The Relationship between IT and Organizational Effectiveness - Case Study Example

Wal-Mart is currently still enjoying a continuous expansion as it has from the time of its foundation. The basis behind its nonstop progress is that from past several years it has remained steady in its task of providing the best to both its customers and associates. At present Wal-Mart is known as the most popular discount retail store in the United States. The company operates on procuring products with rigorous negotiations for the lowest price and economies of scale, in turn, to sell at thin margins and offer the customer the lowest price possible.

(Stephens, 2007, 290) Wal-Mart uses a top-of-the-line communications and information technology system for point of sale tracking and accounting. Wal-Marts International Division is operating in 10 counties other than the United States. (Kanter, 2006, 96) On the downside, Wal-Mart is experiencing a loss in growth, which means that the company is growing at a decreasing rate. As Wal-Mart is expanded into some of the foreign countries, it used the same practices that it did with the domestic stores and did not seem to be adapting its products or practices with the countries that it has expanded to.

In other countries, Wal-Mart found opportunity but experienced losses due to moving too fast. (Bobbitt, L. M., & Dabholkar, 2000, 435) On the home front, Wal-Mart has experienced situations various ethical and human resource issues. Its founder, Sam Walton, brought about the mission of Wal-Mart as to "Serve the associates and customers with compassion and integrity.’Wal-Mart is committed to perk up the standard of living of its associates, consumers, and population’. a. Functional- Wal-Marts marketing strategy is to function as a distribution point for vendors and negotiates with those vendors for low prices and economies of scale to keep the margins thin.

With this practice, Wal-Mart can keep the prices low for the consumer and advertise as having the lowest prices.