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Wal-Mart examples

How might Wal-Mart (or another large retailer) take advantage of each of the options listed below. Do not merely define the option. Provide a specific example of each, e.g., delaying further expansion to Asia would be an example of a timing option.

1. Flexibility option
2. Growth option
3. Investment timing option
4. Abandonment option

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Flexibility option

The flexibility option provides a tool for better decision-making.
Example: Adapting to local culture in China

When Walmart started its operations in China, instead of focusing on the local market, it was more focused on doing things the American way. Walmart practiced same processes which it practiced while it was trying to get established in the American market. Chinese market is quite different from the U.S. market and Walmart could not adjust to these changes. Since its inception in China, Walmart has been facing difficulties with customers, suppliers, and local government. If the company had adjusted to the local Chinese market, it would have been able to leverage its source of competitive advantage.

Growth option

Growth option provides options where an organization can have growth opportunities.
Example: 1. expanding locally ...

Solution Summary

Provides examples of flexibility, growth, investment timing and abandonment options for Wal-Mart

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