Professional Documents
Culture Documents
three
Luka
unknown (divorced)
four
Lynne McNabb
Josh
Whitney
Elizabeth
Bill Laurie
Walton family
three
children
Carolyn Funk (divorced)
Four children
Lynne McNabb
Co-founder of Walmart
Audrey Walton
CLUTURAL BLUNDERS OF WALMART
Universalism
Another theory that I will apply is using Trompenaars’ cultural dimensions. It’s another alternative
to Hofstede’s dimensions.
South Korea is more of a Particularistic culture. They believe that circumstances state how ideas
should be applied and some things cannot be done the same way as it is. South Korea with high
particularism that has legal contract is often amended and they will try to work things out to suit
the parties. Likewise for the culture in Walmart Korea, they are under Universalists. They believe
that ideas can be applied everywhere without any modifications. Aswathappa (2010) stated that
the management under Walmart focus on formal rules and business connections.
South Korea is under diffuse countries, which means that their work and private life are closely
related. In 1996, Trompenaars observed that ‘the employee turnover rate and the number of
invasion in the countries are quite low mainly because of loyalty’ (Cited in Heidtmann 2011, p. 44).
Walmart are based under specific cultures because of its handling by western country. The people
are more open and outgoing. Furthermore, their work life and private life are separated so they
only share with close friends or associates.
South Korea is considered an ascription- orientated culture. They give certain associates a higher
status because of their age, gender and social connection. As for the Walmart in United States,
their status is based on their performance and accomplishment.
Conclusion
To conclude, Walmart needs to plan their operations and strategies before expanding to South
Korea. Having a lucrative business in foreign country depends on the market size, culture aspects,
current and future wealth of customers. Walmart had their strategic positioning fit in the United
States and was able to capture the principles from the customers which helped to boost their
profit growth (Kim 2008). But Walmart’s attempt to use their business model to the South Korea
market leads to failure. As a result, Walmart ‘Every Day Low Prices’ strategy does not fit in the
South Korea country due to the culture differences. In addition to that, Walmart did not come up
with an effective localization strategy to indicate how much they are investing and grow in the
local market. Therefore, Walmart should apply Hofstede or Trompenaars’ culture theories to
analysis the culture differences first before deciding whether Korea was a strategically key market
to go into it global expansion.
INNOVATION
Walmart innovation strategy relies on DISRUPTIVE INNOVATION. Consumer demand is changing all the
time, and Walmart has to connect its products with customers whenever and wherever they are, so they can
save money and live better
Ex ; Within a short time, Walmart became one of the most popular online stores in America because it came
up with an innovation that seeks to make products and services available and accessible to consumers at
cheaper prices.