Possible Questions and Pointers for Answer:

1) Under what condition is Walmart entering the Indian market and how it relates to opening up
of Indian market?

Ans) Brief Intro about Current govt policy changes – How FDI was already there in the single brand
retail and how multi-brand retail could be the most logical next step – How current govt is already
on the backfoot with election scheduled. Also speak about changing stance of BJP in FDI and how
it is more of a political issue. – Speak about Walmart case back in USA and how India is next big
opportunity as the sector itself is upwards of 500 billion dollars – Then the rules which are to be
implemented for any player entering FDI

2) Impact on the retailers, kirana store and other stakeholders (e.g. ABG, Tata ) by this new law
in FDI ?

Ans) Talk about the scale of these kirana stores and the unorganised retails (case facts from exhibit
2) – Also about how these Indian retailors (organised ones) are trying to get a foothold in market
and looking for FDI as an opportunity (few statements from the case) – Talk about stakeholders
such as farmer and both side of the argument and then how it is predicted that this move will
increase their income – talk about other elements of supply chain, do a guesstimate or approx.
calculations (if found from exhibit, quote it) to show if really increase in employment
overshadowed by impact on kiranas

3) Track the growth of lobby industry, its future outlook and possible comments on how it will
shape up in future

Ans) (Pages 9-11) – Lobbying still a nascent industry in India – Deeper cause is fear of corruption
– Developed countries have better mechanism in place for check and balances – Enron experience
has left a bad taste for lobbying – Explain about overt and covert lobbying – What innovative can
be done on this front to avoid corruption (Maybe appointing a position in govt who deals with
lobbying and that guy can be questioned so it will keep a check) – A comment on tit for tat i.e.
Indian companies are doing it in USA, but govt/market is more mature there

4) Track the further strategy for Walmart and other companies looking to enter market

Ans) Companies can take a wait and watch strategy – Communication with govt regarding these
norms are relaxed for everyone, not only for Walmart –

If they want to enter –

a) Build a better reputation among grassroot level

b) Use middleman as enabler than looking to replace them
c) Use airtel as the face brand than entering on their name – more trustworthy
d) Partnering with retailers like ABG, Tata to open a retail outlets in their name

If they want to delay –

a) Come clean from India, international reputation already at stake

b) Changes in labour rules for their workers to ensure equitable distribution of
profits
c) Since 100% FDI allowed in agri, maybe start from their, build in-house sourcing, a
way to improve their image and then move further in value chain
Lesson for companies – Focus on building trust first – allow labour unions or some sort of
representation for employees – Use govt schemes such as PF scheme launched by the govt to enable
PFs for employees - Instead of fully outsourcing the lobbying, company can send few executives in
entering market for easy convey of intent – CSR attempts at improving supply chain stakeholders well-
being- case talks about how Indian companies are doing everything on their own due to lack of third
party logistics so this provides an opportunity

5) Question related to retail as a industry, why it’s so important and how it constitute a major
vote bank and other points such as why this sudden move

Ans) Exhibit 2 , mostly from this – retail form a large part of the total GDP & employment – growing
middle class consumerism & govt seeing foreign retailors as enable to source Indian product –
Huge number of employment and BJP’s vote bank so trying to harp this to ensure polarization –
Write about three points of multi-brand retails which are creation of back end infra, consumer
choices and employment effect - Disclosure as the way of foreign intervention – Was this
announcement a way to divert issue from corruption charges

General Pointers-

 Globe but do a little meaningful one

 Sprinkle some good terminologies in it
 Avoid taking extreme stands, but advisable to do take a stand, just point out merit
and demerit from each side
 Regarding quoting examples from outside of the case, depend on the prof, just don’t
base your whole argument based on that, better to avoid unless it’s a very general
knowledge stuff (e.g. Agri employs largest number of people in India)
 Structure the answers, e.g. start the answer with given context, state both side of the
arguments, take a stand and then argue it
 Play the man (well, you don’t want to pro-HUL here :P)