Question

When companies expand into global markets, they must be aware of the different cultural environments they are entering. A successful business model in one country may not be successful in another. U.S. companies, such as Wal-Mart, Best Buy, and Home Depot, for example, have struggled in certain overseas markets due to their inability to meet the needs and expectations of the local culture.
Read the hypothetical description of an overseas country, and then answer the following question.

Because transit tends to be congested in this country, many people prefer to shop in their local neighborhoods. They tend to go to stores several times a week to get what they need rather than making one big trip less frequently. Since the culture of this company is very network oriented, shoppers expect a trip to the store to involve significant interaction with store employees. Shoppers are also used to good deals and haggling for better prices.

A U.S. store opens in this country and exhibits the following characteristics. Which of these characteristics will be problematic for the success of the store? Check all that apply.

Products available individually rather than in bulk

Store locations easy to access via public transit

A few large flagship stores located in big cities

High-end pricing

Product experts on the floor to answer customers’ questions

Answer 1

Answer:

A, B, E

Explanation:

Stores of U.S company should be easily accessible via public transport and product experts should be available to guide them. Because culture of this country is different from U.S, People visit stores more frequently so they buy in small quantities and like to shop in their neighborhood. so stores should be easily accessible. Also no need to store bulk amount of product.