Business Essay Example | Topics and Well Written Essays - 1000 words - 8

Business - Essay Example It was founded in 1962 by Sam Walton, and it was incorporated in 1969. In 1972, Wal-Mart started trading in the New York Stock Exchange. The company recently invested into the grocery business as it generated $258 billion in its sales which was 52 percent of their income that year (Fishman, 2006). The whole concept of the company’s interest in investing in new territories of Russia and Ireland is due to the fact that it has already invested in 15 other countries. It has 8500 stores under 55 different names in these countries (Fishman, 2006). These different stores are operated under the Wal-Mart, company in the United States. Therefore, it is necessary to ensure that all the foreign investment plans are followed to the letter. Numerous companies always have a problem with the manner in which they decide to venture into new markets. Therefore, Wal-Mart should ensure that they create a viable investment plan, which will be favorable for them in the new territory. This will not m ean that they just take their money and buy random shares in the countries’ stocks. This would mean that they have a structured plan with the intention of making things right and meet the standard of their other investments in other countries. Moreover, they should have goals, which can be defined and will elaborate the investment options they had in order to achieve them. Wal-Mart should ensure that it has goals which will enable them to determine their future in these new territories. The investment plan which is being created should show the type of goals they would like to attain. It can be long term or short-term achievement. The real intention for the investment plan should also indicate other issues, which can occur in order to make the company prosper in this territory. This will make it easier for the company to be in a position of making plans which will be suitable for them and the country. The company should also know the amount it is willing to invest and if it w ould fit the type of investment it wants to conduct. The amount of money to be spent will depend on the goals that the company has. It is known that each country which has a potential for growth, will always have brokers who know the market of the region. These people will help the company to understand the country better, and if their plan will be accepted in this new territory. In initiating the investment plan in this territory, the company should be in a position of understanding its comfort level as it takes risks. This means that if the company is determined to take a big risk in order to generate high returns, it would be good for it. However, they should also understand the a big risk might result in a big loss in the investment. It would mean that the company would have to project the market trends of the region in order to know what type of risk it would endure. The company is also advised that when they make their investment plans, they should be in a position of diversif ying their investment selection. This would mean that Wal-Mart would have to know whether they would go for stocks, grocery, warehousing or retail stores. Finally, before making a decision, the company would have to learn the marketplace in these new territories. This implies that the companies have to know how to read the market report, predict the future and project how the movements of stocks take place. This would help the company in knowing how to avoid losses while at the same time understand new investments in the