New Management. How Are Subsidiaries Integrated?

Examination Thesis from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: 07, University of Southern Denmark, language: English, abstract: What are the most important steps for a Headquarter to be successful with a foreign subsidiary? Which role do cultural differences play within the integration process of HQ and subsidiary? Wal-Mart, the world's most powerful and largest retailer, is intensifying its activities in India. After failing with a Joint Venture with an Indian company, its subsidiary Best Price Modern Wholesale is now focusing on the Indian wholesale sector, instead of the end consumers. This topic is of relevance because Multinational Corporations (MNC) often forget to integrate their subsidiaries, especially the foreign subsidiaries. The integration is of importance because it generates a successful flow. Therefore this report will focus on Wal-Mart as the Headquarter and takes a closer look at its acceptance and integration of a foreign market. Best Price Modern Wholesale is a subsidiary of Wal-Mart and is a perfect case of how a subsidiary integration process can fail and how to manage the failure towards possible success.