Wal Mart And The Costs And Benefits Of Its Takeover Of Asda

A multinational corporation (MNC) is an enterprise that operates assets in several countries. Wal-mart a U.S based company is a great example with 5,000 stores across 10 countries, accounting for 2% of U.S GDP in 2004. In 1999 Wal-Mart acquired Asda a U.K based company which had 229 stores. The following analysis I will conduct will critically analysis Wal-Mart and the likely costs and benefits of its takeover of Asda. 74 words What are the benefits of the takeover ? Wal-Mart acquired Asda as they already had great credentials than most supermarkets within the U.K, charting No2 within the retail market just underneath Tesco s, by already enhancing a low price strategy set in place much like Wal-Mart s (EDLP) scheme. Just below are†¦show more content†¦Walmart was the brainchild of introducing POS (point of sale) data, EDS Electronic data exchange and UPC universal product codes, right into real-time tracking of goods. They also developed RFID programmes ( radio frequency identification technologies) and cross docking to make sure that the items in warehouse stayed for a short amount of time. So it would make sense to improve on Asda s processes and systems. This again was making it hard for competitors to come into reach within the U.K and USA, with dominant players within the market. It definitely was the biggest and most complex system change programme in the history of British retail. (Ian leighton Asda CEO). 386 words Asda and Wal-mart both have gained a benefit, with increased jobs with using the new systems, opening up new department like George and increasing store size adding changing rooms, for instance, would require more employees, plus as above mention with profits gaining beyond the competitors it hard not to have any benefits. 52 words Who were these benefits for ? for example were the benefits for Asda, Walmart or both, the host economy or some other stakeholders What were the costs of the takeover? The food price deflation did not help within the U.K as they were 1-2% down and the annual growth of 2% was running behind the industry growth of 3%. Asda failed to meet the criteria that were given to them by Wal-martShow MoreRelatedWal Mart And Its Impact On The United States1503 Words   |  7 PagesIn just over half a century Wal-Mart’s global reach had gone from just one store all the way to 11,450 stores in 27 countries. 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