Walmart International Operations Term Paper

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Wal-Mart Stores, Inc.'s International Operations Process

Current International Operations Process

As the largest retailer in the world, Wal-Mart's international operations process is of course highly complex, but it is still fairly straightforward to understand. The company's international interests are far-flung and assume various forms around the world, but Wal-Mart Stores, Inc. ("Wal-Mart") organizes its business into three core segments to accomplish its operations processing:

Wal-Mart Stores. The Wal-Mart Stores segment is further comprised of three different retail formats, 1) Discount Stores, 2) Supercenters and 3) Neighborhood Markets (all of these format are located in the United States) (Wal-Mart, 2005).

Sam's Clubs. This segment consists solely of membership warehouse clubs, also all located in the U.S.; at the end of last year, Wal-Mart operated 1,478 Discount Stores, 1,471 Supercenters, 538 Sam's Clubs, as well as 64 Neighborhood Markets in the United States (Wal-Mart, 2005).

International. (Wal-Mart, 2005). The final segment operates in eight countries and Puerto Rico; like the company's flagship stores and clubs, this segment also competes in a variety of formats depending on operational necessity and consumer preference. The company also owns an unconsolidated 37.8% minority interest in a retailer (The Seiyu, Ltd.) in Japan; further, in February 2004, the company acquired a supermarket chain in northern Brazil, Bompreco S.A.

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Supermercados do Nordeste, with 118 "hypermarkets," supermarkets and mini markets (Wal-Mart, 2005).

This global expansion was accomplished through a strategic combination of new store construction and acquisitions (International Operations, 2005). According to the Fact Sheet on International Operations, "This strategy has given us excellent market penetration and opportunities for future development"; further, this approach has been enormously successful, with international sales reachingd $47.5 billion in fiscal year ending 2004, a 16.6% increase over the previous year, and operating profits rose to $2.3 billion, an increase of 18.6%. The company adds that Wal-Mart International plans to open 155 to 165 new stores in existing markets this year (International Operations, 2005).

Internal and External Customers.

According to Harry E. Chambers (2001), internal customers are defined as any individuals, groups, departments, or teams within your organization that directly benefit from an individual's efforts. "They are those you serve within the organizational structure," he says, "and those who support you in your service to others. They may be the next link or the preceding link in the process chain" (p. 185). By contrast, external customers defined by Chambers are being….....

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