In the business, each enterprise researches the maximization of the profit and the minimization of the risk. For realizing that goal, many firms decide to operate internationally. In expanding the business internationally, there are many kinds of challenges that facing the Multinational Corporations. That’s why the author prefers to analyze “The main key success factors of the Multinational Corporations’ successful International Business in spite of the exposure to many forms and sources of risk” the case of MNC’s Wall-mart.
According to the financial to financial optic, each firm deals with two main goals as to maximise the profit by creating values and to maximise shareholder values. For realising those issues, many enterprises decide to expand their activities in local or foreign market. However, in front of the expanding those operations, some Multinational Companies knew the bankruptcy and other as wall-Mart, know the successful international business in spite of the forms and sources of risk that faced them. That why, the author wants to about the one of multiple Multinational Companies that knows a real successful international business in spite of theirs exposure to many forms and sources of risk for giving a guideline at other one firm in taking decision to expand its business.
For developing this article, the author reads several literatures review. He found that many writers have participated on the discussion about the Multinational Corporations, International Business, Mindfulness and Culture. Hunya G. (2012) speaks about the changing of the EU-27-based MNCs in the global economy in comparison with the other important regions of the world  . Kleinert J (2001) explains on the role of MNC in globalization  . Yang J. (1998) gives the eleven main success factors for a good entry in China  . Dewhurst M., Harries J. and Hewood S. (2012) list and explain the five challenges facing to MNCs  . Sharan V. (1995) gives review of the views on the theories of the international business  . Merkin R.S. (2017) shows the consequences of the differences between cultures in communication in term of the cross-culture  . Nemethova I. (2015) argues that sensitivity and cultural awareness are very important in cross-cultural communication  . Brenner M. (2016) claims that the directional awareness is essential in cross cultural communication  . Stephan (2002), Gudykunst (2002), Gudykunst and Lee (2002), explain that the verbal communication becomes so difficult between two or more people from different cultures. Cultural diversity influences seriously cross-culture and generates miscommunication    . Kramsch (2001), Rogers and Hart (2002), say that the workers of global firms, and all international activities, must be trained for being able to work in each foreign environment easily  . Thus, all researchers and theories in cross-cultural communication impact on social action and change.
Gashu Mekoyet (2016) explains about challenges that faced Multinational Companies in taking the case of Castel Winery in Ethiopia  . Kirema F. (2013) shows that different challenges as regulatory process, supply chain, logistic and so all faced BSF in investing in Sub Sahara Market  . Perrot F. (2013) speaks about the licence-to-operate and business-opportunity approaches. He increases on the manner in which multinational Companies move from a licence-to-operate approach to a business-opportunity  . De Monterrey M.A.K.T (2014) says that the challenge of MNC consists in achieving theirs sustainable growth and profitability in emerging market  . Jones G. (2010) deals with longitudinal and descriptive analysis of the strategies in developed and undeveloped countries by multinational Companies  . Wu J. (2008) Shows the difficulties and challenges that Multinational Companies can meet in China  . Hirmath S.L and Sateesh Gouda M. (2012) say that the Corporate social Responsibility is very in looking to gain in host country precisely in developing country  .
Furthermore, other philosophers have written about mindfulness and communication. The author Kirmayer L.J (2015) shows that the mindfulness is important in the communication of bouddhist and psychiatry  . Christelle Chopard (2017) demonstrates that how five main elements (ether-intention, air-mindfulness, fire-leadership and water-relationships) can facilitate communication in cross-culture  . The author defines the mindfulness as a state of being conscientious for living, in front of fact, actual experience without linking it at the last or future experience. The communication is a transfer, sharing, exchange of knowledge and information by accepted and understood verbal or non-verbal languages between two or more persons.
Many writers have discussed about the concept “culture”. On the one hand, Banks, J.A., Banks, & McGee, C.A. (1989), Hofstede, G. (1984) and Kroeber, A.L., & Kluckhon, C. (1952) argue that culture is based on accepted group’s interpretations of symbols    . On the other side, Damen, L. (1987), Lederach (1995), Useem, J., & Useem, R. (1963) and Linton (1945) say that culture is learned, shared, interconnected and dynamic     . After reading the above literature on culture, in this paper and for the author, culture is an accepted and familiar, interconnected and dynamic human’s behavior based on their interprétations, usages and perceiving of symbols, ideas and tangible aspects that belong from experiences, learning, sharing and borrowing.
The debate on “The main success keys of the three Multinational Corporations’ successful International Business in spite of the existing challenges” is very important for giving a guideline to all person or firm that has an ambitious to expand their internationally business.
For the purpose of this essay, the article will be focus on five issues that consist firstly in showing how the Wall-mart is a MNC and a successful international Business. Secondly, the main success factors of the Wall-mart successful business will be presented. Thirdly, the challenges that facing Wall-mart will be given. Finally, the recommendations and their implications will be provided.
For answering at that above cited five issues, the paper of this article will deal with five different points as outlines. The first point will explain about the introduction and literature review. The second will focus on the theoretical framework. Then, the third will show the methodology that the author used in this article. The fourth one will speak about the results and discussions. Finally, the conclusion will summarize all points of this article in beginning by introduction.
2. Theoretical Framework
2.1. Economics Theories of the International Business
The absolute advantage theory is one of the economics theories in international business. For this theory, when two or more countries have natural differences in natural resources, the international business becomes possible. Each country exports the resource that the other doesn’t have and vice versa. In that case, both two countries gain. Salvatore, D. (2010) and Madura J. & Fox R. (2011) develop also this above aspect and the other one   .
The comparative advantage theory is also one of the economics theories in international business. In this case, both two countries have the same natural resources. David Ricardo says that even in this context both countries can do international business. For him, each country must increase the production in the resource in which it has an absolute advantage and must abandon the production of the resource in which it doesn’t have an absolute advantage. That case must be vice versa and the international business is benefit for both countries. Salvatore, D. (2010) and Madura J. & Fox R. (2011) develop also this above aspect and the other one   .
The imperfect market theory is one of the economics theories in international business. The existence of many differences in natural resources, economics, environment and political rulers in different countries, many firms are obliged to operate internationally for finding many opportunities that can reduce their cost of production. Salvatore, D. (2010) and Madura J. & Fox R. (2011) develop also this above aspect and the other one   .
2.2. Business Theories of the International Business
The Product cycle theory is one of the business theories in international business. All product after being innovated, satisfy firstly the local market just to saturation of that market. For surviving, maintaining and increasing the profit, that firm must expand his business globally. Salvatore, D. (2010) and Madura J. & Fox R. (2011) develop also this above aspect and the other one   .
The Global strategies theory is one of the business theories in international business. For this theory, the international business must be considered as product of global strategies by all firms that operate globally. So, MNC must do serious marketing research and manage an optimal budget for hoping to gain in international. Salvatore, D. (2010) and Madura J. & Fox R. (2011) develop also this above aspect and the other one   .
2.3. Entries Modes
The international trade is one of the entries modes in foreign countries. It consists in operations of exports or imports the economics goods.
The joint venture is one of the entries modes in foreign countries. It consists in association of two or more firms from one or more countries to constitute together a unique capital for opening another firm in foreign country. Each associated firm sees his autonomy diluted. Salvatore, D. (2010) and Madura J. & Fox R. (2011) develop also this above aspect and the other one   .
The acquisition of existing operations is one of the entries modes in foreign countries. It consists in buying the existing firm in foreign country. That existing firm was doing the same activity as the objective for that the MNC bought it. Salvatore, D. (2010) and Madura J. & Fox R. (2011) develop also this above aspect and the other one   .
2.4. Hofstede, Cultural Dimension
There are many literatures that speak about cultural dimension. Some are Lewis (2008), Hofstede (1997), Triandis (1994), Jones F.L (2000), Gannon & Pilai (2012), Gannon M.J and Pilai R. (2013)  -  . But for this essay, we will present the cultural dimension according to studies of Hostede (1997) and Hostede G., Hofstede G.J & Minkov (2010) that distinguish six different cultural dimensions as follows   :
Power distance: this is characterized by level of agreement or acceptances of power’s inequality in term of distribution it among different members in community. Hofstede and all, say that if the level of accepted inequality is very strong, we are the high power distance. But in the opposite, we are in front of low power distance. In the high power distance, the hierarchy is more respectful than in low power distance.
Individualism-collectivism: the major idea in individualism is based on looking of self interest and for restraint family. But in the collectivism system, the people is looking and working for the group’s interest. In individualism, the group’s family is lower than in collectivism.
Masculinity-femininity: at this step, the natural gender plays seriously and impacts on management system in community. In both systems, the natural characteristic of man or women determines society. In masculinity, the man is at centre of group’s management and woman is not integrated in much decision but must only plays for the activities in link with the life. But in femininity, the system is supporting and not characterized by powerful.
Uncertainty avoidance: in this cultural dimension, we have two kinds of them that are as follows: high uncertainty avoidance and low uncertainty avoidance. The culture of the high avoidance is based on high level of the future’s prevention because of the inherent existence of the uncertainty in human life. But in the culture of lower uncertainty avoidance, we have low level of the future’s prevention.
Long-term orientation and short-term orientation: in long-term orientation, some cultures program how to manage the activities of society in the future. But others prefer to do the contrary. This shows that, in long-term orientation, humans are managing the present for preventing the future. But in short-term orientation; people are surprised by many events in the future because they don’t rationally manage the present.
Indulgence-restraint: in indulgence oriented culture, human gets what they want for enjoying freely without control. But in restraint oriented culture; the author realizes that, even if human gets what they want for enjoying freely, it is more important to establish rulers which can limit their exaggerations.
2.5. Hymes, Communicative Competence
The link between language and culture is nicely demonstrated by Hymes (1972)  . For Hymes, language and culture are in direct connection because both them are dependants. Each language is characterized by existence and respect of own rulers, grammar and tenses. The choice of language and his speaking context is relevant to competence of that language. The lecture of Richards, J.C. & Rogers T.S (1986) oriented the author to explain about the above idea  .
2.6. Gudykunst, Anxiety and Uncertainty Model
Generally speaking, the meetings of two or more cultures that have cultural dimensions, both peoples of them, are characterized by anxiety and uncertainty because of non assurance of understanding idea of other by bad interpretation of speaking or writing. We were able to explain anxiety and uncertainty model after reading the literatures of Gudykunst (2000) and Griffin (2000)   .
For writing nicely a scientific thinking after conceived it, it is necessary to collect the data and information about the subject for pretending to transfer the best results at the scientific and non scientific community. So, the process of collecting data and information become very important and must be specified for avoiding errors in final result.
That why the methodology is a imperative scientific way for having a best guideline of the manner for collecting the data. The author collected data in the literatures review and official websites. However, he used those literatures review and websites for obtaining data and inquiries about the relevant MNCs.
4. Results and Discussions
4.1. The Brief Introduction to the Multinational Corporation Wall-Mart
The Multinational Corporation wall-mart is one of the giant American’s firms that burnt in 1962 at Arkansas, in Rogers precisely, by Sam Walton. The firm began by satisfying the customers’ needs of the Arkansas’ market. From 1968, the company took the option for expanding its operations outside the first market but only in U.S. From 1995 to this time, the firm expands its operations outside of the U.S. The enterprise Wall-mart is a big discount department store that expands its activities globally. The above data’s compilation is relevant to consultation of en.wikipedia.org and http://www.walmart.com/   .
4.2. The Wall-Mart as MNC and Successful International Business
Wall-mart is one of the MNC in the world this five decade ago in the world; Wall-mart is one of the successful international businesses. Wal-Mart totalizes 11723 stores. In term of segmented stores, there are 4692 in US, 6369 in international and 662 Sam’s club. It expands internationally in 28 countries (with physical stores) and use also E-commerce websites in 11 countries. The above data are relevant to the websites: http://www.walmart.com/ and http://www.fortune.com/   .
These five decades ago in the world, Wall-mart is one of the successful international businesses. Since 1962 to present; the firm continues to see its benefits and cash flows to increase. According to fortune’s statistics, Wal-Mart figures on top 500 of successful international business. The above data are relevant to the websites: http://www.walmart.com/ and http://www.fortune.com/  
4.3. The Main Key Success Factors of Wall-Mart’s Successful International Business
The application of the absolute advantage is the first one of the main key success factors for a successful international business. The United State of America has a higher advantage in technology. It’s why many companies of US specialized in using digital technology for selling goods or responding to customers inquiries. Wal-Mart use also digital technology (E-commerce) in selling economics goods and in treating with their customers.
The application of the comparative advantage is the second one of the main key success factors for a successful international business. The USA has higher advantage in land, capital, labor and technology than many states of the world. USA decides to specialize in production of land’s and capital’s goods. Wal-Mart, one of the American’s MNCs specializes in exports of spices.
The application of the imperfect markets theory is the third one of the main key success factors for a successful international business. Traditionally every firm or MNC must use three kinds of the factors for producing economics goods. In perfect market, there is free transfer between two or more countries but in the real world in which we are, every movement of production’s economics goods generates costs and meets restrictions. It’s one of the reasons that encourage many firms to expand their business globally. Wal-Mart also enlarges its business outside of U.S for minimizing those costs of transfer and passing out the restrictions related to this transfer.
The application of the products cycle theory is the fourth one the main key success factors for a successful international business. Let us take the case of the first Wal-Mart that opened in July 2nd, 1962 by Sam Walton in Rogers, Arkansas, U.S. for meeting local demand. As time passes, the Multinational Corporation decided to export the economic goods directly or via internet outside U.S. At that step, the foreign firms also began to import the Wal-Mart’s economics goods for satisfying their customers. For minimizing the costs of the exports, Wal-Mart decided to produce in foreign market. After a certain period, many foreign firms imitated the Wal-Mart’s economics goods and offered similar products but not exactly the same. It’s why now; many companies as MNCs offer similar products but with differentiation and Wall-mart continue to produce globally.
The application of the Global Strategies is the fifth one of the main key success factors for a successful international business. To expand business outside of home country becomes also one of MNC’s goals and must be considered as a product global strategy. Let us take the example of Wal-Mart that increases international business and imports in 28 countries physically and more via internet (websites) by doing regularly research marketing and using a consistent budget for that.
The application of the intentional trade is the sixth one of the main key success factors for a successful international business. The above explanation of product cycle theory demonstrated how Wal-Mart exports economics goods and how foreign firms imported Wal-Mart’s economics goods.
The application of the Joint venture is the seventh one of the main key success factors for a successful international business. For instance, in Mexico, Wal-Mart applied joint venture with CIFRA, one of the local players. The joint venture helped Wal-Mart to manage risk of west if there is failure. The above explanation speaks for itself.
The application of the acquisition of existing operation is the eighth one of the main key success factors for a successful international business. For example, in Canada, Wal-Mart had an acquisition of 39 stores locations of target. Indeed, in 1994, Wal-Mart had also an acquisition of 120 stores of Woolco discount that located in North of the border from Woolworth Corporation. The acquisition of the existing operations permitted one month to gain Woolworth’s customers without advertising. Economics, Management and environment are the forms and sources of risk facing to Wal-Mart in international business
The management control is one of the forms and sources of risk that facing MNCs. It’s a big challenge because of diversity and multiple countries. We must choose between the centralized or decentralized management for subsidiaries.
The environmental constraints are also impact on international business. Nowadays developed and undeveloped countries build codes, laws and policies for protecting their environments. Applying of all codes, laws and policies by MNC’s, generates increases cost of economics goods. Wal-Mart was also faced by environments constraints.
The regulatory Constraints are one of the forms and sources of risk to successful international business. Existence of currency convertibility, policies and taxes increases also costs of Wal-Mart’s goods. Each change of regulatory constraints will also affect Wal-Mart’s financial vision.
The Ethical constraints are one of the forms and sources of risk to successful international business. The world doesn’t have universal code of ethic. Each country has a proper acceptable ethic. Wal-Mart meets also that reality of multiple and different countries.
Managing within constraints are relevant to the forms and sources of risk to successful international business that facing MNCs. Ethical constraints are a reality in a present world and generate many matters for managing MNC’s internationally. In the above explanation, the author told that Wal-Mart has 6369 internal stores and 662 Sam’s clubs.
The risk of movement in exchange rate is another side of the existence forms and sources of risk to successful international business. Each fluctuation of exchange rate is affecting cash flow of Wal-Mart. Let us take the case of RAND and dollar/U.S. this time. Each export of good from US to South Africa, firms import at lower prices and can sell at higher prices because Rand appreciated and dollars/US desappreciated.
The risk in economics foreign market is one of the forms and sources of risk to successful international business. In each country, economic conditions determine the level of selling goods in the market. Economic conditions fluctuate also regulatory in the world in many countries.
Political risk is also one of the real challenges in international business. Each political decision can affect MNCs. In fact, the case of zairianization is a real example of impact of political decision. During 1970-1974, the president of the Democratic Republic of Congo (ex-Zaire), Mobutu nationalized many subsidiaries of MNCs. In that way, several MNCs lost their subsidiaries in foreign countries.
4.4. Cross-Cultural is a Form and Source of Risk Facing to Wall-Mart in International Business
The difference between two cultures in power distance is a barrier to communication in international business. The power distance defined as the level of agreement of the distribution power’s inequality among different members of the community. For example, one Indian, ancient student in U.S with the PhD of there, in reporting his story, said that for keeping job in India, we have to accept all instruction that belong to the owner of firm. But in U.S you can be disagree with the owner’s of enterprise and you keep that job. These two opposite cases explain how India is applied higher power distance but U.S lower power distance. In culture of high power distance, we have high respect of hierarchy but in low power distance, we respect hierarchy on the basis of the law with rationally. The explanation above shows that the meeting of higher power distance and lower power distance generates the miscommunication. The reading of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) oriented us for constructing this above point   .
The cross-cultural between Individualism-collectivism, cultural dimension, is another barrier to communication in international business. Previously, we said that in individualism culture, people work for his owner interest and his restrict family members. But in collectivism culture, people work for community’s interest. For example, the most miscommunication between powers and richest countries of the world, in term of work, belongs to this cultural dimension. According the research of Hofstede, the most collectivist countries are powers and in the opposite, the most of individualist countries are richest. The meeting of two opposite’s views in term of individualism and collectivism is also a barrier to communication. The reading of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) insist on above point of cross-cultural   .
The cross-cultural between Masculinity-femininity, cultural dimension, hinds of communication inter people in international business. The culture of masculinity enjoys to gain when it faced by challenges but the other culture prefers to resign. For example, generally speaking, for saying that your nation gained Germany, you must wait the last whistle of arbiter even if you had already marked five by zero. Why this? Because Germany is one of the masculinity’s culture. We see easily that there is opposition between both two cultural dimensions and the miscommunication is evidence. The reading of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) guided us for constructing this above point   .
The cross-cultural between cultures with high uncertainty avoidance and low uncertainty avoidance generate miscommunication in international business. Generally speaking, the uncertainty is evidence in human’s life. In culture with high uncertainty avoidance, we accept that evidence and we work for managing the uncertainty in creating strong rulers and rationality in manner of working in the present for preventing the future. But in the other culture of lower uncertainty, we continue to live in the present without to prevent the future. Many Africans countries apply lower uncertainty avoidance than Europeans countries. This comparison between these two cultural dimensions shows that we are in front of two opposite sides of human hand. It is a really case of miscommunication. The reading of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) demonstrate more about this above point   .
The cross-cultural between cultures with long-term orientation and short-term orientation is also kinds of miscommunication in international business. In culture with long-term orientation, the future of the people is conduct by the plan of the future’s activities. But in culture with short-term orientation, the future of the people is not conduct by the plan of the future’s activities. This is also the similar case of contradictions that must generate miscommunication. The reading of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) guided the author for constructing this above point   .
The cross-cultural between indulgence-oriented and restraint-oriented cultures illustrates also the case of miscommunication in international business. In indulgence-oriented culture we want to enjoy freely without control. But in restraint-oriented culture, we accept to enjoy with many restrictions and controls. These both cultural dimensions will generate miscommunication in meeting. The reading of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) shows the way for speaking about the above point   .
The cross-cultural between linear actives and multi-actives is a barrier to communication in international business. In the linear active, there is a high respect of the schedule and rendezvous. But in multi-actives, they respect relationship than schedule and rendezvous. These differences demonstrate also that the miscommunication is evident in intercultural between linear actives and multi-actives. The reading of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) guided the author for constructing this above point   .
The anxiety and uncertainty of human in the cross-cultural is also a barrier to communication. The anxiety and uncertainty that belong to incapacity to understand speaking of the interlocutor will be a source of miscommunication between people. The readings of Steenhuis H-J (2015) and Lufthansa F. & Jonathan P. Doh (2015) deal with the above point in their books   .
4.5. Recommendations and Implication
The application of the mindfulness is a key for removing a barrier to communication that belongs to cross-cultural. It is also a key for reducing the economic, environment and management challenges. In this part, the paper will explain how the mindfulness is a key to communication’s barrier by liking to cultural dimension, anxiety, uncertainty, stereotype and prejudice.
Indeed, the mindfulness is a real key for removing barrier to communication that generates the cultural dimension. In meeting of two or several cultures, the mindfulness help the Wall-mart’s managers and workers to be focus on theirs all cultural diversities by exercising in order the four levels of cultural quotients as follows: the step of motivation, the phase of cognition, the step of metacognition and the step of action. In applying both four levels of cultural quotient, the Wall-mart’s managers and workers will be able to adapt their behavior at the fact because they have a better understanding of all cultural diversity. In that way, the mindfulness becomes a key removal of barrier to communication.
In addition, the mindfulness is a key removal of barrier to communication belongs to communicative competence. According Hymes (1972), each culture has his language. In the cross-cultural, we will meet several incompatibilities between people from different background  . The mindfulness will resolves that problem by giving to Wall-mart’s managers and workers all capacities for being able to communicate with good knowledge and adaptation at the culture and language in front of them.
Furthermore, the mindfulness is a solver of the challenge of anxiety and uncertainty, faced by people to communication in cross-cultural. In cross-cultural, people are characterized by anxiety and uncertainty because of not being able to understand and interpret other. That situation perturbs and confuse human and purchase them to miscommunication. The mindfulness solves that by giving at Wall-mart’s managers and workers a good level of assurance and adaptation to the new fact of cross-cultural communication.
Finally, the mindfulness is also a good thing for reducing cultural stereotype and prejudice of people in cross-cultural for facilitating communication. The generalization of one person’s behavior to all members of cultural group creates miscommunication between people in cross-cultural. The mindfulness allows the Wall-mart’s managers and workers to avoid that miscommunication in giving them a good cultural background in front of the fact.
The application of the cultural sensitivity is vital as the key removal of the miscommunication in international business. The cultural sensitivity will give at the Wall-mart’s managers and workers to get an ability to understand carefully all customers in foreign market. That ability is required for hoping to realize a best profit internationally.
The application of becoming cultural awareness is also necessary in international business for obtaining a good result. This dimension will give the Wall-mart’s managers and workers to have good background of the culture’s understanding of the local and foreign market. That is very important for all success in international business.
For being able to compete internationally and get an optimal profit, the Wall-mart’s managers and workers can apply the mindfulness, cultural sensitivity and become awareness. If not, the Wall-mart will decrease its activity in international.
In the summary, we spoke about “the main key success factors of the MNCs” successful international business in spite of the existence challenges. This subject is very important because it gives a good guideline for succeeding internationally to all MNC in front of the foreign market.
According to results of analysis, we realized that the application of the economics and business theories are the main keys for getting a successful international business. At the other side, the economic, management, political, cultural and ethical are the challenges that facing to MNC Wall-mart. For avoiding above all kinds of forms and sources of risk to international business in cross-cultural, we recommend to apply mindfulness, cultural sensitivity and to be cultural awareness to cultural dimensions, communicative competence, anxiety and uncertainty in respecting the four levels of CQ as follows: CQ drive, CQ knowledge, CQ strategy and CQ action. The mindfulness will help the Wall-mart’s managers and workers to focus really in all existence of cultural diversity, languages and for avoiding anxiety and uncertainty in meeting between others cultures.
All both above suggestions can be applied for removing the forms and sources of risk that are relevant to management, cultural dimension, cross-cultural communication, and economics & politic factors. If not, it will be difficult to communicate internationally for doing business.
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