Wal-Mart in the Case of Term Paper

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This ability is likely to keep Wal-Mart a low-price leader. The fact that Cifra is now an integral part of Wal-Mart will allow Wal-Mart to better understand Mexican consumer and employee requirements. It is difficult to imagine that the Mexican workforce would object to the sort of empowerment for which Wal-Mart is famous. On the other hand, in a culture in which most jobs have been poor jobs, hardly warranting loyalty, Wal-Mart may face an uphill battle in convincing Mexican Wal-Mart associates that they are capable of making decisions and that they will be rewarded for taking the initiative. However, because this sharing of responsibility is so integral to Wal-Mart's culture, it seems that it will be necessary to educate the Mexican workforce in the advantages of such a management attitude.

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The first problem is the infrastructure; with poor roads, it is difficult to employ the hub-and-spoke method of distribution and therefore difficult to deliver to Mexican consumers the same high quality, easily available merchandise Wal-Mart customers in the United States are used to. To fix this, it may be necessary for Wal-Mart to involve itself in politics so that government will be more interested in upgrading the infrastructure.

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Wal-Mart may, however, have to do it itself, and literally contribute to the building of road in essential portions of its Mexican hub-and-spoke in order to get the job done.

The second problem is that of translating Wal-Mart's empowerment culture to the Mexican stores. This is an education problem as well as a cultural one, and might best be dealt with by instituting training programs, although apparently the associates are already beginning to literally buy stock in Wal-Mart.

The final problem is continued growth; with the Cifra deal, Wal-Mart is already a megamarket; it would seem that its next move, much as in the United States, would be to 'supersize' more stores, making Mexican Wal-Marts truly a one-stop shop there, as well.

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