Running head: CONTROL MECHANISMS OF WAL-MART
Control Mechanisms of Wal-Mart
Teresa Sexton
University of Phoenix
MGT/330
Aug 25, 2008
Control Mechanisms of Wal-Mart
Control mechanisms are used by organizations to help regulate processes which add to company-wide goals. Wal-Mart is a huge industry functioning to meet the needs of its customers, employees and suppliers by using controls; controls consist of market control, clan control, manager audits, and performance standards. Each control is important to prosper efficiently in the business world; in addition, increasing customer, employee and supplier assurance. The efficiency of each control impacts the four functions of management; organizing, planning, controlling and leading. What are the positive and negative aspects of each control? Wal-Mart’s success is motivated by control mechanisms that are regulated and constantly evaluated.
Market-Control is the ability of buyers and sellers to exert influence over a market for goods or services, according to Encarta® World English Dictionary [North American Edition] © (P)2007 Microsoft Corporation.
“During the past 20-plus years, Wal-Mart has been allowed to expand its operations throughout America and many other nations by using a business model designed to drive down prices at all levels in the business chain. Wal-Mart now has such economic power that few businesses can afford not to succumb to their price demands. Wal-Mart not only dictates the price, it also dictates the terms, conditions, source and in some cases the material used in the products it purchases. It has been the leading exponent of forcing Ameri ...