Organization of International Business

Wal-Mart Stores, Inc. was incorporated in 1969 and now is the worlds largest and more than or less self- do grocery retailer which was selected as worlds largest all toldiance in 2007, by Fortune 500. It has 8,970 stores in 15 countries and total revenue of $421,849 billion (2010). Wal-Marts primary(prenominal) business strategy is EDLP-Every Day mortified Price which is the key-point of their success. To accomplish this strategy, they mainly foc utilise on efficiency of diffusion structure. They used Cross-docking establishment, POS transcription, QR-Quick Response System. All those strategies core values atomic number 18 Time and Response.Shorten the time for everything includes distribution, storing, etc directly affected lower the charge of goods which could be best response to customer consume. In other words, Wal-Mart has been successful since they always managed their time and response to customer. Those points were same for Wal-Marts Inter field of study person a startegy. Their world-wide part wasnt manage these days at the untimely stage. The international persona was centralized so the branches needful to get praise for every action and decision from headquarter in USA.However, this centralisation process made whole process slow and it harmed the core value of Wal-Mart. Also, they realized that the system set upt be same in other countries. It needed to be changed and modified in order to fully get into separately local market place. By the late 1990s they started to change their indemnity for international particle. They gave more responsibility to from each(prenominal) one subdivision so that they wear upont lead to wait for approval and response from headquarter. By this change, each international divisions could meet their local markets need more rapidly and effectively.2. Why did the centralization of decisions in Wal-Marts international division at headquarters create problems for the companys different national op erations? Has Wal-Marts response been appropriate? The headquarter first thought that centralization will help them get into other countries cause the methods and ways they used were already proved in municipal market. The centralization wasnt that gloomy when they started because there were not many things to care about. However, by the international division gets bigger, they had to deal with bunch of things from lot of different countries.The headquarter had to consider tons of decisions and problems. Of fertilise the whole process got into arrears. In other word, the headquarter of Wal-Mart was overloaded. This condition was natural because the domestic way couldnt be fitted same in other countries. apiece international division tried their best in order to desexualise maximum profit on their market, and that effort caused lot of things to be approve by headquarter. To solve this problem, Wal-Mart started to decentralize their international division. This helped each divis ion to rationalise them self more easily for the local customers.They could make decision and demand action faster. Also they could response to local customers need instantly. I animadvert this decision was pretty appropriate. Headquarter support focus to their main domestic market without waste their energy and international division alike can make best result in their local market. 3. Do you think that having an international division is the best structure for managing Wal-Marts unusual operations? What problems dexterity arise with this structure? What other structure might work? I think international division is moderate superior for Wal-Marts foreign operations.The head quarter can easily recapitulate the domestic structure to international division so that they dont struggle from start in new local market. However, I think there could be problems arise with that way. there could be damage to headquarters reputation theyve made in domestic market if international divi sion makes mistake or distortion of core value while they chastise to adjust to local market. It will seriously harm whole Wal-Marts name and will affect their sales. For example, while they try to get into Korea, they didnt know about Koreas atmosphere and condition.They struggled in Korea for years and last got out of Korea without getting anything. This mistake damaged Wal-Marts name perchance not only in Korea division but also in headquarter. In this case for Wal-Mart, Worldwide Area Structure could worked, too. If they use this structure, the with child(p) system they proved in domestic market can be used in all the areas but all the other things can be adjusted to each areas property. In that way, they can reduce possibility of failure in certain country like Korea or German.4. Conclusion Wal-Mart is one of biggest company in the world and theyre making huge amount of money all over the world. There is no doubt that they are successful. But it doesnt mean that they have n othing to fix or improve. If they want to expand their business, they should make their international division more efficient and effective. That means, sure they should use their great system they have used in domestic market to international division but those strategies are needed to be reformed in each countries. In that way, they might able to make high profit all over the world without struggling from cultural and industry difference.