Supermarket and Sam Walton

1487 words 6 pages
Wal-Mart is a US-based multinational corporation. Critically discuss the likely costs and benefits of its takeover of Asda, a UK-based company.

When a company decides that it is time for it to grow from a national into a multinational company (MNC) there are cost and benefits involved. A multinational corporation is a company that has productive assets, which they own and control in countries other than their own. An MNC is unlike an enterprise, which exports products and services, but the MNC directly invests into developing countries, where it can benefit from producing products at a lower cost, while increasing its market share. Whether this has a positive or a negative impact for the company and its host state, is dependent on the
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To achieve their goals they invested heavily in an ongoing training program both for their suppliers and for their employees within the store, implementing rules such as the ‘ Ten foot rule’, which meant making eye contact with the customer who is within ten feet asking if they needed assistance and believing that the customer is always right. They made sure that they provided an excellent service and respected their customers, but at the same time keeping the costs low and the selves full to keep their shoppers satisfactory level high.
Asda began to use supply chain technology IT to manage and speed up the new product development process and provide complete traceability enabling them to get a new product range to market faster also to generate millions of pounds of additional revenue. This technology development was essential as they had problems with duplication and information was getting lost.
No one could argue against the need for a technological solution to these problems. The IT system offered that solution, which Asda needed, it covered

all aspects of product development from idea and concept generation through to product lifecycle management and supply chain traceability.
With the new system they had complete transparency and they

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