ii ABSTRACT The growing importance of emerging markets in the global economy leads many multinationals (MNEs) to explore and expand into them. Saturation and slow growth in home markets, coupled with rising incomes in emerging markets, has also accelerated retail internationalisation. These markets are generally unfamiliar to the predominantly western firms, and they come with intractable social problems, where resultant stakeholder activism abounds. The purpose of this study was to investigate stakeholder management during entry of a retailer, Wal-Mart, into an emerging market, South Africa, in order to draw lessons that could be of use to other MNEs seeking to enter similar emerging markets. The method used for the study was a qualitative archival analysis that relied on publicly available sources, namely the regulatory bodies, parliament, press releases and the print media. The research found that the key stakeholders during the entry of Wal-Mart into South Africa were the government and trade unions. Government and trade unions were concerned that Wal-Mart’sentry would lead to an increase in imports and displace local producers, in turn worsening South Africa’s unemployment crisis. It was also feared that Wal-Mart would seek to change the existing labour regime in order to marginalise trade unions and lower labour standards. The research found that stakeholder management was poor and highlights the importance of integrating stakeholder management strategy into the broader entry strategy into developing markets.
iii DECLARATION I declare that this research project is my own work. It is submitted in partial fulfilment of the requirements for the degree of Master of Business Administration at the Gordon Institute of Business Science, University of Pretoria. It has not been submitted before for any degree or examination in any other University. I further declare that I have obtained the necessary authorisation and consent to carry out this research. Tembinkosi Bonakele 09 November 2011
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iv DEDICATION I would like to dedicate this research to Eunice Gogogo Mankayi, my late maternal grandmother who raised me and sent me to school. Mama, I know that wherever you are you will join us in celebrating this milestone. Thank you Magebane…Mbanjawa.