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Walmart Control Mechanisms

Control Mechanisms Paper:

Select an organization (WAL-MART). Prepare a paper in which you address the following as it related to that organization:

a. Identify four types of control mechanisms used in your selected organization.

b. Compare and contrast the control mechanisms that you identified.

c. Determine the effectiveness of these control mechanisms.

d. Examine the positive and negative reactions to the use of these controls.

e. Explain how these controls impact the four functions of management.

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The document is just over 1,500 words and is in true APA format.


This paper will identify the four types of control mechanisms used by WAL-MART and will compare and contrast these control mechanisms. The research will determine the effectiveness of these control mechanisms and will examine the positive and negative reactions to the use of such controls. In closing, the paper will discuss how the controls impact the four functions of management.

Company Overview

Wal-Mart is the world's largest retailer. (CNN 2008) The company is less than 50 years old and has done very well for itself since its inception, with sales in excess of $100 billion for 2008. (Walmart 2008) It all began when the first store opened in 1962 in Rogers, Arkansas. The goal of the company was to provide the consumer with a quality product at a fair price. The goal is still in effect today. The company employs in excess of 700,000 employees in more than 3,000 stores worldwide. The Super Wal-Mart stores sell milk, clothing, tires and have a fully staffed pharmacy, making the chain truly a one-stop shopping experience. Wal-Mart also has neighborhood grocery stores have a pharmacy but only sell groceries. Wal-Mart tends to pay its employee low wages and does not offer health insurance too many of its employees and this might be a factor in the significant earnings the company posts.

Control Mechanism One - Price

Wal-Mart is the leader in pricing. No other retailer can sell a product lower than Wal-Mart and if a retailer advertises a lower price, Wal-Mart will match it with no questions asked. Why? Wal-Mart has the buying power to dictate to the vendors what the store will pay for particular items. Even if the vendors are drug companies. Wal-Mart has an excellent program for consumers who do not have health insurance. The chain offers 30-day generic prescriptions for $4.00 and a 90-day prescription for $10.00. (Walmart 2008) These prices cannot be and are not offered by any other chain because the other chains do not have the purchasing power that Wal-Mart does. This plan has saved senior citizens who are on limited incomes significant funds that the senior can now spend in the store. Wal-Mart reaps the rewards of what it saves its consumers.

Control Mechanism Two - ...

Solution Summary

The paper discusses and identifies four types of controls for the Wal-Mart Control Mechanisms