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[29]. The Corporate Person

Kenneth Jamison Jr.

Soc. 101

Oct. 25, 2010

Walk into any department or retail store, whether it is a super center, Sam's Club or just your garden variety Wally World and you are immediately greeted with a smile and an offer of assistance by a helpful associate. Large, glaring signs advertise everything from A to Z with clearly marked pricing and friendly, informative slogans in easy sight, everywhere you look. Sales representatives are ubiquitous and readily identifiable by their blue smocks and quick smiles, always ready to assist with even the simplest of shopping tasks. Walmart is the originator of the "10 foot Attitude", (Schaefer, 2010) the philosophy of customer service that demands that if a sales representative comes within ten feet of any customer, the employee must always smile, greet the customer and ask if the customer needs any assistance. This rule has, over the years that it has been utilized, been adopted as an industry standard by many of Walmart's competitors into their own marketing strategies. This strategy works well in the American market, where American shoppers have grown used to the Walmart way, so used in fact that Walmart is arguably the single wealthiest corporate entity in America.

Unfortunately, the ten foot rule doesn't seem to translate well into cultural markets outside of America.

The German and Korean markets proved particularly resistant to the Walmart approach in 2006, both cultures evidencing specific aversions to the aggressive customer service methodology that the company practices in its native economic structure. In Germany, customers being used to a more "self-service" oriented shopping environment, were often put off by Walmart's "in your face" brand of customer service. Walmart's sanctioning of fraternization amongst their employees also proved an alien concept in the German community where such practice is common and accepted. In Korea, Walmart's huge, warehouse-like stores proved to be uneasy environments to shoppers more used to smaller, "mom and pop" oriented establishments. In both the German and Korean markets Walmart found a much heavier resistance from their local and long established small business communities. Unlike in America, where the conglomerate is used to moving into any given area and disenfranchising the small business community with their aggressively lower prices and bellicose advertising, these foreign markets proved far more loyal to their hometown business establishments than Walmart was prepared to deal with. Though Walmart's failure in these overseas markets proved costly (to the tune of approx. 1 billion US$ in a single fiscal year) it was not, by any means devastating to the retail giant. Still, the company was able to withdraw from the disastrous situation and learn a lesson or two from the mistakes that they had made.

Not every American corporate venture into foreign markets meets with arbitrary failure, however.

MacDonald's marketing strategies abroad are excellent examples of what to do right in the face of diverse cultural norms. While focusing on the affordability of its products, McDonalds has always taken the time to concentrate on effective ways of incorporating local customs in the implementation of its marketing strategies in other countries. According to a 1999 article at Forbes.com (Forbe's, 11.01.1999) "Playing to local tastes is key". In oriental markets like Taiwan and Singapore, where chicken dishes are customarily served with the bone still in the chicken, McDonalds introduced the Chicken McCrispy dish in accordance with the local norm. In the U.K., McDonalds has included exotic sounding dishes such as McChicken Tikka Naan in coherence with the British passion for Indian cuisine. McDonald's also benefits from a wise practice of patience in their dealings with foreign customer bases. Walmart's attempts to move into new demographics with tried and true business tactics that worked wonderfully in America shows a decidedly impatient approach compared to McDonald's practice of expecting between five and ten years' worth of consumer investment before seeing an expected turn of profits. Impersonality is another aspect of the McDonalds business approach that differs from the abortive Walmart method. McDonalds maintains a policy of minimal customer to employee interaction in favor of letting their brand name perform the brunt of customer relations. Easily readable menus, product placement specifically catering to local customs and tastes, a willingness to experiment with new ways to integrate into established societal norm and a marketing strategy that is purposely set up in the interests of "rolling with the punches" (that is, easily adaptable in the face of unpredictable consumer desires).

It is also prudent to point out McDonald's willingness to work with local media in the spirit of cooperation in order to reinforce a more positive attitude towards their image in new cultural demographics. As was the case in Italy, McDonald's efforts to carve a new market in Rome were met with a good deal of political stonewalling until the company wisely decided to seek help from local entrepreneurs. By working with the established market instead of resorting to corporate competition, McDonald's now controls 98% of all burger sales in Italy. Walmart could take notes from the McDonalds strategy, taking into account that while American business strategies work best with Americans said tactics will not necessarily translate as well in other cultures.

In conclusion, had Walmart taken more time to formulate strategies taking into account the demographic differences that inevitably came into play in foreign corporate environments, perhaps the company might have avoided the backlash of "culture shock" that led to its poor fiscal performance in an unfamiliar marketing setting. McDonalds, having far more experience in the global market than Walmart, presented an excellent model by which the retail store chain could have drawn a good deal of instruction. Walmarts example goes to prove that just because an individual has something to offer that everyone in the neighborhood finds popular doesn't mean that whatever is being proliferated will be readily accepted or even wanted on the other side of the proverbial tracks.

Works Cited

Forbe's. (11.01.1999). Eating McDust. Forbes.com.

Schaefer, R. T. (2010). Sociology: A Brief Introduction 8th Edition. McGraw, Hill.