The firm has never faced any significant crisis. Even when Wal-Mart was a small regional chain, it was still successful. Wal-Mart's decision making horizon is typically very short. While it has larger strategic goals, most of Wal-Mart's success is driven by short-term decision making, specifically with respect to merchandising and with respect to purchasing.
One of the reasons why Wal-Mart has been able to operate with such a simplified decision-making process is because all decisions have the same base objective - to lower costs. This singularity of purpose almost entirely eliminates goal conflict. If you examine Wal-Mart's situation vs. The rational decision making process, you can see that the company meets most of the criteria that are the assumptions of rational decision making. This means that almost all decisions made at Wal-Mart are purely rational, thus driven by cost reduction and with strong information.
Wal-Mart eschews group decision making. Enculturation is key...
Since the 1970s, the global retail clothing industry has experienced intense international competition and major shifts in the pattern of consumer demand. These pressures have had far-reaching implications for the clothing industry in the areas of pricing, design, quality, manufacturing processes and employment (Rath, 2002). According to this author, "In the 1970s, traditional manufacturers, particularly High Street retailers with their own manufacturing capacity, found themselves unable to compete with low
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