Case Study #1 Walmart essay sample

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Question one

Wal-Mart’s primary concern was the price of their consumers of their products. He made sure that the price of the competitors were not as low as their own. He said that the customers deserved realistic prices based on the different commodities they produced. The concern about the price of the consumer determined the demand for their products. He spent much of his time negotiating with vendors to determine the best price for their commodities. All his activities and processes were transparent to customer and suppliers making them have enough trust about his company. A very important characteristic of Wal-mart’s logistic is that it allowed a good responsive mechanism between the customers and its employees (Natto, 2003). The company owned a few trucks that made the distribution channel simple and reliable. He prepares a tight schedule of time to drivers of the trucks which made the distribution of his commodities arrive on time to the retail stores.

Question two

Wal-mart effectively used information technology to make his commodities be known in each corner of the country. This made him compete effectively with other companies. (Natto, 2003). Wal-mart urged his employees to retain good communication system with their clients. He set a satellite communication system back in 1983 to monitor all the stores around the country and provide immediate solutions when a problem arose. Through the use of IT, he made the stock available to all the stores in the country especially when a certain product had a high demand. He made a bar coding and radio technology to control all of his inventories across the country. Use of bars codes and technology on radios made him control his inventories to all branches of his company effectively.

Question three

Wal-mart uses many processes of supply chain management which geared him in attaining high profits and increasing his demand. The company emphasized the importance of creating a good rapport with the customers in order to retain them and tap others. The company used a customer service policy plan that guided the employees and customers of Wal-wart company. The company kept on increasing the values of their products according to the urge of their customers. He adopted an effective distribution mechanism movement of the company’s commodities to the designated locations making their commodities easily accessible to customers. The inventory management mechanism was effective making the cost of handling it very minimum. He has good control of processes such monitoring, implementing, control and proper management of supply chain activities (Natto, 2003).

Question four

Wal- wart stresses the importance of using a good customer service. He says that the customer should be served the way he or she want, and he is always right. He emphasized the importance of satisfying a customer to his fullest. Winning more customers is the key objective that Wal-wart advice the employees of his company and retaining the loyal ones. Cutting down the cost of inputs and increasing the output to the customer is another primary goal he emphasized on (Natto, 2003). …

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