National Business Systems (nbss)

Executive Summary

This paper aim to compare the National Business systems (NBSs) of Germany andUSA and to critically analyse the cultural and institutional factors between Germany andUSA that attributed to the failure of Wal-Mart in Germany and their ability to transfer their practices. Leading the US market for a long time, Wal-Mart spread its business toGermany in 1997. In spite of having success, in all over the world why Wal-Mart was infailure in Germany. It is a provocative question and this study will scrutinize it here. It isa burning question that why Wal-Mart was in failure in Germany. It was just because of not adapting with the regional culture and not paying heed to local values, beliefs andtradition. However, Wal-Mart can be the top one in United States but it does not ensureto be the top one anywhere in the World. Giving importance to the local market anddoing business according to the needs and desires of the local people is very importantfor making success in Business that Wal-Mart couldn’t follow that

introduction:

This assignment is related to the business operation of Wall-Mart in Germany. In the retail market, the name Wal-Mart is placed like a legend that stated its first business in nine countries all over the world. In the earlier the idea of expanding their business in allover the world, they faced lots of difficulties and challenges. Wal-Mart as its market strategy purchased two retail chain shops in Germany for $1.6 billion in 1997. Without making profit for eight years, Wal-Mart sold its entire retail outlets to Metro AG and moved from Germany in July 2006. Leading the US market for a long time, Wal-Martspread its business to Germany in 1997. In spite of having success, in all over the worldwhy Wal-Mart was in failure in Germany. The objectives of this paper are to comparethe National Business systems (NBSs) of Germany and USA and to critically analysethe cultural and institutional factors between Germany and USA that attributed to thefailure of Wal-Mart in Germany and their ability to transfer their practices.

Company Profile:

In all over the world Wal-Mart is such a market that it is the largest in retail business andthe second largest company in the world that is the largest too in nation’snongovernmental employer. Primarily it serves with three segments includes super shops, discount stores and Neighborhood market in US. In US, the warehousemembership clubs is included by Sam’s club segment. The food service and distributionservice to retail industry are provided by McLane Company Inc, a subsidiary companyof Wall mart. In every week Wal-Mart serves 200 million times, 8,416 retail units over 15countries and under 53 different banners. By the end of the 2010, it was seen that Wal-Mart employs 2.1 million, sales was $405 billion all over the world. Though majority of its stores is located in United States but it is also operating its business internationally in Argentina, Brazil, Candida, Japan, Puerto Rico, UK, China and India