Managers make resolutions, which influence daily operations and long-term productivity of their firms. The decisions usually comprise of choices aimed at accomplishing anticipated results. The features that influence decision-making consist of competitive environment, financial circumstances, and organizational culture (Ferrell and Michael 23). Every manager should bear in mind these factors before making particular decisions.
There are specific questions that managers should answer before coming up with crucial managerial resolutions. Firstly, the executives should identify the economic condition in a particular market. For instance, before Wal-Mart launches a specific product or a service they must analyze the financial situations in their target market (Gopalakrishna and Ram 263). The analysis will offer information regarding market structure, supply and demand, and technology.
During such decision-making processes, Wal-Mart’s managers should also query if the firm should be in business. Through this, the company will be able to identify the prices they will offer for their goods and services. The initiative will also enable the company to identify their output and analyze their competitive advantages in the market.
The corporation should also investigate further economic conditions in their target market. The company should conduct a PESTLE analysis to understand their business environment. The tool will be used by the executives in evaluating the market and assessment of external factors that have an impact on the profitability of the company (Hill and Melissa 45). Its objective is to identify the threats and weaknesses, which aids in the SWOT analysis (Thompson and Frank 98). A PESTLE analysis on Wal-Mart indicates that the company enjoys some positive macro-environmental factors, which includes proper US government policies, favorable legal policies, low-interest rates, and minimal inflation levels (Gopalakrishna and Ram 263). The rights of ownership and other legal framework ensure that company’s patents are protected. The presence of a stable government motivates and attracts both local and international investors.
The other questions that should be investigated by Wal-Mart’s managers involve the strategy to be used to maintain their competitive advantage. In the past, the company has depended on its low-priced goods and services to gain a competitive edge over its rivals. Wal-Mart also employs product differentiation to increase the demand for its merchandise and services. Their goods are designed with unique and attractive features. Through these queries, the firm can further identify other strategies that will enable them to increase their competitiveness (Shankar and James 32). As such, they should analyze their market niche, possible mergers, and international perspectives.
Lastly, Wal-Mart should investigate the risk involved in any initiatives before coming up with crucial managerial resolutions. For instance, before the company opens additional stores overseas it should analyze the political risks posed by the target market (Gillespie 30). The company also monitors the changes in demand and supply conditions and alterations in interest and inflation rates. Through this approach, the firm has been able to come up with sound management decisions. In the future, Wal-Mart should also consider the technological changes and the effect of competition in their target markets.
Based on the above illustrations, it is apparent that managers should answer crucial business related questions before coming up with crucial managerial resolutions. The questions focus on choices aimed at accomplishing anticipated results. The queries indicate the financial circumstances, competitive atmosphere, and organizational culture of a particular market. Therefore, Wal-Mart’s managers should bear in mind these questions before making particular decisions.
Works Cited
Ferrell, Ogop and Michael Hartline. Marketing Strategy. Boston: Cengage Learning, 2010. Print.
Gillespie, Andrew. Business Economics. Oxford: OUP, 2013. Print.
Gopalakrishna, Pradeep, and Ram Subramanian. “Understanding Virtual Value Chains In A Retail Environment: A Case Study Of Wal-Mart”. IJPQM 3.3 (2008): 263- 267.Print.
Hill, Charles and Melissa Schilling. Strategic Management: Theory: an Integrated Approach. Boston: Cengage Learning, 2014. Print.
Shankar, Venkatesh and James Hamilton. Handbook of Marketing Strategy. Cheltenham: Edward Elgar Publishing, 2012. Print.
Thompson, John and Frank Martin. Strategic Management: Awareness & Change. Boston: Cengage Learning, 2010. Print.