Electrical Resistance of Different Liquids | Experiment

Electrical resistor of Different Liquids Experiment later on the invention of galvanic energy by Michael fara daylight many a zero(prenominal)her(prenominal) scientists studied the ways of conducting electricity. It was in the middle of 18th century scientists legal opinion ab start using legato as a medium of conducting electricity. In 1808 Sir Humphrey Davy conducted electricity using potassium upshots in ammonia. The examines were to designate the galvanising conduction of liquids, but the flat coat for this was non explained in his look intos.In 1879 F.Kahlrausch proposed that ions argon obligated for the conduction of liquids. Ions atomic number 18 the proveing blocks of individu each(prenominal)y molecule defined by its electron number. Ions which formed by the decomposition of minerals and other impurities carry topical across the liquid and this is directly proportional to the ionic velocities. These findings were scientific all in ally turn up by M. M.Wrobleewisky and Olszweski in 1883 by liquefaction of nitrogen and other minerals from a base under a pressure of 50 atmospheres showing the presence of ions in solute.The samples conducted by WG Scaife in 1973 on the natural conduction of liquids showed that at die hard pressures of 2500 bars and above the electrical conductivity of pivotal solutions decreases rapidly. Even though at that place is a decrease at first pressures which are non practically measurable. Polar compounds care castor oil, sebacate etc. were employ for these experiments and were discovered that the double layer formed at the tip of electrodes was the reason layab show up the reducing nature of electrical conductivity. While experiments on ionic solutions worry Diethyl ether, carbon disulphide, benzene etc showed an increase trend of electrical conductivity with pressure. This was due to the triple ions formed during the experiment. 1In the experiments conducted by Alexander, Stoppa, Johann es Hunger, and Richard Buchner in 2009, it was found that the electrical conductivity of ionic solutions is broad(prenominal) than a mixture of ionic and frigid mixture solutions. The experiment utilise potassium chloride (ionic) and non soluble oil ascendant (polar) and the experiments were conducted under constant temperature and pressure conditions. The experiment showed a decrease in resistivity of n betimes 1 ohm with an getition 5 wt % ionic compound. This experiment proved that the electrical conductivity depends on the charge acquaintance (number of ions) and the guard to the movement of ions known as viscousness of a liquid Stokes-Einstein, 1906. The experiment compared the conductivities by increasing the section of ionic molecules in the solution. 2Experiments were conducted by Aresatz Usobiaga, Alberto De Diego, and Juan Manuel Madariaga 1n 1999 to link temperature with the electrical conductivity in solutions. HCL Solution (ionic solution) was exercisingd fo r the experiments. Under diametrical temperatures close to the fashion temperature (292-315K) the solution exhibited an inverse proportionality carnal know leadge to the conductivity. This check to the findings of A I Zhakin in 1995 were KCL which is less ionic compared to HCL was workoutd. The experiment with HCL pointed out(p) that at near to populate temperatures resistivity was increase by 5-10% with any increase of 5K. The reason for this behaviour was the increase of viscous properties of the solution and viscosity decreases electrical conductivity. 3In 2006 J. Vilaa, P. knock rummysa, E. Riloa, O. Cabezaa and L.M. Varelab conducted experiments on the electrical conductivities of solutions of atomic number 13 chloride, aluminium bromide, aluminium sulphate and aluminium chromide. These compounds are ionic in nature. The experiments were carried out under constant temperature and pressure conditions. Experiments conducted by increasing the density of solutions showed an increasing trend of electrical conductivity by 10 % on each increase of density. Density was change magnitude by adding 5 wt % aluminium coarseness into the solution. These increasing trends went until the solution is 50% saturated. The reason for the rise in conductivity was explained to be the increase in ion submersion. The more than the ionic compounds face up the more the conductivity would be. The results overly showed that aluminium chloride which is more ionic than other samples pass on conduct more electricity at any concentration. But for polar compounds the increase in density resulted in a decrease of conductivity. 4J. Vilaa, P. Ginsa, J.M. Picoa, C. Franjoa, E. Jimneza, L.M. Varelab and O. Cabeza in 2005 conducted experiments on aluminium chloride and aluminium bromide for the binary relation on electrical conductivity with varying temperature and density. The experiment used 30% and 60 % concentrated solutions over a temperature range of 250-430K. The elect rical conductivity increases with temperature, up to 400 times for aluminium chloride and 52 times in aluminium bromide solutions. But the conductivity decreases inconsistently with the increase in concentration. The probable reason for this controversial result could be the change in the properties of compounds with temperature. This showed that temperature had a greater influence on conductivity than density. 5METHODS AND MATERIALSOverview of the experimentIn parliamentary law to contrast the electrical opposite of contrary liquids to expose their ionic or covalent characteristics, the following measures were carried out.Description of the procedural steps firstly the electrical opposite measurement was set up. Then hundred and cardinal milliliters of desired liquid was measured and poured in to a clean beaker. After the indicator supply was switched on, using the multimeter, circuits current was measured. Then at louver minutes interval reading was traced again for three t imes. After this the average of three recordings was determined. Once the current was computed resistance of liquid was found out using Ohms law. Next the steps were repeated for all giveed liquids. Subsequently all the use uped liquids were cooled to 18C. Finally the above steps were followed for the preserve liquids.MaterialsOverview of mechanismThe materials used for the experiment are listed below.Digital MultimeterDC Power supply,250 ml internal-combustion engine beakerSample solution of 150 ml Orange juice, 0.01% coarsenessiness solution, 1% salt solution, 2% concord out, and mineral piddle.Table saltDescription of champion partsDigital multimeterMultimeter is an electronic tool which place be used for the measurement of voltage, current and resistance. in that location are dickens types of multimeters available. Multimeter which comes with digital viewing is commonly known as DMM (Digital Multimeter).Main parts of a digital multimeter are standard probes, ad e quitableing knob and digital display.Firstly the probes are used to take hold of connection among points where we need to measure electrical property. One multimeter got two probes for achieving the connection in the midst of two selected points. Secondly the adjusting knob is used to select which property need to measure. It is also used to select the range of set of the results. The digital display helps the user to get accurate readings. It also take into accounts entropy about unlike settings used for measurement.The multimeter nominate be switched on by turning the adjusting knob to desired property to measure. The display entrust provide us the relevant cultivation. To test the DMM, turn the knob to resistance measuring mode and then touch each end of a cop wire to probe tips. Then the display will show resistance which should be more or less zero.Results and DiscussionThe resistances of different liquid solutions prepared for the seek were calculated using the Ohm s law equation at room temperature. Observations show the average resistance of different liquid ranged from 26.1 kg to 1728 kilogramgram . Among the liquids, orange juice was best theatre director (26.1 kilo ) and distilled water (1728 kilo ) was the worst. The two salt solutions showed almost the same resistances make up though high concentrated gave us a around lower resistance.Orange juiceThe figure 8 chart shows that orange juice is the best conductor of electricity. The resistance for orange juice was found out to be the least during the experiment. We had an assertion that acids are the best conductors because they are ionic in nature. Acids pick out into ions when mixed with water and ions are charge carriers. The electrical resistance computed was 26.1 kilo at room temperature. We had also make another assumption that when refrigerated the conductivity will increase as the ions move slower think to normal room temperature liquid. After refrigeration, the resistanc e increased slightly to a value of 26.4 kilo . Even though there was only a small decrease in the resistance value from that of the room temperature, our assumption regarding the refrigerated liquids came true. As studies and experiment through with(p) by Aresatz Usobiaga, Alberto De Diego, and Juan Manuel Madariaga in 1999 to concern temperature with the electrical conductivity in solutions 3 conducts our results in this section.Salt solutionThe routine best conductor is the salt solution. For the salt solution, the experiments were carried out with a concentration of 0.01% and 0.1% salt. The salt crystals in solid state wont conduct electricity because anions (chloride ions) and cations (sodium ions) are held together. But in a salt solution they are free to move around and thus conduct electricity. The important reason behind conducting this research experiment on different concentration of salt is to study whether it is the density or temperature of the solution that affect s the electrical conductivity more. We hypothesized that the density of solution would decrease the electrical conductivity. The 0.01% and 0.1% concentrated salt solution exhibited almost the same resistance value of 35.6 kilo . But the higher concentrated solution gave slightly less resistance value of 35.3 kilo as compared to the other solution. The resistance value of refrigerated salt solution of 0.01% and 0.1% are 115.2 kilo and 114.1 kilo respectively. As per the assumptions the higher concentrated solution gave slightly less resistance and the refrigerated solution showed great resistance as compared to the room temperature set. This showed that temperature had a greater influence on conductivity than density. 5 take outThe trinity liquid tested was 2% milk solution. Milk also conducts electricity but only in a small cadence as compared to orange juice and the salt solutions. Electrical resistance of the milk solution was worked out to be 210.3 kilo during the experime nt at room temperature. Viscosity and density are the other component parts that contribute to the poor conductivity of electricity as compared to the above mentioned liquids. The refrigerated resistance value of the milk solution calculated is 211.1 kilo . While cooling, the viscosity increases due to the higher voluminosity of fatty acids, proteins, etc. Website reference http//www.dairy-science.org/cgi/reprint/80/4/628.pdf. Thus we came to the conclusion that milk conducts electricity due to their typical covalent bond structure and the presence of fatty acids.Distilled WaterFigure 8 shows that distilled water is a worst conductor of electricity. During the research experiment, distilled water showed a resistance value of 1728 kilo . The reason why liquid conducts electricity is due to the free movement of cations and anions in between the electrodes. For example, in our salt solution test electricity was conducted as the salt function away ionizes to sodium cations and chlori de anions which depose move freely around in the solution thereby transporting electric charges. In the distillation process water is change state to steam and the steam is again condensed to water. Nearly all the salts present in the water is thus left out during the distillation process. Thus distilled water is pure H2O. Although pure H2O (distilled water) foundation dissociate into H+ and OH- ions the likes of salt, it ionizes real rarely therefore exhibiting the property of an insulator. Citation may or may not be given for the above statements makeThus from the research experiment carried out we concluded that among the liquid solutions chosen, orange juice is the best electrical conductor and distilled water is the worst. From this we understood that orange juice has more ions present than distilled water (pure H2O). in that locationfore our assumption regarding acidic solution has high electrical conductivity is correct. Adding to the above results, the density and temp erature also affects the electrical conductivity. The more salt added to the solution i.e. more ions added, the lesser the electrical resistance. The assumption regarding temperature as a factor affecting electrical conductivity was correct in approximately measure as some liquid solutions show higher resistance whereas some show almost the same resistance value with the room temperature values.Discount sellers ostiariuss Five AnalysisDiscount Retailers doorkeepers Five AnalysisIn a context of post World War II, there was an economical boom in the USA, driven by the baby boom. The families needs increased, and force out retailing stores started to appear. Their main aim was to operate within low expenses, to be able to offer anyday products at a very cheap expenditure.In give to analyse the perpetrateiveness of the rebate retailing industriousness in the USA in the 1950s, we cigarette use Porters Five outcomes. Porter (19803) stated that competition in an industry depe nds on five staple fibre matched forces. As seen below in figure 1.Force 1 The Degree of RivalryAccording to Ghemawat (2008), the degree of contender is the most overt of the five forces in an industry . It influences the extents to which the value make upd by an industry will be dissipated through with(predicate) direct competition.With the economic boom, many dissolve retailers tolerate emerged, especially in big cities (with a minimum commonwealth of deoxycytidine monophosphate000). For the already existing super food food markets industry, their customers were used to having a lot of competitors to require from. That is why the freshlyly emerging deductive reasoning stores attracted a lot of tender entrants. That industry was characterized by an intense competition. The growth of the industry was significant and this factor of high emolument capability attracted many entrepreneurs willing to on the loose(p) impudently stores. As a result, in the US cities in the 50s and 60s, the concentration for the discount retail industry was low and the rivalry was intense (factor of industry unattractiveness).The theory says that the rivalry between competitors decreases when the emptors transmutation comprises are high. But in the font of the discount retail industry, the switching cost are almost absent urban customers have a lot of competitors to choose from and the recent use of the car and the quite low price of the petrol in the 50s entrust them to easily change and shop in another store.Also, unlike the supermarkets, discounters interchange more or less the same kind of products. The available retailers center on non- provender products, and a competition for price began among the stores, offering a grand variety of household products such as toiletries, appliances, groceries and household goods. Thus, there is a significant rivalry here, characterized by high fixed cost and a lack of product differentiation.However in the 50s, in s mall towns and republic-bred areas, the competition was not as fierce, as not many discount retailers were willing to open a shop in the farmingside. This made that rail line landscape less competitive. Sam Walton saw an opportunity there, and decided to direct his first Wal-Mart stores there Our dodge was to put good-sized stores into little one-horse towns that everyone else was ignoring.Force 2 The Threat of EntryAverage industry profitability is influenced by both potential and existing competition (Ghemawat, 2008). The Five Forces fabric gives 3 basic types of portal obstacles economies of downicle, brand identity element and detonator requirementEconomies of shield large economies of scale allow providing cheap products to their customers. It is an essential part for a discount retailer, and without it, could represent a real bar to entrance.Brand identity the products were standard in nature, and there were little or no differences between discount stores. That means that in the 50s, it was not really a barrier for new entrants.Capital requirements the scourge of entrants is also possible because of the high capital required. Entrepreneurs need high capital (building, equipment) and financial preferences to start up a new discount store and this represents a barrier to intro the industry. Moreover, the barrier is much higher when the plan is to set up a stores drawstring.There are also some other barriers to take into account admission charge to dissemination the discount retailer has to find new reliable suppliers, to have a competitive distribution channel.Advertising it can also be seen as an entry barrier. In order to be known and to attract customers, new entrants need to spend a lot more money on advertisements. In the 50s, the US discount industry was characterized by high price and advertising competitiveness, with little purchaser loyalty.To summarize, there were many obstacles for new entrants in the discount retail industr y.Force 3 The Threat of SubstitutesThe threat that substitutes pose to an industrys profitability depends on the relative price-to-performance ratios of the different types of products or service to which customers can turn to satisfy the same basic need (Ghemawat, 2008). ascribable to the lack of product differentiation and the absence of switching costs, the goods sold in the discount stores can be found in other types of stores. There is a high buyer propensity to substitute.The discount retailer just like any other has to develop strategies to sell at a low costs but this is not the solution. It constantly has to vouch that its products are exactly what the consumer needs. This means that high quality products at an affordable price should also be part of Walt Mat strategy of existence competitive, as well as product differentiation.Supermarkets represented a big threat of substitution for the discount stores selling groceries because they were cheaper than the conventional st ores grasps and they dominated the retail industry in the 50s (Markin, 1968).Force 4 Buyer PowerThe buyer information availability was almost non-existent. Indeed, nothing in the way of information technology was accessible at that time, either for EPOS (Electronic Point of Sale) use or for more cultivate applications.The bargaining power of buyers is weak when minify to a single individual, but the pick up as a full-length is extremely powerful. However, the fact that there were many discount retail industries made each of them weaker against the buyers bargaining power. That power was high in the USA in the 50s customers could easily walk away and go to another shop (low switching costs). In the post World War II course of studys, US consumers became better in the merits of self-service, low price shopping via the spread of supermarkets. The customers price sensitiveness was then high, because of the high product standardization, they could find their products in every dis count retail. The buyer loyalty was low.Force 5 Supplier PowerIn the US discount retail industry in the 50s, the suppliers power was much solider than today, because of the RPM (Resale Price Maintenance). The RPM was legal at this time and gave the right for the suppliers to set the final price of their products (price sometimes printed on the product). It was virtually unrealizable for retailers to pass on the benefits of more efficient trading operations to customers via lower prices. Thus, in the 50s the strong suppliers power was a criterion of unattractive industry.After the break of the US discount retailing industry in the 50 through Porters Five Forces, it can be inferred that this industry was not attractive, due to the high new entrants barriers, the take aim of competition in the cities, the threat of substitutes, and the high buyer and supplier powers.However, it is possible to slightly alter this statement although the competition was big in big cities, it was eas ier to set up a shop in the rural areas, where the degree of rivalry was lower. As a consequence, the different threats and barriers that looked like an insurmountable challenge in the cities were no longer impossible to chasten in the countryside.QUESTION 2Every clientele organisation has to adopt a business strategy, seen by many authors as the Paradox of Markets and Resources. The strategic caution process means defining the organizations strategy. Managers have to make choices and set up strategies for the troupe that will enable it to pass on better performance. It is also sometimes referred to as a Business Model.Porters theoryThe Outside-In Perspectives diagnose features are the location activities and the Value Chain, which will define a strategy through different business choices. This warning is reinforcemented by the describe sponsor Michael Porter (1996).Porters Generic StrategiesModelAccording to the chart above, we can identify Wal-Marts attitude strategy. Wal-Marts main strategy is characterized by its low cost policy, accessible to anyone. It can then be put in the cost leadership strategy strategy. However, with particular attentions for its customers (more than its direct competitors), Wal-Mart also plays a differentiation strategy, and delivers an excellent customer service.With the analysis of Wal-Marts value range of mountains given above, a description of its key value drivers can be done. Every companys activities mapped in the value kitchen stove can be a possible source of competitive favor but its the way they are cheaply performed and combined that will create competitive advantage and value for customer.In 1985, Porter suggested the value mountain range, which regroups functions into support and primary activities. The value chain is divided into 5 primary activities and 4 support activities. These activities can be linked and connected to the value chain to determine some factors of a competitive position and show h ow these activities add value to the consumer.Wal-Mart the Value ChainAccording to the Wal-Mart value chain, two main support activities show that Wal-Mart uses a differentiation strategy through its valet resource steering and its technology development.The use of the technology is coupled with the inbounds logistics use and the operations. Indeed, Wal-art was a pioneer in applying information and confabulations technology to support decision making and promote efficiency and customer responsiveness.(Zarbo, 1998) In the early 1980s, Wal-Mart invested over half a billion dollars to boost its computer and broadcast communicate arrangements. They added barcode arrangings, scanners and other near-real-time technology to link cash registers in every store into one unified link.From the instant a sales exploit takes place, data simultaneously flows back and forth from stores world-wide to Wal-Marts distribution centres, its headquarters in Bentonville, and to Wal-Marts suppliers in a continuous, informative loop. In addition to offering Wal-Mart an surroundings that monitors and donations its current inventory trends with external vendors, this technology, through a sophisticated dismisswork which bridges individual stores, identifies the most efficient way to manage the distribution of its products internally.Moreover, a good example of Sam Waltons early intellect of the immensity of technology is its current development and use of an automated distribution constitution known as the Retail Link. This system shares sales information with Wal-Mart suppliers to ensure that customers forever find the shelves well stocked at their local Wal-Mart store. Retail Link allows Wal-Mart suppliers to dial-up and retrieve the history of important sales data from the last 56-weeks worth of sales. Over 4,000 of Wal-Marts suppliers access this service averaging approximately 10,000 queries a day (Zarbo, 1998).The large database of purchasing information enables Wal -Mart to set the right item at the correct price and in the right store.Concerning the human resources management at Wal-Mart, it is considered as very efficient. Sam Walton calls his employees his associates. They are an important part of the Wal-Mart family. The relationships between Wal-Mart and his associates are based on respect, high expectations, autonomy, close communication and absolve profit incentives. Through its superior management and communication, Wal-Mart created an advantage.The Marketing and Sales application is also a crucial point for the company. Wal-Mart has been founded on Sam Waltons vox populi that There is only one boss the customer. Indeed, the basic principle of Wal-Mart was to cut prices, and was thus well below its competitors, enhanced by its slogan day-to-day Low Prices. This con tights the companys low cost strategy.In summary, the key value drivers of Wal-Mart fellow each other to lower the costs. Every activity is involved in cost reduction a nd that is why we can say that Wal-Marts value chain is very coherent with its cost leader positioning strategy and customer focused value for money approach.Barneys theoryFirms obtain sustained competitive advantage by implementing strategies that exploit their internal strengths, through responding to environmental opportunities, go neutralizing external threats and avoiding internal weaknesses. Barney, 1991The Resource-Based View (RBV) focus on strategic resources as the determinants of a competitive advantage. Those strategic resources are valuable because they allow to achieve superior performance (e.g. accumulated knowledge, or resources impossible to replicate).Grant, the key protagonist of the RBV theory focuses on resources, organisational features and capabilities. In the model, resources must be rare, valuable, inimitable and unsubstituable. Although, nonphysical resources can create the most competitive advantage, as they are harder to re-create by competitors.The cha rt above reviews Wal-Marts tangible and intangible resources. The firm get many intangible resources, which made its model hard to copy for competitors. So according to the RBV, Wal-Mart has some real competitive advantages here.QUESTION 3Tetra-threat frameworkThe Tetra Threat Model was first proposed by Ghemawat (2008). This model helps to determine the level of each threat category, in order to try to reduce their impact. This model can be used to identify what are the threats against Wal-Mart competitive advantage, and how it can sustain itself among the other discount retailers.Threat of ImitationWal-Mart set up large barriers to overcome itScale economies efficient hub-and-spoke distribution system high volume purchases, strong dealing power with suppliers national and regional economies of scale.Learning/private information a significant effort has been made in come acrossing the operation of the discount retail industry. Wal-Mart has the right know-how to break its logisti cs, reduce storage space, and incentive its people to work efficiently.Switching cost/relationship due to its determine policy and baffle, Wal-Mart is able to offer catchpenny(prenominal) products to its customer (low switching costs). They also possess strong relationships and sustainable contracts with their suppliers (bargain power due to Wal-Marts size and partnership through data sharing and communication networks).Threat of retaliation Wal-Mart has a strong reputation of fierceness. The local managers ability to adapt their prices to the local competition is a strong advantage to always have the lowest prices on the market.Time lags, upgrading and strategic complexity the Wal-Mart business has been built upon the years, and accumulated years of knowledge and experience. Thus, they now own a very complex logistics and technologic system, and upgrade it constantly.To summarize, the imitation threat is not a real danger to Wal-Mart. It has raised many insurmountable barriers f or its competitors to overcome. They do not have the sufficient knowledge to do it, or it will take them so much time, that by the time they catch up with their goal, Wal-Mart will already be way ahead of them in terms of psychiatric hospital and technology. Wal-Mart has here a real sustainable advantage.Threat of substitution surrogate reduces the demand for what a firm uniquely provides by shifting the demand elsewhere. It is the most difficult threat to predict. However, Wal-Mart has developed many strategies to overcome that threat. The chain best answer to the substitution threat has been to own numerous substitutes on the discount retailing industry, such as warehouse clubs, supercenters and neighbourhood markets. Its mobility across format is a successful alternative against substitution threat.However, Wal-Mart has demonstrated being very good at scanning the landscape broadly and understanding underlying customer needs. It has continually been studying the competition in o rder to be responsive in fighting the upcoming threat.Finally, thanks to its low cost competitive advantage, Wal-Marts cheap prices restrain many competitors to enter a fight with the discount retailer giant.Threat of HoldupHoldup refers to customers, suppliers, antonymous organizations, or other industry participants capturing value created by the focal company through the exercise of bargaining power.Concerning this threat related to Wal-Mart, two aspects can be distinguished suppliers and employees. First, Wal-Mart has a total control over its suppliers, even the largest ones (e.g. Procter Gamble), in order to restrain their hold it up value. However, the holdup can be found the other way around Wal-Mart ask its suppliers to about integrate into their system and requirements. The requirements that Wal-Mart imposes on its suppliers extends well beyond low prices. Increasingly, the chain has involved itself in its suppliers employment policy (workplace safety, work hours), maki ng Wal-Mart peradventure pose a threat of holdup to them.Nonetheless, labor holdup can be considered as a real issue. With a weak percentage of union penetration, employees abuse (low wages, unpaid overtime, discrimination) are widespread. As a result, it depicts a negative image of the company, as well as employee demotivation and turnover. Wal-Mart should take into rumination this aspect to avoid a labor holdup.Threat of dilatorySlack tend to dissipate value within the firm, and is not easy to identify. It regroups all form of inefficiency. However, this is not a big threat to Wal-Mart. In fact, there is a high organizational effectiveness within the human resource management. The relationships with the associates is based on respect, high expectations, close communication and clear incentives. Everything is done to motivate the staff and increase their loyalty to the firm. Finally, according to Casadesus-Masanell and Ricart (2007), protection against dawdling comes from the r ight mix of incentives and monitoring.As it is drawn in this analyse, Wal-Mart has develop strong responses to threats from imitation, substitution, holdup and slack, setting mechanism which allowed Wal-Mart to sustain its competitive advantage.QUESTION 4The Dunnings Eclectic Paradigm (1981) of Foreign Direct Investment (also known as the OLI-Model) sets up 3 conditions that a company has to meet in order to engage in foreign operations Ownership advantages, Location/Country- proper(postnominal) advantages and internalization advantages.This theory will be used to contrast Wal-Marts entry into the German market in 1997 and into the UK market in 1999, in the following table.Wal-Marts entry intoGerman marketUK marketAcquisitions (1997 and 1998)21 stores Wertkauf ($1.04 billion)74 hypermarkets Interspar (560 million)Both were renamed Wal-Mart stores.Acquisitions (1999)219 outlets Asda (6.7 billion) unploughed its name.Ownership AdvantagesWal-Mart owns several intangible assets, which w ill allow it to overcome the costs of expanding abroad. These intangible core competencies areDominant clothing/textile and food retailer on the US marketEvery week, around 100 million shoppers frequent its storesIts 2003 turnover is 3 times bigger than Carrefours, the worlds no. 2 retailer (Knorr and Arndt, 2003)Internationalization experience more than 1100 outfits abroad, which leads to considerable experience and management learning from a portfolio of stores in diverse marketsWal-Marts Retail Link-system (backbone of its sophisticated inventory management and logistics infrastructure)Operating the worlds biggest private satellite communications system (to track sales, to replenish inventories, to process payments in real-time)Wal-Marts retail proposition of habitual low prices, good customer service, wide assortment and community valuesHigh customer service levels, strong organizational culture, efficient logistics operationsLocation AdvantagesLocation advantages are the facto rs in a foreign country that lead the company to make profits on its FSAs.Germany accounts for around 15% of atomic number 63s $2 one thousand million-a-year retail marketGerman GNP 2 trillion80 million customers biggest national retail market in EuropeGermany is meant to be its bridgehead into EuropeAfter its acquisition, Wal-Mart became the countrys fourth biggest operator of hypermarkets (Knorr and Arndt, 200)politically stable countryEconomically powerful with big family incomesVery alike culture and social laws between UK and the USInternalization AdvantagesA firm possessing an advantage can either use the advantage itself (internalize it) or select the advantage to other firms. The FDI decision depends on which option presents the best net return. Internalization also allows avoiding transactional costs.Internalization is the option chosen by Wal-Mart in many countriesCloser control by the Wal-Mart management (full control strategy)Economies of scaleSharing of the organizat ions knowledge and management capabilities to the new businessAccording to the OLI-Model, implementing Wal-Mart stores in those two countries could really help the US firm to set a foot in Europe. Wal-Marts goal is to be the number one in every market in which it operates. Its international retail model equates to the precipitously industrial model. However, despite a bright success in the UK, the German venture has been unprofitable, and led it to exit the country in July 2006.What are the reasons for Wal-Marts misadventure and success?The reasons for Wal-MartsFailure in GermanySuccess in the UKAcquisition of the untimely German companiesAcquisition of the adequate UK companyFirst, the German acquisitions have been very costly for Wal-Mart.The German market in renowned for its minimal profit margins and price-led strong domestic competition. Wal-Mart entered Germany at a time when the grocery market was saturated. At the time, Aldi was its study competitor, already holding a st rong share of the discount retail segment.Wal-Mart now possessed 2 small different retail chains with different organizational structures and a heterogeneous portfolio of stores (the Wertkauf was a highly centralized family store) (Fernie et al., 2006).As a consequence, Wal-Mart did not have lavish impact on the German market. For example, nearly 80% of the population did not have access to a Wal-Mart store (bad geographic penetration).Moreover, the patchy geographic coverage of Wal-Marts meant that its nationwide competitors have been able to adopt a district pricing policy to compete on price in specific local markets.The weakness of the German economy in those years, coupled with the increased prominence of discounters, has reinforced this trend and discounters now account for 30% of the German grocery market and have been growing at 5% per year in a static market. Wal-Marts market share of 1.5% is dwarfed by its study competition (Fernie et al., 2006). There is a strong pric e competition where price leadership is already occupied by discounters.Asda was already a study discount retailer player before the entry of Wal-Mart. In fact, it was the third major grocer in UK in 1999.Wal-Mart acquired a well-established retail chain and Asdas management had already applied Wal-Mart practices to its corporate culture (Fernie et al., 2006).Asdas merchandising, operations and organisational culture reverberate that of the US giant (Burt and Sparks, 2000) and was regarded as good strategic fit.Wal-Mart strategy for UK was to build on these similarities.There has been a high degree of stability throughout the chain during the merger, especially at store level, which facilitated the transition.Wal-Marts takeover also increased Asdas supply chain efficiency and improved its stock availability.Government regulationsThe German market had a strict legal and institutional framework, often handle by Wal-Mart. German labor regulations are very different from these in the U.S. obstacle to embrace the Wal-Mart culture.For exampleThe zoning regulations impose severe restrictions on the construction of large-scale storeRestrictive shopping hours regulations legal maximum of 80 hours/week store opening hours. Sunday and holidays openings are not permittedFair trading and antitrust laws contain some important restrictions for retailers pricing policies it forbids merchants to sell goods below cost on a permanent founding (Knorr and Arndt, 2003)In the UK, the Government was concerned about high food prices and that British consumers were being ripped off by retailers.That is why they were in favour of the foundation of a more price competitive environment (Fernie et al., 2006).Moreover, the legal and institutional UK surroundings were not as complex and heavy as in Germany. For example, the legal maximum of a store opening hours was 168 hours/week, and was also allowed to open on Sunday and holidays (Knorr and Arndt, 2003). In the UK, Wal-Mart was abl e to recreate its 24/7 opening format.Inability to understand the German consumer and business cultureThe closeness of the UK and the US cultureWal-Mart culturally failed in delivering its Everyday low prices or excellent customer service. Indeed, the expectations are very different from a country to another. The German acquisitions were very different in their organizational structure from the Wal-Mart US model.That is why, when Wal-Mart try to impose its new culture (Anglo-Saxon management level), it led to resistance. in operation(p) errors has been made when remodelling stores to look like US stores, which was not customer cherished (Fernie et al., 2006).Thus, Wal-Marts strategy was contradictory and disoriented to German customers. They didnt see Wal-Mart as a low-price store, due to confusing advertisements.Moreover, German notion of customer service is different from that in the U.S. (e.g. German consumers prefer to pack their own bags and pay by cash), because they hold pr ice and value in much higher wish than service and quality (Knorr and Arndt, 2003).The British culture was very similar to the American one, and that is why the takeover ran more smoothly in the UK.Also, Asda was already working on a Wal-Marts model, so the consumers did not feel any major difference after the Wal-Mart acquisition.For the British customers, price was a key evaluate along with convenience price is the most important factor in the retail offer.And finally, the UK workforce responded positively to the Wal-Mart way, and the integration was very successful, with good employee relationships (Fernie et al., 2006). terminusWhen Wal-Mart entered the UK, the economic situation was favourable for a low pricing strategy. Wal-Marts entry created a high competitive environment on prices, and the customers responded well to this new form of discount retail.However, Wal-Mart has failed on every point in Germany. It resulted more often than not from a cross cultural inconsiderati on. Wal-Mart has not been able to adapt its business model to a different culture and ignored the basic key principles of internationalization strategies and intercultural management. The firm should have tried to understand the German surroundings, the market rules and the consumer habits. Thus, they could have shape their business model, the human resources practices and a proper marketing message to fit that local market. Wal-Marts failure in Germany highlighted its inability to select and implement an adequate entry and business strategy. That is why its inability to understand the German retail market and business culture and the consumer needs led it to a bitter failure.