Strategic Management Essay Example | Topics and Well Written Essays - 750 words - 4

Strategic Management - Essay Example Due to this, the company has restructured its hard lines and homes divisions to team related categories (Freshman 2006, 24-27). Wal-Mart uses the cost leadership strategy in which it fights to be the lowest cost producer in the industry but marinating the greatest quality o its products. In this strategy, Wal-Mart sets its prices quite lower than the average industry prices in order to win greater market share. The firm makes all efforts to improve process efficiencies. Since it is a multinational corporation, it targets the broad market to cover its costs. This cost leadership strategy is very effective at the global level of operations. Wal-Mart re-engineering and E-engineering Wal-Mart strives to be ahead of its competitors by incorporating satellite communication between cash register, distribution centers, and stores. This is something that makes it easy for customers in different areas purchase products from stores in different regions meeting the customers’ needs at the immediate point of demand. ... The general strategy that Wal-Mart has been employing in its operations is the low-cost, high volume strategy that targets its businesses at the global level. Because Wal-Mart has numerous stores in many countries, it therefore successfully undertakes this strategy of lowering its prices and producing in bulk to cover the costs by a considerable amount. It does this to increase its market share. It also manages this because it has lower operating expenses as compared to industry level (Lampel 2002, 51-52). This control strategy aims at ensuring reduced costs, high volume production, and improved quality. It is apparently clear that part of Wal-Mart’s strategy to remain competitive in its operations is to make products that prove to have less negative effects to the environment. In this regard, Wal-Mart regulates what products to sell in their stores. It has also come up with a sustainable waste management strategies aimed at reducing pollutants and ensuring a clean environment . For instance, it takes up proper waste management by implementing strategies to recycle paper products. This is seen through its efforts in the Go Green initiative. Apart from environmental friendliness, it seeks for ways to lower its costs in operations and instead use the saved monies in technological advancement (Massengil 2003, 66). Wal-Mart Reciprocal interdependence and Information sharing Wal-Mart reciprocal interdependence encourages communication from one department to the other whereby an input in one department becomes the input of the other. This means Wal-Mart communication is at highest level of communication or interaction. Reciprocal