Organization of International Business

Wal-Mart Stores, Inc. was incorporated in 1969 and now is the existences 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 worry strategy is EDLP-Every Day Low Price which is the key-point of their success. To accomplish this strategy, they mainly focuse on efficiency of dispersal social organization. They used Cross-docking system, POS system, QR-Quick Response System. All those strategies core values are Time and Response.Shorten the measure for everything includes distribution, storing, etc directly make a motioned lower the price of goods which could be best response to customer need. In different words, Wal-Mart has been successful since they always managed their time and response to customer. Those points were homogeneous for Wal-Marts International instalment startegy. Their international incision wasnt des ire these days at the early stage. The international office was centralized so the branches necessitate to get approval for every implement and decision from headquarter in USA.However, this centralization process made unit of measurement process slow and it harmed the core value of Wal-Mart. Also, they realized that the system cant be same in otherwise countries. It needed to be changed and modified in order to fully get into individually local grocery store place. By the late 1990s they started to change their policy for international division. They gave more than office to all(prenominal) division so that they dont 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 create problems for the companys different national operations? Has Wal-Marts response been appropr iate? The headquarter first thought that centralization go forth help them get into other countries cause the methods and ways they used were already proved in internal market. The centralization wasnt that bad when they started because on that point 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 course 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. Each international division tried their best in order to make maximum returns on their market, and that effort caused lot of things to be approved by headquarter. To solve this problem, Wal-Mart started to decentralize their international division. This helped each division to tailor them self more easily for the loca l customers.They could make decision and take action faster. Also they could response to local customers need instantly. I think this decision was fairly appropriate. Headquarter can focus to their main domestic market without waste their energy and international division besides 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 remote operations? What problems might arise with this structure? What other structure might work? I think international division is moderate choice for Wal-Marts foreign operations.The head quarter can easily replicate 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 division makes mistake or distortion of core value while they set about 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 old age and finally got out of Korea without getting anything. This mistake damaged Wal-Marts name maybe not alone in Korea division but also in headquarter. In this case for Wal-Mart, Worldwide Area twist could worked, too. If they use this structure, the great system they proved in domestic market can be used in all the commonwealths 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 fare of money all over the world. There is no doubt that they are successful. But it doesnt stand for that they have nothing to fix or improve. If they want to expand their business, they shou ld 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.