A-AS Level (CIE) Business Studies Paper-2: Specimen Questions with Answers 27 - 28 of 52

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Case Study-5

Walmart՚s organizational structure determines the company՚s business activities. Currently, these activities are mainly in the retail industry, including operations in the e-commerce market. The company՚s corporate structure also imposes limits on how the business addresses its problems. Structural characteristics help facilitate the company՚s strategic implementations in capturing a bigger share of the retail market. In relation, Walmart՚s organizational culture determines the way people respond to challenges in the workplace. The resilience of the company՚s human resources partly depends on the mindset supported through the corporate culture. Cultural features help the retail business adapt to changes and emerging challenges in the international market. The long history of Walmart Inc. in succeeding and continually growing internationally shows that the firm՚s organizational structure and organizational culture are helpful in bringing competitive advantages and success. The organizational structure interacts with the organizational culture to maintain the significant competitive advantage of Walmart against other firms, such as Amazon and Target, as well as Apple, Google, and other technology companies that have major online digital content distribution operations.

Question 27 (4 of 5 Based on Passage)

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How Walmart will maintain its competitive advantage against other firms?

Explanation

Firm maintains its competitive advantage through low cost sustainability and Sustainable differentiation strategies. Low cost sustainability strategies include use of sustainable inputs which are long term efficient, lower energy consumption and require lower material storage and disposal costs. Access to pro-sustainability investors and improved regulatory compliance also forms a part of low-cost sustainability. Sustainability differentiation strategies include improved brand image, sustainable service development, sustainable product development. A firm can achieve competitive advantage through:

External Changes

  • Changes in PEST factors
  • Firm՚s ability to respond fast to changes

By Developing It Inside

  • VRIO Resources
  • Unique Competencies
  • Innovative capabilities

Question 28 (5 of 5 Based on Passage)

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Short Answer▾

How a business adapts to changes and emerging challenges in the workplace?

Explanation

Market share is the percentage of that one company՚s product takes of the total dollars spent by consumers on product within a specific market category.

Share can be reflected as either percentage of sales dollar (most common) percentage of units sold or percentage of customers.

Firms can capture bigger market share through:

  • Building referral programme to acquire new customers.
  • Increasing engagement with the customers
  • Staying ahead of the competitors
  • By developing a unique brand position in the market
  • Marketing should be done for niche audience

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