Question: Based on what we have learnt in Chapter 17 (Managing Global HR) and what we have read from the case above, what resulted Walmarts failure in Germany? If Walmart assigns you to redesign the whole plan, what would you do differently?

please answer ASAP from the case study

Wal-Mart pulls out of Germany

Walmart can boast that it has more than 8,500 stores in 15 countries, under 55 different names, that its the largest private employer in the United States, the largest in Mexico (as Walmex), and the third largest in Canada. In fact, its the biggest private employer in the whole world. It has 108 stores in China alone, and operates another 100 Chinese outlets under the name of Trust-Mart. Still, for all of Walmarts conspicuous success, the retailing giant, after having set up shop in Germany in 1997, was forced to withdraw from the country in 2006, abandoning Germanys lucrative $370 billion retail market.

Shortly after its arrival in Germany, Wal-Mart faced accusations that it was using short-term predatory pricing to put small shopkeepers out of business. Regulators ordered Walmart to raise the price of basic foods such as milk, flour and butter which Walmart could not because the companys sole competitive advantage lies in offering lowest possible price every day.

High labor costs may have been a big hurdle for Wal-Mart Germany, as well as workers who tried to resist management's demands which they felt were unjust. Another problem is that Germany is anti-American when it comes to name-brand retailers (even though Dunkin Donuts and Starbucks are popular there). Another is that German consumers prefer small neighborhood stores rather than impersonal chain (even though Aldi, a discount supermarket chain, is successful).

Critics in Germany suggested that there were also cultural issues. Walmart requires its checkout people to flash smiles at customers after bagging their purchases. But because the German people dont usually smile at total strangers, the spectacle of Walmart employees grinning not only didnt impress consumers, it unnerved them. Also, Fiendish as it sounds, Walmart employees are required to stand in formation and chant, WALMART! WALMART! WALMART! while performing synchronized group meetings. Unfortunately, this form of corporate boosterism didnt go over particularly well with the Germans. Maybe they found it embarrassing or silly.

Whatever the specific reasons, the German market is now forbidden to Walmart. Clearly, the failed experiment was a severe blow to the companys pocketbook and pride. Because as Wal-Mart Germany's CEO David Wild said in an interview "It does not good to force a business model onto another country's market just because it works well somewhere else."

(Source: Huffington post, DW, and the Guardian)

• Remember, in order to attempt case studies successfully, you must address the case solution as per the following format

• Background and Situation Analysis Before answering the core case questions
• Problem Identification (if any)
• Solution/Answer/Recommendation with proper justification (whenever and wherever required