Wal-mart is regarded as the largest retailing business globally, and it is currently seeking a market in the African Countries. Currently, it is operating in thirteen African countries that generate revenue of six billion dollars annually (Nsehe, 2012). However, the company has previously engaged in various controversies that are likely to hinder their expansion once they entertained in the future. For instance, the company has a poor record on labor law infringement which means that it translates the problem to the retailing businesses that Wal-mart is partnering within Africa. The only way that Wal-mart can penetrate the African market is by formulating appropriate policies that are in line with the business practices in Africa.
Wal-mart has to change its policies regarding labor to ensure that it treats those who work in the stalls according to the requirements of labor laws in Africa. For instance, before its penetration in South Africa, the Congress of South African Trade Unions in association with South African Commercial Catering and Allied Workers Union had to litigate whether Wal-mart would be allowed to acquire Massmart (Wexler, 2017). Besides, they also feared that the retail giant would jeopardize the operations of other small retailers due to its low prices on goods. Some groups support the fact that Wal-mart sells products at a low cost while others find it as a way of taking away consumers from the small scale retailers
The retailing business also has to formulate policies that help in the development and improvement of African countries such as offering training to the locals and also improving the infrastructure. One of the reasons why Wal-mart was allowed into South Africa was because it accepted some of the terms that had been put across by the South African government regarding the manner in which it would take part in boosting the economy (Wexler, 2017). Also, the organization has to improve its policies regarding quality standards primarily to ensure that the needs of the African consumers are satisfied. For instance, the living standards of most Africans are low. Thus, Wal-mart has to offer quality goods at an affordable cost as it attempts to exploit the opportunities that are in the global retail market.
Policies that relate to good governance will also help Wal-mart to avoid future controversies as it practices its business in Africa. The plans can be formulated first by benchmarking itself with other retailers in Africa and consult with experts and other significant stakeholders in the business. The policy also incorporates proper human resource practices that will help in eliminating the prior claims of failure to adhere to the labor laws (Mattera, 2018). Governance also involves a proper leadership structure that oversees the business practices in Africa and ensures that it avoids controversies.
Applying the appropriate policies helps in opening up more opportunities especially to obtain goods from the manufacturers in the African countries. Wal-mart's criticisms against violation of labor laws and gender and discrimination continue to limit its penetration into the African market. Nevertheless, it is evident that with the right policies, it is possible to reduce the controversies that it is likely to face in the future that can damage its business practices in Africa. The retailing business has to come up with policies that are inclusive of proper governance and human resource practices to eliminate the controversies in future as it enters into the African market.
Mattera, P. (2018). Wal-Mart: Corporate Rap Sheet | Corporate Research Project. Retrieved from https://www.corp-research.org/wal-mart
Nsehe, M. (2012, February 18). Why Wal-Mart Is Bad News For Africa. Retrieved from https://www.forbes.com/sites/mfonobongnsehe/2011/05/09/wal-mart-is-bad-news-for-africa/#1eaa2f7c483f
Wexler, A. (2017, February 4). Wal-Mart Takes Its Time on Expanding in Africa. Retrieved from https://www.wsj.com/articles/wal-mart-takes-its-time-on-expanding-in-africa-1486216804
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