Abstract The purpose of this business report is to analyze and evaluate the challenges faced by Wal-mart and Riordan, firms that operates in two different countries. Wal-mart is among the largest firms in the US, a position which it has earned through its marketing approach including low priced products, just-in time delivery, and its organizational behavior. It operates in major countries such as China, Canada, Brazil, Japan, and United Kingdom. On the other hand, Riordan manufacturing is based in China and specializes in the production of plastics which are distributed in many parts of the world. Its product range includes plastic beverage containers, plastic fan parts, and custom parts for automobiles. Major customers for these products are in the aviation industry, appliance manufacturing, automobile industry, and bottlers of soft drinks. Both firms face similar challenges although they operate in different countries. Most of these problems are political, legal, and environmental. The building blocks of a successful global business company starts with a sound strategy, which incorporates structural, leadership and cultural forces the business needs to take into consideration. This report gives some of the problems faced by these two firms in their operations. Problems Faced By Riordan These challenges can be summarized as follows:  1. Discrimination lawsuits through employee malpractice  2. Corporate social responsibility issues, and  3. Ethical dilemmas Riordan faces Public relation issues mostly arising from these malpractices. The procedure for handling these issues are defined in Riordan’s Business Continuity Plan (BCP), which is a systematic strategy detailing how to mitigate those risks. The risk in a leaning strategy is in determining which activities are not critical to the core competence of the firm. If a firm mistakenly cedes out crucial activities it can severely cripple its long-term strategy (Mintzberg, et al 2003). Problems faced by Wal-mart  1. Government regulation  2. Restriction on foreign ownership  3. Requirement of skilled labor  4. Opposition in its expansion strategies Wal-mart faces similar problems as the ones faced by Riordan manufacturing. First there is the government requirement which it has to adhere to before being allowed to expand its services, increased capital costs, requirement of skilled labor force, and rivalry from other firms. To add to these risks, the company is not guaranteed of a ready market in these areas making it a risky undertaking. Most of its expansion strategies are normally opposed by activities claiming that if new stores are opened, they will result in traffic congestion, poor public relations, and low wages (Wal-Mart Stores, Inc. 2008). Problems Faced By Both Firms Both firms have to abide by all state and local laws and enact a complicit information security policy, which will encompass all their corporate culture as a whole and applied to all new locations. Their risk management plans have to include training sessions for all managers on good ethical decision-making. Management needs to be taught contingency plans for looming risky situations and the steps necessary to mitigate them. The simple steps are basic awareness of the ethical perspectives that serve as the foundation of good moral and ethical decisions, the art of explaining the principl