Walmart

It was seen that Wal-Mart Stores had to forcefully acknowledge unionization in China. The American firms are making various efforts to revise or prevent a restrictive law which would hamper the functioning of the company. There by the cost have increased and also the compensation plans have become rigid. Compensation Plan With the advent of globalization it is becoming increasingly difficult to retain and attract human resource high on talent. Human resource which was much more steady in the years ahead are now very mobile and inconsistent in nature.

There by maintain a good morale among the employees is an essential criterion to attract and retain the right kind of people into the organization (Carlson et al, 2006). Rationale behind Basic elements of Plan The hierarchy of needs by Maslow states that a person would look to satisfy his basic needs first; consequently he would want to satisfy higher needs. The five needs of a person according to Maslow are “physiological, safety, social, esteem and self-actualization” (Robbins, 2009). The theory also states that every employee would want to satisfy his basic needs before he attempts to satisfy the other needs.

Thereby every compensation plan must have few basic features such as:

1. The Basic salary
2. Variable incentive plan: this may be directly variable with the performance
3. Performance appraisal policy: the policy should be transparent in nature and should be well communicated to all employees.
4. Other benefits: they should be according to the organizational rules and strategies.

They must also comply with the Chinese law. The benefits may be Maternity Leave, Annual Leave, Medical Leave, Marriage Leave, Child Sick Leave, Paternity Leave etc.

Objective

The primary motive of planning a fair and apt compensation plan is to hire and retain the motivated and skilled workforce in the organization. The designing and implementation will be over seen by the Head of the Human resources department.

Compensation philosophy: The Compensation committee shall have the chief executive officer, The Head of Human Resources and also the managerial heads from each department. Different managerial and staff level will be provided different grades, which are as follows:

1. Grade A: Top Management (Senior management)
2. Grade B: Middle Management
3. Grade C : Junior Management
4. Grade D: Administrative staff
5. Grade E: Hourly based employees

The compensation plan is structured such that the pay decreases as the grade lowers, so a Grade A employee receives the highest salary while grade E receives the lowest. The basic pay part should be fixed while the variable part will vary according to the performance demonstrated by each employee. The Expatriate employee will be paid relocation allowance. The compensation plan should be in accordance with the Chinese national standard for the local human resources and International standards for Expatriate.

Type of Compensation to be included As mentioned prior the basic pay shall be fixed in nature and paid to each employee. Therefore it forms a vital part of the compensation. The non monetary incentives shall be allocated according to the Law and the guidelines stipulated by Wal-Mart. It will vary from 5% to 25% of the compensation, keeping in accordance with the level or grade each employee belongs to. Monetary incentives are an essential element to motivate the employees to perform better and reach higher targets (Miller, 2006). This should depend on both individual as well as profit sharing method.

The group incentive and individual efforts will be two separate components. The individualistic bonus which is achieved by each employee is dependent on the actual performance demonstrated by each set against a benchmarked level. The group bonus will be allocated according to the performance of the entire Wal Mart China group (Johnsons, 2006). Any noteworthy suggestion or increase in productivity shall be awarded by cash rewards. The Chinese culture does not advocate penalties, so low performers will not be penalized in any form.

Summation In today’s corporate field, when a large amount of organization’s worth is accredited to its human resources capital, workforce management is the way to gain competitive advantage. The plan will help to attract, motivate and retain the right human resource which is the most vital factor to become successful. A direct relation to the Maslow’s law and morale will help support the plan further. The compensation should help satisfy the employee’s basic needs or he will be low on morale and not work efficiently.

The differentiation of the bonus allocated to individual and group performance measures will help demarcate a good performer from a weak employee. The company’s performance is also segregated from the employees. Also flexibility will be maintained to award one time lump sum to extraordinary performance shown by any employee. The Chinese culture, legal and environmental issues are also noted and incorporated in the plan so that the people working in the company feel like they are not losing on any grounds to the pay awarded in other Chinese companies.

References:

1. Wal-mart. com, (2010), http://www. walmart.com/cp/An-Introduction-to-Walmart. com/542413 [Online] [accessed 27th May 2010]
2. Carlson, D. S. , Upton, N. , & Seaman, S. (2006). The impact of human resource practices and compensation design on performance: An analysis of family-owned SMEs. Journal of Small Business Management, 44(4), 531-543.
3. Hulme, V. A. (2006, Mar/Apr). Short staffed. The China Business Review, 33(2), pp. 18-23
4. Johnson, T. (2006, Aug 16). Wal-Mart unions in China to be controlled by government. Knight Ridder Tribune Business News. Washington: p. 1. Retrieved 02/25/09 • Miller, J. (2006, Jan/Feb). What’s good for Wal-Mart. Dollars ; Sense. Somerville: pp. 12-15

Wal-Mart’s Statement of Ethics is designed on whole as a human resource to maintain dignity and respect among Wal-Mart associates and employees. This doctrine has not always been followed precisely as it is written and the results have brought much flack onto the corporation. If one were to search for any recent news brief on Wal-Mart, more than half of the article they would find would be pertaining to business ethics, or the lack thereof in the corporation. This is partly due to the fact that over the past few years, Wal-Mart has come under fire for multiple breaches of its own ethical conduct.

Do they allow anonymous reporting? In many recent cases Wal-Mart employees have found that there are gray areas within following Wal-Mart’s codes of ethics, circumstances in which if they do not break the codes then the codes will be broken to in order to validate their termination. One such instance was recently reported on in Business Week. Chalace Epley Lowry was employed with Wal-Mart as an administrative assistant, when she witnessed what she deemed as a potential violation of the ethical code.

She noticed the vice-president for corporate communications Mona Williams was copying papers that appeared as though they were related to stocks. Wal-Mart’s ethical policy on insider trading is that, If any associate has material non-public information relating to Wal-Mart, it is Wal-Mart’s policy that neither that person nor any related or other person living in that person’s household may buy or sell securities of Wal-Mart or engage in any other action to take advantage of, or pass on to others, that information (Wal-Mart 8A, 2000).

Since, Lowry believed this to be a case of insider trading, she reported case to the ethics bureau. Mona Williams was Lowry’s supervisor, so when it was found that Williams was innocent of the allegation, Wal-Mart decided to go against their own policy of anonymous reporting and they revealed Lowry’s identity to Williams. This left Lowry no choice but to ask for a transfer, of which she was unable to receive and eventually terminated from her position. This is not the only case in which Wal-Mart’s ethical conduct has been questioned.

Wal-Mart: Ethical or Unethical? Almost everyone living in North America undoubtedly knows what Wal-Mart is and has already conceived some sort of opinion, whether it is good or bad. On one hand people complain that they are ruining competition, they are treating their employees’ terribly or that they are given extreme unfair advantages that no other company receives.

However, on the other spectrum there are those that believe in the free market, as well as those that say Wal-Mart is cutting down the cost for low to average income families’ cost of living or even those who claim that although wages are not perfect they are in fact employing a large amount of people whom would otherwise not have a job. Whichever end of the spectrum your beliefs may lay, there is no doubt that Wal-Mart does create very affordable prices for those families in need; however are these incredibly low prices taking an even greater toll on Wal-Mart employees and community members?

Throughout this paper we will explore the two main ideas of whether Wal-Mart’s way of conducting business is ethical or unethical, and let you decide which end of the spectrum you are on. The American Economy is built upon Capitalistic Principles. American’s have pride in their free market economy with the largest GDP in the world. Income in a capitalist system takes at least two forms, profit and wages. Profits are used to expand a company, creating more jobs and wealth. Every company’s primary goal is to produce profit. The means by which each company produces profit contrasts in accordance with the market said company is in.

Companies can attempt to differentiate themselves in their business model but generally certain sectors of the market produce similar profit strategies. Wal-Mart’s strategy relies upon low-wage labor by discouraging the unionization of its employees. Wal-Mart’s strategy of low-wage labor to reduce their costs is hardly unique. Wal-Mart’s competitors: Target, Kmart Corp. and Home Depot all pay similar wages and give comparable benefits. Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. Competition leads to innovation and more affordable prices.

Economic freedom is afforded to the private sector (such as Wal-Mart, Kroger, etc. ), allowing the private sector to make the majority of economic decisions in determining the direction and scale of what the U. S. economy produces. Relatively low levels of regulation and government involvement enhance this. Although Wal-Mart’s revenues are greater than the combined sales of its top competitors Target, Sears Roebuck, Costco Wholesale, Home Depot and The Kroger Co, Wal-Mart needs to continue its business strategy (including low-wages) in order to keep the edge it has built.

Wal-Mart is one of the biggest employers in the United States, with 1. 4 million associates. Wal-Mart is not only one of the largest employers in the United States but the largest in Mexico and one of the largest in Canada. Wal-Mart is also a diverse employer with more than 257,000 African American associates, more than 41,000 Asian, 5,900 Pacific Islander, 171,000 Hipic, 16,000 American Indian, and 869,000 women associates. Along with the diverse employment the majority of the employees work full time. Wal-Mart full time average hourly wage is $11. 5 and is even higher in urban areas. Employees can receive performance-based bonuses and receive opportunities for advancement. Wal-Mart grants “full time” benefits to those working as little as 34 hours per week, but does not limit workers to just 34 hours per week. Wal-Mart has a health care benefit for all of its employees and recently announced that over 1. 2 million associates are covered under its healthcare program and the number of uninsured associates dropped by nearly 25 percent in the past year and more than 40 percent between 2007 and 2009.

Both full time and part time can be eligible for health benefits. The benefits are for all levels of the company from the part times workers to the full time managers. Along with all the health care benefits, Wal-Mart also added a new program called “Life with Baby,” in which the program helps mothers and their babies get a healthy start for the child’s life. Wal-Mart saves money for families. Wal-Mart has health care benefits for 94. 5 percent of their employees worldwide. One of Wal-Mart’s biggest goals is to save families money.

In 2006 Wal-Mart saved American families on average $2,500. Saving money means more money in consumer pockets, which also in turn mean more business for other businesses. Wal-Mart is helping the economy by saving money for families with their lower prices. First of all, according to the document Wal-Mart provides unequal salary payment to men and women. The company uses gender discrimination to scale the wage difference to pay for it employees, which is unethical for employees’ job opportunity.

Moreover, it is unfair when both men and women do the same job in the store, but women get less money than men do. In 2001, six women sued Wal-Mart in California claiming the company discriminated against them by systematically denying them promotions and paying them less than men. The lawsuit has expanded to potentially the largest class action in U. S. history – on behalf of more than 1 million current and former female employees. While two-thirds of the company’s hourly workers are female, women hold only one-third of managerial positions and constitute less than 15 percent of store managers.

The suit also claims that women are pushed into “female” departments and are demoted if they complain about unequal treatment. One plaintiff, a single mother of four, started at Wal-Mart in 1990 at a mere $3. 85 an hour. Even with her persistent requests for training and promotions, it took her eight years to reach $7. 32 an hour and seven years to reach management, while her male counterparts were given raises and promotions much more quickly. Secondly, the Chinese employees working for 24 hours a day and seven days a week all year round, and their wage is about $3. 0 per day. The company has factory in China and it offers a low quality of life and poor work environment. Wal-Mart also charges apartment and utilities fees from the factory workers before paying their salaries. Moreover, if the workers want to move out from the dorm, they still have to pay for the apartment rent to the company. Wal-Mart is paying eleven million dollars to settle Federal allegations it used illegal immigrants to clean its stores and also Wal-Mart is facing a class-action lawsuit for discrimination against $1. 6 million former and current female employees.

Wal-Mart keeps its wages low even by general industry standards. The average supermarket employee makes $10. 35 per hour. Sales clerks at Wal-Mart, on the other hand, made only $8. 23 per hour on average, or $13,861 per year, in 2001. About one-third of Wal-Mart’s employees are part-time, restricting their access to benefits. These low wages complicate employees’ ability to obtain essential benefits, such as health care coverage. All in all, Wal-Mart’s success has meant downward pressures on wages and benefits, rampant violations of basic workers’ ights, and threats to the standard of living in communities across the country. The success of a business need not come at the expense of workers and their families. Such short-sighted profit-making strategies ultimately undermine our economy. In conclusion, Wal-Mart is undoubtedly making the lives of millions of consumer’s much easier, but is it coming at too big of a cost to those that are employed by them? This is really the basis of the whole ethical versus unethical argument, and in the end both sides will probably never be able to come to an agreement.

The fact of the matter is this, in order for a corporation to grow to the magnitude of Wal-Mart there has to be millions, if not billions of people who continue to shop there and keep putting their money into it. So the next time you are at Wal-Mart you need to ask yourself, is this low price coming at too high of a cost to employees and community members? If the answer is no, then purchase that item, but if the answer is yes go ahead and walk out of the store to shop somewhere else. Just remember with whatever decision you make, the decision is always yours to choose where you will consume.

Whole Foods Market Inc. unveils its new 365 grocery chain on Wednesday with a bright and airy store that offers lower prices and more technology than the company’s namesake shops. To thrive, though, experts say 365 has to beat its many rivals without hijacking customers from Whole Foods itself.

The chain, which debuts in Los Angeles’ Silver Lake neighborhood, is critical to Whole Foods. In the fiercely competitive market for fresh fruit and vegetables, its sales are being whittled away by Sprouts Farmers Market Inc. and other rivals who are undercutting Whole Foods on price, if not always matching it on quality.

Low prices are the top demand even among shoppers prioritizing goods promoting health and wellness, said Richard Vitaro of market research firm AlixPartners. “I don’t think we can underestimate the power of frugality,” said Vitaro.

From the start, 365 has targeted reduced overheads and increased customer convenience, said Jeff Turnas, president of the chain. Whole Foods said recently it has signed 19 leases for 365 stores around the United States, without disclosing financial targets for the new chain.

“Our goal is to compete in the marketplace without lowering the Whole Foods standards,” Turnas told Reuters during a recent store tour. He said 365 stores will complement Whole Foods’ premium, full-service sister brand — often dubbed “Whole Paycheck” in popular culture in reference to its perceived higher prices. 

But the new chain will have to work hard to avoid being labeled “a cheaper Whole Foods,” said Kevin Kelley, a principal at strategy and design firm Shook Kelley, which has worked with Whole Foods and other grocers.

Air guitars, foodies

365’s messaging is breezier than its serious elder sibling’s. One sign offers “Free air guitars,” while a “Silver Kale” mural next to the meat case is a fun, foodie nod to the chain’s first neighborhood, known for a hipster feel.

About half of the brightly colored fruits and vegetables at 365 are non-organic, a greater proportion than at Whole Foods. Produce is priced per piece or per package, rather than by the pound as at cult discounter Trader Joe’s.

365 stores will be about a third smaller than the average Whole Foods outlet, and carry roughly a quarter the number of products — reducing real estate and merchandise-related costs.

Staffing is leaner and no longer specialized. An iPad app replaces wine experts, while meat, cheese and fish are in “grab-and-go” packages — meaning no butchers or cheese and fishmongers. 

While 365 takes aim at budget gourmets and cash-strapped “millennial moms,” grocery experts said it also needs to appeal to people who buy from a range of other food sellers, from Kroger and Walmart to Amazon.com, restaurant delivery companies and meal kit providers such as Blue Apron.

Some are skeptical that 365 stores will hit the mark. “I don’t see them generating the efficiency they need to balance value and quality,” said Bill Bishop of retail consultancy Brick Meets Click. 

Shook Kelley principal Kevin Kelley disagreed: “Whole Foods gets culture,” he said, and has the experience to successfully choose what goes on the shelves in smaller 365 stores.

Roger Davidson, a consultant who has held key positions at chains such as Wild Oats, which was acquired by Whole Foods, Walmart and Texas grocer H-E-B, is betting on 365 succeeding. But amid intensive competition in the sector, Davidson said 365 has little room for error. 

“They have to make it work,” he said. 

(Reporting by Lisa Baertlein; Editing by Peter Henderson and Kenneth Maxwell)

In 2002, Levi Strauss entered a close business collaboration with Wal-Mart to produce “Signature” brand of jeans as well as other apparels for exclusive sale in Wal-Mart stores until 2006. It was a tough strategic decision to make for Phil Marineau, the CEO of the company. Department and specialty stores like Wal-mart were witnessing loss of back-to-school business to mass merchants. INTRODUCTION Levi Strauss & Co. (LS&CO) was founded in 1853 by Levi Strauss. In 1870s, the company started production of denim overalls.

Levi Strauss & Co. is a company privately held by the descendants of the family of Levi Strauss. The stock of this company is not publicly traded. However, the stock holdings in Levi Strauss Japan K. K. , the Japanese affiliate, are publicly traded in Japan. Levi’s employs around 10,000 people worldwide, including approximately 1,010 at San Francisco, California Headquarters. In 1994 the strategic alliance between Wal-Mart and Levis came to an end over a dispute in Canada about Levi’s Orange Tab jeans.

With this the sell of Brittania, one of Levis’ value brands at Wal-Mart, also stopped. Following this the sales of Brittania fell dramatically and it was sold to VF Corp. Since its founding, the company’s product has been synonymous with blue jeans. CONCEPTUAL INSIGHT Environmental scanning refers to acquisition and analysis of events and trends in external environment of any organization. Levi’s used environmental scanning to analyze external factors influencing their business, such as competition, market trends, labor costs etc.

These considerations were made to determine the strategic placement of product locations and channel management. The company was faced with low supplier power challenge, against the high buyer power. The strategic alliance between Levi’s and Wal-Mart was based on following the cost leadership strategy in a broad market and marked Levi’s debut at a discount chain. THE CHALLENGE “It is the same Levi Strauss store in downtown San Francisco that used ‘fit ‘em all’ which is almost empty. ” Levi’s had strong competitors on each level of the price-point spectrum.

The market share was being increasingly taken away by designers and retailers such as Diesel, Flying Machine on the higher end, while on the lower end people preferred to buy low cost affordable brands such as Target, Wal-mart. Even the middle of the spectrum had vertically integrated retailers like American Eagles, Gap. “This is a company that’s dropped in size 40 percent or so over the past couple of years. The move to Wal-Mart could be sizable. ” -Ira Kalish, a retail industry economist. Table Source- SEC Filing Levis Strauss & Company A STRATEGIC MOVE

In early 2002, Levi’s CEO Phil Marineau strategized the company’s products and operations, as a bi-pronged approach to stem the company’s declining sales. With an aim to achieving cost leadership, Marineau moved 16 manufacturing bases from North America to cheaper offshore sources. The management team also worked to rejuvenate the brand image and product placement to broaden the appeal. New Products, New Pricing , New Technology, New Channel Levi’s was facing continuous sales erosion and loss of market share. The company decided to enter the discount channel, as the most effective way to reverse its sales trend.

It was a marketplace where Levis had never sold its brands. Levis launched “The Signature” jeans priced between $18 to $24, which was 15 to 35 % less than the $30 to $35 price for Levi’s most popular basic jeans called The Red Tab, aiming to achieve cost leadership. It was a significant strategic move in the apparel manufacturer’s marketing and merchandising channel. “They’ll get the volume they’ll need to survive” – Harry Bernard, Executive at Retail Consultancy Colton Bernard. Bernard worked to modify the technology of a company to accommodate “mass channel” characteristics of big discount stores.

The supply chain at Wal-mart was also to be modified. As Bergen said, “Our supply chain could not deliver the services Wal-Mart expected”. The supply chain had to be modified the way it met Wal-Mart requirement, which were actually the customer requirements. Levi’s system lacked the ability to track the movement of product while it was in pipeline, something which wouldn’t fly with Wal-Mart. Wal-Mart was a supply chain pioneer, where products movement off its shelves was tracked in real-time, quicker than any retailer and expected replenishment on time to keep costs down.

The demand-replenishment system was improved using the Hammann credits. Another addition was the Dashboard envisioned by Bergen. It was placed on executives’ desktops. It resembled a website in interface and showed sales performance for any given product. It helped in matching demand with supply. “Now I can drill down to the product level. “- Hammann says. Levi’s also implemented AS2 technology to enable support collaborative forecasting with Wal-Mart EDI transactions. CONCLUSION The new Signature brand sold at Wal-Mart almost doubled Levi’s sales from $26.

7 million from $13. 7 million last year. The doubling of sales was further aided by decreased marketing costs, currency fluctuations and incentive-compensation costs. Levi’s successfully transformed its supply chain by adopting SCM solutions which enabled the company to partner with Wal-Mart strategically and technically. Bergen’s new systems were a great success. The percentage of products delivered on-time quickly rose from 65 percent to 95 percent. Questions & Answers Q1. Describe the various stragetic moves made by Levis in consideration of its declining market share.

Which of these strategies was closest to the concpet of “think globally, act locally” ? Q2. Critically analyze why Walmart entered into strategic alliance with Levis. Q3. Explain how a pair of the same Levi’s jeans can cost $30 in US, $63 in Tokyo, and $88 in Paris.

Works Cited http://www. allbusiness. com/retail-trade/4301546-1. html http://www. levistrauss. com/Downloads/AR_2005. pdf http://en. wikipedia. org/wiki/Levi’s http://www. levistrauss. com/Financials http://www. cio. com/article/31948/Supply_Chain_Partnerships_How_Levi_s_Got_Its_Jeans_into_Wal_Mart http://ir. 10kwizard. com/files. php? source=224&fg=24

Introduction

Wal-Mart uses a tremendous amount of information resources to build their marketing decision support systems and customer relationship management environment. Wal-Mar’s main objective is to provide their customers with the best value they can find anywhere while providing friendly and efficient customer service. Its strategies are based on reducing costs to quality products so they are able to achieve “everyday low prices” (Walmart. om, 2013). Wal-Mart has to be able to monitor and analyze all the processes and information possible in order for them to attain a competitive price advantage, lure in new customers, and retain faithful and loyal current customers. Information technology is essential today in helping companies to achieve these goals and Wal-Mart utilizes a great deal of the available information through systems and operations that the retail business encompasses (Walmart. om, 2013). Listed in this paper are the many ways Wal-Mart enlists its information from customers and how it is used by marketing managers to help make marketing decisions and enrich its customer relationship management environment.

Information Collected

Collected By Wal-Mart Wal-Mart collects information from its customers in a number of ways through the customer’s interaction, whether by in-store activity or website activity.

Wal-Mart discloses that it gathers information on customers whenever they create an account on one of their websites, make an online or in-store purchase, use a gift registry, create a mobile shopping list, or submit personal information to Wal-Mart along with any related content of the communication. In addition, they also collect information whenever the customer conducts a transaction where Wal-Mart collects information as required by law.

This could include hunting and fishing licenses, request customer service, contact Wal-Mart, submit a Wal-Mart related testimonial, review, story, rating, or any other user-generated content that may be generated on the website, or participate in a contest, sweepstake, promotion, or survey (Wal-Mart. com, 2013).

Collected By Other Sources

Wal-Mart may receive personal information from other entities that can help the correct or supplement their records, improve the quality or personalization of their services, and help prevent or defer fraud.

They may also collect information from consumer reporting agencies or other service providers if you attain certain other financial products (Wal-Mart. com, 2013). Automated Information Collection Wal-Mart also gathers technical information such as the customer’s internet protocol address, device operating system and browser type, the address of a referring website, and the path the customer takes through the Wal-Mart website.

Wal-Mart uses “cookies” to recognize you as you use or return to their website. Wal-Mart also uses web beacons that allows them to know if a certain page was visited, an email was opened, or if ad banners on their website and other websites were effective (Wal-Mart. com, 2013). Marketing Information Used Wal-Mart uses information for different purposes but for this paper we will discuss how they use information for marketing purposes. Fill requests for products and services and communicate with the customer about those requests:

•  Administer surveys, sweepstakes, contests, and promotions
• Provide customer service
• Help improve and customize their service offerings, websites, and advertising
• Send information about products, services, and promotions

Information Systems Point of Service

Sale System Wal-Mart uses SUSE @ Linux Enterprise Point of Service/Sale system that is supplied by the Novell group vendor (Information, 2007).

This system is made up of three primary components: Administration Server, Branch Server, and Point of Service Client Images. The SUSE Linux Enterprise Point of Service Administration runs Wal-Mart’s main office in Bentonville, Arkansas. It records sales from all the stores but also contains a database of goods sold through other sales outlets such as Wal-Mart online shopping. This data also comprises of information like the number of items bought by a user and similar products purchased along with other online statistics.

The Branch Server boots the Point of Service clients from the local network, registers new client devices at the website, distributes operating system updates to the client devices, and also stores the sales information as a backup in real time simultaneously as the Administration Server. The Point of Service Client is the indirect interaction between customers when they make any purchases at Wal-Mart. These devices process and record purchases and allows real time coverage of sales and inventory information for all sales.

Having this type of information gives marketing managers the tools necessary to make informed decisions about what promotions to run and on what products in real time. Retail Link Retail Link was developed in 1992 by Wal-Mart’s very own Information Technology Department (Hays, 2004). Using this software Wal-Mart can look at the take up rate for sale items, changes in the number of customer purchases, and the amount the average customer spends during a promotion. Marketing managers will know what products were being bought and what items that the customer may have added on during that purchase.

Having that information may give the marketing department the idea to do a promotion with those two items paired up together. Retail Link software can also display to vendors various key information such as the repurchase cycle time of the product, purchase quantity per basket, and provide information such as sales history and sales performance. This allows vendors and Wal-Mart’s marketing managers the ability to simulate what-if situations that can help them make more informed marketing decisions (Hays, 2004).

The information gathered in these systems give marketing managers the intelligence needed to figure out which marketing initiatives have worked in the past, are currently working, or may work in the future in order to prevent wastage of money from ineffective promotions. Wal-Mart uses these systems in order to provide customer satisfaction, everyday low pricing, and to enhance the shopper’s experience (Walmart. com, 2013). Conclusion Wal-Mart collects information on its customers numerous ways. Some sources are transactions, customer service operations, surveys, and website registrations just to name a few.

They could, however, come from other sources such as outside companies that help Wal-Mart update its records. Wal-Mart wants to communicate to its customers for feedback through email newsletters, special offers, and new product announcements. Wal-Mart also participates in interest-based advertising, which means the customer may see advertising on its website tailored to how the customer browses or shops. This type of information is essential today in accomplishing the goals Wal-Mart has of everyday low pricing and its customer first approach.

References

1. Hays, C. L. (2004, November 14). What Wal-Mart Knows About Customers’ Habits. Retrieved from NY Times: http://www. nytimes. com/2004/11/14/business/yourmoney/14wal. html? oref=login;oref=login
2. Information, W. (2007, January 24). Wal-Mart Taps Microsoft, Novell For Linux Deployment. Retrieved from Information Week: http://business. highbeam. com/137376/article-1G1-158268344/walmart-taps-microsoft-novell-linux-deployment-walmart Walmart. com. (2013).
3. Annual Reports. Retrieved February 11, 2013, from Walmart. com: http://stock. walmart. com/annual-reports Wal-Mart. com. (2013, March 3).
4. Privacy Policy. Retrieved March 3, 2013, from Wal-Mart. com: http://corporate. walmart. com/privacy-security/walmart-privacy-policy

According to Crosson and Needles the Just-In-Time (JIT) operating philosophy requires that “all resources—material, personnel, and facilities—be acquired and used only when they are need. Its objectives are to improve productivity and eliminate waste. ” They go on to sate that this process allows funds to be reallocated according to the goals of the company’s business plan since they are no longer invested in inventory. This method helps retailers like Wal-Mart “assign more accurate costs to their products and identify the costs of waste and inefficient operation” (2011).

And from the looks of things…Wally World knows what its doing. Wal-Mart utilizes JIT throughout their stores by having extremely flexible time slots for hourly employees and through contracting with whole sellers. This allows the company to move away from the ‘just in case’ strategy and meet demand as it occurs (Hubpages). This affects their vendors in that Wal-Mart will partner with wholesalers only in order to receive the lowest costs possible on goods. They will also be able to put in orders for items as needed without having to go through a ‘middle man’ in order to meet the demand of their consumers.

It’s cut and dry. Like most things in business there always seems to be a very dark cloud inside a silver lining. Wal’Mart’s smart business decisions have lead to a monopolization of several local industries, seriously jeopardizing small businesses across the nation. There are labor issues and people across the country actively boycott the superstore…But at the end of the day, most American’s are cheerfully spoiled by the, everything, right now, and cheap mentality.

And three days ago, I went into to Wal-Mart, picked up a prescription, bought a facial exfoliate, a baby shower gift, and some veggie burgers…. It’s a hard truth. Convenience wins out :-/ Crosson, S. V. , & Needles, B. E. (2011). Managerial accounting. 9th Edition. Mason, Ohio: South-Western Cengage Learning. Hubpages. (2010). Why physical distribution is the key to Wal-Mart’s marketing strategy and lower prices. Retrieved from http://s10ecbiztalk. hubpages. com/hub/keytoWal-Martsmarketingstrategyandlowerprices