Informal Proposal

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Methods in Management
Wal-Mart, Sysco and Costco

Written by: Alaia Fayad, Alexa Brooks and Olaf Sindabizera
For: Linda Jay BUS 150

Table of Contents
Decision Making3
Strengths and Weaknesses5
Cultural Organization6
Environmental Factors6
Adapting to Change6
Organizational Training7
Conclusion7
Bibliography9

Decision Making

Decision making is an important process of any company’s growth strategy and each decision is made with careful calculation and analyzation of the company’s data. Although there is some variation to the way information is processed as it reaches the top of any company the decision making process is more or less similar between Costco, Wal-Mart and Sysco. If I was in the process of buying a house I would first need to take some time to reflect on which details of the house were most important to me and often time I would start with the very basic: is the house functional or does it need a lot of work? Is there enough space for me to be happy? Is it in a location that I am comfortable with? Upon answering these questions I could obtain a clearer idea of what I needed. Costco, Wal-Mart and Sysco all use similar strategies when gathering information. Information is gathered from the employees and franchise managers and this information makes its way to the top of the company where a board of directors uses analytical techniques and technology to implement new procedures, policies and regulations. Input is accepted from all levels of the company, this is how the board of directors and CEO’s are able to make informed and well-rounded decisions. An analytical approach is taken so as to be able to weigh all options and fully view the effects each decision will have on all levels of the company: from production, manufacturing or transportation to employee and client relations. Although these three companies are very similar with their approach to decision making, the techniques and technology used to ultimately come to a decision vary. Wal-Mart and Costco favor scenario planning, clan control and feedback control whereas Sysco opts for a scientific marketing technology platform to analyze every possible option. Scenario planning and clan and feedback control revolve around situational conflicts. With scenario planning, information is taken from each possible situation and data is analyzed to predict certain outcomes. Normally a strategy development plan revolves around the assumption that in a few years’ time the world we live in will be the same and that any specific organization will be able to mold the future with its actions. On the contrary, scenario planning is based on the idea that the world is always evolving and that in a few years’ time the future will not be the same. Analysts create a series of different possible futures with information they have gathered concerning demographics, geography and economic, political and social trends. Also taken into consideration are new regulations and the change of values over time. This is a method that requires a very deep understanding of current and future issues and trends important to an organization. The purpose of scenario planning is to broaden a manager’s understanding of their company’s current situation while broadening their capabilities to cope with future possibilities. As opposed to scenario planning which works with future possibilities being affected by external factors, clan control involves the representation of cultural values and loyalty within an organization. Clan control works to regulate employee behaviour by incorporating control over company values, beliefs, culture and informal relationships. Trust is a very important tool when implementing organizational control methods within an organization and it is also a principal element with the three main types of organizational control: strategic control, operational control and management control. Strategic control evaluates strategies used by...
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