Effect of IT on Organizations Effectiveness Free Essay Example, 8250 words

Business- Wal-Mart's core competency is having the lowest prices in the discount retail industry. Sam Walton found his niche by locating Wal-Mart stores in rural towns then growing into suburban areas where there is a demand for discounted retail items. Wal-Mart uses a cost leadership strategy against its competitors. (DeRuyter, K., Wetzels, M., Kleijnen, M. (2001, 190) Corporate - Wal-Mart has taken action in continuing to take a growth strategy in building new stores throughout the United States and also building and acquiring stores throughout International markets. Policies - Makes things available to the customers at a value. Team oriented associates, providing treatment to one another other and the buyers as they want to be treated. (Walmart Website, 2008) Wal-Mart is known for promoting people from the inside. It is evident here with top managers. (Shneiderman, 2005, 65) Most of the top managers with Wal-Mart have been with the company several years prior to the positions th ey are in right now or they have had experience with their particular position. The bottom line is that Wal-Mart does hire internally for positions all the way up to top management. We will write a custom essay sample on Effect of IT on Organizations Effectiveness or any topic specifically for you Only $17.96 $11.86/pageorder now There are negative economic situations that Wal-Mart is currently facing. There is the rising cost of energy which is affecting the prices of gasoline and electricity. These added costs have led to increased transportation costs of goods from distribution warehouses to the stores not only in the United States but in the foreign markets as well. (Stephens, 2007, 287) Another situation is that the increase of consumer debt and unemployment decrease discretionary income leaving less total products purchased. (Kanter, 2006, 97) With regards to the International markets, there are currency fluctuations in those foreign countries and the fall of the value of the U. S. Dollar which impacts the transfer of American products to those stores. Along with that, there also continuous changes with tariff rates and costs of freight. Wal-Mart is also facing trade restrictions trading with countries outside of NAFTA.