Wal-Mart in China
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Building the Culture
After entering China, Wal-Mart faced a major challenge in integrating Wal-Mart's values and expectations into employees used to working for state-run enterprises, where permanent employment was the norm and responsibilities were limited. State-run enterprises in China also offered little training and few incentives to employees who did well in their jobs...
The Road Ahead
As 2005 got under way, Wal-Mart continued to face various challenges in China. Wal-Mart and other foreign retailers had to offer a 35% stake in each store to a Chinese joint venture partner and were restricted to a territory of approximately 40 cities each. After December 2004, as part of China's admission to the WTO, the government would allow foreign retailers to own their own stores outright in any city they chose, provided they could arrange government building permits. With clearer rules and freedom, Wal-Mart might acquire existing retail outlets to scale up fast...
Exhibit 1: Two Categories of Wal-Mart in China Supercenter
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