Walmart is the biggest and the most expanded retailer having its presence in many countries across the world and still expanding at a gradual pace and acting according to opportunities presented. The company prepares its strategies according to the formal and informal institutions favouring the expansion and projection. The formal institutions may consist of rules, laws, and regulations to be followed and informal institutions may consist of norms, cultures, and ethics (Hill, 2013). These institutions make a significant contribution to alter the decision of Walmart to launch a particular strategy and implement it in the market (Hosmer, 2003).
This essay will conduct an analysis into the role of the formal and informal institutions discussed above in the strategy development and implementation of Walmart in different regional settings. The rationale of this analysis is to understand the strategy development motivation and influences of global corporations and how they adopt it differently in different regions. The analysis will provide a good conclusion about the process through which the large organisations go through and adjust with the regional requirements of all institutions and still manage to make the business profitable and sustainable. The key findings will be focussed on the strategy that Walmart has been choosing in different regions and adapting to local culture and regulatory requirements to compete globally and domestically. The scope of the analysis is out of the reach of this essay as there may be several hidden and unnoticed factors which are not even considered to be discussed but can have significant impact on a sudden basis. Hence, the subject of this essay will be limited to Walmart’s strategy adoption and its implementation in different regions and how it react to varied global settings different from its home country. The context will be largely European and Asia about how Walmart has moulded differently in these two regions and adapted to demands of the environment and has delivered in changing scenarios. The validity of the data that will be accessed could have been compromised since the utmost validity is impossible due to numerous interpretations of the authors who conduct the study of Walmart’s regional setting. There may be limitations about terming the resources as absolutely true and valid since it may have been sourced in different ways and may have different interpretations. However, efforts are made to conduct the analysis in an indifferent manner which sees the case and incidents from a party having no vested interests.