Wal-Mart operational management system and strategy - Research Paper Example

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For the purpose of this case study analysis, the research will focus on fashion apparel. Wal-Mart’s decision to divest its Phat Farm and Sean John urban clothing lines was an effort to reduce its reliance on under-performing fashion lines that were not contributing to its profit expectations…
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Wal-Mart operational management system and strategy
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Download file to see previous pages The paper tells that Wal-Mart currently maintains 120 distributions centers that service its 7,000 international stores. Wal-Mart’s investment in providing decentralized distribution networks provides the business with greater efficiency in terms of meeting delivery timelines and the ability to provide a more diverse assortment of domestic and international products. In terms of distribution, volume alone provides Wal-Mart with significant competitive advantage related to stock replenishment and strategic procurement opportunities. Wal-Mart’s main competitors, both domestic and international, include the discount retailers K-Mart, Target, Sears, Marks & Spencer, Macy’s and Zara. In the United States, Wal-Mart continues to outperform major competitors K-Mart and Sears due to its more efficient supply chain infrastructure. Sears’ is forced to put higher prices on its merchandise as Sears maintains higher overhead costs due to its centralized and rather limited distribution network. K-Mart is losing customer appeal due to its rather notorious neglect of the store sales environment and growing poor customer service. Wal-Mart, on the other hand, continues to devote considerable labor and financial investment into improving the aesthetics of its sales environments, backed by the significant capital and credit worthiness of this firm which rests on both domestic and foreign cash flow. Wal-Mart has also experienced significant efficiencies in its supply chain network by consolidating global procurement. In the 1990s, Wal-Mart maintained a variety of domestic and international procurement operations bases that contributed to high payroll investment. This decentralized global procurement system also limited its ability to create a streamlined procurement model while it focused on purchasing that was geographically-near its international customers. Today, however, ...Download file to see next pagesRead More
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