Wal-Mart China Analysis
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 company to achieve competitive advantage in the business environment (Johnson et.al., 2008), it is fundamental for companies to understand both of the external and internal environment of their business before any strategic development or decision making.
In fact, for company which intends to understand the external environment, there are three levels of circumstance existed. The highest one is macro-environment. It is an outer and broadest layer around the business; refers to the overall states, activities and structures in human societies; and superior to the industrial and competitive layers (Thompson, 2001). Scholars such as Porter (1980) has argued that the evaluation on the state or issue of macro-environment is essential as they can impose opportunities, limitations and uncertainties to all the business already existed in or likely to enter a market, and then determine their states of play. In that reason, PEST is a specific tool to deal with the analysis of macro-environment. It is delivering a suit of taxonomic classification for company to explore external situation, which involved four factors: politics, economy, social-demography and technology in a market or global society (Burt et.al., 2006). By using PEST model, it is
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 company to achieve competitive advantage in the business environment (Johnson et.al., 2008), it is fundamental for companies to understand both of the external and internal environment of their business before any strategic development or decision making.
In fact, for company which intends to understand the external environment, there are three levels of circumstance existed. The highest one is macro-environment. It is an outer and broadest layer around the business; refers to the overall states, activities and structures in human societies; and superior to the industrial and competitive layers (Thompson, 2001). Scholars such as Porter (1980) has argued that the evaluation on the state or issue of macro-environment is essential as they can impose opportunities, limitations and uncertainties to all the business already existed in or likely to enter a market, and then determine their states of play. In that reason, PEST is a specific tool to deal with the analysis of macro-environment. It is delivering a suit of taxonomic classification for company to explore external situation, which involved four factors: politics, economy, social-demography and technology in a market or global society (Burt et.al., 2006). By using PEST model, it is