Essays on Roles of Leadership and Management in Wal-Mart Case Study

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The paper 'Roles of Leadership and Management in Wal-Mart" is a good example of a management case study. Wal-Mart has championed as a company with an extraordinary success story in the dynamic market. Starting in the mid-1960s the company has outstretched its limits and emerged as the world’ s largest corporation. The discount retailer typified by the mantra; everyday low prices, has managed to garner customer confidence and boost its revenue base. Employing over 1.3 million in its 382 store outlets it dominates over 8 percent of the retail stores in the U. S., earning a capital investment of about 14.7 percent.

Evidently, the company has sustained its profits over the years against rival companies such as Kmart and Costco. Its superiority reflects on its competitive advantage based on its successful implementation of sustainable management strategies. In the onset of 1962, the company emerged as a retail store that offered self-service supermarket to its customers. Initially employed by grocery outlet the company successfully implemented the strategy against other companies. As opposed to its rivalries that focussed on the urban and suburban locations, the retail store concentrated in the small towns.

In the long run, Wal-Mart grew exponentially fast with lower pricing than the local mom-and-pop retailers. Nonetheless, there is much more to Wal-mart’ s location. The company has effectively maintained its innovation in logistics, human resource and information systems. Taken together, they have maintained the company’ s competitive edge that has resulted to lower cost and higher productivity. Principally, it has earned significant profits whilst its low pricing strategies. As a market leader, it backed its strategies by implementing effective information technology comprising of bar codes and checkout scanners. Human resource initiatives played a significant role in improving employee experience and compensations programs.

Through sound management practise Sam Walton advocated that the employees are subject to better rewards in improving the company’ s work experience. Underpinning this belief, the management referred to employees as associates. An establishment of a profit-sharing scheme enabled the employees to purchase the company’ s stock as discount prices than its market value. Wal-Mart’ s rewards were realised by high employee productivity, overseeing the reduced operation cost and high profitability. Compounded by effective leadership the company is able to succeed in all its markets.

Nonetheless, sound management practice has fuelled the creation of sustainable and workable planning system throughout its stores. It's budget and control system has maintained effective project management systems in various dimensions. It's budget and control system has facilitated the avoidance of overstocking in its stores, as such; the company does not hold periodic sales in shifting its unsold units. Nonetheless, its information system is linked to the nationwide distribution network that ships and stores its merchandise in a 300-mile radius. The consolidation of distributions centres and the information centres has enabled the retail company to reduce a considerable amount of inventory in the stores. Analysis Distributed Leadership Roles of leadership and management have complemented each other in attaining the organisational success at the retail company.

Wal-Mart’ s managers and leaders have worked in close relationship in ensuring the company’ s smooth operational process. In a nutshell, strategic leadership is linked towards the strategic – making process that augments a company’ s performance hence, increasing its value of the enterprise to its owners. Pursuant to increasing shareholder value, the managers have to incorporate strategies that increase the company’ s profitability on a larger scale.

In attaining this success, a company must outperform its rivals, and attain effective competitive advantage in the long run. Burns asserts leadership types emanating from transformational leadership and transactional leadership (Burns, 1978). In essence, transformational leadership changes people’ s lives in which the leaders operate. Transactional leadership affects is centred in the various transactions conducted with the leaders with their subordinates. It functions as a give and takes the form of leadership where the leaders reward or punish affected individuals.

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