Need some assistance and guidance in answering the folowing two questions.
Trying to define what is meant by functional structure, and describe how to use this functional structure to implement the cost leadership strategy.
How does Wal-Mart's structure as it relates to its international business.© BrainMass Inc. brainmass.com October 17, 2018, 2:52 am ad1c9bdddf
What is meant by functional structure, and describe how to use this functional structure to implement the cost leadership strategy?
In a functional structure, groups are created based on a bottom-up manner. Thus, divisions or units are created such as engineering, marketing, finance, human resource among others that are controlled and coordinated from the top level management. Functional structure are the most common type of structural design and have evolved from the concept of high specialization, high control framework of manufacturing organizations tuned towards high efficiency. It allows specialization of tasks.
Functional structures are typically highly hierarchical; hence they inherit the properties of hierarchical structure.
1. Maximizes Functional Performance: All the human knowledge, skills & infrastructure required for a particular functional activity are consolidated in a single sub-organization, this facilitates sharing of valuable expertise by superiors ...
This solution describes what a functional structure, its components, and benefits. To maintain marketing leadership, Wal-Mart implemented a cost leadership strategy. The solution also discussed Wal-Mart's structure and its readiness for international business.
Global Business Strategies for Wal-Mart in Mexico
1. Why did Mexico make such a good proving ground for Wal-Mart's foreign expansion strategy?
2. What is the source of Wal-Mart's competitive advantage? What barriers did Wal-Mart have to overcome in transferring its competencies to Mexico?
3. How did Wal-Mart create value in the Mexican market?
4. Despite some early setbacks, Wal-Mart has apparently been successful in Mexico. In contrast, some other United States retailers pulled out of the country in the aftermath of the 1994 peso crisis. What do you think distinguishes Wal-Mart from those companies?
5. "If Wal-Mart can succeed in Mexico, it can probably succeed in most other countries." Discuss this statement. Is it correct?View Full Posting Details