Walmart is the low price leader. Walmart is the low price leader in America and across the globe. Walmart’s managers have had to plan, organize, lead, and control to accomplish this goal. Walmart is one of the most competitive retail stores in the world. The one thing that this chain has done so much better than the others is cost competiveness. Walmart’s efforts are aimed at cost competiveness, which means keeping costs low enough so that the company can realize profits and price its products (goods or services) at levels that are attractive to consumers” (Bateman & Snell, 2009, p. 16). Walmart uses innovation to benefit the company.
For example, the store in Stockton, CA has a McDonald’s inside the store. This store has a nail salon, portrait studio, vision center, hair salon, food center, and a money center. In the money center bills can be paid and checks cashed.They even cash income tax returns up to 5,000 dollars for a minimal fee of three dollars.
Now that’s innovation. This company is always one- step ahead of the competition. Internal Factors that Affect the Four Functions of Management Walmart has been leading the retail market. They have some internal factors that affect their management functions. Walmart has had issues with their human resources, in particular, their employees. The discount retail giant has been involved in class action lawsuits by employees. Walmart has been accused of sexual discrimination as well as forcing employees to work without breaks.Walmart agreed to pay $35 million to 88,000 people who worked for the company in Washington for being forced to skip meals and breaks or work off the clock (MMR, 2009).
Although Walmart is portrayed in the media as unethical, the company continues to profit. The question is how a company continues to grow when the employees are not treated ethically. The planning of the management is the reason for their success.
They came up with a mission to sell products at low prices. Consumers look for ways to save money. Walmart is a big part of the savings.People are willing to go to a store that employees are unhappy to save money.
Sometimes customer service is sacrificed so the community can save a few dollars. If Walmart works on the organizing part of management they would win everyone over. They need new programs that help lead their employees and motivate them for greatness.
One thing is to respect the people who work hard to make the company what Walmart has become. Part of the management control is to show the community they care. The Walmart Corporation is trying to make things better.They try through charitable giving including volunteer services in the communities they are part of (walmartstores.
com 2010). So far their plans have helped them become a giant in the retail industry. If they continue on this path, will a competitor step in with happy employees and take over the market? Internal Factors that Affect the Four Functions of Management Wal-Mart continues to lead the competition and offer lower prices to the public. This would not be the case if there were not the well established levels of management within the company.Considering the history of Wal-Mart and the controversy in the past, society has seen the many external factors that are affected by the power-house corporation. Within the management functions, Wal-Mart considers the external affects of the company’s ethics, globalization, and innovation Globalization affects the four functions of management Walmart is known for their slogan “Everyday Low Prices. ” But how do they stand behind those words. The management team at Walmart continues to work globally and use the latest technology to improve customer service around the world.
The goal is to please the consumer; this is why Walmart introduced the Electronic Product Codes EPC system. The creation of this system is to make shopping easier for the consumer and the shipping process. With the EPC system, the company can organize product distribution with ease. The EPC has all the information on the product such as color, model number, and size. This assures the product availability. The EPC system also helps the staff members by keeping track of the product. The EPC is also equipped with an anti- theft device and tracking system on products.This decreases cost factors for Walmart so they are able to maintain low prices.
With this system and the outstanding management team at Walmart, customer studies show how much consumers actually save. During a study conducted in 2007 the comparison of products purchased globally from Walmart and the competition was defined. “Global Insight that the total Savings from Walmart are $21,260 a year. ” That is a savings of 13 percent to the consumer (Walmart). The savings is passed on to the consumer which keeps Walmart on op with one of the largest chains of retail and grocery distributors today. The management team at Walmart has the upper hand concerning the planning process of a corporation. How Innovation, Diversity, and Ethics affect the four functions The four functions of management are affected by many factors such as innovation, diversity, and ethics.
Innovation affects the four functions because organizations must be able to manage new and creative ideas to stay relevant in the ever-changing market (Bateman & Snell, 2009). Walmart and its managers have been on the top of innovation for a long time.The organization has always focused on finding ways to expand their market through new services and enhancing their current services. The leadership in Walmart hit the market big back in 2000 with the innovation of opening pharmacies in their stores (Frederick, 2010). This innovation took an already competitive organization and increased their stake in the market greatly.
Innovations like this come from a strong use of the four functions ranging from the planning function to the controlling function (Bateman & Snell, 2009).Diversity also plans a big role in impacting the four functions. There are no clear set lines to how each manager must handle the four functions and adding an extremely diverse organization like Walmart compounds the delicacy of managing the four functions. Walmart is an organization that is diverse in employees as it is in the services it offers. The diversity factor Walmart works with influences how the managers plan, organize, lead, and control. When working with people and services that are not diverse those tasks are easier to perform because there are not many variables.Walmart on the other hand has so many variables that each of the four functions becomes more detailed and requires more delegation to accomplish.
Working to stay on the top of innovation and dealing with a vastly diverse organization adds a big impact on the four functions of management and leads to questions of ethics. Walmart has been accused of issues with ethics many times and these issues do impact how managers work and employ the four functions often time’s organizations like Walmart get so caught up in trying to be successful that they can lose focus of their ethics.Ethics need to always be at the front of the organizations goals and actions. How managers can use delegation to manage the different factors and functions.
The mangers at Wal-Mart work with diversity and many different daily functions so in order to be successful delegation is a vital key to make sure that the employees are doing their share. They have to learn how to delegate in all four functions that include Planning; Organizing, Leading and controlling on a daily basis to keep the store ran efficient.Managers must have a specific team in each area to maintain the daily four functions; if they didn’t then the store wouldn’t run efficiently. Wal-Mart is a worldwide chain and it ensures the quality of equality and satisfying the customers. Each area of function is a necessity to keep the store afloat if there is one area that isn’t being maintained and the manger isn’t aware of it this may cause Wal-Mart to lose revenue.
Wal-Mart Managers set the goals of the company and organize what team leaders are going to be in what specific area to make sure that the employees are implementing the plans and goals that were set for the area.If the goals are not being met then the Manager needs to re-evaluate the plan and see if they need to set new goals or organize it differently to see if there is a different outcome. “A store manager is responsible for all day to day operations within the store, creating policies, making merchandising decisions, and meeting sales goals. He or she is also responsible for delegating management decisions to subordinates such as Co-Managers, Assistant Managers, Department Managers, etc…
”(Bender, 2004) If delegation isn’t used in a corporation like Wal-Mart that employees over “Wal-Mart employs more than 1. million associates worldwide through more than 3,500 facilities in the United States and more than 1,290 units in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany and the United Kingdom. More than 138 million customers per week visit Wal-Mart stores worldwide. ”(O,Wal-Mart 2010), then Wal-Mart wouldn’t be as successful as it is, there are too many stores and employees to not have plans, goals, and managers that cant lead and control. That is why delegation and the entire four functions plan, organize, lead and control are a very important element in making Wal-Mart a very successful company.
Conclusion Walmart is the low price leader. Walmart’s managers use innovation to the benefit of the store. When visiting a Wal-Mart store visuals are extremely important. Here is an example of the sign in the parking lot. Walmart Supercenter Food Center Pharmacy 1 Hr Photo Tire and Lube Express Open 24 hrs The visuals over the front door say, “We sell for less. ” In keeping with the times, Walmart has changed its store slogan.
“Walmart Stores Inc is rolling out a new slogan for the first time in 19 years. The familiar motto, “Always low prices,” is moving over to make way for “Save Money. Live Better” (, 2007, p. 1). Walmart has remained the low price leader always.References Bateman & Snell, (2009). Management leading and collaborating in a competitive world (8 ed. ).
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