Wal-Mart China Analysis

3304 Words May 25th, 2011 14 Pages
Introduction
Since China was opened the market in earlier 1980s, a number of foreign supermarket corporation were entered, e.g. Carrefour, Tesco and Wal-mart. Now the Wal-mart has become one of the very important supermarkets in Chinese supermarket sector. This assignment is intends to offer the evaluation for the business and performance of Wal-mart in China in terms of PEST and SWOT models, with critical discussion on the choosing and using of those two analytical models, so that provide the critical analysis and related recommendation to Wal-mart’s strategy in China.
Critical evaluation of PEST and SWOT models
Since the corporate strategy has been commonly described as a matrix that provided proper business direction and extent for
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The evaluation of Wal-mart in China in terms of PEST and SWOT models
Political factor
It’s a trend that the Chinese government increasingly open market to foreign investors by reducing the barriers of entry. Recently, the State Council of China has altered the foreign investment policies, encouraged and supported the foreign investment on the service sector, especially the labour intensive but environmental friendly business in low developed central or western China (Chen & Liang, 2010). The government has also permitted the foreign investors to set up partnership business with local firms (Cao & Tai, 2009) rather than formerly approved options of joint venture and wholly owned. On the other hand, the current government and communist party are working to ease the social inequality. The minimum wage and annual income protection have been approved and increased in China at present (Wang et.al., 2009). Also, they have promoted the establishment of government-led labour union in major foreign business and expect to require all of them to set up in later (Kahn, 2006), which aim to create official-approved labour protection chapter and collective bargaining in foreign firms.
Economic factor
At present, the Chinese economy has partly recovered from previous strike of global economic crisis. With sizable fiscal stimulus in public sector and release of massive lending in recent years,

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