Case Study Experts : Risk of Wal-Mart’s Merger

Case Study Experts : Risk of Wal-Mart’s Merger Assignment Help

Risk of Wal-Mart’s Merger Wal-Mart is a largest retail firm of the USA that operates on low cost leadership strategy structure (Wal-Mart, 2012). There are various risks if Wal-Mart merged with another company. These can be discussed as below by our case study assignment help experts: Legal Risk: Wal-Mart may face legal risk in the form of regulations by governing body of country to which the merged company belong. It is so, as after merger with Wal-Mart, there will be loss of local jobs due to decline in local manufacturing and productions at wider level (South African Government Information, August 2, 2011). In other words, the merged company will reduce its purchase from local suppliers that will result into closing of local businesses of particular country. So, government of host country has to intervene in such kinds of mergers where the effects are long lasting by applying more stringent conditions. Economic Risk: There is economic risk also involved in merger of Wal-Mart with another company. It is so, as merger by Wal-Mart will reduce employment in the operating country that further can lead to negative effects over the economic conditions of the country.

In other words, such kinds of foreign direct investment by large retail firm like Wal-Mart are less assured of improving productivity and economic conditions of host country due to importing facilities of Wal-Mart. So, this effect of merger by Wal-Mart with another company may pose an economic risk to the company. Political Risk: Merger of Wal-Mart with other company may also pose political risk by host country. It is so, as merger will result into several damages to the host country, this may be opposed by the ruling political party of that country (South African Government Information, August 2, 2011). Moreover, the political party may act as a barrier in host country for the operations and production related activities of Wal-Mart. References South African Government Information (August 2, 2011). Retrieved from Wal-Mart (2012). Retrieved from How to get Business Assignment Help with assignmenthelpexperts .com  Now you can get business assignment help from experienced assignment writers of assignment help experts.  You can get assignment help services 24×7 when the students searching for online business assignment help.  We also ensure you that you will get 100% original best buy assignment help services. Students who need any topic academic assignment help can touch with our 24X7live support system or can send e-mail at