'Organization of International Business\r'

'Wal-Mart Stores, Inc. was incorporated in 1969 and like a shot is the adult male’s largest and most sure-fire grocery retailer which was selected as world’s largest order in 2007, by Fortune 500. It has 8,970 stores in 15 countries and entireness revenue of $421,849 billion (2010). Wal-Mart’s chief(prenominal) business strategy is ‘EDLP-Every Day crushed Price’ which is the key-point of their success. To accomplish this strategy, they mainly pore on efficiency of distri plainlyion structure. They employ ‘Cross-docking brass’, ‘POS’ system, ‘QR-Quick rejoinder’ System. All those strategies tenderness values are ‘Time’ and ‘Response’.Shorten the time for everything includes distri notwithstandingion, storing, etc directly affected beat out off the price of goods which could be beat out reply to customer furbish up hold of. In other words, Wal-Mart has been boffo sinc e they alship loaferal managed their time and response to customer. Those points were homogeneous for Wal-Mart’s â€Å"International divergence” startegy. Their international sectionalisation wasn’t like these age at the early stage. The international course of study was centralized so the branches needed to witness approval for every action and finality from mountain passquarter in USA.However, this centralisation action garner whole process slow and it disabilityed the meaning value of Wal-Mart. Also, they realized that the system passel’t be same in other countries. It needed to be changed and modify in order to fully get into apiece local commercialize place. By the late 1990’s they started to change their insurance for international sub sub variation. They gave more responsibility to each division so that they don’t have to wait for approval and response from headquarter. By this change, each international divisions could collaborate their local market’s need more rapidly and effectively.2. Why did the centralization of decisions in Wal-Mart’s international division at headquarters create problems for the company’s different national trading operations? Has Wal-Mart’s response been appropriate? The headquarter early thought that centralization leave alleviate them get into other countries ca call the methods and ways they used were already proved in domestic help market. The centralization wasn’t that grownup when they started because there were non many things to shell out about. However, by the international division gets bigger, they had to have sex with bunch of things from accord of different countries.The headquarter had to conceptualize tons of decisions and problems. Of course the whole process got into arrears. In other word, the headquarter of Wal-Mart was overloaded. This condition was native because the domestic way couldn’t be fitted same in other countries. all(prenominal) international division tried their exceed in order to make maximum make on their market, and that effort caused lot of things to be approved by headquarter. To authorise this problem, Wal-Mart started to decentralize their international division. This helped each division to tailor them self more easily for the local customers.They could make decision and homecoming action faster. Also they could response to local customer’s need instantly. I think this decision was pretty appropriate. Headquarter can focus to their main domestic market without waste their energy and international division also can make lift out result in their local market. 3. Do you think that having an international division is the best structure for managing Wal-Mart’s foreign operations? What problems world power arise with this structure? What other structure might work? I think international division is defend choice for Wal-Mart’ s foreign operations.The head quarter can easily recapitulate the domestic structure to international division so that they don’t deal from start in new local market. However, I think there could be problems arise with that way. There could be abuse to headquarter’s reputation they’ve made in domestic market if international division makes mistake or distortion of message value while they try to dress to local market. It will seriously harm whole Wal-Mart’s name and will affect their sales. For example, while they try to get into Korea, they didn’t know about Korea’s atmosphere and condition.They struggled in Korea for years and in conclusion got out of Korea without getting anything. This mistake modify Wal-Mart’s name maybe not only in Korea division but also in headquarter. In this event for Wal-Mart, Worldwide Area Structure could worked, too. If they use this structure, the great system they proved in domestic market can be used in all the areas but all the other things can be adjusted to each area’s property. In that way, they can reduce contingency of failure in certain realm like Korea or German.4. Conclusion Wal-Mart is integrity of biggest company in the world and they’re making huge amount of funds all over the world. There is no doubt that they are successful. But it doesn’t mean that they have nothing to get up or improve. If they want to expand their business, they should make their international division more high-octane 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 better in each countries. In that way, they might able to make high profit all over the world without attempt from cultural and industry difference.\r\n'