Short Case Report
CASE 2 – LAND-RESERVES TO SUPPORT WAL-MART´S GROWTH IN LATIN AMERICA
Objective – Analyze Wal-Mart’s growth in Latin America to anticipate company´s needs for land reserves and evaluate potential gains and risks for Baja-Land Co.
Situation – You are working for Baja-Land, a real state agency operating in Latin America (Mexico City based). Your company has been contacted by Wal-Mart (International Division) to look for new cities in Latin America where new stores units can be installed. The CEO of Baja-Land is unsure about getting involved in this project because Wal-Mart has created a reputation as a hard-to-deal giant company in Latin America. The project will require Baja-Land to invest in the entire search in eight Latin American countries plus all the costs of ...view middle of the document...
You also are asked to consider other significant factors of Wal-Mart’s business model mainly types of business facilities, relationships with suppliers, and tactics for expansion into new geographic markets. Your job is to evaluate potential gains and risks for Baja-Land to get involved in this business opportunity. Report your findings and conclusions.
Report Requirements – Start by reading Case 13 in your text book (pp. 420-436). Look for additional information as needed to solve the following issues that should be included in your report:
a) Analyze Wal-Mart business performance in the last five to ten years. Consider growth of sales, assets, profits and other significant financial variables. (Consult company´s Website – Investor Relations)
b) Evaluate the contribution of international operations to the financial and operational structure of the company. Evaluate Latin American business operations to determine the region´s strategic relevance and growth potential for the near future.
c) Analyze Wal-Mart´s expansion strategy to determine the company´s tactics regarding facilities management. Focus on facilities’ construction versus acquisitions and remodeling of existent buildings.
d) Consider some of the conflicts that Wal-Mart has experienced in foreign countries, particularly Latin America, in relation to store location and some of the initiatives of Wal-Mart´s regarding sustainability, e.g. “Wal-Mart Latin America announces sustainability as key to efficient and profitable growth” February 3, 2011 http://walmartstores.com/pressroom/news/10530.aspx ).
e) Evaluate potential gains and risks for Baja-Land to get involved in this business opportunity. Report your findings and conclusions.
[ 1 ]. Name of company has been changed to protect identity.