M.B.A. (General) DEGREE EXAMINATION,
NOVEMBER 2017
Third Semester
PRINCIPLES OF RETAILING
(CBCS 2016 onwards)
Time 3 Hours Maximum 75 Marks
Section A x 3 15)
Answer all the questions.
1. What is retailing?
2. Define risk analysis.
3. What is value pricing?
4. Define bar codes.
5. What is RFID?
Section B x 10 50)
Answer all the questions, choosing either or
6. Explain Retail life cycle and its functional activities.
Or
Briefly describe various theories of retail
development.
7. Describe various stages of consumer decision
making process.
Or
Discuss the factors influencing retail shopper
behaviour.
Sub. Code
641327
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8. Discuss various types of visual merchandising.
Or
Briefly describe various process of category
management.
9. Describe various training programs and methods for
retail employees.
Or
Discuss the role of IT in retailing.
10. Describe in briefly about retail marketing mix and
its strategy.
Or
Describe the procedure to prepare a complete
business plan in detail.
Section C 10 10)
Compulsory
11. Wal-Mart's Strategies in China
In 1962, Sam Walton (Walton) and his brother James
Lawrence 'Bud" Walton opened the first Wal-Mart store
in Rogers (Arkansas), USA. In the first year of its
operations, the store registered sales of over million.
Encouraged by the early success of Wal-Mart. Sam
Walton expanded Wal-Mart's operations to Oklahoma
and Missouri in 1968. In the following year, Wal-Mart,
was incorporated as a company under the name Wal-
Mart Stores Inc. In 1972, Wal-Mart was listed on the
New York Stock Exchange. Wal-Mart continued to grow
in the 1970s, benefiting from its highly automated
distribution system, which reduced shipping costs and
time, and its computerized inventory system, which
speeded up the checkout and reordering of stocks.
By 1975, there were 125 Wal-Mart stores in operation
with sales of 340.3 million and 7,500 employees. The
famous 'Wal-Mart Cheer' was introduced by Walton in
the same year to foster cooperation and team spirit
among employees.
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By 1980, Wal-Mart had 276 stores with annual sales of
1.4 billion and by 1984 the number of stores increased
to 640 with annual sales of 4.5 billion and profits of
over 200 million.In the 1980s, strong customer demand
in small towns led to the rapid growth of Wal-Mart. The
main reason for Wal-Mart's uccess in smaller towns was
that it offered low prices and catered to the specific needs
of small towns. It offered the kinds of products that
customers most needed, and maintained business hours
according to the customers' convenience.
Wal-Mart began the groundwork for its Chinese
operations in 1994 when it sent a team of executives to
China It started its actual operations in China in August
1996 at Shenzen with the opening of its first Super
Centre and Sam's Club in partnership with shenzhm
International Credit Investment Company. To maintain
its practice of EDLP, Wal-Mart adopted a three pronged
approach in China. First, it focused on increasing local
procurement thus reducing procurement costs. Second, it
maintained satisfactory supplier relationship during its
initial years by paying suppliers within 3-7 days. Third it
established modern commodity distribution centers and
computerized its management to improve efficiency and
reduce cost
Unlike Chinese companies, at Wal-Mart, associates found
a high degree of transparency in relation to career
growth. All new employees went through three months
training at Shenzhen. Wal-Mart valued an individual's
competence rather than personal connections when
promoting an employee.
According to a report by People's Daily Online, Du Limin
who started her career as an ordinary checkout person at
Wal-Mart, became general manger of a Sam's Club in
Shenzhen in just two years. In 2003, Wal-Mart figured
among the 15 most popular foreign employers in China in
a survey of university students conducted by China
HR.com one of the leading online recruitment websites in
China. Wal-Mart suppliers also underwent "standards
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training." As per Wal-Mart standards, suppliers were not
allowed to have a work-week of more than 40 hours. Wal-
Mart also restricted overtime to three hours per day and
emphasized that safety requirements were met and
satisfactory accommodation was provided to the workers.
Wal-Mart's Chinese operations have had their share of
problems. The company's supply chain operations were
not as efficient as in its home market. In addition, there
was stiff competition from both local Chinese retailers
and from foreign retailers who had established their base
in China. Thus, even after nine years of presence in
China, Wal-Mart was still very small with just 48 stores.
Its 2004 sales from the Chinese operations were $940
million which was around of its international sales
and a miniscule portion of its total sales of $256.3
billion...
Wal-Mart had long been criticized for its slow
international expansion. Analysts pointed out that its
nearest rival, Carrefour, had gained a lot of ground due to
rapid expansion in international markets. The same
applied to China as well. Experts pointed out that
Carrefour had been successful in China because it had
been able to study Chinese consumers through its
venture in Taiwan, while Wal-Mart did not have any
such experiential advantage. Also, Wal-Mart did not
make use of its first mover advantage and expanded
slowly in China.
Questions:
Discuss the Entry strategies of Wal-Mart's in
international markets
Explain the Impact of competition, culture and
unique environmental factors on the performance of
a firm in the international market.
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