Wal-Mart, the famous business in the world, offers an outline for a global economic order. Its success in the competitively business world has been driven by the effective use of control mechanisms such as control cycle, management audit, budgetary control and financial controls.
The Control cycle: Wal-Mart incorporates control cycle mechanism standardized and constantly evaluated to satisfy the needs of its clients, workers and suppliers. It also enables the corporation to successfully flourish as well as improving the workers and supplier confidence.
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Management Audits: Management audits are significant for corporation success. Management audits help Wal-Mart reduce prices, moreover, enhancing its competitive edge. Since Wal-Mart’s is a large corporation, management standards are audited continuously to increase revenue. It also helps to ensure the corporation is audit compliant.
Budgetary Controls: Budget control is crucial in Wal-Mart, due to central organization funding cut backs and increasing costs. Budgeting is a management tool used for controlling and monitoring process. Separate budget are usually prepared for recurrent and capital expenditure. There is clear rule for ordering materials and services and also purchasing practices is being reviewed periodically. Read also "Is WalMart good for America" essay
Financial Controls: Financial control in Wal-Mart help establishing processes, systems and controls to ensure efficiency in the utilization of the resources and that the corporation programs are accountable to the general public. Audited financial statements and management assurances, have intensified the focus on enhancing financial processes and internal controls within the organization (Drzerniecki & Augustini, 1993).
Drzerniecki, J.H. & Augustini P., (1993). The coming electric Wal-Mart. Public Utilities Fortnightly, 28-30.
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