Control Mechanisms of Wal mart

1498 WordsJun 13, 20106 Pages
Control Mechanisms of Wal-Mart � PAGE * MERGEFORMAT �3� Control Mechanisms of Wal-Mart Without the effectiveness of control, the successes of most companies would be easily faltered. Wal-Mart, being one of the World's largest retail chains, has established itself as a global leader, and not without having a defined plan of action. Through varying efforts and countless control regulation, this retail giant has secured itself within the industry. Throughout this paper, an address will be made to the control mechanisms that Wal-Mart uses within its normal business practices. In addition, a reflection will be made on how the control functions are utilized and what measures are taken to monitor such measures within management. Control…show more content…
Determine the Effectiveness of These Control Mechanisms Wal-Mart has been successful in becoming the number one retailer. Purchasing items in large quantities is effective in lowering the prices for the consumers. Lower prices bring the customers in the doors which in turns sells the large scale of purchasing that Wal-Mart does. With the large scale of purchasing brings a cost advantage. This cost advantage is passed onto the customer. Customers gain great savings from shopping with Wal-Mart. With lower prices, it allows Wal-Mart to have a strong position in the value network. Wal-Mart has achieved this position with their purchasing power. To continue to provide great value to the consumer, Wal-Mart provides none to minimal benefits to its employees. By not providing health benefits to its employees they save thousands, even millions, which gives them greater advantage in purchasing and selling at lower prices. These control mechanisms are effective for Wal-Mart because it has given them the title of being the biggest retailer in the industry. It has given them the power to buy large and sell cheap. Some the positive reactions to the control mechanisms of Wal-Mart are that employee's of Wal-Mart have
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