Managerial Economics Case Study

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BA525 Managerial Economics: Week 7 Assignment 1 The supply chain is a core aspect of any business. In perspective, it involves coordination of the various business functions within a company. This is to improve the long-term performance of the company and offer better coordination of the company’s goods along the supply chain with suppliers and clients. One such business where the supply chain works effectively is Wal-Mart. Its successful chain management strategies has led to lower product costs and offered competitive prices to the customer. It has amazingly streamlined its purchasing, operations and integrated distribution. They humbly began by availing goods on demand by customers. That is, where and when they wanted them. This they achieved…show more content…
The company’s masterstroke saw it establish a strategic partnership with the bulk of its vendors. They offer them the assurance for high-volume purchases and in exchange for lowest prices possible. Wal-Mart has also embraced technology to help in supply chain efficiency (Lu, 2014). It has for instance implemented the use of Universal Product Code bar codes. This sees the collection and analysis of store level information. There are also analysts whose objective is to forecast supplier demand to supplier network. What it does is to relay t data to Wal-Mart distribution…show more content…
The customers are unique in their own ways and as such handling the needs of a group of unique individuals might prove to be a handful for any business. However, the task is able to segment itself into several portions that the business can easily handle. The segmentation bases its core characteristics through market segmentation. Market segmentation involves categorizing the large market into several smaller groups of individuals who hold similar needs and priorities, before embarking on satisfying their needs. The categories may vary from gender, age, geographical location, religious affiliation or even other businesses. This business venture handles household goods and as such, the market covers a broad range of consumers. The consumers vary from children, women, men, enterprises and other businesses as well. The business deals with almost every household good in the market as well as professional goods. Professional goods in this case refer to goods used majorly in offices and other business settings for instance industrial processes. In light of this fact, the business must have detailed segmentation of its customers as well as proper reaction to the needs of its customers (McDonald & Dunbar, 2012). The task of dealing with its customers is large since the consumer pool is also

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