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(Wal-Mart Stores Inc. decided to start its operation in Saudi Arabia. The Compan

ID: 378510 • Letter: #

Question

(Wal-Mart Stores Inc. decided to start its operation in Saudi Arabia. The Company hired you as CEO of Wal-Mart Stores Inc. Saudi.)

You should write a report using:

1-Organizational culture is important for a US based company to operate in Saudi Arabia. What functions does organizational culture serve in Wal-Mart Stores Inc. KSA? (300 – 400 words)

2- In making decisions, ethical concerns need to be considered. Describe what are the ethics and laws within your Wal-Mart. (300 – 400 words).

3-Conclude your report. (300 – 400 words)

Explanation / Answer

1. Walmart's organizational culture is that of a family-oriented business. It is also religious and morally conservative. Therefore, Walmart's KSA business can understand consumers and respect the beliefs of the region with its respect for religion and the focus of organization's purpose on customer service and low prices. For employees, pricing philosophy of Walmart KSA is to discount in order to keep the prices lowest for the consumer. Respect for local communities and employees can bring in revenues for Walmart KSA, with US and KSA's cultures being being poles apart. Local culture's reaction to the organization and products is as important. Walmart's style and work culture are patriotic but respect for other religions is what contributes to success in the middle-east.

2. Walmart's ethics come from organization's strong cultural foundation. It follows regulations and laws as per its compliance and ethics program. Walmart's Statement of Ethics is for training associates, managing communication to promote objectivity and integrity in the organization. Compliance and ethics functions are for preventing risks and identifying issues. Compliance groups emphasize on training and learning for associates. Compliance and ethics systems have been implemented using technology. Global Donation Management System has been implemented in a similar manner. It is meant to manage donations to NGOs, Government, and, charities. Ethics and compliance program contributes to growth through organizational efficiency and employee efficacy.

3. Conclusion: Organizational culture, ethics, and, compliance

Walmart's ethics and compliance systems' spend is about $141 million. Walmart is for providing products at the lowest price. Walmart's Sundown and Ten-foot rules are a part of organizational culture. Walmart's profits come from low prices through efficiency. Ethics, compliance, respect for religion and conservative values makes expansion into other countries work for this organization.