Wal-Mart – A Model of Success Through Effective Management
Many start-up business venture fail early the process of establishment; however, some do make it through the early years and go on to become models of success. Most of the companies struggle or fail because of a lack of focus in the functional areas of management as well as their inability to adapt to internal and external factors that they cannot control.
Wal-Mart, one the largest retailer in the world, began in 1992 as a small company in Rogers, Arkansas, it has grown to more than 8000 stores operating under 69 different names in 27 countries ("History Timeline," 2012). The company’s success comes as a ...view middle of the document...
4). With the establishment of locations spread across the United States and overseas, Wal-Mart also needed to focus on cost savings measures in the area of production and shipping. A good example of Wal-Mart’s globalization practice is in the United States the company decided to established distribution centers in multiple states and overseas they resorted to manufacturing many products locally, taking advantage of lower wages in some areas and helping to keep in-store cost lower. Wal-Mart continues to increase its popularity in the United States and oversea locations through its engagements with the local communities. The company makes contributions to the community to improve sustainable agriculture, aiming to strengthen local farmers and economies while providing customers access to affordable, high-quality food ("Wal-Mart Unveils Global Sustainable Agriculture Goals," 2010).
With the technological advances of the 21st century, companies could branch out and expand to much greater lengths. It has become a major aspect of company growth. Day and Schoemaker believe, "Emerging technologies are science-based innovations that have potential to create a new industry or transform an existing one" (Day, Schoemaker, Gunther & Gunther, 2000). Wal-Mart is an organization that has taken technology and used it to expand. Everything from inventory control to employee supervision, technology has given Wal-Mart the ability to be a much more effective well ran company. The internal factors of technology effect the employees by having the ability to stay in contact with everyone within his or her Wal-Mart location. In has become an easy process to contact an employee anywhere in the store, it is as simple as a phone call or page on a two-way radio. The same goes for the store’s inventory, technology advances allows every employee to access the store’s inventory from computer terminals. It gives Wal-Mart the advantage in giving their customers the highest service possible. The effects of external factors have led to developments that make it much easier for managers to resolve issues or problems that could reflect negatively on the level of customer service that the store provides.
Becoming more innovative.
In Wal-Mart was ranks as number nine on a list of 50 the Most Innovative Companies in 2010 by Fastcompany.Com. A major contributor to this ranking was Wal-Mart’s quest to green its entire operation based on the rate of sustainability of every product that their stores carry. These innovative changes however did not happen overnight. The process included things as in 2006 setting a goal to sell 100 million compact fluorescent light bulbs in 12 months and the launching of a solar-power pilot in 2007, installing solar arrays on top of 20 stores in California (Salter, 2012). Wal-Mart’s willingness to collaborate with it global suppliers, scientist, and other businesses led to the company becoming the world’s greenest retailer.