A-AS Level (CIE) Business Studies Paper-2: Specimen Questions with Answers 25 - 26 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 25 (2 of 5 Based on Passage)

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Short Answer▾

Explain the terms:

a. Corporate Structure

Explanation

A corporate structure consists of several departments which contribute towards the overall mission and goals of a company. Some of the common departments are- Marketing, Human Resource, Finance, Operational Research etc. These divisions depict the department within a company which may be further divided into smaller departments. There is typically CEO, board of directors, directors of each department, company՚s president, vice president. There is a great diversity in the corporate structure from company to company.

Process of CEO

Question 26 (3 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

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