Briefly explain what is the case about?
1.The organization in question is Walmart while the issue resulting in contention is challenges brought about by internationalization. Even though the international company has been the fastets growing of all Walmart companies, the coporation has been left with several challenges including issues pertaining to understanding of local buying patterns, understaing local cultures, regulations and competition, and lastly emerging markets.
2.Even after the expansion to other geographical markets, the company still loses money due to regional issues like regulatory problems and also being unable to influence and explain to local consumers about the company’s low cost models.
3.Another issue that has been a challenge to the coporation is its inadequate scale economies as well as availability of strict regulations in some geographical regions of the world like Germany. Labor union conflicts are also some of the issues faced by Walmart International. All the issues aforementioned explain the case’ subject matter.
Briefly explain the management issue(s)?
1.The management of Walmart decided best on the interest of the corporation to internationalize. However, as much as Warlmat International became the fastest growing organization, it faced several management issues including challanges pertaining to understanding of local buying patterns, understaing local cultures, regulations and competition, and lastly emerging markets.
2.Diversification to areas of South America led to issues pertainig to regulations as well as being unable to convince local consumers regarding the company’s low cost models resulting to the company losing a lot of money.
3.In the German region, the organization faced challenges of inadequate scale economies as well as availability of strict regulations. In such areas, the company also faced issues of labor union conflicts as a result of workers resisting the customs of the company.
Link the management issue to the model/theory of the week and briefly explain the connection.
With regards to the theory of management, the highlighted issues could easily be tackled if the company’s management tried the multi-domestic strategy as a way of determining local consumer tastes, work alongside government relations, ensuring high levels of local responsiveness, focusing on domestic competition, as well as encouraging product customization.