Evaluating the functions of wal mart management
This paper will evaluate Wal-Mart’s functions of management. It will discuss Wal-Mart organizational resources such as Physical Assets, Monetary, Human Resources, Knowledge and Techonolgy. It will discuss how they relate to the resources. The paper will further explain whether or not if the organizational structures have been optimized to the effective or efficiency of their abilities. I will also discuss if my position in writing this paper has been justified or not and my validation and reason to the matter. The paper will give a proper insight to Wal-Mart.
The function of management in organization consists of various things such as influence of power, company actions and behaviors. In order to become a head of it time and industry it had to use physical assets, human resources, technology and knowledge. Walmart has built over 60,000 stores nationwide, It’s competitiors cannot compete with its twenty (24) our convenience, discount prices, office and household good, clothing products, and low pharmacy prices. (Hoovers, 2010).
The physical assets inside Wal-Mart have been urbanized in such a way that it techniques are done in a way to arrange the assets to be managed. Such factors of its techniques are revealed in its discounted prices. This is significant because, if Wal-Mart was not well-organized in its ways of managing and organizing its physical assets, additional capital will need to be utilized, and earnings will diminish as a consequence of the growing profits becoming lacks. Wal-Marts competition will then force the shares to be driven out of the market. However, it seems that this does not affect Wal-mart at all in this case. The products, goods and services that it gives in which are sold at a discounted and reasonable price, keeps forcing other competitors out of the industry and keeps the consumers like us to come back for more shopping and savings and constant looking at commercials they have out there.
The competitions in the industry are Target, Kmart, Costco, and a few others are within a setting of Wal-mart. While these stores have moved most of their focus on advertising and selling their products, goods and services at top and unreasonable prices in which they take higher earnings per component, yet they only sell less competent in which, it will affect how much earning they will receive. Over the years Wal-Mart has been able to able to stay profitable due to its capability to advertise and sell additional products for a lesser cost, in which the earnings increased over time. (Hoovers, 2010).
Its price organization has been created upon the basics of contribution of superiority of goods are sensible.The organization has to be capable to succeed through discussions with both suppliers and its own distribution network. (Hoovers, 2010). The profit have increase as Wal-Mart utilized its selling authority to aim at potential shoppers with their reasonable and discounted items while increasing huge profit margins and revenues. Wal-Mart has continuously out did the other’s in the markets by always providing low and reasonable prices and have the demand for items at an all time high. At one time many years ago Wal-Mart had only offered the basic needs to consumers for their necessities. By utilizing their creative team management and continuous research that targeted areas of the industries with a way to introduce their products they knew would entice the consumer.
The human resources department is a huge part of Wal-Marts success. Hiring and evaluating new employees to the company demonstrates the human resources is using strategic goals to accomplice the major responsibilities and goals of talent searching. By adapting to each states and federal labor laws keeps Wal-Mart to the path of success. (Wal-Mart 2010) In the world today as we know it has become very competitive business in the market, to become productive human resources management is considerably important to Wal-Mart’s strategic strategy if the organization desires to stay in business for a very long extended period. (Human Resource, 2010).
Wal-Mart uses acquired knowledge from their information systems division in order to properly tackle surrounding locations for its stores, which include demographic indicators. These indicators, such as the rate of population, density, and unemployment rate, should be carefully monitored and noted, considering that they measure the pulse of the economy and its various declines and increases within the economy and the effects onto the market scene. However, in a non-economical sense, these demographic factors influence Wal-Mart; the people that shop there. Population, density, unemployment rate, etc. all affect Wal-Mart’s revenue sales and weather they are currently profitable. An example of demographic factors might include a population’s age and location and its influences on the natural purchases of that area. These economic indicators should be carefully monitored and noted, considering that they measure the economy and its various declines and increases within the economy and the effects onto the market.
Technological development can vary, such as factors of either creating a new product or dropping an products. Such as older version computers, which has been dropped since a lack of interest from the consumer. Wal-Mart must be aware of the latest innovations and offer them at a low price to the public and small business. New products are a must.
Wal-Mart also contains an online website which is boosting information and able together information based on what the customers are purchasing. Wal-Mart is able to increasing profits through the sales online. However, in order for this system to work, the information from online needs to be stored and kept so the data can be analyzed which in return can save time and money. (Wal-Mart: 2010)This will allow Wal-Mart the ability to organize what products our being purchased in different geological areas.
The organizational designs have permitted it to be efficiently raised through its many possessions through the organizational structure. It depends on the idea that instead of just escalating its assets and then it can depend on operations of previously occupied assets. Wal-Mart crucial resources and tackles the limited ones, which is subsequently followed by the activities by these resources. It yields profitable returns every fiscal year and continues to stay ahead of the game. (Hoovers 2010) Therefore, it is essential that Wal-Mart views its resources as an asset of the organization’s strategic plans to increase business and productivity of the company, which will make Wal-Mart number 1 for years to come.Order Now