Economics case assignment module 01 - Essay Example

Wal-Mart is the organization that was chosen since it very much related to our topic in Economics. First, it is a big business organization that is affected by the consumer’s choice; thus, it operates on the law of supply and demand when choosing products that will be sold to customers. Since Wal Mart is very competitive and has secured the top spot in its niche, its management has definitely analyzed all economic factors that concerns the consumers; thus, the organization is able to compete and dominate by its extensive research.

A proof of which is its heavy investment in information technology that updates its inventory system once a single item is being taken off from the shelf. This reflects the company’s high premium on supply and demand. It also values customers by giving many incentives that will attract new buyers and maintain old ones.To further the relationship between Wal Mart and Economics, the term Efficiency, Technology , and Price were chosen since these are actually some of the factors that have contributed to the growth of this business.

The first term efficiency denotes achieving the maximum potential of an output ( products or services) that is brought by the resources and technology. An organization as big as Wal Mart would not be able to thrive in the market if it isn’t efficient. It’s expansion even to other countries benefits much from the ability of the organization to harness the potential of its resources. One of its focus is human resource management which equips its employees the skills that increase their efficiency in delivering services to the customers, thereby, producing favorable results as seen from their growth.

Even having their own fleet of trucks dramatically increased their efficiency in supplying their stores. The term Technology complements the efficiency of Wal-Mart since this business has proven that one of the contributing factors for its efficiency is technology. A concrete example would be its direct access to P&G that enables it to replace its shelves four times faster than the competition; thus , approving that efficiency is highly correlated with technology. The third term price implies that sellers and buyers must agree on the exchange of products and services.

In the same manner, Wal Mart has met the price that the consumers are willing to pay for since its prices are low. Interestingly, this is again a contribution of efficiency since the company keep the costs very minimal because of the logistics system that they have. Their efficiency in transporting goods and monitoring supply system has kept down the prices low. As for the economic ideas, I have chosen the first and fourth big theories. The first theory that there is always a tradeoff in making choices is very much true for consumers.

When it comes to Wal-Mart, the company has to make decisions whether to invest money on technology or appropriate for another important thing like expansion or capital formation. There is a need to prioritize and see which among the choices made would bring the greatest benefit to the organization. If the company spends so much on aspect of operations, another aspect would definitely have a decreased budget. The choices that the management would make in the present could be a solution or another problem for tomorrow.

The fourth theory is also important since it has relation to price which was discussed earlier. The fourth theory implies that government action may correct the problems that are encountered by the economy. Pricing is a domain of economic policy and when prices hit the ceiling, this adversely affects the consumers. Thus, there is a need for regulation since capitalists, suppliers, producers can abuse the pricing scheme for goods in the market. Although buyers are willing to pay for something, they can still be cheated in many ways by the sellers due to lack of information.

More so, this increase in prices are usually brought about by unfair trade practices, hoarding, illegal transactions that are harmful to the economy of the country. The government established agencies that would protect the consumers from abuse ; thus, promoting a healthy exchange between buyers and sellers. REFERENCES: Author. Unknown. Basic Terminology in Economics. Microeconomics. Micro201. Touro University International.