Walmart : A Global Organization

830 WordsAug 14, 20164 Pages
Global Operations Initially Walmart presumed that their age old strategy that has worked for them for many years would be easy to replicate in a global setting. The question you have to ask yourself is, why wouldn’t it? Part of the problem is that Walmart failed to focus on the four elements of a global organization; Organization Structure, Management Processes, People, and Culture (Yip & Hult, 2012). When Walmart decided to make their first move in the early 90’s to enter the global market, they were lacking mostly in organization structure, management processes, and culture. The mentality of being the biggest retailer in the United States was not enough, operating in the global arena is different. Market Entry Walmart struggled when initially entering into the global market. The development Walmart embarked on in the beginning of the 90’s, in their eyes had a promising start, however, the patrons of Hong Kong did not reciprocate that vision. Within the first couple of years, the first operation oversea was a bust. Shortly after the Hong Kong catastrophe, Walmart tried to move into Indonesia and soon found themselves faced with protesting and destruction with their store. After that interaction, the organization found that they were unable to correctly identify the local customer wants and needs in Asian markets. They also misjudged the location of stores and placed them to far from consumers, therefore, the stores were not accessible. When it came to the German stores,

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