ACCG 828 Management Control Systems
Added on 2020-05-04
4 Pages751 Words57 Views
Running head: ACTION CONTROL SYSTEM FOR WALMART 1Action Control System for WalmartNameInstitution
ACTION CONTROL SYSTEM FOR WALMART 27. 1 Control at Strategic management levelWalmart is in compliance with requirements of the corporate laws given by compliancewith Company Act and US SEC rules. It has embraced best practices utilizing the corporategovernance principle. It is suggested that Walmart has to embrace the nomination committee toguarantee meaningful deliberation on future needs of its leadership. Shareholders need to electdirectors with competence and required knowledge and skills to meet future needs. The firmshould both diversify product mix and engage in service business. Walmart’s nominationcommittee should have three non-executive directors and should be meeting thrice a year toensure effectiveness. Walmart should take the advantage of its clear mission statement to driveits future diversification. Diversification will see Walmart boost the variation and scope ofbusiness hence become more competitive but this will need no additional non-executive directorshence no additional costs (Merchant & Van- der -Stede, 2012). The firm should induct the newlyelected directors. The firm should monitor and evaluate the performance of each director throughthe board. They need to use performance-based compensation packages for executive directors.Having CEO and chairman in Walmart gives effective control at the top. I am gratified byWalmart’s use of stock options based on prolonged period of investment to evade short-termism.Walmart should use measures like EPS and ROI to guard on incentives attachment to fewfinancial performance measures. Balance scorecard should be used to integrate broaderperformance to drive sustainability in growth. Walmart to use productivity measures includingsales per square of occupied area, quality of work life measures as employee turnover and repeatbusiness from customers as a measure of customers’ satisfaction. Such controls will guaranteeachievement of goals and objectives. 7.2 Controls at Tactical and Operational Management level
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