Changes in Maro environment Essay Example | Topics and Well Written Essays - 500 words

Changes in Maro purlieu - experiment ExampleWal-Mart in Mexico was force due to the 1994 currency crisis. Due to currency crisis, the interest rate was fall in the Unites States as a result of which the amount of net capital inflows in Mexico was adversely impacted. With this macroeconomic variables impact, Wal-Marts credit position was affected which brought the firm in unstable position through increase level of cost and decreased productivity. The case of Wal-Mart in Mexico is a practical implication of the political decisions impact, which is a macroeconomic factor, upon the operations of a firm (Oxelheim, Wihlborg, & Zhang, 2009).The similarity between the strategies adopted by McDonalds in China and Wal-Mart in Mexico is that both the firm strived to come out of certain adverse consequences of the macro environment and succeed in the respective markets. The difference between the strategies is that McDonalds followed customer driven strategy whereas Wal-Mart followed tilt driven strategy.This is because McDonalds focused on implementing various ways of winning customers belief, while on the separate hand, Wal-Mart concentrated on gaining competitive advantage through adoption of various innovative strategies such as opening up of banks in its stores.In the case of McDonalds expansion strategy in China, the Chinese governmental policies towards foreign companies attempting to acquire Chinas natural resources impacted upon the firms cost during entering the market as they had to make use of channels for avoiding this entry barrier. Utilization of channels come with extra cost for the company and also in certain cases, the firm had to compromise with its business social structure for reducing the entry barriers.Again the case of Wal-Marts expansion strategy in Mexico had been highly impacted due to the trading situations between Mexico and the US resulting in various