Wal-Mart is considered to be the retail giant and powerhouse of the retail industry. The organization is a transnational organization and it’s operated in all the major countries of the world. It was started in America and was founded by Sam Walton. In the United States it has to deal with issues like labor unions, cultural diversity, rights of lesbian and gay employees etc (Fishman, 2006). History suggests that Wal-Mart possesses cultural diversity in their organization and they have responded positively to all the cultural elements that are essential in building up a culturally diverse organization.
Wal-Mart is on an expansion note and they have planned to enter in the Indian market. Since the Indian economy is booming in the current era and studies suggested that the current retail market of India is estimated to be $250 annually. Indian market is quite diverse in nature and people in India speak different languages and belong to different religions. Similarly, Wal-Mart is operating locally in India therefore they should buy all the necessary items locally. The new groups that would be in contact in the near future for Wal-Mart are price sensitive and most of them belong to upper middle and middle class communities.
The opportunities for Wal-Mart are wide and varied in the Indian market and proper planning and coordination can solve problems that are related to diversity and communication. Wal-Mart must target all the religious and local groups in India in building up their workforce and a culturally diverse workforce can easily manage operations in a country which is rich in culture. This approach can increase productivity in the organization and organization can achieve its objective through this strategy.
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Communication barriers are the biggest hurdle for any organization and for Wal-Mart this issue can be a serious problem (Bell, 2006). An unethical practice in America might not be treated as unethical in India. Similarly, language barriers, ethnic issues and all the elements related to cultural diversity can pose serious threats to Wal-Mart. Organizations that manage cultural diversity can easily climb the ladders of success and effective training and development programs can solve this issue (Cox, 2001).
People who depict prejudicial behaviors for other social and ethnic group must be trained by professionals and if they continue their behavior then they must be wiped out from the organization. Although Wal-Mart is a transnational organization but they have to deal with local vendors, employees, customers etc. Therefore, local values, local cultural aspect should prevail in the organization and all the stakeholders of the organization should take care of that.
Thus, we can conclude that diversity is part and parcel of every organization that works in the international arena. They must develop strategies that are cultural enriched and it must match the needs of the Indian people. Moreover, a proper plan must be developed to cope with all the actions related to cultural diversity (Halepete, Seshadri, & Park, 2006).
Wal-Mart failed in countries like Germany and South Korea and many strategists suggests that this failure was because of cultural differences between the two countries.Language barriers played its part and contributed in the failure of Wal-Mart.
References Bell, M. (2006). Diversity in Organizations. South-Western College Pub. Cox, T. (2001). Creating the Multicultural Organization: A Strategy for Capturing the Power of Diversity. Jossey-Bass. Fishman, C. (2006). The Wal-Mart Effect: How the World's Most Powerful Company Really Works--and How It's Transforming the American Economy . Penguin . Halepete, J. , Seshadri, I. , & Park, S. (2006). WalMart in India:A success or failue ? emarald insight .
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