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-Marts 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
American firms to move production of products to a Communist slave labor state * China.
It is using its economic power to orchestrate the destruction of American industry. Its
economic power is used to destroy local independent merchants in virtually every
community in which it operates.
In conjunction with this power, Wal-Mart provides substandard pay, medical and
retirement benefits to its hundreds of thousands of employees while denying them the
option of obtaining union representation (Wal-Mart, Bush ruining economy By Etson
Hougland Posted on Mon, Jul 31, 2006, http://www.democraticunderground.com,
Retrieved Aug 20, 2008).
On the other hand, prices for oil and many foods are at record highs, but Wal-Mart can
pass some inflation on to shoppers without losing its low-price leadership. And it is in the
right line of business in hard times. Its biggest strength is grocery sales, which are not
slowing down, and are unlikely to, since they are essential purchases (Wal-Mart, Always
low prices, Feb 21st 2008, From The Economist print edition, http://www.economist.com,
Retrieved Aug 20, 2008).
