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Organizational Change at Wal-Mart - Case Study Example

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The paper "Organizational Change at Wal-Mart" highlights that Wal-Mart has been criticized for self-administration of their own ethical benchmarks. Wal-Mart’s green retailing initiative should cover broader environmental concerns according to big-box format of retailing…
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Organizational Change at Wal-Mart
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Download file to see previous pages Wal-Mart had developed a complex system of distribution, which enables customer’s accessibility to stock items. Wal-Mart’s uses scanners at checkout stations to identify and monitor the sale of each item. This also enables Wal-Mart to monitor its supply chain. Wal-Mart is currently seeking to improve its infrastructure to increase the effectiveness of its supply chain management. It also intends to replace bar codes and security tags with Radio frequency identification (RFID) microchip transponders. The elimination of the need for price checks would improve customer satisfaction and lower costs. This paper will discuss the systemic nature of Wal-Mart and the changes the company has taken to improve its effectiveness, processes, and employee productivity.

Stalk, Evans and Shulman (1992) observed that Sam Walton, the founder of Wal-Mart imparted the culture of service excellence among Wal-Mart’s employees. Employees are motivated to welcome customers at the entrance. Employees are also permitted to have own shares of the organization. Wal-Mart low-price strategy has enabled the company to strike better deals with core shoppers. This has helped save on the merchandising and advertising expenses. Wal-Mart gigantic stores provide economies of scale and broader alternatives to merchandising. This underscores Wal-Mart relentless efforts at achieving customer satisfaction.

Wal-Mart’s use of machines in decoding encoded information enables its efficiency in supply chain management. The rectangular universal code for goods is a scanning system used by Wal-Mart. Packaged products at Wal-Mart are labeled with bar codes. The checkout stations of sales tend to ring up sales and track inventory deductions simultaneously. All Wal-Mart’s global stores are linked to headquarters through a huge satellite system that facilitates the IT department’s centralization of Wal-Mart’s real-time inventory of data. ...Download file to see next pagesRead More
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