Bharti: A Case Analysis: Reasons For Joint Venture Formation

According to BHI’s financial report, their net income before taxes was $11,552.00, after taxes $8,014.00 and the total net income for 2009 was $8,055.00. In 2008, BHI had an income before taxes of $7,574.00, after taxes $5,596.00 and a total net of 4,994.00. The year 2007 was a good

Wal-Mart Stores, Inc. Walmart is the biggest importer of foreign products in the United States. For this, Walmart created a code of conduct for its foreign suppliers as “Standards for Suppliers”. To meet this code of conduct foreign supplier need to follow all the local law, rules and regulations of country and the working condition of industry like pay, hiring forced labor, child labor and discrimination. This code of conduct states Walmart may make on-site inspection to the foreign products that is going to be imported in Walmart USA by which it can cancel or reject the low standard product while site inspection. These are included in Walmart’s supply contract with its suppliers in foreign countries. The foreign workers who are importing goods to Walmart from China, Bangladesh, Indonesia, Swaziland and Nicaragua sued Walmart to the US district court alleging that they were third party beneficiaries to the Walmart’s contract to its foreign suppliers that due to the Walmart’s breach of standard they were due damages from Walmart. Their employees violated the standards because of Walmart failed to investigate on working condition of foreign suppliers. Even knowing the standards were being violated Walmart failed to implement the standards mentioned there in contract. The U.S. court held that the litigants were not intended third party beneficiaries to Walmart’s contract to its foreign suppliers and terminated the

Reliance Communications Limited is the flagship business of Reliance Anil Dhirubhai Ambani Group. It is one of the foremost telecommunications service providers in India. The Company acknowledges having a customer base of above 118 million that includes 2.6 million individual overseas retail customers. Rcom does business with over 39,000 Indian and multinational corporations and over 290 global, regional and domestic carriers.

“According to the Times, Wal-Mart received hundreds of internal reports of bribery and fraud every year. In Asia alone, there had been 90 reports of bribery in the previous 18 months.” (The World). The worst part is that even though the problems are apparent, they still are not being solved. These factories must be improved because they are very inhumane and unfair in their current state. Employees are treated as slaves just so that the Walton family can make more money. We need change for all of the workers and former workers. All in all, Walmart is very corrupt by the way they treat their

Business Article: Walmart’s Discounted Ethics The New York Times investigation of Wal-Mart in 2012 found Wal-Mart guilty of paying off Mexican officials over 24 million dollars. The Time Magazine article: “Wal-Mart’s Discounted Ethics” takes a look at Wal-Mart in several corrupt countries where they are developing new stores. The Times investigation found that this was not the time Wal-Mart was unethical, but that in 2006 Walmart was cited in 31 cases of potential corporate crimes across the globe. The Times found that paying off countries is not an odd occurrence in the largest growing areas of the world.

By taking such unethical decisions, Wal-Mart de Mexico violated laws from both Mexico and the U.S. Mexico has been known as a country where foreign companies have a significant risk for corruption. Bribery is common in many parts of the country, however, “attempted corruption, bribery, extortion, abuse of office, bribery of foreign public officials and facilitation payments are criminalized under Mexico’s Federal Penal Code” (Business Anti-Corruption Portal). As for the United States, the company violated the Foreign Corrupt Practices Act (FCPA), more specifically the Anti-bribery provision. This provision states “A company cannot corruptly make an offer, promise, or payment of anything of value to a foreign government official or politician

There were several unethical transgressions that took place in the case of the Walmart expansion in Mexico. Walmart resorted to taking advantage of Mexico because its economic system was easy to corrupt. There was bribery, tax evasion, and local labor laws being broken to operate at low cost for more profit.

It’s seemingly that Walmart de Mexico bribery scandal is far from over. Many investigations has been carried out to fully answer what acctually happened in the past, what system failed, and who was responsible for possible violations of the Foreign Corrupt Practices Act (FCPA), which bars bribery of foreign officials, but questions of accountability recently remain unanswered. It also means that Walmart leaders have succeeded in hiding all the important clues to avoid sanctions.

•  India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.

Wal-Mart would rather bribe factories money to move on and brush it under the carpet instead of taking responsibility for their involvement. So, one would have to think this is not due to the lack of knowledge of the practices in the factories, but the choice to ignore and not care of these practices. In 2012, Wal-Mart choose to “make payments to Mexican officials of more than $24 million noted by The New York Times and in Asia there were 90 reports within a year and half period” (Sethi) to cover situations up demonstrating that money talks.

Walmart was accused of paying 24 million dollars in bribes to promote their expansion in Mexico.

Wal-Mart strives for excellence in both professional and ethical behavior from employees, managers, upper-management as well as their customers all across the world. They are so gung-ho on providing services excellence that they have initiated local Ethics Committees and Global Ethics Offices which provides employees and customers many different ways of reporting issues to them while remaining anonymous. These Offices and Committee’s take every concern very seriously and will fully investigate concerns of unethical practices.

In 2012 the New York Times one of the most respected daily newspapers published a story in the front page an investigation of bribery allegations that concerned Walmart de Mexico which was extended into three more papers in its daily newspaper. And that Walmart de Mexico orchestrated a campaign of briberies to government officials to win market dominance and to obtain permits all over the country. Adding on its story or investigation that the bribes are unethical and illegal and that they violate Mexican laws and the Foreign Corrupt Practices Act. Further in the story the New York Times alleged that Walmart was fully aware of the bribery accusation and then it shut down its investigation without reaching a conclusion.

t must Bharti do well to succeed in the Indian mobile phone market? What are Bharti’s core competencies?

In the past few years, Indian Retail sector has seen tremendous growth in the organized segment. Major domestic players have stepped into the retail arena with long term, ambitious plans to expand their business across verticals, cities and formats.