Wal-Malt Report

Topics: Resource, Company, Human resources Pages: 5 (1606 words) Published: December 4, 2012
I. Introduction:
Market environment seem to be a widen place, which has many challenges and risks for the firm. For this reason, every firm always has a different strategy to attract their customers in the markets. In order to have a good strategy which bring success for the firm that depends on many factors such as technology resources, human resources, and financial resource. Therefore, many companies have to apply resources and capabilities theories to use these factors reasonably. Resources and capabilities are the most important things to support the company’s strategy. In addition, these factors may create special features for the company to have a power position in market. It means the company’s competitive advantages. The purpose of this project will be examined the crucial role of resources and capabilities. Moreover, it also shows their definition and the connection among resources, capabilities, competitive advantage and strategy. To be clearer, Wal-Mart can be taken as an example to illustrate how this company applies these theories to be more effective in its strategies. II. Theory:

1. Resources:
According to Daft (1983) the resources are an own property of the company which is used to make profit. For example, it might be the company's financial resources which companies can use to expand the business, buy equipment or to pay salaries to employees. Furthermore, resources were employed to create the competitive advantages, which support to the strategies, are divided into three basic types: tangible, intangible, and human resource. First of all, tangible resources are the real things can be easily realize. It is also the company’s budget which includes cash, stock, or capital. Following that, intangible resources are things invisible that are difficult to define its real value such as brand name and culture. The last thing is human resources are labor force to support the departments in the company (Grant, and Jordan 2012).

2. Organizational capabilities:
Capabilities are the ability that the companies use their resources reasonably (Grant and Jordan 2012). In addition, organization’s capabilities also mention that how can companies use or manage their resources to create the competitive advantages (Dave 1991). For instance, Wal-Mart uses their finance resources by the way they invest many technologies and open their new stores. Moreover, Robert (1991) stated that resources and capabilities are basic things to make plans for companies. He also said that these things will orient for the company such as what the firm should do, how they use, what they have got or what the strengths of firms. These orient will form competitive advantage for companies that make company unique to another competitor. III. Case study:

Wal-Mart is a well-known retail company, which was founded by Sam Walton in 1962, in the world. To be successful, Wal-Mart has many unique strategies to conquer the customers as well as the existence in a very extreme competitive market. Wal-Mart's strategy is to focus on customer psychology, making them feel more satisfied when they come to Wal-Mart, such as customer service, sales cheapest, and network dynamic sales. This strategy helps Wal-Mart to become a prestigious company not only in United Stated but also in others countries such as China, Brazil, Korea, and Japan. Wal-Mart’s strategy is to expand their system in over the world and to maintain their profit. 1. Analyze the resources of Wal-Mart:

a. Tangible resources:
Wal-Mart is one of retail companies, which achieves the highest revenue in US (Ghemawat_ 2004). Forbes (2012) cited that Wal-Mart stores have a total sales value of $ 447 billion with the revenues up to $ 15.7 billion, this figure describes Wal-Mart financial resources which contribute to expand their infrastructure and stores on a world scale .In addition, the physical resources of Wal-Mart are plentiful. According to Ghemawat (2004), Wal-Mart has 465...
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