Control mechanisms are used by organizations to help standardize processes which contribute to overall company goals. Wal-Mart is a large business working to meet the needs of its customers, employees and suppliers by incorporating controls; controls consists of market control, clan control, manager audits, and performance standards. Each control is significant to effectively thrive in the business world; additionally, increasing customer, employee and supplier confidence. The effectiveness of each control impacts the function management; organizing, planning, controlling and leading. What are the positive and negative aspects of each control? Wal-Mart's success is driven by control mechanisms that are standardized and consistently evaluated. Furthermore, analyzing each control provides successful implementation for the entire company.
Market ControlEffective control mechanisms contribute to the success of the Wal-Mart organization. Comprehension of market control is necessary for managers to examine the positive and negative reactions of each controlled mechanism within the organization. Managers can not full assess the outcome of each control mechanism, but can still provide a high level estimation of market control.
By achieving organizational control, managers can apply market control principles to increase company profits.
Market control is the involvement of pricing mechanisms to regulate activities in an organization; similarly to economic transactions (Bateman & Snell, 2007). Market control characterizes the use of prices, competition, profit centers, and exchange relationships to establish tangible market outputs between identified parties. Companies can use economic forces and price mechanisms to regulate performances to reduce prices. Implementing control mechanisms to an organization will help establish market controls at a corporate and business unit level. By applying market controls to the Wal-Mart organization, managers have been able to cut prices, making Wal-Mart the largest retail merchandiser in the world. Wal-Mart is planning to cut prices on up to 300 top prescription drugs to as little as...