Sears Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Sears has been particularly successful in Mexico, and the firm's executives believe Sears should expand into other Latin American countries. As a result, plans are underway for the construction of a new Sears store in Managua, Nicaragua. Construction should be complete within three months, so staff selection needs to begin soon. Sears' executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following, if true, undermines the argument that parent-country nationals should manage the Sears store in Nicaragua?
A) Sears is implementing a multinational strategy of global expansion.
B) Decision-making authority stems primarily from Sears' top executives
C) Managers must stay in close communication with Sears' headquarters.
D) Sears' HR department recently developed new repatriation policies.

Question

Quizplus · Accepted Answer

Sears is implementing a multinational strategy of global expansion, which typically involves adapting to local markets. This suggests that local managers who understand the Nicaraguan market might be more effective than parent-country nationals.

Sears Department Store Has Over 900 Stores in the U