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Kmart De Mexico - Case Study Example

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Summary
Pursuant to the decision to enter into a joint venture with, El Puerto de Liverpool S.A of Mexico, for opening of a series of Super Kmart Centers in Mexico, the CEO of the newly formed Kmart de Mexico S.A was confronted with various key issues pertaining to the formation of company policies in respect of some basic concepts, which would eventually see that company takes off and attain success without too much of a problem in the new territory…
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Kmart De Mexico

Download file to see previous pages... It is observed that while the understanding of Mexican people and their culture is definitely an advantage with the US managers of Mexican descent, they carry the disadvantage that they bring with them an attitude of superiority over fellow countrymen. The feeling of superiority may hinder the working relationship the executives have with the staff subordinate to them. Normally the employees have a tendency to work efficiently under a differently oriented boss than their own class. At the same time the executive who hold the portfolio of buying must have a basic understanding of the tastes, cultures and behavioural pattern of the Mexicans. Considering these, the strategy for hiring executives is:
While Kmart US is following the policy of empowerment of executives, encouraging them at all levels to take independent decisions, the same strategy could not be adopted in Mexico due to the following reasons:
Because of these negative factors, encouraging decision making at the lower levels can not be attempted in the initial stages. With continuous training programmes and education of staff at all levels independent decision making ability of the staff can be achieved in future.
5.0 Adequacy of Training Programmes for staff:
Since the training programmes meant for all operational positions in the store consisting of various courses and films developed in the United States would ideally fit only for those with a formal higher education, Kmart de Mexico cannot adopt the same programmes for training the personnel in Mexico. There is the need for developing a 'basic training course' to prepare the Mexican staff to receive the formal training of Kmart US. Because of the young average age of the staff it is quite possible for the company to provide the same training as of the United States once they are equipped with the basic training modules designed to prepare them for receiving the ...Download file to see next pagesRead More
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