Walmart's Global Expansion in Sweden

2377 Words Nov 28th, 2015 10 Pages
Introduction
We finally choose Sweden as Walmart’s next expansion location as the CAGE analysis shows that Sweden is the most appropriate country to locate the new hypermarket. Sweden is a developed western country that has many similarities with US in culture, administration and economy. Sweden has a highly-developed capitalist economic system, a stable political environment and few corruption, which provides a stable external environment for Walmart’s entry and continuous operation. Its well-developed infrastructures and transportation also make it easier for Walmart to establish its own distribution system. Also people in Sweden have strong purchasing power and consumption ability as they have long been high income group in the world.
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Global managers are those who “understand different cultures and lead mixed-nationality teams” (Barnevik 2001, xi-xix). According to this explanation, global managers will work with colleagues and customers from other countries. Also they will manage and supervise people of different nationalities. So understanding another language other than their mother language and understanding different cultural implications will contribute to their successful management. Also they should develop business strategies and systems in a global background, which means they have to take various factors into consideration and react to changes in a timely manner. Global managers can face situations much more complicated than situations domestic managers face and sometimes effective approaches and methods can turn out to be ineffective for global managers. Or even worse, global managers may not be able to find a reason to conduct certain activities or an answer to explain their problems from business books or their previous experience in extremely complex environment. So they have to equip themselves with the ability to embrace changes and complexity. In summary, the following are competencies that a qualified global manager should have.

Business literacy. Global managers should accumulate enough international business knowledge which forms the basis of their decision making process. In order to develop business strategies and