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Chapter 07 - Cross-Cultural Communication and Negotiation
4. Based on its experience, what are three lessons the company should have learned
about how to deal with diversity? Describe each.
Answer: The lesson that management has learned is to understand the need of
marketing research. Euro Disneyland ignored the data supporting the concept of
Main Street U.S.A. Instead Eisner introduced a more ornate and Victorian theme in
Euro Disneyland. Food menus offered at Euro Disneyland were American;
have recognized that fireplaces would create a warmer atmosphere and should have
been part of the initial design. Finally, the preopening menu of spare ribs to be eaten
without silverware should have been reconsidered. The French like to use
silverware when they eat.
In-Depth Integrative Case 2.1b: Beyond Tokyo: Disney’s Expansion
in Asia
1. What cultural challenges are posed by Disney’s expansion into Asia? How are these
different from those in Europe?
Answer: With its large population, and relatively low number of theme parks, Asia
is a tremendously attractive location for Disney. Already, the company has been
successful in Tokyo. While its park in Hong Kong has been less profitable, the
company believes that further expansion into the region is worthwhile. However,
the company faces a number of cultural challenges that must be overcome.
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2. How do cultural variables influence the location choice of theme parks around the
world?
Answer: Disney’s parks first and foremost promote Disney characters and themes.
Visitors to the parks want to experience the Magical Kingdom. In Asia, Disney has
encouraged acceptance and desire for all things Disney by exposing the population
across cultures.
3. Why was Disney’s Shanghai theme park so controversial? What are the risks and
benefits of this project?
Answer: Disney’s Shanghai park has been slow to get off the ground. Disney was
initially attracted to Shanghai because of its commercialization and
industrialization, and because it was relatively easy for large numbers of people to
get to. However, government corruption slowed progress on the park, and it was
concerns arguing that the Shanghai location will primarily attract a different group
of customers.
4. What location would you recommend for Disney’s next theme park in Asia? Why?
Answer: Many students will probably suggest that Disney explore the potential in
Singapore. Singapore has been a target for significant foreign investment over the
years, and offers a relatively welcoming environment in which to do business. In
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Chapter 07 - Cross-Cultural Communication and Negotiation
In-Depth Integrative Case 2.2: Walmart’s Global Strategies
1. What was Walmart’s early global expansion strategy? Why did it choose to first
enter Mexico and Canada rather than expand into Europe and Asia?
Answer: Walmart began its international expansion in 1991 when it opened its first
store in Mexico. Canada followed in 1994. By 2010, Walmart had operations in 14
countries outside the continental United States, and Walmart International was a
distant both geographically and culturally.
2. What cultural problems did Walmart face in some of the international markets it
entered? Which early strategies succeeded and which failed? Why? What lessons
did it learn from its experience in Germany and Japan?
Answer: Walmart’s international expansion has not always been easy. While its
ASDA acquisition in the United Kingdom was relatively successful, the company
met with tremendous resistance in Germany and later pulled out of the country
altogether, and in Japan, it faced a number of challenges before it saw signs of
success. Walmart tried to duplicate its successful U.S. model in Germany, but found
that it did not work there. The chain it had acquired, Wertkauf, had stores that were
geographically distant and often in poor locations, and the U.S. managers it
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3. How would you characterize Walmart’s Latin America strategy? What countries
were targeted as part of this strategy? What potential does this region bring to
Walmart’s future global expansion? What cultural challenges and opportunities has
Walmart faced in Latin America?
Answer: Walmart appears to be taking a slow, sequential approach to its Latin
American expansion. Since its initial foray into Mexico in 1991, Walmart has
financial services as an important growth market in the regio, and plans to extend
its presence by offering additional services like life insurance.
4. What group of countries will be targeted for Walmart’s future growth? What are the
attractiveness and risk profiles of these countries? What regions of the world do you
think will be vital for Walmart’s future global expansion?
Answer: Walmart will be focusing on the BRIC countries of Brazil, Russia, India,
and China for future growth. China in particular is very attractive. In 2010, the
company indicated that it would speeding up its expansion into the country and that
it anticipates that in the future China will have the most Walmarts of any country in
the world. Walmart’s presence in China has been facilitated by the country’s
membership in the WTO, and now at least one of its stores is recognized as a tourist
destination. Competition is stiff in China, but Walmart has been following a
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5. How would you characterize Walmart's response to pressure for greater ethics and
social responsibilities in its expansion strategy and supply chain? Are its responses
appropriate and adequate?
After its entry into Mexico was marred by a pattern of bribes that headquarters were
not aware of, Walmart has created a new executive position to ensure that all Wal-
Mart employees are complying with the U.S. Foreign Corrupt Practices Act.
A series of fires and many deaths in substandard factories in Bangladesh have
resulted in renewed pressure on U.S. and European clothing brands to take greater
responsibility for the working conditions of the factories from which they source
manage extended global supply chains with multiple layers of suppliers.
Students will probably note other problems and will have a variety of opinions on
Walmart’s ethical responsibility in relation to the problems noted in the article and
the others raised in class.
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