Managerial Application of Information Technology

The purpose of this paper is to discuss the managerial application of information technology. In this paper, information technology has been discussed with respect to the problems faced by an organization. The organization that has been chosen for the analysis of information technology is Wal-Mart.

Wal-mart

Wal-Mart is operating in as many as 10 countries outside the United States. Asian market has provided Wal-Mart with diverse opportunities. The company has already started its operations in Japan, Korea, and China. In the European Market, Wal-Mart has started its operations in British and German market. In addition, the company is also operating in Mexico, United States, Canada, and Puerto Rico (Lohr, pp. 10).

Wal-Mart has operated successfully in the United States market. The aggressive supply chain strategy of Wal-Mart i.e. 'pile it high and sell it cheap' has not worked successfully in all foreign markets (Cassidy, pp. 6). The differences in market conditions and consumer preferences had a significant impact on the expansion plans of Wal-Mart. The structure of European markets differs from that of North American markets. The productivity of European markets is less than that of North American markets (Freeman et al, pp 486).

The differences in market-structure have influenced the success of Wal-Mart operations in different countries. German market has been characterized with an oligopolistic structure. The German market has been concentrated by key market players. In addition, the market structure of Germany does not offer profitable opportunities to retail stores. Wal-Mart failed in the German market because of its blunders including entry-by-acquisition strategy and bad publicity (Gosman and Mark, pp. 179).

Wal-Mart also confronted differences in market structure in the Chinese market. The retail market of China is significantly different from the United States market. The retail market of China is highly fragmented. The cultural idiosyncrasies of the Chinese market are significantly different from that of the United States' market. The socio-cultural characteristics of the Chinese market are not uniform therefore it is difficult to predict them (Gosman and Mark, pp. 179).

The major stakeholders of Wal-Mart include its customers. Wal-Mart has given attention to the needs of its customers in niche market segments. According to the suppliers, Wal-Mart can present every detail of its operations to provide best savings to its customers. In an attempt to offer low-priced products to customers, the suppliers of Wal-Mart have even downsized employees. The process of satisfying stakeholders is difficult for almost every international business. It is because the needs and demands of stakeholders are different in different countries. In order to satisfy its stakeholders in different countries, Wal-Mart needs to make adjustments to its retail strategies. It is because the same strategy could not result in success in every part of the world. Asian economies are generally characterized with political uncertainties. Therefore, Wal-Mart is likely to confront diverse political risks in these regions (Stone, pp. 39).

Wal-Mart's code of conduct involves achieving its business objectives along with the collaboration of stakeholders. Wal-Mart's code of conduct also includes bringing positive changes to the ...