Control mechanisms are used by organizations to help standardize processes, which contribute to overall company goals. Wal-Mart is a large business organization that tries to meet the needs of its customers, employees and suppliers by incorporating control. This paper will discuss four types of control mechanisms used in Wal-Mart organization. This paper will determine the effectiveness of these control, and will examine the positive and negatives reactions to these control. In addition, it will explain how these controls impact the functions of management.
Wal-Mart being the huge company is able to do almost anything they want in the retail business world. Wal-Mart is the dominate retailer in the world, yet even the biggest and the most profitable has controls that direct the way company grows, conducts itself, and affects the business world.
Price is one of control mechanism that Wal-Mart uses. Price is a control that is on so many levels; from the price that customers pay for items that Wal-Mart sell, to the price that it pays when they purchase the goods that they sell in their stores.
Wal-Mart being so big they not only have prices in goods, but in land to build more stores, contracts for deliveries, what they pay their workers, and prices they pay to advertise. Price is the dominate control for all business and Wal-Mart believe this control like every other business too.
Communication is another control mechanism that Wal-Mart has to determine how they conduct business. The communication that is projected by Wal-Mart through its advertisements, business performance, news releases, and public image are all part of the communication to the public. Power is a control that not only Wal-Mart has and can use for positive influence, but also can be a power that puts Wal-Mart in a bad image. The power to...