Management Control System Wal-Mart Stores, Inc.

Management Control System Wal-Mart Stores, Inc.

  • Submitted By: chatarina
  • Date Submitted: 02/14/2009 8:02 PM
  • Category: Business
  • Words: 536
  • Page: 3
  • Views: 5



Founded by Sam Walton, the first store opened in Arkansas in 1962. By January 2005, Wal-Mart was the world’s largest retailer, with $ 288 billion in sales. The company used information technology in its supply chain and logistics, and owned over 25 aircrafts, which were used by managers to travel to its stores in far-flung locations. Wal-Mart also had the largest privately owned satellite communication network in the USA and broadcast more television than any network TV.

The company strategy was based on selling branded products at low cost. The company employed more than 1.6 million associates worldwide through more than 3,700 stores in the USA and 1,600 units in other countries (Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany, and the UK). It also acquired 38% share of Japanese retail chain Seiyu, the world’s second largest retailer.

Wal-Mart has been awarded for its achievement such as “Ron Brown Award”, and “The Most Admired Companies” by Fortune magazine.

By 2005, Wal-Mart obtained 8.9% of market share in the USA. The company’s strategies related to its supply chain were limiting the purchase volume on one vendor; it was not more than 4% of its overall purchase volume, and persuading its suppliers to adopt RFID in order to increase monitoring and management of the inventory.

Wal-Mart used a “saturation” strategy for store expansion. A distribution center was strategically placed so it could serve 150-200 Wal-Mart stores within a day. A store was built as far as possible but still within a day’s drive of the distribution center. Each distribution center operated 24 hours a day using laser-guided conveyor belts and cross-docking techniques that received goods on one side while simultaneously filling orders on the other. The distribution cost was only 1.3% of sales whilst it was 3.5% for their nearest competitors.

The company owned a fleet of more than 6,100 trailer trucks and...

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