Wal-Mart Stores, Inc.
Entry to Egypt
Introduction
Egypt is an ideal location for holiday tours and shopping due to its scenic and more so
strategically placed location (Aliboni, 2013). It is also a place parked with dense
populations especially in the city, such as in Cairo where it is around 20 million. These
inhabitants are ideal customers for major shopping centers.
Walmart in Egypt
Wal-Mart Stores, Inc. should consider venturing into the country to tap into the extensive
market that Egypt offers in its major cities such as Cairo. Egypt presents a great
opportunity for Walmart to venture in the country, and also diversify in terms of cultures
of its consumers.
Culture of Egypt
At the same time, there are cultural aspects that must be considered in the case that the
retail shopping company chooses to venture into a market such as Egypt. The country has
adopted an Arab culture by large. Therefore, Wal-Mart would have to custom-tailor its
shopping experiences to incorporate shopping needs that are typical of Arabs.
Arab Consumers
Understanding the Arab consumer is vital to the entry in markets where the group
dominates. It is important that Walmart is aware of needs of this consumer group to
facilitate seamless operations in the region. Knowledge about the preferences of an Arab
consumer can give the retailer a proper understanding of what to avoid.
Arab Culture
The Arab culture is rather strict, an element the retailer must put into consideration.
Despite the presence of cultural universals that are applicable regardless of the society,
there are other aspects that are unique to one. In this case, the contemporary Egyptian
culture is strictly particular about certain things.
Case in Point
There have been instances where businesses have suffered dearly following incidences
that consumers in Arabic countries consider insulting. Such is the case with Danish
depictions of Muslim figures in rather offensive cartoons. A Dano-Swedish dairy
company, Arla Foods, was caught in the crosshairs when its consumers in Islamdominated countries shunned their products (Mahajan, 2013).
Arab Markets
The rate at which globalization is happening is opening up markets that were otherwise
closed. Now, there are increasing business opportunities for international corporations
that are looking to expand their ventures into these economies.
Arab Economies
Arabs possess an immense buying power, and according to an article by Mahajan (2013),
they would be the 8th largest economy in the world if they were a state by themselves.
Therefore, it is worth considering entry into markets such as Egypt.
References
Mahajan, V. (2013, May 31). Understanding the Arab Consumer. Retrieved July 21, 2017,
from https://hbr.org/2013/05/understanding-the-arab-consumer
Aliboni, R. (2013). Egypt's Economic Potential (RLE Egypt). Routledge.
Running head: CULTURAL UNIVERSALS
Title of paper: Cultural Universals
Table of Contents
Introduction .................................................................................................................................................. 2
Language ....................................................................................................................................................... 3
Family structure ............................................................................................................................................ 4
Rules and laws .............................................................................................................................................. 5
Education ...................................................................................................................................................... 5
Traditional art and culture ......................................................................................................................... 6
Religion ......................................................................................................................................................... 7
Rituals celebrations ....................................................................................................................................... 8
Cultural Universals
2
Time view ..................................................................................................................................................... 8
Recreation and leisure ................................................................................................................................... 9
Diet and food preparation ............................................................................................................................. 9
References:.................................................................................................................................................. 10
Introduction
Cultural universal involves traits and patterns which occur in all cultures around the
globe. Culture involves a collection of symbols that a society uses, which are not limited to
language, symbols, values, and beliefs. Norms are part of culture because they determine the
behavioral expectation within the society. However, the cultural elements occur differently
depending on the region or context. According to Antweiler, (2012), cultural elements occur
depending on the context in different geographical distribution and time; cultural universals
Cultural Universals
3
involve traits, patterns, institutions, and elements that relate equivalently to all cultures around
the world. The collection of the cultural universals gets collectively referred to as the human
condition. Examples of cultural universals include metaphors and figurative speech, abstract
speech, units of time, antonyms and synonyms.
The paper reports on the globalization impacts of culture on the Chinese culture. It’s easy
to tell that globalization has changed lots of things, not only from the manner that people
communicate but rather the means that people interact and their practices. Globalization impact
on culture is diverse because many elements are taken into consideration.
Alon, (2013) argued that technological advancement reduced the world into a global
village and dissolved certain cultures and the ones that did not get dissolved placed in the world
perspective. The report identified that globalization empowered the Chinese culture into acting
and living like the westerners. Globalization is the background for economic empowerment and
development, and lead to the development of a global village. Globalization can mobilize and
empower individuals in a community and support collective identity through the provision of
work opportunities and socialization. Culture globalization could misrepresent a people’s
mandate and create colonization into the culture. The globalization could lead to the loss of
group and self-identity and loss of individualism. The paper’s focus is solely dependent on the
Chinese culture which became transformed thanks to the globalization that’s happening to the
entire world.
Language
Language exists in two forms, spoken and unspoken language, meaning that hand signs
or facial expression are part of the language. A hand gesture for instance, in a certain language,
Cultural Universals
4
could mean something elsewhere. In a given case, a hand sign could mean a greeting while in
another part it could require one to perform a given task. Hand signals are not liked in a certain
culture and could get associated with rudeness. Body language differs from culture to culture,
and people must understand that they have theirs just like others.
The Chinese culture has lots of diversity and heritage when it comes to language because
they have many dialects consisting both written and spoken language. The Chinese language is
among the old languages in the world dating over six thousand years. One requires the
knowledge of around 2000 or up to 3000 words to be able to read a Chinese newspaper.
Globalization led to the alteration of given aspects of Chinese language but the primary concepts
remained the same.
Chinese comprises many language dialects, though the written language is prevalent to
the rest. Writing is common because people can’t understand the other between different
provinces, but with writing it’s easy. Written language has three forms mainly informal,
traditional and simplified communication and the Chinese language can get transcribed into
Roman.
Family structure
The family is the basic unit of life as most could define the term, and each person on
earth came from a given family even if they are not married. Families are mostly headed by
fathers, however, others though few are headed by the women. The family is the most important
aspect of life and no one would refute the claims unless they don’t have one and didn’t come
from one which couldn’t be true.
Cultural Universals
5
Alon, (2013) argued that China has a rigid family structure that’s also hierarchical and
their elders are highly respected and obeyed by others in the community even in the globalized
era. People get addressed differently in the Chinese culture from brother, sister, aunt, uncle and
grandfathers. Respect is an important factor in the Chinese family structure, and their women
respect their husbands and taking care of their children. The family is therefore, the core of
everything in the Chinese aspect, despite the adoption of the western lifestyle. The traditional
values are prominent when engaging their daily family aspects.
Rules and laws
In America, the most respected laws are probably the constitution because it guides the
activities of people and their interaction with the other. In America are the states and the federal
government whose laws might differ a bit but must get respected by everyone. The local
governments operate under the state government, whereas the state and federal governments are
more of complimentary bodies.
China has lots of regulations which are common sense to most of them, although others
expect one to know the difference between right and wrong. Certain illegal things aren’t obvious
and one must follow the laws and understand them. The Chinese culture has strict rules when
naming their children, because their children must have names that are easy to translate. The
Chinese are expected to protect their cultures and secrets from outsiders, for instance, once are
not expected to give names outside their cultures.
Education
The manner that one gets educated gets determined by their culture, for instance, the
American culture requires that everyone gets educated. The importance of equal education in
Cultural Universals
6
America relates with the democracy practiced in American culture. Of course, there is nothing
wrong when everyone gets educated. Through education, one passes, their cultural heritage to the
other people and their offspring.one would get educated and get a job in future, thanks to
education.
Education in china gets managed by the state, under the ministry of education docket.
Children must get a minimum of nine years in a school funded by the government. The nine
years comprised six years in primary education which begins at the age of six or seven. The child
enters three years of secondary once they complete the primary. Variations exist in primary
school when they may have five years of primary school, then three years into the senior middle
school. Chinese love their education because the government reports a 99% attendance in the
primary school, whereas 70% of 80% attendance for the secondary school. The government
plays important role in education system with most of the funding.
Traditional art and culture
Huang, and Zürcher, (2015) Americans reckon with their Native American pottery, which
when spotted elsewhere in the world would get related with them. The spread of panda animals
around Asia made them produce cultures that relate with people. Americans, particularly, the
Northwest produce arts that are bird images, while the African culture is known for their masks
that one can hang on the walls of the house. The Arabians and the Russians have something that
they know themselves. The vehicles these days are painted according to those respective
cultures, for instance, India, Pakistan or even Nepal paint their commercial vehicles according to
their culture.
Alon, (2013) argued that Chinese has one of the oldest civilization forms which dates
over five thousand years ago. Chinese culture has lots of preserved artifacts whose origins date
Cultural Universals
7
over six thousand years. The Chinese culture attracted people from different parts of the world,
thanks for being unique, exceptional and inspirational. Chinese’ art comprises beauty and charm
like no other culture.
Guillain, (2016) argued that Chinese culture takes different forms which include
calligraphy, pottery, folk arts, ancient cartoons, and paper cuts that represent the people’s
imagination and vision of the Chinese culture. The Chinese poets, writers, and philosophers
made significant contribution towards promotion and preservation of the Chinese culture to other
nations. The cultural artifacts document the suffering which the Chinese people faced,
discontent and displeasure with the authorities.
Religion
Most cultures around the world practice religion and even more than one religion, the
main religions that spread across the world include Buddhism, Christianity, Islam and even those
that don’t worship any god. Religions are important because they help people differentiate the
right from the wrong ones and the religions intend in most cases, to explain to people the reason
behind creation and nature.
China practices different religions and globalization led to the encroachment of other
religions into the nation. China practices more than one religion, Buddhism, Taoism,
Protestantism, Islam alongside Catholicism. All the regions get practiced in the nation, thanks to
the government’s freedom of belief. The government plays a significant role in the protection of
the people’s religion. Buddhism came to China past two thousand years from the Indians and got
classified depending on the languages which they spread. The Taoism is at least 1700 years old
Cultural Universals
8
as it’s a native religion, and it’s based on the teachings and writings. The religion is one of the
most influential in the Chinese culture.
Rituals celebrations
According to Lerman, (2017), Weddings are important rituals that relate to marriages and
are common in different regions of the world. Indians have their forms of wedding, Americans,
or the Africans have theirs too, however, the Africans westernized their marriage weddings and
prefer taking them to church. Wedding rings mark the knot that gets tied by the wedding couple.
Birthday celebrations relate with the birth of a newborn and the baby shower.
The Chinese culture embraces the worship of heavenly bodies, which they call the Border
Sacrifice performed in the Southern Border. The Chinese placed sacrifices to their God whom
they believe was their creator is held during the winter. Among the heavenly bodies they
worshiped include sun, moon and stars. The Chinese culture lets them worship the earth, which
takes place during the summer solstice. The chines had secular rituals like meeting rituals, birth
and military rituals.
Time view
Alon, (2013) argued that time is important in cultures, for instance, when one calls you
for an appointment you either turn up on dot or before, else the appointment becomes void. The
perspective of culture depends on the region that one comes from. Time is important again when
it comes to age because when one reaches a given age they get respect and given permission to
perform given activities in the family. At the age of sixteen, for instance, Americans let the lady
graduate into womanhood. Jewish people let their children accountable for their actions at the
age of twelve.
Cultural Universals
9
Guillain, (2016) argued that the Chinese people are time conscious and when they intend
to meet a person at a given time, they ensure they get there at the specified time or before the
exact time. Chinese culture values time and classifies time into a commodity. They don’t
capitalize time, but its value just like money. A Chinese person would show their gratitude to
others when they finish their meeting with others.
Recreation and leisure
People engage in recreation activities in different manner everywhere around the world,
for instance, through football, hockey and bull fighting. Games get practiced everywhere in the
world, and sporting activity, though football is nearly loved in all cultures at the time.
Chinese practices different sporting activities when free and mostly take their free time
outdoors. Children and their parents spend their time outside. Chinese prefer playing board
games outside parks instead of playing them inside as most cultures prefer. Chinese attend parks
that are full of people, including the young and the old from morning till the evening and some
extending till the night. Chinese practice different leisure activities and sports. The Chinese are
relatively social people and because of that, they prefer having their time with others rather than
spending the time alone. Chinese spend their free time moving around and doing practical things
which make them quite healthy compared to western nations like America which have many
causes of lifestyle diseases.
Diet and food preparation
Different people have a unique culture when it comes to food, for instance, fried chicken
and steak chicken in Texan. Japanese reckon with miso soup and sushi. Other cultures don’t eat
Cultural Universals
10
corn and give the food to animals. Others eat donkeys and others eat horses while in other
cultures its total taboo. The variations in foods cooked in homes differ, thanks to culture.
Guillain, (2016) argued that the Chinese prefer foods that are mostly fermented on miso
soup because they believe that the probiotics enable them to get the nutrients from the food. The
Chinese culture is strict on a balanced diet comprising dry and crispy ingredients. The yin foods
are believed to make the body cool. The Chinese prefer foods that make them relatively healthy,
and they comprise light foods that are natural and organic.
The paper reports on the globalization impacts of culture on the Chinese culture. It’s easy
to tell that globalization has changed lots of things, not only from the manner that people
communicate but rather the means that people interact and their practices. Globalization impact
on culture is diverse because many elements are taken into consideration.
References:
Cultural Universals
11
Alon, I. (2013). Chinese culture, organizational behavior, and international business
management. Westport, CT: Quorum Books.
Cho, L. (2013). Eating Chinese: Culture on the Menu in small town Canada. Toronto: University
of Toronto Press.
Guillain, C. (2016). Chinese culture. Chicago, Ill: Heinemann Library.
Hill, M. (2013). Lin Shu, Inc: The making of an icon in modern China.
Huang, J., & Zürcher, E. (2015). Time and space in Chinese culture. Leiden: E.J. Brill.
Wang, L. (2015). Tea and Chinese culture. San Francisco: Long River Press.
Walmart in China
{
ANT 3150
Course Project: Presentation
Map of China
Chinese and Corporate Culture
Ideal culture for corporations
Hierarchical structure
Group harmony over the individual
Rote memorization based education system
Non-ideal culture aspects for corporations
Communication style
Consumer Demographics
Lower and middle class population
Majority of population
Growing middle class
Target female consumers
In 69.8% of Chinese households the mother is responsible for
household purchases
Business Location
Urban
Location of emerging middle class
Location of a portion of the lower class
Center of bold reforms
Open to new companies
Used to change
Employee Services
Healthcare
Opportunities to build guanxi
Required by private and public employers
Many employers refuse to comply or avoid law
Co-worker personal relationships essential to one’s career
Important aspect of Chinese business culture
Public speaking and assertive communication seminars
Chinese communication style is passive and highly contextual
Public speaking not emphasized in education system
Public speaking and assertive communication extremely
important in international corporate business
Employee Placement
Upper Management: American expatriate
Middle Management: Foreign nationals
Hierarchical society demands respect
regardless of cultural mistakes
Aid upper management in building guanxi
with lower level employees
Build guanxi with upper management – lead by
example
Management Age: Middle aged or older
Confucianism ideals of increased respect and
power with age
Store Layout
Multi-level
Items essential to region placed at front of floors and on end
caps
Urban areas are dense
Decrease cost of land
More locations available for smaller footprint
Example: North China – Wheat & South China – Rice
Positively symbolic items more numerous than negatively
symbolic
Employee Interactions
Guanxi
Has ability to determine employee’s career
success and group success
Group harmony over the individual
Employee/Customer interactions
Messages expressed indirectly
Listen unless granted authority to speak
Modesty and humbleness important in
interactions
Hierarchical
Individual employees must understand
their position in the hierarchy and its
implications
Chinese vs American Walmart
Group harmony over self-promotion
Focus on team cohesiveness
Employees more loyal to corporation
Employees more obedient to management hierarchy
Employees must be asked to answer if participation is
encouraged
Conclusion
Key Cultural Characteristics
Hierarchical structure
Passive and highly contextual communication
Guanxi is extremely important
Key Consumers
Lower and middle
class
Women
References
Bedford, O. (2015). Crossing Boundaries: An Exploration of Business Socializing in a Chinese
Society. Psychology of Women Quarterly,40(2), 290-306. doi:10.1177/0361684315596161
Blumenthal, D., & Hsiao, W. (2005). Privatization and Its Discontents – The Evolving Chinese Health
Care System. The New England Journal of Medicine,353, 1165-1170. doi: 10.1056/NEJMhpr051133
Fang, T., & Faure, G. O. (2011). Chinese communication characteristics: A Yin Yang
perspective. International Journal of Intercultural Relations,35(3), 320-333.
doi:10.1016/j.ijintrel.2010.06.005
Fang, T., Zhao, S., & Worm, V. (2008). The changing Chinese culture and business
behaviour. International Business Review,17(2), 141-145. doi:10.1016/j.ibusrev.2008.02.010
Ma, G. (2015). Food, eating behavior, and culture in Chinese society. Journal of Ethnic Foods,2(4), 195199. doi:10.1016/j.jef.2015.11.004
Mingyuan, G. (2006). An analysis of the impact of traditional Chinese culture on Chinese
education. Frontiers of Education in China,1(2), 169-190. doi:10.1007/s11516-006-0001-8
Zhang, L., Deng, Y., & Wang, Q. (2013). An Exploratory Study of Chinese Motives for Building
Supervisor–Subordinate Guanxi. Journal of Business Ethics,124(4), 659-675. doi:10.1007/s10551-0131899-4
Running Head: WALMART IN EGYPT
Walmart in Egypt
Recommendations: Individual work
Date: 7-14-2017
1
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WALMART IN EGYPT
Walmart in Egypt
Egypt has been found to be one of the countries where the different people have always
wanted to visit. The country has been located strategically facing the opening of the
Mediterranean Sea which makes it strategic in that it attracts a lot of tourists from all over the
world. This has been seen as a significant advantage as far as trade is concerned. Walmart could
ensure that it utilizes this chance and make it possible for them to establish their stores in the
given country. The country has a vibrant population that is rich in the various cultural practices
that would ensure that a lot of customers for the store have been gathered and brought together to
the place to enjoy the various goods and services that the store offers.
Following the establishment of the warehouse in the different countries across the world,
it has been established that the store has not invested so much in the Arab culture. This is
probably because Arabs have a similar culture regardless of their geographical location in which
Arabs have been found to have a tendency of obtaining their different goods and products from
their respective areas. A lot of people in the various parts of the world have been known to travel
to the Arabic countries with the aim of getting their products for themselves, in other words,
shopping (Wilson, 2011). Following the current situation of the country as far as the trade and
business environment is concerned, the country has been found to stand as a perfect opportunity
for the establishment of the store which would serve to provide the various goods and services in
the country and also in the entire region as a whole.
Influence of culture
Culture has been described as simply the way of life of a given group of people living in
a given particular place. In Egypt, the culture of the Egyptians has been known to be that of
WALMART IN EGYPT
3
Arabs. Arabs have been known to occupy various geographical locations of the world and
exercise and practice the same cultural practices regardless of the geographic location. It has
been known that the Egyptians were of the Arabic culture have been formed under the Islamic
laws and rules. This is accompanied by various practices that could be used as the defining
forces of the culture. However, the different ethical considerations that have been based on the
Islamic religion that makes it possible and easy for the establishment and undertaking of the
regular business. A business that is based on corporate standards ensures that all the operations
are inclined ad operated ethically.
Considering the country, the country is built on the strict Islamic practices; there are
some of the practices that have been found to be the norm in the area. The overall positioning of
the various genders in the country has a significant effect on the establishment and the success of
Walmart in the country. The society has been based upon the belief that the women are
subordinates to the men which automatically places the male gender as the overall head. Since
the general freedom of the women in the area has been limited, this has made it difficult for the
women to have the freedom of choice even on the issues to do with the choice of dressing that
they wear which has stood out as one of the major cultural constraints.
There are various corporate products as well as services that could be offered in the
country by the store. Following the nature of the culture in the area, such products such as
foodstuffs can be proposed by the cultural beliefs of the country. This would ensure that the
people in the area would be more inclined towards the store. However, some foodstuffs may
have been prohibited within the area by religion or by culture such as pork which may restrict the
sale of such products. As a recommendation, there are the various differentiated products that
can be offered within the area as far as the provision of new goods and services is concerned.
WALMART IN EGYPT
4
One of the most significant products would be perfume and jewelry. These have been known to
be among the most valued items in the culture.
Demographic groups
Following the differentiation and the segmentation of the population, it can be seen that
the culture in Egypt has prohibited various products regardless of the age and or gender.
However, some products are used and consumed by all ages and genders. These may include
perfume and jewelry. These products can be sold to all the people in the country regardless of the
gender. Considering the youth, they may be inclined more towards fashion as far as shoes, and
the other garments are concerned. Considering the jewels, the market is wide coming from the
young and also from the filthy rich in the society. The inclusion of jewelry in the location would
serve as a huge point of attraction especially for the youth as well as the rich.
Location of the business
The location of a business is crucial and plays a significant role in ensuring that the
business has succeeded in its operations. Considering the population of Egypt and the various
products and services that Walmart offers to its customers, the location of the business would be
more appropriate if located in the urban areas. The choice of the location is because the urban
areas are characterized by the composition of wealthy business persons as well as the urban areas
offer similar businesses which would be a good idea for Walmart. Besides, the urban areas carry
a huge population that acts as a good market for the various products and services that the store
sells.
Joint venture?
WALMART IN EGYPT
5
This is a question that various business owners find themselves asking themselves before
introducing their businesses in a different area such as Egypt as far as the geographical location
is concerned (Zoubir, 2000). There are various worries that the business owners may have
regarding the location of the business such as the skills of the local people as far as the
operations of a joint venture are concerned. The other issue of concern is what the surrounding
people would say if the business were to be established and operated in the area solely by
foreigners. The society likes it when a foreign investor includes the locals, therefore, running it
as a joint venture would be a good practice.
Physical layout of the business
The location and the overall layout of the business are vital which ensures that the image
of the business to the eyes of the locals who are the customers has been kept as good as possible.
The layout of the business would be appropriate if it were set out to be in the design of a huge
shopping mall. This would enable the locals to flood the place, and it has been known that such a
huge mall attracts huge numbers of people, both window shoppers as well as the actual buyers.
Besides, it makes it look like a neat and a well-organized business that has the capability to serve
the various customers. Setting up a small shop would not make any impact on the society since
there exist various other businesses that are similar to the newly introduced one.
The operations of a business are made possible by the overall interactions between the
different groups of people in the society with the business. Considering the business in context,
the inclusion of foreigners who may not be cautious of the cultural changes and the way they are
supposed to treat the locals may be one of the barriers to the communication and the interaction
among the other groups. Language barriers may be one of the most significant cultural practices
that may affect the interactions. Having little knowledge on the existing operation of the existing
WALMART IN EGYPT
6
business partners as well as the government policies like the county councils may become a
problem that would affect the functioning of the business and also the interaction between and
among the various key players in the area.
Differences with the similar business in the US
The business set up in the U.S could be different in some ways. One of them is the
overall layout of the physical structure. This can be driven by the nature and the volume of goods
that are being transacted on a daily basis. In the U.S, bulk purchasing may be the daily operations
of the stores while in Egypt, small-scale purchases may be witnessed. The nature of goods being
purchased in the U.S is and may be different from those being sold in Egypt. The common
distinction factor is the imitation by religion. In the U.S, women can buy and wear any clothing
of their choice which increases the market for women clothing while in Egypt, women wear and
dress according to their religion because mainly most of them are Muslims. This is the same case
considering the other goods and products which serve as a distinction between a similar store in
the U.S.
WALMART IN EGYPT
References
Wilson, S. (2011). Culture Shock! Egypt. Marshall Cavendish International Asia Pte Ltd.
Zoubir, Y. H. (2000). Doing business in Egypt. Thunderbird International Business
Review, 42(3), 329-347.
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