Solution of a case on Kmart

1. Kmart de Mexico S.A. de C.V.

2. Background
• Kmart entering Mexican market
• JV with Liverpool

3. Hiring of the executive team
• US citizens of Mexican background
• Better understanding of Mexican people and
culture
• Seek the experience of Liverpool in Mexican
market
• Appoint local consultants for supporting in
tactics and strategic decision-making

4. Store Layout
• 50% food and 50% general merchandise
• Focus on food items : 38% of income
accounted to food consumption
• Food and highly sought items near the
entrance
• Collaborate with local suppliers for fresh foods

5. Training program
• Develop new training program based on one
to one interaction
• On the job training for better performance
• Training specifically to understand the
customer mindset and suggest trends

6. Culture of the Store
• Hierarchical structure
• Congruent to the Mexican culture
• High Risk Aversion
• High Conformity to Authority