MIB Essay Example | Topics and Well Written Essays - 2500 words

MIB - Essay ExampleW each(prenominal)-Mart Stores operate as chain discount retail stores spread through all 50 states in the US with the growth based on basic but unique operational principles (Ingram, Yue & Hayagreeva 2010). The industry has expanded to incorporate chain stores, international operations and lately, the introduction of e-commerce. With success in other unusual markets like Mexico Wall-Mart has potential to expand to the fast growing Asian market like Malaysia amidst expert and logistic challenges in the industry. This paper considers the potential of expansion into this market by analyzing the companys Corporate Social Responsibility (CSR) and carrying out a swearing epitome of Malaysia. This will be used to examine the potential for expansion into the foreign market and the possible risks that may be faced by expanding into much(prenominal) a market. The analysis bases on the entry mode of foreign market servicing strategy that gives best strategic expansion into foreign market. PEST analysis of Malaysia Political analysis When considering the political system of a nation some of the important elements include the responsiveness of the system to corruption, tribalism (nepotism m), collusion and democracy (if any) and then the boilersuit stability of the governing body system as noted by Knol (nd). This may include the legislature, judiciary and the executive arms of government. In this case the factors leading to government stability are manifested through the electoral systems, clear separation of powers and the strength of the justice system. The federal constitution monarchy in Malaysia has been able to work out a stable government with reduced political risks manifested (EDC, 2010). The political system has been able to maintain peace with the neighbourhood as well as contain upcountry conflicts that are a sign of low political risk to foreign investment according to the BBC (2010) and the Encyclopedia of the Nations (2010). As on e of the current indicator of caper security, political risk manifests in form of privileged or border strife, terrorism or other unseen political matters. The Malaysian situation has witnessed internal strife between the major communities in the country (the Malays, the Chinese, and the Indians) that easily cause riots in the country (Knol nd). An example of such a strife is one that resulted from how the intelligence information Allah was used hence sparking up nationwide strife in most if not all government system. However, since the worst 1969 strife the communities co-exist easily in elicit of the differences in the areas they live in. This means that in hiring labor the company must equally consider job distribution among these communities in terms of type and progeny of positions to avoid rejection by the locals. In terms of national political governance, the country has established strict immigration controls that may have an implication on foreign traders. Movement int o the country may therefore require early arrangements to avoid possible hindrance of movement especially where outsourced employees are of foreign origin. The country is command under political monarchial government consisting representation of members from all communities in the country but mainly run by the Malays under the United Malays National administration (UMNO) and other