Essay on Wal-Mart Case Study

1225 Words May 31st, 2008 5 Pages
1. What were the main elements of the control system that Sam Walton created?

It is evident that Sam Walton believed in the importance of control systems in an organization; as he established certain strategic control systems in the company. Walton wanted everyone within the organization to be committed to Wal-Mart's goal "total customer satisfaction", and the strategic control systems were set accordingly.

There are various elements of control systems used in Wal-Mart which are:

Personal Control
An example is when there is an underperforming store; top managers visit these stores in order to lend their expertise to the employees there. Moreover, they fly on monthly basis to various Wal-Mart stores locations to check their
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• The Wal-Mart Cheer: "Give me a W, give me an A".

Moreover, Wal-Mart has a very good history in customer service as people tell several stories of Wal-Mart employees who are very keen to help their customers, and meet and exceed their expectations.

2. In what ways will this control system facilitate Wal-Mart's strategy of global expansion?

The control systems of Wal-Mart facilitate a lot of work between the various stores around the world. For example, Wal-Mart's personal control system which is when top managers travel to various store to check their performance or when they visit underperforming stores to lend their expertise; this helps ensure effective performance in all the stores globally. The companywide satellite system is a different Information Technology control example which allows communication between all managers and associates from all Wal-Mart stores. Furthermore, the rules and budgets control shape employees' behaviour in all regional stores since they receive the same training, and finally there are certain cultural values established in the company that are the same in any of Wal-Mart stores.

3. Do a search for Wal-Mart Company today. In you opinion was their strategies and control systems successful and did it create a competitive advantage for the company?

Wal-Mart uses several different new control systems strategies today. For example, they have a new IT control system which is a "labeling system", a very small chip in

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