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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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,
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The emphasis of the case is on the problems faced by the Wal-Mart in the international markets. Few years back, Wal-Mart entered into the China’s market and this example has been quoted to study the problems faced by Wal-Mart in its supply chain when it expands its operations in the international markets.
The researcher of this paper discusses the topic of what makes Wal-Mart the world’s largest retailer today and its operations so unique is that it drives costs out of the supply chain which as a result helps the end user to constantly save money and spend less without compromising on the established living standards.
In the quarter from May to July 2011, Wal-Mart sales were 108.64 billion dollars, with 61 percent of this coming from the United States. Wal-Mart started in 1962 as a small store in Arkansas. It has grown over the years to become the largest store in the world.
In the year 2003, the international retail sales were alone accounted for almost 7 trillion USD. The topmost 200 retailing organizations including Wal-Mart catered to 30% of global demand in the year 2003. The retail sales are usually determined by customer’s capacity and enthusiasm to purchase (Anand & Nambiar, n.d.).
The store was the first one to introduce the concept of providing low price goods and services to customers at their convenience by locating its stores nearby customers’ residency. In 1962, first Wal-Mart store was opened in Rogers, Arkansas.
A firm, regardless of the industry it belongs, has to design long-term and short-term strategies to pace with the changing business environment. Strategic efforts taken in this regard can be termed as sustainability efforts.
It is worth acknowledging that the secret behind the growth of Wal-Mart stores lies in the principles of its pioneer Samuel Moor Walton. Upon commencement of the business, Walton realized that his customers were the main source of income
The use of this strategy by a well-known megastore, Wal-Mart, is explored in this paper. The efforts of Wal-Mart to establish a store in a small town need to be reviewed as they can be related to a series of advantages and
It First international store was opened in Mexico in a joint venture with Cifera. Wal-Mart made a slow expansion in Brazil. This slow expansion builds a strong base of Wal-Mart stores in this region with an increased productivity and profits. Wal-Mart entered
Energy consumption is a critical concern for most companies because the commodity is rather scarce. Wal-Mart, a major retailer in the United States, has many stores spread across many States. The primary objective of this report is to evaluate cost-cutting energy options for Wal-Mart stores in the south of United States.
4 Pages(1000 words)Research Paper
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