Being a price sensitive market, to meet these demands and conditions Wal-Mart should provide a variety of goods that will satisfy the Indian population as small stores have done for decades, but Wal-Mart acts as a functional organization where a market like India requires a more geographical organizational structure, still facing challenges such as what type of product to sell in various locations across the country due to the diversification of cultural heritage. In India many people come from middle class families and are more work oriented, so when they buy groceries they take them on credit and small retailers or street vendors sell them on credit where as in the case of Wal-Mart people have to pay directly and there is no credit system there. A Wall Street Journal report says Wal-Mart paid millions of dollars in bribes in India, bribed thousands of low-level local officials to help move goods through customs or obtain real estate approvals. According to the Foreign Corrupt Practices Act (FCPA), the penalty of such crime is to charge the amount of profit earned, but in Wal-Mart's case it did not earn profit as such, so it did not face any penalty. A company that wants to succeed in the market should not use such tactics that create a bad image in the eyes of others
tags