Beruflich Dokumente
Kultur Dokumente
A. Johnson
Reyte On Publishing
2
Globalization
Regionalization
Focusing on a regional expansion is less cumbersome than a global front due to the
reduced level of complexity. For example the multicultural barriers alone can be a
challenge. As in the case of Wal-Mart attempting to move into Germany. Due to cultural
differences such as packaging meats and having greeters were not acceptable behaviors in
that area of the world. These and several other cultural and regional differences between
the U.S. and Germany cost Wal-Mart millions of dollars as they had to pull out of the
country (Deresky, 2007).
The regionalization strategy allows the locals within a foreign country to run the business
locally within a multinational corporate strategy. In this way local suppliers,
management, and employees are able to bring input from their experience with the local
markets and customers to the success of the outside company attempting to enter. An
excellent example being the successes of Samsung Tesco which is British owned, yet
managed by local Samsung management according to Mr. Na Hong Seok, from Seoul,
Korea (Seok, 2006). By hiring local professionals that understand the language, culture,
and business, Samsung Tesco has been able to infuse regionalization within its overall
global strategy of expansion.
3
References
E. Malkin. (2006). Mexican Cement Company Bids for Australian Concern. New York
Times Oct 28, 2006
Wal-Mart Landler, Mark.Wiesbaden, Germany, Wal-Mart Finds that its Formula Doesn’t
Fit Every Culture. New York Times August 2, 2006.