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... Every store is tied together into one system that tracks sales volumes, places automated orders with suppliers, and forecasts future demand based on trend analysis. ... As the company continues to expand their international operations, they stand to face numerous potential setbacks
a. ... If this idea becomes profitable, it could help Wal-Mart continue their international expansion of their flagship stores, with additional capital backing from this venture
2. ... , Wal-Mart may not feel comfortable risking additional capital to back new international ventures
b. ... If this idea becomes profitable, it could help Wal-Mart continue their international expansion of their flagship stores, with additional capital backing from this venture
RECOMMENDATION
If Wal-Mart expands their operations by purchasing a profitable, popular nation-wide chain of existing niche stores, it should serve to continue their strong growth. By diversifying their portfolio of products (stores in their case), Wal-Mart will have less overall risk in case one of their formats begins to fail. Also, while all of their operations continue to be profitable, they can use these profits to continue international expansion without completely exposing themselves.
The basis of this recommendation is that Wal-Mart will most certainly run into unforeseen issues in some of the international markets they enter. ... , they may not have the necessary capital to fund the international ventures that end up failing.
Approximate Word count = 1227
Approximate Pages = 4.9
(250 words per page double spaced)
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