Essay on Operational Planning

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Operational Planning
I. Introduction Operational planning is setting up procedures and processes at the lower level of the company in order to meet the overall goal of the company. There are different factors for each company that affects the operational plan and how it is laid out. The operational plan can also greatly influence the success of a company. There is a direct correlation between the operational plan and a company's strengths and weaknesses. The operational plan must also take into consideration the various opportunities open to the company as well as current trends and threats in the market. All of these factors are very apparent in the way Wal-Mart has set up its operational plan.
II. Factors that Influence
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Their large size allows them to sell their products and services at a lower price, which leads to higher market share, volume, and, ultimately, profits. Wal-Mart is the cost leader in its industry and market segment. However, even a cost leader must offer a product that is acceptable to customers compared to competitors' products. Wal-Mart has a competitive advantage because they can offer the customer products and services that are beneficial to the customer at a low cost. For example, Wal-Mart's computerized inventory control system helps make certain that products are on the shelves and that inventory costs are minimized. In this case, Wal-Mart's information technology is clearly a valuable resource. Wal-Mart seems to have total control over its future. With its larger then life warehouse stores, low prices, and little competition one would think that Wal-Mart will go down in history as one of the best if not the best planned organization in the past 75 years. In the past year a few weaknesses have surfaced and unfortunately for Wal-Mart no level of planning could have stopped the troubles this Fortune 500 Company is facing. In a small inner city of Southern California a new Wal-Mart was proposed. This Wal-Mart was to be the saving force of the community, offering jobs and much needed revenue; this was the argument of the Wal-Mart supporters including some of the cities local government. This small
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