The Secret of Success of Wal Mart Research Paper

The Secret of Success of Wal Mart - Research Paper Example Wal-Mart’s large size and high purchasing power enable the company management to access customers from all over the world and the rest of the US. It also has an incredible team of executives who form its leadership. This has equipped Wal-Mart with the management of high caliber. The Company spends its resources carefully with the aim of maximizing their margins while reducing costs. The company focuses on strategies such as every day low prices that helped it stay ahead of its competitor. More so, the company’s retailer opened new small stores, which helped it overcome its competitors such as Amazon.com and dollar stores. It faced tough competition from these companies but it managed to make profits. The function of Wal-Mart’s reward system is to attract, motivate, and retain skilled and experienced employees. Wal-Mart’s reward is effective since it guarantees fair treatment of all employees. Wal-Mart management announced in 2012 that it was going to disburse close to one million dollars in benefits and bonuses to its workers within the United States of America. This shows a monetary reward that the company is able to give its employees in order to motivate them to work hard as the company continues to come up with new products for its customers. In addition to the total monetary reward system, Wal-Mart has come up with a unique social responsibility culture. Such sense of giving back to the community has been weakened by employee turnover rate. This reward system is effective since the company helps community directly without dishing out money. In addition, as part of Wal-Mart’s employee compensation program, the company pays or offers some premium for its employees or workers. This program aims to ensure that each employee is access to cheap healthcare despite the rising costs of health care. Wal-Mart uses employee compensation based control mechanisms in allevi ating possible employer and worker opportunism.