Discussion Question—pg. 549-551 Case 7 Ahold: The Biggest Supermarket Retailer You Have Never Heard Of 1. What are the advantages and disadvantages of the growth strategies pursued by Ahold, Carrefour, and Wal-Mart? Ahold Global Expansion (1970’s—Spain, Portugal, United States; 1990’s—Central Europe, Latin America, Asia) Pro: High penetration in U.S. market. Con: Low penetration in its mother continent. The profit margin for Ahold’s U.S. division is 5.7 percent, while the profit margin for the European division is only 3.9 percent of sales. Pro: High international experience. 34 years since the first acquisition in the United Sates, Bi Lo. Pro: “No other European retailer has been as …show more content…
| Wal-Mart & Carrefour’s Centralized Decision Making |Advantages |Disadvantages | |Top-down Control. |Risk is great if the top of the organization becomes | |Uniformity of activities. Obviously when centralized, the |incapable of leading the organization. | |activities will be either in the hand of one individual or a few |Employees also will feel less motivated to perform for the | |one but under his (one) direct, control. This will result into |organization as they will not have an avenue for sharing | |uniformity of activities and thereby ensuring uniform decision and|their ideas on how to improve the organization. | |uniform process. |Lack of secrecy. Secrecy in a centralized set up cannot be | |Quick decision making. |maintained as the orders and
This memo is intend to present appropriate treatment of the ARO estimation problem experienced by the Lack of Information (LOI) based on the findings from interviews with all 50 of the warehouse managers and on-site visits at each of the 50 locations of its warehouses countrywide. The onsite observations search for any evidence of damages in both the on-site property like the roof, walls, floors and general conditions. The interview with the managers obtains information about the characteristics of the warehouses that are not readily observable. The information obtained is very important in the preparation of the fiscal
Second, the manufacturing order costs for non-stocked items was calculated by dividing total manufacturing order costs for non-stocked items by the number of orders for non-stocked products. Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S"A allocation factor would be for calculating the S"A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S"A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.
The evolution of Wal-mart from the early 1960s to the present day has set a benchmark that few can achieve. Wal-mart executives have been successful nationally as well as globally. The knowledge and expertise in economics have made Wal-mart a global giant. The research completed is the final recommendations by the members of research team C and will address questions regarding global competition and issues of the organizations ability to expand or reduce current operations.
1. In your own words, can you describe the Wise concept of “public service culture”? What does the author mean by that term? What assumptions about human nature does her motivational concept rest on? Do you believe these are valid assumptions?
In their organizing tasks they have to build a structure of working relationships between all of the members in the organization, that best allows them to work together and attain goals.
2. How have Deere’s business strategy choices strengthened or weakened its competitive position in the agricultural and construction equipment industries?
* What organizational structure, management processes, and philosophy will foster superior performance from the company’s business units?
3. Describe the competitive strategies used by each of Williams-Sonoma’s competitors. Which of these are most effective?
1. How well do you think Wal-Mart’s earlier, more limited health benefits supported the company’s overall business strategy?
1. What ratios are MOST important in assessing current and predicting future value creation for Sears? For Wal-Mart?
3.Given the strategic factors you identified in Question 2, do a SWOT analysis and suggest some potential Wal-Mart strategies fort he future. (25pts)
There is a need for high level of consultation, co-ordination and co-operation in every organization or business. To this effect, managers all over the world are often faced with the dilemma of effectively deploying human, material, technological, natural and financial resources to achieve desired organizational goals and objectives.
Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.