Difference Between Ma-Mart And Walmart Decision Making

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Introduction Decision making is the process of identifying problems and opportunities hence will lead to a corresponding reaction. Many decisions that are made today operate in a world filled with risk, uncertainty and profit (Frank Knight, 1921). Decision makers contribute help, achievement or disappointment to the business association and furthermore rationality is bounded. This literature will be reviewing on Kmart and Wal-Mart decision making. Individual Decision Making In the approach of individual decision, managers or employer use different model process and result in different conclusions, not based on a rational choice but of their personality, management style and experience. (Keen and Morton, 1978). Bureaucratic model is a model…show more content…
Conaway, chief executive of Kmart, who were once a popular publicity from consumer value store. Mr. Conaway uses his previous experience and has made a negative decision for the organization. In order to compete with the success competitors such as Wal-Mart or Target, he allowed Kmart to get caught between pricing strategies. Leaflet is not distributed to attract or alert customers, around 40,000 product prices were slashed and Kmart advertise “Kmart prices is lower than Wal-Mart”. These were gusty decisions. Conaway’s clear choice still left Kmart prices higher than Wal-Mart as Wal-Mart fight back by decreasing its prices more. Given this fact, Kmart slowly lose its customer, 284 stores were being shut down and 22,000 Kmart employees were fired. Mr. Conaway decision roles were a disturbance handler where pressures such as financial crisis and lots of goods were unsold. As a result, Mr. Conaway got fired and Kmart have to declared bankruptcy. Group Decision…show more content…
Wal-Mart’s employee were been introduced to the standardize work plan and company’s confidential profit and loss statement is being shared. Therefore employees are able to get a view of company expenses, making relevant and optimizing decision that helps in cost-control. Though decision making is not just a routine process, decision makers have to pay attention whether they have violated or respect ethics. Even Wal-Mart is so successful; Wal-Mart faced a law suit by abusing and improperly disposes hazardous material in California. This is an unethical action. In order to resolve this news, Wal-Mart pays $27 million to settle law charges (Environmental Leader, 2010). This has caused a bad reputation for its organisation. Conclusion Looking at the different decision type and model Kmart and Wal-Mart had used; the results of both are different. Kmart failed to be successful and still trying to build up its store in US. Looking at the strong competitor, Wal-Mart till now is still the top USA cheap superstore. The decision made for an organisation will impact in the short or long

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