Principles of Management
Wal-Mart and Effective Management
Karwan S. Othman
Wal-Mart, United States Of America
Wal-Mart at Its Peak
Wal-Mart is the largest retailer worldwide; the reasons may vary from different functional fields of the company. Fifty years ago, the company started the business based on the lowest prices that could be offered to customers. Since then, Wal-Mart is “Everyday low price” pricing strategy to maximize the sales as much as possible. Besides of that, it is using the current technology to keep track on every single sale at each store among all the stores in around forty countries. New financial systems through the new technology being in ...view middle of the document...
The company is relied on internationally because it is selling branded products and variety of merchandises at the lowest prices that they get. Yet, it is sometimes brought Wal-Mart problems; customers are questioning the products’ qualities because of its cheap prices.
Wal-Mart has faced the difficulty to convince its customers about the high quality of the products. Many customers visit Wal-Mart daily, and hundreds of thousands of transactions happen every day in each Wal-Mart units around the world. Many of the customers do not visit the stores because of the quality of the products; however, it is because of the cheap prices. Questioning the quality of the products has become one of the major issues that Wal-Mart faced during the past five years. Pricing strategy sometimes works the best, but sometimes can cost millions of dollars. Many companies are doing the best in their field and still stay the target of vitriolic. For example, we can tell that McDonalds is targeted by many people blaming the company of being irresponsible and unethical because of having too much fat within the variety food. According to Nayab, “Wal-Mart very often finds itself slapped with lawsuits that accuse it of predatory pricing, or pricing products too low to drive competition out of business and gain a monopoly in local markets.” Many companies accuse Wal-Mart because of the low prices, and Wal-Mart even maintains forcing the suppliers in particular to sell their products lower than the standards.
Wal-Mart uses various strategies to control the Wal-Mart stores around the world. It controls the stores through annual conferences, meetings and decision makings by the executives. Each year Wal-Mart CEOs make very critical decisions that turn out to be very effective for the company’s overall performance. For example, for most of the new opening stores; Wal-Mart tries to keep eye on them in order to maintain the main organization’s mission. The executives try to visit every single unit of Wal-Mart’s chain stores in order to make decisions about how to improve quality and maximize sales. The company’s rapid communication brings a massive success to the company. As in 2011, Wal-Mart introduced a new machine for facilitating the paying process of the customers;“The ‘MoneyCenter in a box’ concept will feature ATM like machines positioned in Wal-Mart stores that do not have full MoneyCenters,”(Lepro & Sposito, 2011, p.68) emphasized Jane Thompson, the president of the financial services unit. In fact, these kinds of technologies benefit both the company and the customers, and this way the company’s reputation increases. the customer satisfaction, targeting children and taking care of environment are among the most critical missions of the organization.
Satisfying the employees is a very important aspect of the company because Wal-Mart does not want to have an unpopular image among the consumers. The company faces obstacles to please the workers. The company...