Wal Mart From Other Companies example essay topic

Structure and Controls The structure of Wal-Mart is quite organic, and follows a relatively horizontal; structure. Although the top managerial layers remain vertical, responsibility for daily operations, marketing, customer relations and other activities resides within horizontally aligned groups. The Wal-Mart structure gives employees greater power to work directly with customers and suppliers. It also allows the company to respond faster and more effectively to customer needs.

One principle that distinguishes Wal-Mart from other companies is its unusual depth of employee involvement in company affairs. Wal-Mart employees are considered to be associates of the company not just regular workers. Input is encouraged at meetings at both store and corporate level. This type of corporate culture helps to reduce the hierarchical gap within the company and encourage innovation, flexibility and communication within the company. Wal-Mart provides its customers with a vast selection of quality products at low prices through its use of an inventory control system and its dealings with suppliers. The buying power Wal-Mart possesses gives it an advantage over small retailers in product pricing.

Wal-Mart's use of its inventory control system provides its customers with the products they want, when they want it. As the nation's largest retailer and in many areas the dominant distributor, Wal-Mart possesses a considerable amount of influence over its suppliers for best price, delivery terms, promotion allowances and continuity of supply because it is the dominant distributor in many areas. The savings Wal-Mart receives from its suppliers is passed on to its customers, giving Wal-Mart a price advantage over its competitors. Wal-Mart not only has cost savings with its aggressive dealings with suppliers, but also with its inventory control system. Another key control method was the use of an inventory control system. Wal-mart's inventory system was recognised as the most sophisticated in retailing, and played a significant part in the company's operations.

It electronically logged every item sold at the checkout counter and kept the warehouses informed of merchandise to be ordered. One of the greatest features of the system was that it was able to detect sales trends quickly and alert management increasing market reaction time. The system also allows Wal-Mart to reduce its over all amount of inventory, which produces a savings that can be passed on to its customers. Using this system has allowed Wal-Mart to speed up the time it takes to replace items on the shelves, which prevents the possibility that customers will have to go elsewhere to find the products they want. The structure and controls that Wal-Mart has in place enable it to achieve the objectives and goals of the company from product pricing to customer service. Wal-marts current controls strongly support its strategy of maintaining its competitive edge of remaining an industry leader by providing its customers with a range of high quality goods at everyday low prices.

Recommendations Wal-Mart's future is very bright. However, there are a few recommendations that we believe when instituted, would allow for added profit, customer satisfaction, and company expansion. Customer satisfaction and service are key main areas where improvements can lead to increased profits and customer base. Wal-Mart should strive to improve its current stores to be more appealing for customer and to make the shopping experience more pleasing. The store itself should be remodelled to decrease the cheap warehouse feeling normally associated with Wal-Mart. This could be done by installing brighter and more focused lighting, using bright colours to decorate, having more carpeted areas, hanging posters of famous brand name products, and upgrading employees uniforms to consist of more than just vests.

Wal-Mart should place interactive computer stations at various strategic areas in the store that allow customers to search the store by using a touch screen computer. Once the information is entered, the computer should tell the customer where the item is located in the store. Moving from the retail level to business relationships, Wal-Mart has extensive opportunities to expand on its unique competency of distribution system. The company has strategically placed distribution centres all over the US close to its stores.

This not only makes for an excellent venue to supply Wal-Marts, but other companies's stores as well.