Globalization Article Analysis
Many organizations and industries are finding it necessary to cross global lines of negotiation in order to be competitive in industry. Walmart is an organization that expanded their retail business globally on a grand scale. The organization has expanded into South America as well as Asia. The retail giant has not stopped yet.
Walmart is the world’s largest retailer with a home base in Arkansas. The organization seeked to expand into Africa with the acquisition of Massmart. The Massmart store has 288 stores throughout Africa. The expansion and purchase would put Walmart on the map on four continents, America, Asia, Europe and now Africa. There were no conditions set forth to jeopardize the deal between the companies. The deal was met with supporters and challengers. The supporters saw the deal as “a vote of confidence in Africa’s economic growth and proof that South Africa is ‘open for business’” (Smith, 2011). The challengers, mainly Africa’s powerful trade unions saw the move having potential to drive down wages, and cost jobs in the country. Walmart has notoriously been a terrible employer. The negotiations for the deal made Walmart guarantee the retail giant would not cut jobs for two years and would help develop local suppliers. Local government as well as the unions working against Walmart nearly had the corporation walking away from the deal.
The deal certainly had pro’s and con’s for both sides. Walmart could spread its reach even farther, however, against strict opposition the deal negotiated must benefit both sides. The locals feared job loss as well as squeezing out local suppliers. Supporters saw the merger as a way to promote competition in the retail sector and drive down the high cost of basic necessities. The negotiations went well and Walmart made its exodus into South Africa in a move that government supporters saw as a positive step toward attracting other investors....