Question

If a multinational business does not understand and adjust to cultural variations from one place to another, demand for its goods could drop. When Walmart opened its first store in Argentine, ti made no changes in its usual strategy. The new store offered cuts of meat, cosmetics, and clothes for the AMerican market. Even the design of the store was based on American buying habits, with long and narrow aisles.Argentinian consumers, however, liked different cuts of meat, cosmetics more suited to European tastes, and smaller, tighter clothes. They shopped daily, which made the narrow aisles more crowded that in the United States, where consumers tend to shop weekly. Sales were a disaster. Walmart change its strategy before opening its next store, and demand improved significantly.

If you were in charge of opening a new store in a different country, what factors would you consider before you opened the business to customers?

Answer 1

To open a new store in a different country, it is essential to conduct a cultural analysis for local preferences, consider the economic impact on local businesses to mitigate 'Wal-Martization,'

and invest in local partnerships and employment strategies for community goodwill.

Step-by-step explanation:

If I were in charge of opening a new store in a different country, several key factors would need to be considered to ensure the successful launch and operation of the business.

Firstly, I would conduct a comprehensive cultural analysis to understand local preferences, habits, and traditions surrounding shopping and consumption. This would include factors like preferred products, shopping frequencies, and desired store layouts.

Secondly, I would consider the economic impact on local businesses and communities. It is important to assess how the introduction of a multinational store might affect small and family-owned businesses, and whether there are strategies that could be deployed to mitigate negative impacts while still achieving business goals.

This responsibility involves acknowledging and responding to concerns of 'Wal-Martization' or the adverse effects a large-scale retailer can have on local economies.

Lastly, investing in local partnerships and employment strategies that could foster goodwill and positive relations with the community would be vital.

This includes offering fair wages, benefits, and involvement in community development. Thoroughly analyzing these factors would aid in customizing the store to fit the local market while respecting and contributing to its economic wellbeing.