Prior to beginning work on this discussion, read A Dollar Store’s Rich Allure in India: A U.S. Franchise’s Success Shows How “Made in America” Sells; Lessons for Wal-Mart’s Entry? (Links to an external site.), Walmart: What happened in India? (Links to an external site.), and Walmart expands again in India—but still not able to open consumer stores to consumer detriment (Links to an external site.).
Leaders often look for new opportunities for expanding the operations of their organizations beyond the borders of the country of origin. Research and discuss two articles that detail difficulties experienced by Walmart in attempting to expand operations into another country. Discuss a lesson that can be learned by leadership on attempting to expand into another country
Walmart is the leading global retailer. It started its operations with nine nations in South America, Asia, and Europe. It is within the beliefs of the company that it will expand globally with revenues rising above that of the US market (Molin 2004, p.1). Armed with the belief, the company has been exploring different markets including the Asian retail market. However, the company seems to have failed to appreciate that success in one country does not guarantee similar success in another. The company has been experiencing significant challenges in expanding its operations in Asia, specifically in China and India. This attributed to part of the many business and cultural challenges a global company can face when attempting to expand operations into a foreign country.
some positional power, usually by establishing a clear hierarchal structure. By establishing a hierarchy, the leader is perceived by the group to be able to make demands and expect compliance from them giving the leader legitimate power (French and Raven, 1959). Secondly, by providing the leader with the ability to reward compliance and punish non compliance from the group, the leader has reward and coercive power (French and Raven, 1959). To obtain complete power over the group the leader must gain the trust and belief of the group that they are capable of success, by ensuring the group are both satisfied and meeting performance goals.
The importance of establishing a hierarchy became evident during the planning stage of the outdoor management course for the red team, the coordinators within the team assumed leadership roles but were unable to gain positional power due to the team being a peer group (Pettinger, 2007). The leaders selected had little authority and influence over the group as everyone was perceived to have the same rank, status and occupation, hence the leaders had none of French and Ravens five bases of power (Pettinger, 2007). The result was leaders with no positional power over the group, so could not direct the group with the method of leadership required for the situation. The task had significant constraints, particularly a short time frame and a large group size, for this situation Chelladurai recommends an autocratic leadership style would be most favourable (Chelladurai and Madella, 2006). The leaders attempted an autocratic leadership style, setting individual tasks for the group, however due to the poor leader member relations and lack of positional power the leadership structure quickly became a democracy. The product was an extremely unproductive workforce initially because of the time spent discussing how was best to approach the task