The paper "Plan of Entry for Walmart " is an outstanding example of a management case study. Australia is factually the smallest continent and the largest island in the World, with a multi-ethnic and cultural population estimated to be about 20 million. The country is ideally situated in a unique geographical, economic and cultural position to provide business and trade links between North America, Europe and the Asia-Pacific region. The paper, therefore, discusses the suitability of the country to enable Wal-Mart to open a retail outlet. Significance of investing in Australia The economy of Australia enjoys a distinct competitive advantage in terms of production as well as the processing of primary products necessitated by the presence of an abundance of natural resources and world-class infrastructural network that includes transport and telecommunications.
According to Parham (2002, pp 1-23), the country also offers one of the undisputable low-cost environments of doing business, good domestic market, high levels of skilled labours, and competitive costs of salary for professionals. Some of the key attractions for doing business in Australia include good climate, availability of many multilingual professionals who are competent in European and Asian languages.
In addition, Australia is considered as a key tourism destination in the world. The financial deregulatory concept of Australia has witnessed the removal of so many business restrictive measures and controls coupled with relatively low levels of risk on returns that have resulted in the attraction of foreign investment. The country has also introduced so many schemes of financial incentives and special taxation to lure multinational companies to extend their businesses in Australia. At the moment investment in the country is a reliable point of entry for extending investments in the lucrative Asia-Pacific block (Penrith 2006, pp 103-124). Consideration of social trends Social trends of the country have a lot of impact on the business investments scheme growth.
Australia is a country with a lot of diversity hence affecting positively the retail business which has to satisfy the local cultures and taste of the areas in which they are to start operations or are already operating. This has been the main reason for most of the retail operators in the country limiting their operations to specific regions.
However, the trend is gradually shifting from isolationism to towards cultural integration in which people of all states and opposing cultures are embracing materials and foods from other communities and states. The movement geared in the direction of social integration would potentially make it possible in the near future for foreign and local retailing businesses to spread their wings across the country (Pip 1983, pp 36-52). The company must take note of the dynamics in patterns of consumption of goods. Increase in income levels, as well as more women who have the willingness to take up professional jobs upon attainment of education, has had a lot of shifts in the shopping pattern which is now moving in the direction of fulfilling the dire need of what is termed as convenience shopping, notably Supermarkets specialising in-home deliveries.
The Australian consumer is price and quality conscious thus this awareness would enable Wal-Mart’ s entry into the country to reorganise its supply chain relationships to suit the local market pressures.