The U.S. is in a shrinking economy. Many plants are closed and many people are unemployed. The big retailers change their suppliers from U.S. manufactures to the developing countries’ manufactures, which cost much less. The competition between the suppliers( manufactures) is more intensive. The supplier has less prower is retail business. The market is shift from supplier dependence to buyer dependence, which means the buyer/ retailer has more prower. They very know their customers’ needs and wants, and they determine what the manufactures should produce, including the specific product, the schedule, the quality, and the price. Retailers are now more powerful than manufacturers, and they are forcing the decision to move production offshore.2
Dog-eat-dog environment. High competition. High change rate, not able to forecast the trends. What is the driving force to make the industry changing.
(focus on the text-book’s idea). Tied into the dynamic environment. Complex!
The system relationship.
Organization environment. Recourses the company has.
The player in the film suggests the Walmart is using pull strategy, which the want. And the player thinks this way is more efficiency and increase U.S. productivity as well.
a. In my opinion, Walmart is belongs to the shareholder model. The main reason is, Walmart strives for the lowest cost and gives the best price to its customers, in order to do the best business and maximizes profits, shareholder wealth and satisfaction. Walmart to its shareholders’ socially responsible satisfied the shareholder model definition.
b. Walmart’s shareholders gain the most from Walmart’s business strategy.
a. Walmart’s business model is to sell a wide variety of merchandise to customers at great prices. The principle of Walmart’s business model is Delivering Everyday Low Price (EDLP). b. Example 1: Walmart uses information