Wal-Mart's Outputs and Strategic Objectives
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The paper examines Wal-Mart's key outputs that are the sales volume including same-store sales, gross and net margins and inventory turnover. The paper explains how these outputs are all related to one another, and to the overall cost leadership strategy, and also shows how these outputs all contribute to another crucial output for Wal-Mart, the profits. The paper aims to demonstrate how Wal-Mart has done an exemplary job of building output congruence.
From the Paper:"Wal-Mart produces hundreds of outputs. The company is engaged in a cost leadership strategy, so their systems are designed to deliver low costs, high volumes and high market share. In order to do this profitably, they need to maintain margins. The bulk of the company's workers are unskilled so there is little evidence that employee-related outputs are of significant importance. Wal-Mart's key output instead both support and complement one another. There is little conflict between outputs, since outputs that do not directly support the cost leadership strategy are subordinated in Wal-Mart's organizational culture. Thus, the key outputs of Wal-Mart are all directly related to the strategic goals, resulting in a high degree of congruence."
Sample of Sources Used:
- Burke, W. Warner & Litwin, George H. (1992). "A Causal Model of Organizational Performance and Change." Journal of Management. Retrieved November 27, 2008 from http://findarticles.com/p/articles/mi_m4256/is_n3_v18/ai_13526990/pg_2
- Falleta, Salvatore V. (2005) "Organizational Diagnostic Models: A Review and Synthesis" Leadership Sphere. Retrieved November 27, 2008 from http://www.leadersphere.com/img/Orgmodels.pdf
Cite this Case Study:
Wal-Mart's Outputs and Strategic Objectives (2010, September 05) Retrieved September 18, 2014, from http://www.academon.com/case-study/wal-mart-outputs-and-strategic-objectives-129160/
"Wal-Mart's Outputs and Strategic Objectives" 05 September 2010. Web. 18 September. 2014. <http://www.academon.com/case-study/wal-mart-outputs-and-strategic-objectives-129160/>