please keep the response brief

6. Reread the Management Focus on Walmart International; then answer the following questions: a. Why did the centralization of decisions at the headquarters of Walmart's international division create problems for the company's different national operations? Has Walmart's response been appropriate? b. Do you think that having an international division is the best structure for managing Walmart's foreign operations? What problems might arise with this structure? What other structure might work? MANAGEMENT FOCUS Walmart International When Walmart started to expand internationally in the customers weekly. Forty percent of the customers are outearly 1990 s, the company set up an international division side the United States. to oversee the process. The international division was In terms of reporting structure, the intemational division is based in Bentonville, Arkansas, at the company headquar- divided into three regions-Europe, Asia, and the Americasters. Today, the international division oversees operations with the CEO of each region reporting to the CEO of the interfor Walmart as the largest global retailer in the world of national division, who in turn reports to the CEO of Walmart. 11,695 stores under 63 banners in 28 countries that collec-_ Initially, the senior management of the international divitively generate almost $500 billion in sales (2017). Some sion exerted tight centralized control over merchandising 2.2 million Walmart employees ("associates") work in these strategy and operations in different countries. The reasoning international positions to serve more than 100 million was straightforward: Walmart's managers wanted to make sure that international stores copled the format for stores. merchandising, and operations that had served the company so well in the United States. They believed, naively perhaps, that centralized control over merchandising strategy and operations was the way to make sure this was the case. By the late 19905 , with the international division approaching $20 billion in sales, Walmart's managers conwell. Country managers had to get permission from their superiors in Bentonville before changing strategy and operations, and this was slowing decision making. Centralization also produced information overload at the headquarters and led to some poor decisions. Walmart found that managers in Bentonville were not necessarily the best ones to decide on store layout in Mexico, mer- Walmart store in Snangnat, crina: chandising strategy in Argentina, or compensation policy in the United Kingdom. The need to adapt merchandising simultaneously introduce new merchandise into its stores strategy and operations to local conditions argued strongly around the world. for greater decentralization. As merchandising and operating decisions have been The pivotal event that led to a change in policy at Waimart decentralized, the international division has increasingly was the company's acquisition of Britain's ASDA super- taken on a new role-that of identifying best practices and market chain. The ASDA acquisition added a mature and transferring them between countries. For example, the diSuccessful \$14 billion operation to Walmart's international vision has developed a knowledge management system division. The company realized that it was not appropriate for whereby stores in one country-let's say, Argentina-can managers in Bentonville to be making all-important deci- quickly communicate pictures of litems, sales data, and focated in Bentorville who were devoted to international op- another country-such as Japan. The division is also starterations was reduced by 50 percent. Country leaders were ing to move personnel between stores in different coungiven greater responsibility, especially in the area of mer- tries as a way of facilitating the flow of best practices chandising and operations. At that stage. Waimart was at the across national borders. The division is continuously trying point Where it was time to break away a littie bit. Company to be innovative and move Walmart away from is US. centic place. The countries have to drive the business." operations to improve the efficiency and effectiveness of Although Walmart has now decentralized decisions Waimart's operations. This is stressed by Walmart intema. within the international division, it is still struggling to find tional's president and CEO, David Cheesewright, who said the right formula for managing global sourcing. Idealily, the that "international is a growt engine for waimatt and to company would like to centralize sourcing in Bentonvile succed we must focus - surning them well:" go that down the prices it pays suppliers. As a practical mat- Sources. Abha Bhattaral, "Walmart is A5king Employees to Deliver ter, however, this has not been easy to attain given that the Packages on Their Woy Home from Work." The Washington Past: product mix in Waimart stores has to be tallored to condl- Pune 1, 2017, M. Troy, "Wal-Mart Braces for international Growth with responsibility for sourcing remains at the country and re- June 21, 2004, pp. 26-28, "The Division That Detines the Future: gional level. However, Walmart would like to have a better "innovating for Customets All Around the Worid," hittp:/ews. and more efficient global sourcing strategy, such that it can walmart.com/executive-viewpoints/innovating-for-our-customers- 6. Reread the Management Focus on Walmart International; then answer the following questions: a. Why did the centralization of decisions at the headquarters of Walmart's international division create problems for the company's different national operations? Has Walmart's response been appropriate? b. Do you think that having an international division is the best structure for managing Walmart's foreign operations? What problems might arise with this structure? What other structure might work? MANAGEMENT FOCUS Walmart International When Walmart started to expand internationally in the customers weekly. Forty percent of the customers are outearly 1990 s, the company set up an international division side the United States. to oversee the process. The international division was In terms of reporting structure, the intemational division is based in Bentonville, Arkansas, at the company headquar- divided into three regions-Europe, Asia, and the Americasters. Today, the international division oversees operations with the CEO of each region reporting to the CEO of the interfor Walmart as the largest global retailer in the world of national division, who in turn reports to the CEO of Walmart. 11,695 stores under 63 banners in 28 countries that collec-_ Initially, the senior management of the international divitively generate almost $500 billion in sales (2017). Some sion exerted tight centralized control over merchandising 2.2 million Walmart employees ("associates") work in these strategy and operations in different countries. The reasoning international positions to serve more than 100 million was straightforward: Walmart's managers wanted to make sure that international stores copled the format for stores. merchandising, and operations that had served the company so well in the United States. They believed, naively perhaps, that centralized control over merchandising strategy and operations was the way to make sure this was the case. By the late 19905 , with the international division approaching $20 billion in sales, Walmart's managers conwell. Country managers had to get permission from their superiors in Bentonville before changing strategy and operations, and this was slowing decision making. Centralization also produced information overload at the headquarters and led to some poor decisions. Walmart found that managers in Bentonville were not necessarily the best ones to decide on store layout in Mexico, mer- Walmart store in Snangnat, crina: chandising strategy in Argentina, or compensation policy in the United Kingdom. The need to adapt merchandising simultaneously introduce new merchandise into its stores strategy and operations to local conditions argued strongly around the world. for greater decentralization. As merchandising and operating decisions have been The pivotal event that led to a change in policy at Waimart decentralized, the international division has increasingly was the company's acquisition of Britain's ASDA super- taken on a new role-that of identifying best practices and market chain. The ASDA acquisition added a mature and transferring them between countries. For example, the diSuccessful \$14 billion operation to Walmart's international vision has developed a knowledge management system division. The company realized that it was not appropriate for whereby stores in one country-let's say, Argentina-can managers in Bentonville to be making all-important deci- quickly communicate pictures of litems, sales data, and focated in Bentorville who were devoted to international op- another country-such as Japan. The division is also starterations was reduced by 50 percent. Country leaders were ing to move personnel between stores in different coungiven greater responsibility, especially in the area of mer- tries as a way of facilitating the flow of best practices chandising and operations. At that stage. Waimart was at the across national borders. The division is continuously trying point Where it was time to break away a littie bit. Company to be innovative and move Walmart away from is US. centic place. The countries have to drive the business." operations to improve the efficiency and effectiveness of Although Walmart has now decentralized decisions Waimart's operations. This is stressed by Walmart intema. within the international division, it is still struggling to find tional's president and CEO, David Cheesewright, who said the right formula for managing global sourcing. Idealily, the that "international is a growt engine for waimatt and to company would like to centralize sourcing in Bentonvile succed we must focus - surning them well:" go that down the prices it pays suppliers. As a practical mat- Sources. Abha Bhattaral, "Walmart is A5king Employees to Deliver ter, however, this has not been easy to attain given that the Packages on Their Woy Home from Work." The Washington Past: product mix in Waimart stores has to be tallored to condl- Pune 1, 2017, M. Troy, "Wal-Mart Braces for international Growth with responsibility for sourcing remains at the country and re- June 21, 2004, pp. 26-28, "The Division That Detines the Future: gional level. However, Walmart would like to have a better "innovating for Customets All Around the Worid," hittp:/ews. and more efficient global sourcing strategy, such that it can walmart.com/executive-viewpoints/innovating-for-our-customers