Ch 13 Organization of International Business

1.Intro & Background Wal-Mart Stores, Inc. was incorporated in 1969 and now is the valet de chambres largest and most successful grocery retailer which was selected as worlds largest company in 2007, by Fortune 500. It has 8,970 stores in 15 countries and total revenue of $421,849 billion (2010). Wal-Marts main(prenominal) business strategy is EDLP-Every Day Low Price which is the key-point of their success. To hand this strategy, they mainly focuse on efficiency of distribution structure. They used Cross-docking system, POS system, QR-Quick Response System. All those strategies core shelters atomic number 18 Time and Response. Shorten the time for everything includes distribution, storing, etc directly affected lower the price of goods which could be best resolution to guest need. In other words, Wal-Mart has been successful since they always managed their time and response to customer. Those points were alike(p) for Wal-Marts International component startegy. Their planetary division wasnt like these days at the early stage. The internationalistic division was centralized so the branches needed to get approving for every action and decision from headquarter in USA. However, this centralization cover made whole process slow and it harmed the core value of Wal-Mart.

Also, they realized that the system cant be same in other countries. It needed to be changed and modified in order to copiousy get into each local trade place. By the late 1990s they started to change their policy for international division. They gave more responsibility to each division so that they gullt have 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 build problems for the companys different national operations? Has Wal-Marts response been appropriate? The headquarter first... If you want to get a full essay, order it on our website: Orderessay

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