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Essay On Financial Control Of Walmart

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Register to read the introduction… Wal-Mart makes sure that they have a distribution center in a close location to their stores. This is the way that the can ensure that they can have deliveries made to their stores within a day. They also have used technology to its fullest. They are able to communicate among stores, distribution centers, and suppliers. “The system consolidated orders for goods, enabling the company to buy full truckload quantities without incurring the inventory costs” (Wal-Mart Stores, 2). This shows how distribution control helps to regulate finance control as well. Since they are able to communicate quickly and efficiently, they are able to save …show more content…
The first one is the balance sheet; this is effective for Wal-Mart because this report shows the financial position of the company at a specific point in time. By keeping this balance sheet, they can easily see if they are making a profit, losing a profit, or breaking even. This statement shows total assets that the company has such as items that the business owns (assets) or items which the company owes (liabilities). The next statement that Wal-Mart has is the income/profit and loss statement. This statement shows revenue minus the cost of goods sold, minus operating expenses. This may not seem like an important statement, but this statement is effective because this will allow the company to see what goods are moving, and what goods are not, this statement also comes in handy because just having goods, means nothing if you do not have any idea what they are doing for the …show more content…
Wal-Mart uses different control mechanisms to keep the different store locations consistent. The four types of control mechanisms used in the Wal-Mart are finance control, distribution control, audits, and performance reviews. This paper examines the negative and positive reactions of each of the controls. This paper also explained how the control mechanisms affect the four functions of management. Wal-Mart is one of the biggest companies that uses a system that works and advances them to lead the world other companies can learn a lot from studying the Control Mechanisms of

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