The Resource Based View Of Wal Mart Management Essay

The Resource Based View Of Wal Mart Management EssayThe broad selling environment of an organisation consists of the intra-organisational interactions amongst its internal factors, as likewise the external, different and inter-related environmental factors that atomic number 18 referred to as the external macro-environment (Lancaster Reynolds, 2001).Michael Porters diamond model states that whilst criteria analogous location, land, labour and order of local anaesthetic population are conventionally considered to be influential in shaping competitive advantage, the real competitive national advantages are obtained by factors like st numbergy, organisational structure, military control rivalries and cont finiser, and related ancillary industries (Proctor, 2002).Hofstede, in his study of international cultures found that cultures comprise of rituals, valuates, symbols and heroes and that the bedrock of heathen differences between organisational culture flowed from five di mensions of national culture, (Hofstede, 2001), videlicet (a) power distance, (b) Un authoritativety avoidance, (c) individualism, (d) long-term orientation and (e) masculinity (Vinken, Soeters, Ester, 2004).The larger macro environment, widely referred to as the PESTEL analytical framework, concerns political, economic, societal, technological, environmental and sub judice factors, whose analysis helps in scrutinising and pinpointing the decide of such environmental forces on organisations (Gray, 1999, P 12). Ritzer (1996) concludes that whilst remonstrating and opposing McDonaldisation is potentially worthwhile, the future of added McDonaldisation appears inevitable (Alfino, Caputo, Wynyard, 1998).The imaginativeness-based view (RBV) centres into intra-industry heterogenic organisations and contends that firms are distinctive packets of resources and capabilities providing the foundation for gaining competitive advantages it conveys that organisations should leverage these s elf- give birthed resources make up in unstructured international trades (Fahy, 1996). The RBV states that competitive advantage from resources discount be fall upond only if such resources are precious and enable the exploitation of an external probability or the counteracting of a threat (Fahy, 1996).A nonher critical characteristic of resource is rarity, which is inherently the key to heterogeneity, i.e. competitors should not submit or be able to glide path similar resources make uping competitive advantages (Fahy, 1996). The critical condition of imperfect or limited mobility of resource must be just satisfied imperfect resources that render competitive advantages must not be tradable amongst competitors (Fahy, 1996). Finally, the resource should be imperfectly imitable (Barney, 1991) or as per Peteraf (1993), render several ex-post restrictions to the opposition (Fahy, 1996).Stalk, Evans and Schulman (1992) aver that Wal-Marts growth, leading to its market supremacy, vests in its unique logistics competencies, which underline the magnitude of capabilities as latent ca habituates of competitive advantage their cross-docking coordination system makes certain that merchandise between two loading docks is transported in not much than forty eight hours (Fahy, 1996). This has eudaimoniaed Wal-Mart not only in cutting cost of sales, and thereby improving margins, by 2 to 3 percent, exactly also in minimising the inventory levels (Fahy, 1996), working capital cycle and interest costs. The above system is therefore, seen to be immensely beneficial in value extension through cost reduction and thereby in being a source of competitive advantage since it satisfies all requisite criteria (Fahy, 1996).The cross-docking system is rare. As it is resource based in terms of the joint utilisation of personnel, delivery vehicles and transportation and communication systems, it satisfies the condition of imperfect mobility (Fahy, 1996). It is also enormously c omplicated and thus awkward for competitors to reproduce, vis-a-vis the requisite coordination and communication between vendors, distri unlession centres, sales depots and outlets it is this intrinsic ability to raise high barriers to imitation that bestows Wal-Mart with competitive advantage (Fahy, 1996).The advanced attention methodologies underlined by the current advances in technology now permit the availability of customised merchandise on mass scales such mass customisation arises from the juxtaposition of dual Nipponese systems of flexible manufacturing, or lean harvestingion system, and adaptable marketing systems (Yasumuro, 1993),(Alfino, Caputo, Wynyard, 1998).Wal-Mart is being able to successfully utilise its resources and competencies in establishing sustained competitive advantage, with appropriate and unite application of Porters Diamond model with PESTEL methodologies and RBV theory, in order to cater to variable, different and localised merchandise preference s, desires and necessitate of their customers.Question 2In May, 2006, Wal-Mart announced the sale of all its 16 South Korean encloses, and shortly there subsequently, in July of the same year, the sale of its German operations to Metro A.G. after eight years of drive to try to make the businesses profitable (Depamphilis, 2009). Unlike its remarkable success in getting it right on its home turf, Wal-Mart could not adapt to the regulatory and cultural differences, as well as the strong labour unions, in Germany (Depamphilis, 2009). The intensity of the German competitors in offering very low price points across product categories and the consumers thrift and prudence was also largely underestimated by the company (Depamphilis, 2009). Various factors like (a) the German shoppers untoward perceptions regarding clerks bagging groceries, (instead of themselves, as per their habitual practice), (b) legal tussles with employees all over Wal-Marts policies against employee-supervisor l iaisons, (c) the companys inability to proffer extended shopping hours or to sell below cost, (because of German regulations), and (d) its inability to implement cost reductions because of strong unionism, contributed in making the companys German venture a big mistake (Depamphilis, 2009).Wal-Mart forayed into Korea with the acquisition of 4 units, in 1999, from the Metro owned Dutch reach named Macro (Mahajan-Bansal, 2010). Korea is a comparatively constituted market with the local Emart being the leader in the retail marketplace (Mahajan-Bansal, 2010). Emart was make an acquisition offer by Wal-Mart, which it rejected (Mahajan-Bansal, 2010). The company was also cautioned by Emart that with Korea being a localised market with very specific customer makes and wants, Wal-Marts size and its status as the largest globose retailer would not be very relevant in achieving competitive advantage in the Korean marketplace (Mahajan-Bansal, 2010). Wal-Mart entered the market with a bang b ut could never gain intumescence after seven years it sold its stores (ironically) to Emart and exited the market (Mahajan-Bansal, 2010).In China, on the opposite hand, the company progressed well. Avoiding major(ip) blunders, it has been able to achieve the right mix of location of store formats and merchandise mix (Mahajan-Bansal, 2010). Chinas high heterogeneity, with regard to its peoples habits and wants are similar to that of any other developing economy (Mahajan-Bansal, 2010). It has laboured hard to become an prestigious retailer in China, even as it is still too early in the country to realise its full potential (Mahajan-Bansal, 2010). This is important because China and India are at the centre of Wal-Marts global ambitions for Asia (Depamphilis, 2009). Wal-Mart reckons China as a solitary large market, whereas its more successful French competitor Carrefour considers China as a cluster of regional or local markets Wal-Mart has a centralised sourcing and distribution c entre unlike Carrefour (Mahajan-Bansal, 2010). The Chinese prefer to purchase idle poultry and meat hence the need for local sourcing to be faster and smarter rather than being centrally sourced (Mahajan-Bansal, 2010).Wal-Mart in China assists local retailer businesses to ameliorate their functioning and service standards in order to integrate better with the local economies (Wal-Mart Group, 2010). Its perseverance in localisation of procurement creates more job opportunities, reposes trust in local producers, and helps in sustaining local economies (Wal-Mart Group, 2010). Wal-Mart treats its Chinese vendors as expositners in phylogeny. Practically 95% of the goods sold by the company are locally produced by well-nigh 20,000 suppliers (Wal-Mart Group, 2010). Wal-Marts journey in China has been fraught with many challenges, primarily due to the American retailing methodologies followed by the organisation (Gopalkrishnan, 2009).The singular differentiator between Wal-Marts strateg ies and Carrefours more entrenched adjustment to the Chinese environment lies in it appreciation of and response to local culture and consumer behaviour (Gopalkrishnan, 2009). In China the company possibly needs to understand that heterogeneous Chinese shoppers would possibly be better served by decentralised operations, combined with simultaneous leveraging of its competitive advantages of low prices, quality, and technologically superordinate logistics (Gopalkrishnan, 2009). Working together with local partners within the regulatory framework and cultural landscape is a critical lesson that appears to have been absorbed and espoused in advancing its Chinese retail footprint (Gopalkrishnan, 2009).Wal-Mart, by exiting the German market, (post the $ 1 billion pre-tax bottom-line hit), and retreating from the Korean marketplace, conveyed to its stakeholders the lessons it learnt on (a) the importance of appreciating cultural and environmental differences in new markets and (b) the ne ed to centralise sharply on profitability and returns in its global investment and growth strategy (Workman, D., 2006).Question 3The widely used PESTEL framework represents an analytical methodology for evaluating the milieu in which individual organisations or industries operate, work and are managed such an analysis aids in methodically focusing upon and assessing the impact of various environmental forces, namely those that are political, economic, socio-cultural, technological, environmental and legal in nature, upon business organisations or particular industrial segments (Gray, 1999, P 12).The Wal-Mart group scrupulously operates within the political and legal frameworks in all the countries in which it operates such a strategy can often lead to the emergence of serious challenges, as in Germany where local regulations did not permit the company to extend the weekend hours or to sell below cost (Depamphilis, 2009). The companys expansion into different nations are also depen dent on local political conditions and governmental and local regulations, as illustrated by Wal-Marts unsuccessful foray in Indonesia, where it needed the support of Suhartos dismisswork to ensure continuance of operations (Mahajan-Bansal, 2010). by from such factors organisations have to deal with copious local laws regarding labour and welfare other trading regulations also affect business operations and need to be complied with, by organisations, their employees and their participating associates.Ecological challenges with regard to environmental protection and use of grand production methodologies also need to be diligently targeted above tokenish statutory requirements and achieved Wal-Mart projects itself as a sustainability leader and incorporates participation of all internal and external associates and partners in setting targets for fulfilment of their energy needs (Wal-Mart Group, 2010). Its environmental and green objectives are targeted to be achieved through great er use of renewable sources, encouraging use of environmentally friendly products and working towards zero waste (Wal-Mart Group, 2010). Catastrophic events and fluctuate weather patterns can also challenge operational efficiencies (Wal-Mart Group, 2010).Most global retail players have at one time or another tangle the need to factor in challenges relating to country specific general economic conditions, disposable incomes of shoppers, buying patterns and preferences, cost of goods and labour, interest and currency exchange rates, customer debt levels, doctrine availability and history, fuel and energy prices, insurance costs, et al. (Wal-Mart Group, 2010). Economic challenges, especially in forays into matured markets, include top-line protection, sustained profitability and cash in flows these challenges assume critical proportions, not only due to the intense rivalry and competition in the retail turf, but also due to wafer thin margins and the f broadcastly long gestation te rmination involved in setting up just-in-time inventory and logistics, and best in class infrastructure.The socio-cultural norms of no two nations are alike. This poses immense challenges in conforming to local practices and customs and therefore requires diligent and sustained efforts in satisfying cultural needs inadequate attention to cultural needs has led to numerous retail failures across the globe Germany and Korea represent two object lessons of different cultures that Wal-Mart failed to tackle appropriately (Depamphilis, 2009). Another case in point is the heterogeneous nature of the Chinese population, which mandates local rather than centralised sourcing (Mahajan-Bansal, 2010). Diverse cultural environments prevail even within small countries, on the lines of geographical or other divisions, demanding adherence by business to disparate social and cultural norms.Retail forays into new international marketplaces need implementation of contemporary technology for combating the inherently competitive nature of the industry. Wal-Mart and other major retail players are using RFID (Radio Frequency Identification) technology for product tagging and coding to combat the logistics challenges for procuring, moving, stacking and selling ever increasing volumes and varieties of merchandise across geographies and continents (Stoler, 2006).Additional risks that Wal-Mart could be exposed to in its global businesses could emerge from pecuniary and monetary policies and inflation rates of its host countries, political, social and economic instability, adverse tax consequences, and, inter alia, difficulties in enforcing IPRs (Intellectual Property Rights) in non-US countries (Wal-Mart Group, 2010).The mitigation of these challenges and risks essentially lie in diligently adapting to local country-specific and region-specific norms and regulations and in synergising them with proprietary best-in-class expertise in technology and logistics. such(prenominal) stratagems are required for the progression of glocalisation or multinational objectives and attainment of economic and sustainable growth.Question 4The management of the Wal-Mart conglomerate employs numerous measures for evaluation of corporate performance, the headsman among them being (a) total sales, (b) operating income, (c) comparable store sales, (d) thin out income per share from continuing operations, (e) return on investment and (f) free cash-flow (Wal-Mart Group, 2010).The total sales for the pecuniary year ended January 31, 2010, clocked in at $ 401.2 million compared to $ 374.3 million for the previous year, registering a 7.2% growth, following a 8.6% growth in the previous 2008 monetary (Wal-Mart Group, 2010). Such enhancement in net sales resulted from diverse acquisitions, store sales appurtenances, and the worldwide expansion of business (Wal-Mart Group, 2010).The efficacious management and leveraging of expenses of the company can be measured by operating income, whic h rose by 3.95 % in fiscal 2009, against an increase of 7.1% in the previous year this occurrence occurred primarily because of Internationals adverse impact from foreign currency conversion rates, (amounting to $ 2.3 billion) and the Sam night clubs marginal percent decrease, due to increases in operating and overhead expenses (Wal-Mart Group, 2010).Introducing new stores leads necessarily to reduction in sales of existing stores in the vicinity as per revised capital efficiency computation methodology, the adverse approximate impact on current store sales was 1.1% and 1.5% in fiscals 2009 and 2008 respectively this impact will abate in future due to intended reduction in opening of new stores (Wal-Mart Group, 2010).The diluted income from continuing businesses change magnitude from $ 3.16 in fiscal 2008 to $ 3.35 per share in fiscal 2009, consequent to income enhancements, combined with repurchase of outstanding quantum of weighted average shares. The corresponding understand f or fiscal 2007 was $ 2.92 diluted income per share (Wal-Mart Group, 2010).The Return on Investment (ROI), a critical measurement tool for assessment of efficiency of deployment of assets by the organisation, stood at 19.3% for fiscal 2009 and 19.6% for fiscal 2008. Some of this decrease occurred because of the investment in Chile and the settlement of workers class action lawsuits (Wal-Mart Group, 2010).Free cash flows are net cash flows made available by continuing operations for a period, less the outflows made for purchase of equipment and property during such period, and reflect the capability of organisations to engender additional cash flows from various business segments Wal-Marts free cash flows increased from $ 5.7 to 11.6 billion through fiscals 2008 and 2009 respectively (Wal-Mart Group, 2010).A scrutiny of the 5 year financial data reveals that organisational sales increased from $ 281.5 million in fiscal 2005 to $ 401.2 million in fiscal 2009, representing a 42.5% abso lute increase (Wal-Mart Group, 2010).A further analysis of the financials reveals that overall net sales realisation per square footage increased by 1.7% from $ 428.2 to $ 435.7 between fiscals 2007 and 2009 respectively (Wal-Mart Group, 2010). It is also important to note that for the Wal-Mart US segment, (which contributed 63.7% of the overall net sales for fiscal 2009), the net sales realisation increased by 3.6% from $ 418.8 to $ 434.0 per square foot between fiscal 2007 and 2009. The average realisation per store in the US increased from $ 65.73 to $ 69.95 million, representing an increase of 6.4% over the same period (Wal-Mart Group, 2010).The above performance analysis of Wal-Marts business segments, vis--vis its strategies, reveals that the group should be able to continue to successfully overcome or sidestep the challenges it must inevitably face in future, considering its worldwide span of operations in 15 diverse global territories. The companys financials reveal that the strength of its equaliser sheet will continue, barring major risks, to supplement its resources every year in achieving its strategic objectives for the benefit of its stakeholders.Question 5Wal-Mart forayed into the global marketplace, with the opening of the Sams Club in Mexico, in the 1990s, to revitalise its constrained domestic sales growth this diversification yielded immense results in terms of growth, in two(prenominal) revenues and earnings, especially after appropriate changes in the companys international strategy were effected in 1999 (Wal-Mart Group, 2007). The company thereafter entered, (in quick succession), Puerto Rico in 1991, Canada in 1994, Brazil and Argentina in 1995, and China in 1996 (Wal-Mart Group, 2007). The subsequent ingress into the UK through the purchase of ASDA, as well as into Japan through Seiyu, furthered its global operations (Wal-Mart Group, 2007).The first part of the companys three-pronged strategy, to unlock the value in their global busi ness, addressed portfolio optimisation in making of correct investments, dissociating from unsuccessful investments, and growing both organically and inorganically (Wal-Mart Group, 2007). The bite leg of this international strategy, according to Mitch Slape, Wal-Marts (International Business Development) Vice President, is to leverage global markets to add value through use of all of Wal-Marts resources, competencies, and associations, (Wal-Mart Group, 2007). The year 2007 saw the addition of the third dimension of their strategy, namely, to be triumphant in each of the geographical areas of operation and to have a unique position for eventual generation of value for shareholders. The company, to achieve this, continues to be fixated on the local consumer, relocate know-how, and grow the best international and local talent to enable leveraging the global scale (Wal-Mart Group, 2007).The competition amongst retail companies on the basis of local market power and local scale establis hes the branding, cost composition and recall presence for the customer, in all countries Wal-Mart stick out itself sorely whenever it did not adhere to this principle (Mahajan-Bansal, 2010). With most of the customers, to the first Mexican Wal-Mart store, commuting by buses instead of cars, the companys large Americanised parking-lot was piled up with shopping carts at the end that was closer to the bus stop (Mahajan-Bansal, 2010). The product categories and inventories stacked were attuned to American needs, e.g. golf balls for the lower income level customers (Mahajan-Bansal, 2010). Wal-Mart learnt quickly from these initial and relatively minor errors and bounced back to achieve remarkable success (Mahajan-Bansal, 2010).Bartlett and Ghoshal (1989) aver that the organisation must manage itself to realise the synergies of global assimilation and national receptiveness and learn to thrive in the global arena (Fahy, 1996). In terms of wherewithal, such a theory connotes that the or ganisation should depend not only on the parent organisations resources (global assimilation) or on the resources of the local company (national receptiveness) but must equally highlight both it must also effectively ensure two-way transfer of learning between both the companies (Fahy, 1996).Although numerous authors assert the pursuit of a global strategy on the foundation of the industrys internationalisation prospects (Porter 1986 Yip, 1989), there is a divergent view that companies need to merge both the local and global dimensions this combination is occasionally known as localisation (Main, 1989) (Fahy, 1996). Translated, the transnational solution advocates that global business players assimilate the organisational resources and competencies of both the host and the home country (Fahy, 1996).The primary and widely accepted reason for Wal-Marts success in China, as also in the other countries it has forayed into concerns its ability to, over time, acclimatise its operational, merchandising and marketing stratagems to enable their juxtaposition with the host countrys culture. The pursuit of such a transnational, or glocalisation strategy, has led to the company becoming an entrenched transnational retail player. Wal-Mart has successfully implemented its intended stratagems in growing from one international retail store in 1991 to over 3000 stores in 2007 in 13 non-US markets under 50 diverse banners with almost 600,000 associates or employees offering goods and services to 49 million consumers every week, it has been growing at a compound rate of 24.7% per annum for the last seven years (Wal-Mart Group, 2007).Question 6Globalisation has ensured enormous wealth creation worldwide over the last two decades. The unprotected and complete(a) domestic markets of business organisations have forced them to cross their national borders (Stoler, 2006) this global competition has wrought considerable internal and external benefits to businesses and societies across the world.The direct benefit of quantitative growth has profited Wal-Mart in two critical areas, the first being the considerable economies of scale that Wal-Mart has been able to garner from its worldwide buying clout and second, the benefits that have accrued to it from the exchange of ideas across its global operations (Wal-Mart Group, 2007). Wal-Marts volumes have helped it in extracting deeper discounts from all the local businesses of its multinational vendors, like Proctor Gamble, GE and Unilever who have their own worldwide operations (Wal-Mart Group, 2007). The flow of ideas across geographies also help in the best practices of one country being imbibed in another a case in point being the layouts of the wine departments in stores in Argentina being replicated into layouts globally (Wal-Mart Group, 2007).Technology has propelled the use of bleeding edge innovations in ensuring in effect(p) inventory and logistics controls. Radio Frequency Identification (RFID) product co ding and tagging , as an alternative to bar codes, for inventory and security purposes, is already in use by large manufacturers and retailers like Wal-Mart and their worldwide vendors (Stoler, 2006). This translates into immense benefits in terms of supremely efficient global tracking, securing and movement of large volumes of merchandise containers by road, sea and air (Stoler, 2006). Wal-Marts use of its competitively advantageous cross-docking logistics system, by ensuring the movement of these tracked goods between two docking stations within forty eight hours, results in nominal inventories and substantial saving of 2 to 3 percent (Fahy, 1996). In a business where low costs and stretched margins are crucial, this system has generated substantial business value and market dominance (Fahy, 1996).The inimitable local and global synergies of bringing together people, communication systems and modes of transportation give Wal-Mart exceptional competitive advantages (Fahy, 1996). Th e larger implication of the use of these technologies is in facilitating and promoting, rather than in retarding, international trade through addressing of crucial anti-terrorism and security apprehensions (Stoler, 2006). The extensive use of such technologies also implies that customers will soon be able to verify radio-tagged products, know where, when and by whom they were manufactured, the physical components and chemical procedures used in manufacture, the shipment logistics, the dietetic content and , inter alia, their adherence to sustainable development manufacturing methodologies (Stoler, 2006). Such well informed shoppers should further the cause of superior retail management by buying more merchandise than they are content with (Stoler, 2006).The global commodity chain (GCC) approach of Gereffi and Korzeniewicz (1994) looks at the worldwide unification, along value and / or commodity chains, concerning consumption, distribution and production of goods (Dolan, 2004). This diagnostic tool is especially worthful in identifying the vital role that conglomerates like Wal-Mart, GAP and Nike play in managing activities in value chains (Dolan, 2004). Gereffi (1994, 1999) underlined the criticality of the so-called buyer-driven commodity chains, and argued that, in certain business sectors, the large marketers, brand-name companies, and retailers, play a central role in instituting and prodding geographically disseminated manufacturing and supplying systems, without their ownership of such systems (Dolan, 2004).The horticultural value chain pertaining to UK-Africa demonstrates numerous properties of a buyer driven commodity chain (Dolan, 2004). The supermarkets oversee the supply arrangements that cover numerous African nations and not only identify the goods but also the manners of production of such merchandise (Dolan and Humphrey, 2004) (Dolan, 2004).Such supermarkets progressively establish the manufacturing imperatives of the upstream horticultural enti ties and obliquely impact their assumed employment stratagems (Dolan, 2004). This enables epoch-making and direct benefits to Wal-Mart in terms of display of disparate and locally preferred merchandise on its shelves worldwide, thereby helping it to service its customers better.Assignment 2 man-to-man Reflective StatementMoon (2004) avers that the stages of the reflective cycle, in the widely used Kolb cycle, (Gibbs. 1988), have been variously described by theorists as (a) the experience, (b) identification of the necessity for a resolution of an issue, (c) explanation of the issue, (d) reassessing and remembering, (e) re-evaluating affections / expressive stage, (f) processing of information and thoughts, (g) the ultimate resolution, likely transformation and action and (h) probable action.The Business Synoptic attempts to analyse, with the global retailer Wal-Mart, as the case study, the main issues of the frameworks used to garner competitive advantage in the global marketplace . The exercise helps in comparing the successful, or otherwise, entries into different foreign markets and in assessing the learning thus achieved, understanding the challenges and risks associated with such ventures, identifying the appropriate performance indicators for enabling the analysis of performance of last five years, assessing the results of such analysis vis--vis the adoptive strategies, examining the strategies adopted by the company, and finally deciding whether and why such strategies were and are appropriate, and how globalisation has benefited Wal-Mart.This reflective statement study draws greatly on the available literatures that cover the disparate fields of marketing management, strategic management, retail management, international business, and industrial organisation economics, as also the information available on Wal-Mart in the public domain, both on and off line. The analysis involves the use of primary and secondary information available from sources like the Wal-Mart groups website and from books, magazines, journals, the media and newspapers.Whilst the period of reference for this reflective statement commences in the 1960s, when Wal-Mart was founded, the major part of the analytical period spans from the early 1990s when Wal-Mart established its first overseas venture to the five years from 2004 to 2009, for assessment of financial performance indicators. It is also pertinent to note that adequate care has been taken in making sure that the subject matter under examination is pertinent to the issues under this analysis.During the parentage of this study, I have found that my reflective skills have developed, though I have sometimes skipped certain stages of the reflective cycle and have revisited them later, whilst, in other cases, I have digressed tangentially and have veered away from the current topic of study. This has, over the socio-economic class of the study, enabled me to delve into the multi-faceted aspects of the dive rse factors, as well as the be processes and policies that are involved in the management of huge conglomerates. This has also enabled me to better appreciate the humungous logistics behind the everyday retail experiences of millions of shoppers, including the author, who throng the ubiquitous worldwide superstores. During the course of one such digression, I was disheartened to learn that a multinational can also be susceptible for liabilities that can arise out of the non- obligingness of its contracted associates with corporate policies on contract labour.The case study revealed the complex relationships that exist between the business environment and the tactical and strategic policies implemented in business segments, as well as the impact and relevance of such policies in staying competitive in the international marketplace.The study also presented the author with the diverse economic, environmental and social criteria that mandated the present and prospective course of acti on of an organisation for maintenance of its global supremacy in the retail industry. The study of the literature further clarified the importance of social and cultural influences on inter related business decisions and the resultant prosperity, market penetration and growth.The use of both quantitative and qualitative infor