Question: kindly answer the 3 question based on the case - Willures: Walrnart in Germany Company Culture Walmart immediately introduced a number of aspects from thnir

- Willures: Walrnart in Germany Company Culture Walmart immediately introduced a number of aspects from thnir us opermoom: - group stretching in a moming - Walmart chants in the moming - requirement for cashiers to smile all the time. - greeters (smiling!) at the entrance to stores - an "ethics code" that obliged employees to teport on other stalt members if they than't. comply with the rules, as well as forbidding retationships with other stait mencoers Although the idea was to increase motivation and lovalty to the company, growp stretching and chanting seemed cult-like to many Germans. You really wouldn't want to be nex to me firs thing it someone tried to make me do anything like that! Many also felt that it was too strong a remindet of a period in history where many Germans went along with such activities, and felt reminded of the Nuremberg rallies. As for smiling all the time, that just came across as weird and insincete. It's not like Germans don't smile, but when someone smiles at you ALL. THE. TIME it u ust feels fake. Placing greeters at the entrances to stores felt creepy to many people as well as beling a complete waste of time and money. Why do you need someone with a plastic smile to greet you cheerily when you go to do the "necessary evil" of your weekly shop? Ethics code? Until now, I've not been able to find anyone who could tell me what was so ethical aboua it BUT it employed both communist methods (informing on colleagues to avoid punishment yourself and was against German law (as a company you can't regulate people's private lives unless it is havio a deliberate effect on the company's reputation. So you can stop people tunning hate campaio about the company on Facebook, but you can't prevent Jane from accounts having an aifair with Head of Fresh Veg). In 2005 the court overturned this ethics code, but by then Walmart was far: the road of companies that failed internationally due to cultural differences. Logal iasues - Walmart in many cases falled to pay the minimum wase - Emplovees were forced to work toe many heurs fthis is an eu medution that imiti werker - German requirements for paid holiday rime are complately ditterent to the us 15 weekitiover Wal in eurepe with mary Clermsn companses offerine 6) As vou can imagioe, the reiationahip between the lubour uniem and Wulmart were prethy tumeie. rather than the usual senerally amicabic cooperation that exists in Getmany. Sales Tactics As if the above problems were not enough, the strone local competitors Aldi and Udi wern making the hard. The dilcount sector had around 40% m market share at that time in Germany and prices wert generally around 15% lower than the European average. ffood pricei in retall are still relative'y low in Germany due to intense competition and customer expectations). Walmart's answer was to unll at lower prices than the discounters to try and push them out and then to raise prices later. This hewever, fell foul of anti-dumping laws that forbid selling products below the purchasing price and the compamy was accused of predatory pricing. Consumers also had higher expectations about quality than Walmars expected. In Germany it's not simply enough to sell at the lowest price - the quality has to be at leas reasonable too (this is something that Aldi \& udt are famed for managing well. On top of all that, German customers didn't like the "pack everything in plastic bags" attitude or amount of non food items made of cheap Chinese plastic as it conflicted with their environmental principles. Withdrawal All of the factors mentioned above combined to result in falling sales. Profit margins were fust 13 (compared to 6-8\% with Ascia's in the UK) and Walmart were unable to rise above the 3% market shat mark. That in itself isn't such a bad situation in Germany BUT the company's expectations had bee ompletely differernt. vestion 1: In the light of Hofstede model, explain and evaluate the failure of Waimart in Germat Jestion 2: Elaborate on the major ispues Walmart faced when they wanted to break into Germ - Willures: Walrnart in Germany Company Culture Walmart immediately introduced a number of aspects from thnir us opermoom: - group stretching in a moming - Walmart chants in the moming - requirement for cashiers to smile all the time. - greeters (smiling!) at the entrance to stores - an "ethics code" that obliged employees to teport on other stalt members if they than't. comply with the rules, as well as forbidding retationships with other stait mencoers Although the idea was to increase motivation and lovalty to the company, growp stretching and chanting seemed cult-like to many Germans. You really wouldn't want to be nex to me firs thing it someone tried to make me do anything like that! Many also felt that it was too strong a remindet of a period in history where many Germans went along with such activities, and felt reminded of the Nuremberg rallies. As for smiling all the time, that just came across as weird and insincete. It's not like Germans don't smile, but when someone smiles at you ALL. THE. TIME it u ust feels fake. Placing greeters at the entrances to stores felt creepy to many people as well as beling a complete waste of time and money. Why do you need someone with a plastic smile to greet you cheerily when you go to do the "necessary evil" of your weekly shop? Ethics code? Until now, I've not been able to find anyone who could tell me what was so ethical aboua it BUT it employed both communist methods (informing on colleagues to avoid punishment yourself and was against German law (as a company you can't regulate people's private lives unless it is havio a deliberate effect on the company's reputation. So you can stop people tunning hate campaio about the company on Facebook, but you can't prevent Jane from accounts having an aifair with Head of Fresh Veg). In 2005 the court overturned this ethics code, but by then Walmart was far: the road of companies that failed internationally due to cultural differences. Logal iasues - Walmart in many cases falled to pay the minimum wase - Emplovees were forced to work toe many heurs fthis is an eu medution that imiti werker - German requirements for paid holiday rime are complately ditterent to the us 15 weekitiover Wal in eurepe with mary Clermsn companses offerine 6) As vou can imagioe, the reiationahip between the lubour uniem and Wulmart were prethy tumeie. rather than the usual senerally amicabic cooperation that exists in Getmany. Sales Tactics As if the above problems were not enough, the strone local competitors Aldi and Udi wern making the hard. The dilcount sector had around 40% m market share at that time in Germany and prices wert generally around 15% lower than the European average. ffood pricei in retall are still relative'y low in Germany due to intense competition and customer expectations). Walmart's answer was to unll at lower prices than the discounters to try and push them out and then to raise prices later. This hewever, fell foul of anti-dumping laws that forbid selling products below the purchasing price and the compamy was accused of predatory pricing. Consumers also had higher expectations about quality than Walmars expected. In Germany it's not simply enough to sell at the lowest price - the quality has to be at leas reasonable too (this is something that Aldi \& udt are famed for managing well. On top of all that, German customers didn't like the "pack everything in plastic bags" attitude or amount of non food items made of cheap Chinese plastic as it conflicted with their environmental principles. Withdrawal All of the factors mentioned above combined to result in falling sales. Profit margins were fust 13 (compared to 6-8\% with Ascia's in the UK) and Walmart were unable to rise above the 3% market shat mark. That in itself isn't such a bad situation in Germany BUT the company's expectations had bee ompletely differernt. vestion 1: In the light of Hofstede model, explain and evaluate the failure of Waimart in Germat Jestion 2: Elaborate on the major ispues Walmart faced when they wanted to break into Germ
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