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Free Wal Mart Control Mechanisms Essay Sample

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Control mechanism can be defined as strategic variables that are used to manage ongoing channel relations and service as the main building blocks for the organization of exchanges between members of a Channel. Being a company that is reckoned by money due to large profits they make, it will be much surprisingly for such to lack even one of the strategic controls.

The identified control mechanisms mechanisms that are being used at Wal-Mart are; market control, manager audits, clan control and performance standards. Each of the control is much important in effective thrive in the business world. Market control , its comprehension is much essential for the examination of positive and negative reactions. involves the mechanism of pricing to control activities. It applies also to economic transactions; organizations use economic forces and pricing mechanisms so that they can control performance for the price reduction.  This usually helps in the establishment of market controls at corporate and business unit levels. Wal-Mart has engaged in price reduction for attracting new customers and clients to do the high drug prescription costs and a lower number of uninsured customers. By the use of economic powers, like high prescription costs and low number of Americans who are uninsured, the corporation has reduces prices by implementing market control, (Bateman, 2007).


Clan control engages culture, believes trust among others. The kind of control works well when there is no other alternative way of doing something. It usually empowers employees to make the right decisions. The presence of values in most cases empowers employees hence, given titles within an organization. This also makes employees feel valued and vested in the firm. Furthermore, employees are granted opportunities to assist in the stock purchasing, on top of incentive grant to employees who report theft cases. In general, clan control assists in driving Wal-mart to have a competitive edge at the market place, (United Arab Emirates, 2008).

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Another mechanism s external/internal control mechanisms; the corporation operate by the implementation of foundation management, that includes organizing, leading, planning and controlling.  The incorporation of management functions helps in the development of control mechanism.   The performance of internal and external audits evaluates the performance. The establishment of audit committee that responsible for the maintenance oversees internal control by just looking at financial statements for the whole organization. Such implementations are capturing the supply issues and with technology auditors, who can determining frauds with a second.  The creation of effective internal audit system by the use of quality assurance methodology minimizes the risk of every store location, (Docshare, 2010).               

Performance standard; the first step in establishing controls involves the creation of performance standards. After many years of experience, Wal-Mart has implemented experienced performance standards at work place. The performance standards proclaimed has been used to set lofty goals through energy, health care and ethical policies. In general, Wal-Mart has created performance standards to ensure that consumer needs are met, specifically in the field of energy efficient products.   Wal-Mart has created a set of standards that incorporate similar standards with these set by its suppliers. Currently, Wal-Mart is coming up with environmental and ethical standards on its suppliers only undertaking business with companies that are compliant, (Echeat. 2006).

In comparing and contrasting the mechanisms, since Wal-Mart is a larger cooperation, market control helps in increasing its competitiveness hence with consistent performance standards both increases revenue. This is on the basis that consumers we look for these with lower prices and products of standard, hence having a perception that their needs are satisfied. Being a large corporation, Wal-Mart has to protect its products by carrying out audits both internally and externally; to ensure that the organization is audit compliant. In order to ensure compliance, the organization culture has to be controlled to ensure creativity and innovation.

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