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Matusitz, (2014) in his article of ‘Grobalization: An Analysis of the Wal-Martization of the World’ postulates that Wal-Mart has been able to achieve successful global growth through its effective management strategies. The author explained the term ‘Grobalisation’ to mean imperialistic goals, desires, and needs of multinational corporations or economies to exert their power and influence with the aim of achieving growth and profitability. From Matusitz’s definition, it is evident that Wal-Mart managed to penetrate the Chinese market through creating a consumerism culture. This is a point of view that is echoed by (Chu, Arce-Urriza, Cebollada-Calvo, and Chintagunta, 2010 and Fishman, 2006) who argue that the success of Wal-Mart in Chinais based on its ability to influence the consumers to have positive perceptions of the products and services and it encourages the purchasing of the products and services through offering affordable prices.
Wang S. (2009) uses the above arguments to point out that Wal-Mart could never have achieved its success if it did not engage in effective and appropriate management practices. The authors argument can be used to explain how the company’s aggressive globalisation strategy which Matusitz, (2014) describes as grobalisation was able to work. The author insists that ‘Wal-Martization’ proves that local cultures can be influenced by the right strategies. To explain this from a diversity management approach, it is evident that in the past Chinawas a region where the women represented a small percentage of the country’s entire workforce. It is even arguable that they still do. Additionally from a different perspective, given their management practices, the region was not accustomed to offering employees with training and development. Through engaging in these practices, the company was able to brand itself as an employer of choice in China. That is why and how it was able to effectively penetrate the local Chinese market because with highly trained and motivated workforce, a majority of whom have been employed locally and they represent the diversity that exists in the community, the company was able to attract and retain consumers.
Shen, D'Netto, and Tang, (2010) postulates that it is through receiving criticism of its global operations, that Wal-Mart was able to improve its global performance. The author argues that during the early 2000’s, the company received heavy criticisms of its strategies including gender and wage related issues (Richard, Roh, & Pieper, 2013). As a result of the criticisms and lawsuits, in 2004 the company decided to change its approaches. By this time Wal-Mart had been operating in the Chinese market for less than 10 years (Walmart, 2015).
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