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Wal-Mart's structure, cost strategy, and global market

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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.

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Solution Summary

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.

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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 ...

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