mcs-1-case-wal-mart_compress

pdf

School

University of Minnesota-Twin Cities *

*We aren’t endorsed by this school

Course

3250

Subject

Management

Date

Apr 3, 2024

Type

pdf

Pages

Uploaded by MajorAntPerson1042

Page 1 Case 1 - Management Control Systems – Ekky Sabdina Supangat Ekky Sabdina Supangat 1091002126 1. What is Wal- Mart’s strategy? What is the basis on which Wal -Mart builds its competitive advantage? Answer :  Wal- Mart’s strategy is selling branded products at low cost.  The basis is Wal-Mart deliberately ensured it didn’t become too dependant on any one supplier, no single vendor constitued more than 4 percent of its overall purchase volume.  Wal- Mart used “saturation” strategy for store expansion. The standard was to be able to drive from the distribution centre to a store within a day.  Wal-Mart built large discount stores in small rural towns. 2. How do Wal- Mart’s control systems help execute the firm’s strategy? Answer :  Each store constituted an investment center and was evaluated on its profits relative to its inventory systems. Data from over 5,300 stores on its such as sales, expenses, and profit and loss were collected, analyzed, and transmitted electronically on a real-time basis, rapidly revealing how a particular region, district, store, department within a store, or item within a department is performing. Information enables the company to reduce the likelihood of stock-outs and the need for markdowns and slow moving stock, and to maximize inventory turnover.  Wal-Mart instituted several other policies and programs for its associates: incentive bonuses, a discount stock purchase plan, promotion from within, pay raises based on performance not seniority, and an open-door policy.  Wal- Mart had also persuaded its suppliers to have electronic “hook ups” with its store.  Wal-Mart owned its trucks when most competitors outsources trucks.

Discover more documents: Sign up today!

Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

mcs-1-case-wal-mart_compress

Related Documents