global business

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Question Description

Assignment 1 :

Your initial post should not be less than 500 words.

Each question should be answered in a separate paragraph.

DB4 document is for this assignment !



Assignment 2 :

3. What type of a political system does this country have? What is the level of political risk associated with this country? What is the level of political freedom in this country? How does the level of political freedom/risk influence the decisions of US businesses?

4. How is the legal system of that country? What is the level of corruption in that country?

http://www.fcpablog.com/ and identify some high profile bribery cases involving US/MNCs in that country.Should US companies be concerned about this?

5. What type of an economic system does this country have? How will this influence the way US businesses operate in that country?

6. Is the political and business landscape favorable for http://www.doingbusiness.org/rankings in that country?

the assignment 2 is political and business Landscape in Japan ,



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Updated Dec. 7, 2017 5:15 p.m. ET Wayne Ma Sam’s Club, Your Store for Premium Goods and Rare Imports (in China) SHENZHEN, China—Some foreign businesses have a hard time being as successful in China as they are at home. It’s the opposite for Sam’s Club, the membership chain owned by Wal-Mart Stores Inc. Sam’s Club has struggled in the U.S. to attract higher-income consumers it covets, analysts say, in part because the chain is closely associated with Wal-Mart, which focuses on budget-minded households. That association hasn’t been an issue for Sam’s in China, which is home to three of the top five Sam’s Club stores world-wide as measured by sales. Since 2008, the top Sam’s Club store globally is one in Shenzhen, a tech center near Hong Kong. What’s different about China? For starters, Sam’s Club has positioned itself there as a place for imported goods and high-quality foods, not bulk items and closeouts. And in China, the chain has no on-the-ground competition from its main U.S. rival, retailer Costco Wholesale Corp. In the U.S., Sam’s Club stores have struggled to attract the kind of well-off shoppers who keep sales humming at Costco, analysts say. Sam’s Club stores are heavily concentrated in the Southeast, while Costco stores are densest along the wealthier West Coast. In China, Sam’s Club stores are positioned in some of the country’s most affluent and densely populated cities. “The quality here is guaranteed,” said 47-year-old Yu Yufang as she shopped at the No. 1 Shenzhen store. “A lot of Chinese products, I feel, aren’t trustworthy.” Another shopper, Zhou Rong, 39, fits squarely in the demographic Sam’s Club caters to in China: affluent moms. Ms. Zhou, whose 2-yearold daughter plunked on the keys of a digital piano as they shopped, said Sam’s carries imported products Chinese stores don’t stock. Sam’s now has nearly 1.9 million members in China, which is home to 19 of its 866 stores globally. About half of its members in China joined in the past five years as the retailer added outlets and sharpened its focus on affluent women with young children. “That target core member is a mom around 35 to 40 years old,” said Andrew Miles, president of Sam’s in China. “She wants better-quality products. She’s concerned about food safety and quality. She’s willing to pay for premium products, but she wants value.” Sam’s success is a reminder that retailers must tailor brands and products to meet the needs of specific groups, said Ben Cavender of China Market Research Group. “They’ve done a good job of segmenting the market and being choosy about who they market to and where they open their stores,” Mr. Cavender said of Sam’s. Sam’s in the U.S. also is sharpening its focus. During an investor presentation in October, Chief Executive John Furner said the chain served too many types of customers in the U.S. and would now focus on suburban families with household incomes between $75,000 and $125,000 a year, the fastest-growing segment of its membership. Despite its solid record in China, Sam’s faces challenges with the potential entry of Costco, which has operated in neighboring Taiwan for two decades. And online rivals pose an increasing threat. Chinese e-commerce giant Alibaba Group Holding Ltd., which is adding more imported goods, is also making bets on bricks and mortar. Last month, Alibaba said it would pay $2.88 billion for a 36% stake in Wal-Mart rival Sun Art Retail Group Ltd. Costco this year launched its own storefront on Alibaba’s Tmall marketplace, after selling some products on the platform since 2014. Retail consultant Stéphane Joly at Altavia Group in Shanghai said he expects Costco to build physical stores within the next two years. “We continue to explore the market” in China, Costco Chief Financial Officer Richard Galanti said. Eager to maintain its edge, Sam’s plans to “put our foot on the gas” in China by doubling the number of clubs to 40 by 2020, Mr. Miles said. The company also is selling products through Alibaba rival JD.com. Wal-Mart owns a stake of about 10% in JD.com, including a 5% stake it received from the site last year in exchange for control of struggling Chinese online grocer Yihaodian. Wal-Mart focused on building giant hypermarkets when it entered China in 1996, and they now number at least 430 here. Sam’s Club grew more slowly over the same stretch, opening fewer than one club a year on average. Wal-Mart doesn’t break out revenue for China. According to Wal-Mart’s earnings calls, sales growth for China stores open at least a year, including hypermarkets and clubs, has been roughly flat on average for the past 11 quarters. Mr. Miles said Sam’s membership numbers in China slipped last year after the chain raised its annual membership fee to about $40 from $22. Mr. Miles said membership is back up again but declined to offer specifics. The customers who let their memberships lapse “probably were the ones who couldn’t come with us on the journey,” he said. Sam’s doesn’t break out other memberships by country and hasn’t given an update on its global membership since 2013, when it stood at 47 million. Visiting a Sam’s Club here means a blizzard of pitches. Food samples abound, and there are dozens of product demos for shoppers to watch, for Dyson vacuum cleaners, Bose speakers and Oster juicers—many more than are found in a typical U.S. store, Mr. Miles said. The retailer also makes an effort to describe its products to Chinese customers, advertising that its “black pork” specialty meat is reared for at least 200 days among the mountains and pine forests of northeastern China. Fresh eggs are guaranteed to be no more than 12 days old, and each egg has a printed serial number members can type into their smartphones to learn production date, origin and other details. Last year, clubs began to offer carts big enough to seat two children, partly to reflect the loosening of China’s “one-child” policy. Mr. Miles added the top-grossing store benefits from another feature that would be familiar to U.S. customers: parking. The store became No. 1 shortly after it moved to a new location with more parking spaces, he noted. “Our target members pretty much all drive to the club,” Mr. Miles said. “The car park is crucial.” —Chunying Zhang in Shanghai and Sarah Nassauer in New York contributed to this article. Write to Wayne Ma at wayne.ma@wsj.com 1. How is Sam's Club positioned in China versus the United States? 2. What factors explain Sam's Club's success in China? 3. What challenges does Sam's Club face in China and in the United States? 4. Do you support Sam's Club's plans to put its "foot on the gas" in China by doubling the number of clubs to 40 by 2020? Explain your point of view. ...
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School: UIUC

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Running head: SAM’S CLUB

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Sam’s Club in China and the USA
Name
Course
Professor
Date

SAM’S CLUB

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Sam’s Club in China and the USA

The global business scene has evolved drastically due to market dynamics as well as
developments in some stakeholder sectors in the same. Therefore, companies and enterprises
have been forced to adopt accordingly in order to compete favorably and stay afloat. Needless to
say, the realm of competition has also diversified to fit into the market demands such that they
endear themselves to their respective target markets. One of the strategies applied successfully
over the years has been market specialization, where the company identifies a strategic market
within which to set up shop and exclusively engage the customers therein. Sam’s Club likewise
is an off-shoot of Wal-Mart Stores Inc., which focuses on the high income clientele market that
the company’s conventional stores may not be in a position to access. The company’s operations
are spread all over the world, with the major emphasis of this paper being the reaction it receives
from the markets in the United States and in China (Ma, 2017). In essence, the stores specialize
in rare commodities and premium imports. The following is a commentary on the positioning of
the company both in China and in the United States, appreciating the reasoning behind its
continued success in China over its stalling performance in the latter jurisdiction. Finally, an
analysis of the challenges faced by the chain in China ensues before culminating in an
interrogation of the wisdom or otherwise of the company’s strategy to double its store presence
in China by 2020.
Company positioning
Sam’s Club continues to enjoy a strong presence in China, exercising market dominance
in the said market. In fact, the chain’s largest and most profitable store is located in Shenzhen, a
technology hub just outside of Hong Kong. Its success in China has therefore been attributed to

SAM’S CLUB

3

its market positioning as well as strategic placement. These factors place it over and above the
rest of the competition and therefore guarantee a sense of prosperity. Fur...

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