “Turn it Loose” campaign in Spain — not double-checking a slogan’s translation before going to market.

When translated into Spanish, their tagline was interpreted as a common expression that means “suffer from diarrhea.”

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Question 1:
- Failure to understand the cultural differences, behaviours and lifestyles between one country and the United States. Walmart attempts to apply the same concepts and layouts of their stores in the United States without considering these factors.

- The government laws in Germany impacted Walmart's operating hours as stores were not allowed to operate retail stores on Sunday and the strict rules about operating hours.

Question 2
In order to be successful in other markets, Walmart should consider each country's labour laws, government regulations, consumer demands, lifestyles and behaviours to better understand the consumer's needs and wants to encourage them to shop at Walmart.

Question 3
An example of MNE would be Starbucks ' international expansion into Australia. Given that the Australian consumers were very into their coffee culture, whereby their local cafes had a variety of complex coffee offerings compared to the standard menu at Starbucks which lead to the failure of their Australian stores.

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Question 1:
- Low prices in certain countries that affect the local market
- Misunderstandings of work culture in other countries
- The failing to interpret communication in other countries
- Expectes code of conduct
- Difference in lifestyle and preferences

Question 2:
Walmart should understand the cultural differences of America and the countries they want to expand to.

Question 3:

Starbucks failed to expand to Australia as they thought Aussies drinking habits were the same as Americans. Starbucks was also too expensive in Australia.

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Question 1:

- Penetration pricing in Germany market: They dropped their prices lower than the local German stores. Well, the German business owners didn’t like Walmart’s predatory pricing tactic, and the American giant was ordered to raise their prices by Germany's High Court.
- Smiling: Walmart requires its checkout people to flash smiles at customers after bagging their purchases. Plastic bags, plastic junk, plastic smiles. But because the German people don’t usually smile at total strangers, the spectacle of Walmart employees grinning like jackasses not only didn’t impress consumers, it unnerved them.
- Ethics problem: Walmart not only required employees to spy on fellow workers (and report any misconduct), but prohibited sexual intimacy among its employees. Apparently, while the folks running the Bentonville, Arkansas-based company had no problem with screwing the environment, they couldn’t abide employees doing it to each other.
- Korean consumers needs and preferences: concentrated on dry goods, from electronics to clothing, while their local rivals focused on food and beverages, the segment that specialists say attracts South Koreans to hypermarkets. Moreover, Walmart's' product are packed by box, but most of the Koreans are rely on public transit, hence they would prefer to buy small packages.
- Store design in Korea: Walmart using tall shelves to pout the products where Korean buyers have to use a ladder trying to reach higher items.

Question 2:

- Learn their previous failure and sort out the best fits for expanding
- Must understanding the culture of host countries before entering the market, to avoid wasting time and funds
- Need to learn or clarify the competitors strengths and weaknesses, so that Walmart can gain competitive advantages and position their business.

Question 3:

ebay
Customers wanted to be able to see a seller’s online status and communicate with them easily — a function not seamlessly incorporated into eBay’s China system. Moreover, Chinese customers prefer to develop trust through their own interactions with sellers rather than acting on other users’ ratings. On the other hand, eBay also struggled in expanding to Japan, as it did not adjust its strategies and purchasing methods according to local preferences. For example, buyers had to input their credit card information in order to make a purchase, a practice that was not popular in Japan at the time. The company did not offer a cash-on-delivery service, which Finance Elements asserts would have made a significant difference in how it was received.

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Question 1
- Walmart failed to fully understand the host country’s laws and regulation and went against the labor unions as a foreign investor while penetrating in the German market. As the German government accused Walmart’s “lower price” strategy is dominating the market and eliminating local small sellers.
- Walmart failed to fully understand the cultures among those countries that they’ve investors in. The process of “Americanising” in terms of products, services, purchasing habit, working lifestyle may not be suitable for every country.
Question 2
I would suggest Walmart to conduct an in-depth research in terms of cultural differences, government demands, and ways to localise their product to fit in any other countries.
Question 3
One of the example of the failure to expand in the foreign market is HOME DEPOT’s expansion into the Chinese Market. In the midst of the growing economy in China during 2006, HOME DEPOT decided to expand into China to expand their market. However, in the western world it is considered a hobby for people to renovate their home or to DIY some of the furnitures using HOME DEPOT’s product. However, that is not the case in China. As the Chinese would prefer their furnitures or household items to be ready-made without any further installation or DIY. This has caused HOME DEPOT to shutter its stores and failing to strive in the Chinese market.

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Question 1:

Lack of understanding of the host government's laws and regulations

Behaviour and cultural difference (American and German consumer have different lifestyle & spending pattern)

Pricing issue (In terms of price, they were on level with existing German discount stores, so there was no benefit there. Walmart is recognised for its "low price" value promise, but it violates German labour rules.)

In conclusion, Walmart failed in Germany due to a variety of factors including an inability to adapt to German retail market conditions and a lack of competitive prices against German stores. Somehow Walmart underestimated the local competition.

Question 2:

Before expansion, Walmart needs to conduct extensive research into the foreign markets and analyse the PEST of the international market. To perform well, Walmart should practice thinking globally, act locally where they can make minor changes to account for local preferences. To better grasp the cultural value of each market, Walmart should focus on conducting in-depth study on the behaviour and cultural differences in the foreign market before expanding.

Question 3:

Tesco, fails to stand their brand in both the China and US market. Based on the analysis, Tesco fails to establish their brand due to lack of demographic understanding on the local buying behaviour and Tesco has a behavioural act of supplying similar items across the UK to China and the US. Tesco only focuses on international standardization without considering local adaptation as the shopping habits of Americans are largely different from British consumers. In China, a larger substantial cultural difference exists between the Chinese and British consumers. Price is becoming a determining factor for the Chinese and Tesco has constantly focused on the price cut rather than the service. In conjunction, Tesco still struggled to crack the Chinese and American market.

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Question 1:
- Price issue: in most areas Walmart has been built on its daily low pricing strategy, in which the business gives lower-cost prices to buyers than its competitors in order to win market share. Essentially, Walmart enters the market with cheaper prices, then gradually or aggressively raises them after they have a client base and have pushed out local competitors. German restrictions forbid methods such as "lower cost" from harming local businesses. Finally, Germany's highest court ordered Walmart to hike its pricing over cost.

- Government demand: Germany has severe restrictions prohibiting below-cost pricing; in this situation, Walmart is breaking the law by offering low-cost prices. As a result, businesses are compelled to raise their pricing for basic commodities since they are accused of undercutting costs in order to attract more people into their stores.

Question 2:
Walmart needs to apply localization to expand into global market with less failure. Walmart can consider looking into the three stages of cross-cultural Management to reach a mutual understanding to benefit from the differences. Walmart needs to realize that each country has a different culture and preferred lifestyles even management regulations, and start to improve on it.

Question 3:
Taco Bell: This gastronomically dubious fast food chain has seen mixed reactions in Asia. Despite the success of parent company Yum Foods’ other brands, such as KFC, in China, Taco Bell never garnered rave reviews in the Middle Kingdom, according to Agenda Beijing. The magazine noted that Mexican food is “notoriously hard to market in China,” and the Taco Bell shops in Shanghai and Shenzhen were shut down in 2008.

Taco Bell made a valiant return to South Korea in 2010, after a poor performance there in the 1980s. The fast food chain was opened in Itaewon and Hongdae  — a strategic move, as these are two popular nightlife areas frequented by foreigners who are likely familiar with the brand.

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Question 1:

Price Issue
Walmart definitely made a questionable decision with “Price”. In pricing, there’s this thing called “penetration pricing”, which involves offering products for cheap to penetrate a new market and win fresh customers by helping them save money.

That’s exactly what Walmart did. They dropped their prices lower than the local German stores. Well, the German business owners didn’t like Walmart’s predatory pricing tactic, and the American giant was ordered to raise their prices by Germany's high court.

Cultural Issue
For some reason, a few American businesses have this false belief that every western country has the same culture as theirs — but it’s simply not true.

In America, it’s not uncommon for retail assistants to get all chatty and friendly with the customers. Walmart decided to train its German employees to do the same. The cashiers were told to smile at customers during checkout. For example, Smiling at random strangers and acting like you know them isn’t really German but America. It might happen every once in a while, but it’s certainly not an integral part of the German or other countries' culture.

Question 2:
Walmart need to apply the strategy of localization if the company want to expand globally and successfully. For example, Walmart need to realize that each country has different culture and preferred lifestyle even management regulation, and start to improve on it.

Question 3:
Two companies that failed internationally due to cultural differences are Pepsi and Coca Cola. Both beverage giants had issues when first moving into the China market. Coca Cola, named their product a Chinese phrase that would sound like the original name. However, this new phrase translated to “Bite the Wax Tadpole” This didn’t go over well. Pepsi brought a new slogan to the Chinese market. It was “Pepsi brings you back to life”. Unfortunately the phrase translated to “Pepsi brings your ancestors back to life” Both companies had to revamp their Chinese campaigns.

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Question 1:
Cultural Differences: Walmart misunderstood German culture in several ways, which lead to its failure in expanding its business into Germany. The main failure for Walmart is the act of applying the American work style or lifestyle to the German culture. For example, they required their German employees to smile at the customers, but this act is seen as flirting in Germany.

Government Demands: Germany has strict laws on below-cost pricing, Walmart in this case is against their law by providing low-cost pricing. Hence, they are required to increase their price for the basic goods as they are accused of undercutting prices to lure new customers into their stores.

Question 2:
As a recommendation, Walmart can consider looking into the three stages of Cross-cultural Management to reach a mutual understanding to benefit from the differences. Firstly, the recognition stage is where Walmart has to recognize the difference between Germany and America. They have to ask themselves if they actually know about the German culture before expanding their business into the nation. This will help them to avoid having misunderstandings the German culture.

Secondly, the respect stage is where Walmart has to appreciate the cultural differences. By doing that, Walmart will get to find common positives and differences between themselves and the German employees to adapt to their culture better.

Lastly, the reconciliation stage demonstrates that Walmart has to increase its awareness of cultural differences. With that said, they will be required to apply knowledge and cultural empathy in order to create an agreement from the differences, which will avoid possible misunderstandings.

Question 3:
An example of MNEs that has failed in international expansion is Mattel. The company planned to expand its business into China in the year of 2009, aiming to introduce fashion Barbies to the kids in China. However, due to a lack of studies on cultural differences, they did not meet the expectations of China toys. In China’s cultures, they stress toys that are educational or have skill-building. However, Barbie is not in any of that categories, Hence, they are forced to close down their stores after two years.

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Question 1
Behaviour and cultural difference: American and German consumers have different lifestyles, consumer behaviour, and spending pattern.

Price and law issue: Walmart is known for its 'low price' value proposition but is against labour unions and German laws.

Question 2
Walmart is suggested to focus on doing in-depth research on the behaviour and cultural difference in the foreign market before expansion to better understand the cultural value of each market.

Question 3
Coors is a well known American beer manufacturer. When it comes to launching their "Turn it loose" campaign in Spain, they failed to double-check the translation of the slogan before launching it to the market.

Hence, when the slogan is translated into Spanish, it was interpreted as "Suffer from diarrhea". This is an example of failure to tailor marketing messages to fit new customers in foreign markets, and the lack of research in understanding the cultural difference and language in the international market.

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Question 1:
Price issue:

German - Walmart is known for its low prices. However, those low prices found them in Germany’s high court for what officials called predatory pricing. German has strict laws on below-cost pricing to protect the local business.

Cultural issue:

They tried to sell the American lifestyle to the other counties without knowing the cultural difference and consumers’ purchasing behaviors.

E.g

Korea - Many people rely on public transit. Therefore, people tend to buy smaller packages. On the other hand, American people tend to buy a lot because they go shopping by car.

Question 2:
Walmart should know the cultural difference and also do more research before expanding their market.

E.g.

Product / Service Lineup: Products and services may need to be customized to cope with different customer needs by region and market.

Advertising: Coordinating approaches to customers using social media and partnering with local partners to smoothly develop.

Question 3:
Tesco exited the Japanese market in 2012 due to changing customer preferences. Tesco entered Japan in 2003 and invested approximately 100 billion pounds. After that, they opened small stores, convenience stores, and supermarkets. However, the company’s format did not suit the taste of Japanese consumers. Commuters preferred the local convenience store over Tesco’s stores. Eventually, Tesco sold 50% of Tesco japan to Aeon Co. which is the largest retail group in Japan. in conclusion, it can be said that  Tesco’s failure in the international market is because it failed to understand the retail industry elsewhere in the world.

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Question 1
Price cutting; they are against labour unions and Germany is big on that; the misunderstanding the German culture and organisational culture; lifestyle in America is different and bigger than the rest of the world and they tried to sell Germany the American lifestyle; Government relationship with the brand was also rocky; locations were just not attractive; consumer behaviour is also different in South Korea than in America

In conclusion the forces for local differentiation and responsiveness was just badly orchestrated: cross cultural differences got the best of them as well as government demands and failure of growing pressures for localisation,

Question 2
Learn more about the culture and have the open mind of modifying the organisational regulation to accommodate that of the host market, familiarise themselves with the Hofstede's cultural dimension study which touched on the different dimensions such as power distance, individualism vs collectivism, masculinity vs femininity, uncertainty avoidance and long term vs short term orientation. they could also invest on having cross cultural management team to give training to them after they conduct a thorough research on the next country they want to go in.

Question 3
Starbucks

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Q1.

Ignore to the Local Culture and Buying Habits

Instead of understanding and adjusting to the culture of its clients, Walmart tried to impose their Culture on to the Customers. For example, Walmart stores are designed for customers who are willing to spend lot of time shopping. But in Germany, the shopping hours are shorter, Germans will no shop on Sundays. Plus, Germans prefer to see the advertised discount products upfront without having to ask the store assistant. However, Walmart chose to use its US style merchandise display strategy where discount products are kept at higher shelf or in the bottom racks.

Walmart’s Refusal of Joining Germany’s Union

Walmart that notorious for playing low wages and suppressing unions in its home country, United States, refused to join Germany’s Union which very much a part of the culture and have broad support amongst the government, the community, and even businesses, has later on being accused and revolted by the Germans. This gave them a bad reputation in the community and affected their sales.

Pricing Issues In Germany’s Market

The basis of Wal-mart's success in most of the markets has been its strategy of everyday low prices where the company offers below-cost price to buyers than its competitors to gain market share. Essentially, Wal-mart initially penetrate the market with lower prices, then raise them slightly or intensely once they have a base of customers built up and they’ve driven out local competition. German regulations prohibit strategies like below cost from destroying local chains. Ultimately, Germany’s high court ordered Walmart to raise its prices above cost.

Q2.

Do political, Social, Economic and Cultural Analysis of the Country

First of all, to be open-minded in terms of mentality, MNEs must realize that the operation of overseas markets and the psychology and habits of individuals is very different with their home country. Walmart shall not fully copy the local business operation model and paste it in other country market, but to constantly and critically analysis the political, social, economic and cultural before entering the new market.

Continuously Learning and Analyzing Strategies

Second, MNEs must continuously take action in learning and analyzing the impact of their various strategies on the local market over a long period of time. Understand the shortfalls, and modify it in such a way as to cater the local market in a much better way than the competitors. It is always better to scrutinize the strategies adopted by them with a panel of local experts, as they will be having a better picture about the local consuming behavior and culture.

Polycentric Staffing Policy

Third, MNEs can appoint local employees in some important positions. In this case, MNEs must find the best fit between local culture and local culture. With this, the global enterprise are able to understand the local culture, adapting to the local culture, and finally leading the local culture.

Q3.

How McDonald’s Lost to KFC

McDonald’s had great success with its line of American-style burgers when expanded to Japan and other Asian countries. They stubbornly decided to roll out the same line of product that worked in nearby countries. The difference between those countries and China is that the latter had no frame of reference for burgers. The country was closed of for so long that burgers seemed too strange and fore. KFC, meanwhile, had the advantage of offering fried chicken, which is a familiar food for people in China. They also took active steps to localize their menus for the Chinese market, and their wildly successful breakfast menu featuring staples like congee is a testament to their localization efforts.

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Q1:
As a result of attempting to apply their proven success formula in the United States to the German market without modification, Walmart failed to provide German customers with a compelling value proposition in comparison to its local competitors, and as a result, Walmart failed to achieve success in the German market.

Q2:
To be successful in foreign markets, Walmart needs devote sufficient time to conducting in-depth research into the political contexts and cultural values of each area it seeks to penetrate.

Q3:
When the massive U.S. coffee business Starbucks attempted to expand into Australia in 2000, it ended up with a massive amount of melted iced machiattos. Starbucks entered the Australian market with a similar naiveté to Target's unsuccessful foray into the Canadian market - after all, Aussies behave in the same way as Americans, so why shouldn't their coffee consumption habits be the same? Unfortunately, the local movement dominates the Australian coffee market, and Starbucks has proven to be too pricey for people who prefer to shop at chain stores. However, it wasn't until 2008 that the caffeine peddler abruptly liquidated 61 stores, resulting in a reported $143 million loss, that the slow burn became apparent. Starbucks maintained its commitment until 2014, when it transferred ownership of the remaining 24 stores to the Withers Group, which controls the 7-11 convenience store chain in Australia.

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Question 1:

Pricing issue - Its value proposition, “every-day low prices”, was not applicable in Germany because Germany has laws to protect the small business/vendors.

Culture issue - The morning chant and smiling to customer is normal in the US but weird in German. Different lifestyle and consumer behaviour in both country.

Walmart did not get along with the German Unions because they thought we were communists.

Conclusion: Lack of localization

Question 2:
In my opinion, I think Walmart should do research and analyse the PEST of the foreign market before expanding. "Think globally, act locally." Do some adjustments for local preferences.

Question 3:
Best Buy's expansion towards the UK.

Bad timing- Despite keeping an eye on strategic acquisitions for years before making the Carphone Warehouse play, Best Buy chose the apex of the worst economic decline in recent history to open up shop.

Change in consumer behaviour - As an increasing amount of electronics spending moved online, UK customers became less interested in making long journeys just to buy an electrical item.

Poor marketing strategy - Fail to notice that Europeans prefer smaller shops to large box stores.

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Q1:
- On price, they were pretty much on a par with existing German discount chains, so no advantage there
- Walmart exported its practice of smiling and greeting everyone to Germany because it worked so well in the United States. In Germany, if a shopkeeper is overtly friendly, people think he’s nuts. It genuinely put off shoppers who tend to be professional and not personal in their interaction with store staff. German workers tried telling this to management to no avail.

Q2:
-  Sell more items that customers want.

Foran credited Walmart's apparel and seasonal goods teams for doing a good job in meeting consumer needs and demands over the past year. But he stressed improvements need to happen in the food business, where Walmart has disappointed consumers with its selection and stock levels.

Q3:
Tesco fails to whet U.S. appetite. For U.K.-based grocery chain, convincing American consumers to shop at its Fresh & Easy seemed like a done deal. And a few years earlier, the brand could have found success selling its fresh supermarket meals to the growing local and organic consumer base. But Tesco’s Fresh & Easy opened the doors in 2007, on the edge of a recessionary cliff when American consumers appetite for food spending was heading south. Five years later, Tesco announced it was abandoning its American dream and closing its nearly 200 stores on the west coast. The failure cost the British chain nearly US$1.8 billion.

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Q1:

ignorance of the laws and regulations imposed by the host government.

continued misunderstanding of German culture.

Differences in American and German consumer's lifestyle and purchasing patterns.

Q2: Walmart should take time to perform in-depth research on the foreign markets it wishes to enter, and study the political environments and cultural values thoroughly.

Q3: It was until the U.S.-headquartered DIY giant Home Depot opened 12 stores in China that they realized the Chinese didn’t really like to do it themselves. Unlike the Western world where renovating your home is considered a bit of a hobby, developing countries have a tendency to see DIY as a sign of poverty. By 2012, Home Depot had shuttered its stores and taken a US$160 million after-tax hit in the process.

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Question 1:
-  Stiff competition who gives lower prices
- Cultural problem ( The Germany culture are unaccustomed by the Walmart's morning routine and find it creepy that the workers are smiling at them)

Question 2:
Walmart should study about the country's culture before doing an expansion to other countries and understand the needs of the country. Other than that, the price of products need to be more competitive to drive customers toward them.

Question 3:
Walmart's expansion toward Japan

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Question 1: main reason for Walmart's failure
- low price strategy that geos against the law of Germany
- the ignorance of foreign culture
> unionization in Germany
> code of conduct (eg: reporting co-workers wrong doing interferes employees' privacy; smiling at customers are interpreted as flirting by German men)
> shopping style (German shoppers prefer daily outing and buy in small scale; Koreans prefer e-mart)

Question 2: solution for Walmart to succeed
- Understand foreign culture, politics, competitors before entering
> Research on local consumer shopping and living style
> Explore Hofstede cultural dimensions in different country and localize management style

Question 3: example of MNEs that have failed their international expansion due to cultural differences or government demands
- Home Depot, a DIY giant in China
> Chinese didn't really fancy doing things themselves, compared to the westerners who would take renovating their home as their hobby
- Wendy's in Japan
> fail to provide localized menu to Japanese customers who expect variety
> traditional diet promotion in Japan

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Question 1: What is the main reason for Walmart's failure.
-low prices in certain countries that affect the local market
-Work culture and spending habits
-different in code of ethics
-Different in interpretation of verbal and non-verbal communication
-Different in lifestyle and preferences

Question 2: What solution would you recommend for Walmart to succeed?
-Use other globalization method while they expanding that fit the local culture, For example, Walmart acquire some local company in India such as Flipkart and Myntra while remain their trade market
to penetrate the local market

Question 3: Provide an example of MNEs that have failed their international expansion due to cultural differences or government demands.

For example, Walmart's in the US force their employees to begin Walmart group chanting in the morning. They also ask their staff to smile at every customer while Germans interpret it as flirting.

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Answer for
Question 1: What is the main reason for Walmart's failure.

Question 2: What solution would you recommend for Walmart to succeed?

Question 3: Provide an example of MNEs that have failed their international expansion due to cultural differences or government demands.