Wal-Mart is among the world’s largest retail shops. Thus, they face the problem of getting to control all the stores in the same manner and standards (Aoyama et al., 2006). Even though this company has got well developed IT advantages with it, the company faces the threat of not having control over its empire because of the huge span of control that it deals with.
Thus, in a bid to eliminate this threat, the company has gone ahead to implement the decentralization strategy to help in the administration part of the company.
Decentralization is the control of the branches of a big company or organization at the grass root levels (Penrose, 1995). Thus, by doing so, Wal-Mart has made it possible to deal with the various issues emerging at the various stores individually with each store having its own managers. The running of these stores at the grass root levels enables matters arising to be solved immediately and only reported to the higher level managers if the issue is posing a big threat to the entire company. Thus, in so doing, Wal-Mart has achieved in eliminating the threat of not having control of its numerous branches.