Production And Management
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All organizations must control their operations and stay ahead of their competition. Through the production and operation system businesses provide effective products and services to their customers based on their needs and demands. The production goals of every business focus on producing products, as well as producing the best, the fastest, and at the least cost. Boone and Kurtz (2011) stated that that the purpose of production and operations management is to manage the application of people and machinery in converting materials into finished goods and servicesproduction and operation management.
Describe a major global corporation: (1) a leading manufacturer or (2) a major retail or restaurant business. Describe the type of business, market share, financials, size, and global presence.
Wal-Mart operates a multi-billion business. Unlike other department stores, Wal-Mart is known for its four retail categories; its Wal-Mart Supercenters, Discount Stores, Neighborhood Markets, and Sams Club Warehouse Stores. Wal-Mart Stores, Inc., is the largest corporation in the world, from small-town business to multinational business, the retail giant, has more than 10,020 retail units under 60 different banners in 28 countries (Ferrell, Fraedrich and Ferrell, 2011). The giant retailer sells a broad selection of products at lower prices than competing retail outlets, and offer pleasant and convenient shopping in 36 departments. Wal-Mart stores operates on an “Every Day Low Price” philosophy and are able to uphold their low price structure through meticulous expense control. While other major competitors typically run 50 to 100 advertised circulars per year, Wal-Mart produces only 12-13 major circulars per year (
Although Wal-Mart holds a huge amount of market share, the retail giant continues to search for ways to create more revenues faster than its competitors. Market share can be define as the percentage of an industry or markets total sales that is earned by a particular company over a specified time period (WorldatWork, 2007). During the recession the corporate giant takes advantage of economic downturn as an opportunity to gain market share. Wal-Mart has gained 15% of retail grocery sales in the United States in less than 10 years. According to CEO Lee Scott, Wal-Marts seeks a 30% share of grocery sales and any other product line it carries (Ferrell, Fraedrich and Ferrell, 2011). President of the consulting firm, Customer Growth Partners, Craig Johnson “estimates that since January, 2009, Wal-Marts share of the $3 trillion U.S. retail market, has edged up to 11.3%, compared with 10.5% during the same period a year earlier” (money.cnn.com).
The years 1990 and 1992 were significant years for the company. Wal-Mart was first in sales among US retailers; and in 1991 sales reached nearly $44 billion up 35% from 1990. Profits for 1991 were $1.6 billion, up almost 25% from 19910. In the financial year ending January 31, 2011 the company recorded total revenue amounting to $ 421, 849 million compared to $ 408, 085 million in financial year ended January 2010. Due to increased revenue the companys operating and net income also increased (Barringer and Ireland, 2010). With its focus on keeping costs low to attain its “everyday low prices”, Walmart has attract 100 million shoppers at its 3400 American stores every week. The company employs 1.3 million associates worldwide, and it is the nations largest employer, with a turnover rate of 44 percent.
According to Boone and Kurtz, (2011), companies that engage in expanding their business into the global market, “can increase profit and marketing opportunities”. Most large corporations like Wal-Mart have found it necessary to market their businesses globally. The worlds largest retailer has expanded its global industry in order to promote the sales of their products. In 1991, Wal-Mart open it first international store in mexico, smaller version of Sams Club. Two years later Wal-Mart International was established This was a huge success for the corporation. In the year 2006 over 40% of Wal-Marts stores were internationally located. Today, Wal-Mart continues its international operation improving lives through social and environmental empowerment, and economic.
Describe the companys production or operations management
Production can be define as the total process by which a company create finished goods or services (Boone and Kurtz, 2011). Wal-Mart ensure its products satisfies its customers, and are produce effectively and reasonably Wal-Mart must Production is not limited to the manufacture of goods, it applies to both the service and manufacturing sectors of the economy. Wal-Mart has been working with non-governmental organizations, government agencies, suppliers, retailers etc., in order to understand and improve the sustainability of their wide variety of products so the company can help their customers save money and live and live better.
Wal-Mart believe in producibility, the degree to which its products and services can be manufactured for its customers within the companys operational capacity. The company also believe in quality products