Wallmart Resources and Capabilities - 1361 Words

MBA 591 – Summer 2011 Faculty of Business Administration Bilkent University July 5, 2011 Resources and Capabilities of Wal-Mart Wal-Mart had enough financial resources to make capital investments to improve its operations and labor productivity. Most important investments were technological investments such as the UPC (Uniform Product Code) infrastructure, the computerized system within stores and the satellite network that enabled almost real-time communication among the stores, the distribution centers and vendors. These technological resources can also be classified as equipment related†¦show more content†¦In addition to that, electronic scanning of the UPC at the point of sale enabled higher speeds in checkouts, eliminated the paperwork, and simplified the inventory management, reorders and postaudits of the merchandising programs. This infrastructure also improved the labor productivity in the stores. Using also its financial resources, Wal-Mart established a superior distribution network using its distribution resources. It established a two-step hub-and-spoke distribution network using its 400-plus truck-tractor fleet. Only 20% of the inbound merchandise was shipped directly from suppliers. The rest was supplied using â€Å"cross-docking† that is delivering the merchandise over this network using only trucks without ever sitting in the inventory like warehouses. Thanks to this distribution network, each distribution center could serve up to 175 stores within 150-to-300 mile radius. By the end of 1985, that was meant 3.9 million square feet of distribution space in 5 locations, delivery within 48 hours with 60% full on backhauls. As a result, the cost of inbound logistics in early 1980s was in average 2% of sales which was the half of the industry average. Furthermore, due to increase efficiency in inventory management, the store management was easier and there was more sp ace available in the store for sales providing increase in productive space in the stores. As an intangibleShow MoreRelatedBusiness Application For A Business1078 Words   |  5 Pagescompetition from big retail chains such as Superstore, Loblaws, WallMart, and PriceChopper to small local grocery stores. It is mainly advertising their business on local newspaper and flyers. Due to intense cost based competition from larger sized corporation, XYZ is recording decrease in their sales and hence profitability. 2.0 Importance of IT for business Foundation of IT in a place is very crucial for most business. Organizations can use IT resource to create innovative and strategic process that helpsRead MoreDysons Air Multiplier: Flaws and Functions3322 Words   |  14 Pagesthe design and flexibility of the product in the promotional activities. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Try to communicate the technological advancements of the product †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Give more importance to visual media promotion activities as it helps to show the capabilities of the product. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Exploit the weakness in the current market and then inform potential customers how Dyson s new product solves their problem. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Promote the award winning customer service offered by Dyson. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The conceptRead MoreNetwork Based Door Lock Utilizing Radio Frequency Identification Card for Multimedia Rooms8544 Words   |  35 Pagesbuilding. Door lock allows one to remotely  unlock/lock doors and grant entry to a home, an office or to a room in a school. Door locks can be controlled from any computer, compatible cellular phones and even FiOS TV. This device gives you the capabilities to unlock doors, remotely change user  PIN codes, and receive text message or email updates for when the door is locked or unlocked [3].   Making a door lock has many things to do and it can be produced by some computer-related system. One of whichRead MorePG Corporate Social Responsibility5660 Words   |  23 Pagescompanies list by their revenues (which are approximately 79,697.0 million dollars). PG market capitalization is bigger than many countries GDP. Furtermore PG profit is 13,436.0 million dollars, when in comparison number one Fortune 500 company Wallmart has just a â€Å"littleâ€Å" bit bigger profit of 14,335.0 million dollars. This company serves to the customers to more than 180 countries. Even at Baltic states is sold more than 7 millions PG products every month. Procter Gamble manufactures a wideRead MoreIkea Feasibility Report8201 Words   |  33 PagesIKEA vision - to create a better everyday life for the many people. As the IKEA Concept aims to serve the many people, the IKEA product range needs extremely low price levels. IKEA designers do their part to keep prices low by using production capabilities from other areas in unique and previously unimagined ways - like having shirt factory produce furniture upholstery. Or using leftover materials from the production of one product to create an entirely new one. IKEA customers also contribute to