Reference no: EM133007472

Case Study

One of the most successful departmental stores in America is known as Wall-Mart stores and is named after its founder Sam Walton. Because of the phenomenal successes of these stores, Sam Walton became one of the richest men in America. Also, because of the leadership, the stores have enjoyed continuous growth and expansion, so that by mid-1980 the chain had over 700 stores and was increasing at the rate of an additional 100 stores per year. Its sales increased annually by over 30% and the profits have soared close to 40% per year every year since 1975.

Sam Walton, until he died in 1992, took personal interest in the employees. His managerial philosophy was to get the right people at the right places and then give them the freedom to be innovative to accomplish their tasks. He called his employees as associates and treated those associates. As per company policy, all associates are eligible for profit sharing plans that motivated the employees further. The managers of the stores are required and encouraged to meet with their employees in a social setting to discuss their concerns as well as issues of organizational interest, and this makes the employees feel that their input is taken seriously by the management.

Sam Walton himself led a simple life. He did not exhibit any aura about himself, giving the employees a feeling that he was one of them. He and his executives regularly travelled in company owned planes to visit Wal-Mart stores situated at various sites across the country. He met with sales clerks, stock boys and sales managers to find out what items were popular. He knew most of them by their first names and addressed them so. He initiated "employee of the month" in all categories and created honor roles for more successful stores. This created inner competition requiring extra effort to improve sales and service. This policy gained high respect for him as a leader.

Q1 Strategic leaders have the ability to anticipate events to bring about strategic change. Along with this trait, which of the following are also correct in reference to the case?

a. Envision possibilities

b. Maintain flexibility

c. Empower others

d. All of these

Q2 Strategy is not static but evolves in response to changing needs. "Which of the following is not correct in reference to this case-

a. In order to achieve competitive success in future, existing ways of competing and thinking are not enough.

b. Organizations need to realize the importance of innovation and adaptability in order to survive competition.

c. The changing choices and demands of consumers, demographic structure of environment etc demand continuous strategic planning.

d. None of these

Q3 Which of the issues are important to cope up with the situation?

a. A dominant ceo affects the strategic choice

b. An appropriate strategy

c. Strategic interrelationship, power and structure mechanisms

d. All are important

Q4 Which of the following needs to be taken care of at the Wal-Mart?

a. Growth and profit potential

b. Gaining competitive environment

c. Sustaining competitive advantage

d. None of these