BUS401 Case 1

OVERVIEW

Walmart has recently announced plans for expansion to China. Already a retail giant in the United States, they now hope to tap into a growing and potentially lucrative new market. However, such expansion is not without risks. Doing business in China is a much different environment than doing business in the United States for a wide variety of reasons. China is not a democracy, it is a one-party state that enforces strict restrictions on the press and on the Internet. Corruption is also a big concern among businesses that invest in China.

Furthermore, the Chinese government has announced plans for a series of ambitious new reforms that add to the level of uncertainty and may change the business environment for international firms. These reforms include an increasingly high profile crackdown on corruption, reforms in regulations that impact the role of state-owned enterprises, freedom of migration to large cities, a decreasing role of state-owned enterprises, and many other reforms that may significantly change the business environment in China.

Background Materials:
Best, D. (Oct. 24, 2013). China: Walmart emphasizes plan to still expand in China. Just - Food Global News.
Evans-Pritchard, A. (Nov. 16, 2013). China strides towards free market future. The Daily Telegraph.
China's Third Plenum: A Primer (Nov. 8, 2013) Voice of America News
China's Bolsters Corruption Crackdown (Dec 13, 2012). Voice of America News / FIND.