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MGMT499 - Essay Example

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and Target Corporation Inc. have been selected for this study. These two companies are USA based multinational retail hypermarket chains. Both of the firms hold a strong position in USA retail industry. Therefore, both the organizations operate in similar external…
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Download file to see previous pages In terms of legal environment, strict environmental legislation results into higher costs for both discount retailers. This factor even encompasses rising awareness amongst customers which increases costs for retailers such as Walmart and Target who follows green movement (Zentes, Morschett & Klein, 2012, pp.102-103). On the other hand social environment comprise of varying income levels of customers which give an opportunity to both the retailers in relation to lowering prices and acquiring large market share.
The culture prevailing in Walmart is to work in collaboration and increase efficiency of the overall team. They even focus on reducing overhead expense so that better prices can be offered to customers. The performance rate of Walmart is higher in comparison to other retailers and hence it ranks as topmost retailer across the globe. On the contrary Target has a performance ratio lower than Walmart and occupies second position amongst all discount retailers based in America. Its low performance is due to limited product range being offered in all its retail stores. However the company culture is similar to that of Walmart where team members are considered to be an integral part of the system.
The promotion policies of Walmart are such that it gives more emphasis on increasing responsibilities and retaining experienced workers in the system. There were 170,000 promoted by the company in previous year with more benefits and higher pay scale. These policies are based on average performance of employees and impact of their respective performance in growth and success of the company. On the other hand Target has a different set of promotion policies as it focuses on time period which has been spent by an employee with the organization. Promotion in this company is given to those employees who possess more experience in comparison to other individuals. However the promotional benefits are similar to that of Walmart.
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