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Wal-Mart in 2005: Managing Globalization |
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Excerpts Contd...ChinaSouth KoreaIn 1997, regulations governing foreign retailers in South Korea were liberalized. Wal-Mart entered Korea in July 1998, by acquiring a majority stake in Makro. Wal-Mart purchased four former Korea Makro stores and also opened six new Wal-Mart stores: three in the capital, Seoul and one in Taejon... JapanIn Japan, Wal-Mart decided the best entry strategy was to join hands with a local partner. Accordingly, in 2002, Wal-Mart paid $46.5 million for a 6.1 percent interest in Seiyu, Japan's fourth -largest supermarket... GermanyWal-Mart's experience in Germany (the third-biggest retail market after America and Japan), a country with 80 million people and the largest economy in Europe had not been entirely happy. In December 1997, Wal-Mart purchased the German Wertkauf group of twenty-one stores... The United KingdomIn the United Kingdom (UK), Wal-Mart had acquired ASDA, a profitable chain in 1999. ASDA had been formed in 1965 by a group of farmers from Yorkshire. Wal-Mart had kept an eye on ASDA for some time before seeking to purchase it... The Road AheadScott had publicly stated that over the next few years sales from the overseas division would grow to a third of earnings and sales growth. While Wal-Mart had kept its specific plans tightly under wraps, rumors floated about an acquisition in India, the Esselunga chain in Italy, France's Auchan, Carrefour, Cora or Casino chains, Poland's Casino Géant stores, Spain's Mercadona and Japan's Daiei or Aeon chains... Exhibits
Exhibit 1: Impressive Sales Growth between 1995 and 1999
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