Management Control Systems Assignment
Case study: A) Wal-Mart Stores, Inc., Case 1-2, Page no. 31
B) Vershire Company, Case 4-1, Page no. 145
Case A) Wal-Mart Stores, Inc.
Question 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
Winning strategy of Wal-Mart is based on selling branded products at a low cost. b.
Marketing strategy of Wal-Mart is “Everyday low prices” is to pull in customers everyday. c.
Saturation strategy of Wal-Mart is for the store expansion. The standards was to be able to drive from a distribution centre to store within a day. And a distribution centre was strategically planned so that it eventually serve 150-200 stores within a day’s drive. d.
Bulk strategy of Wal-Mart is for purchasing branded products at bulk can help to drive hard bargain which help Wal-Mart to sell the products at low prices. These are the main basic policies which Wal-Mart follows to become world’s largest retailer.
On the basis of selling branded products at low cost and everyday low prices at Wal-Mart store and also continuously following the above strartegies helps Wal-Mart builds its competitive advantage over other retail stores to pull in more customers everyday.
Question 2.How do Wal-Mart’s control systems help execute the firm’s strategy? Answer The Wal-Mart’s control systems help execute the firm’s strategy is given below, •
The Information Technology- The IT that powered Wal-Mart’s supply chain and logistics was the most powerful. Therefore it pursuads its suppliers to adapt latest supply chain technologies like RFID- which increases monitoring and management of the inventory. •
Each distribution center 24 operated hours a day using laser-guided conveyer belts and cross-docking techniques that received goods on one side and simultaneously filling orders on other side. •
The Wal-Mart had largest privately owned satellite communication network in US and...
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