Disciplined management, Employee Participation and Organizational Success
The store has also given tough competition to other retail stores at global level mainly due to its distinctive competence. In oppose to this, the store has observed a slight decline in its performance in the market. The foremost reason behind this was the store inability to manage discipline among its employee. It has furthermore mentioned that Wal-Mart did not provide any sort of benefits or high pay scale to its employees as compared to other retail stores such as Costco. As a result, a conflict between employees and top management arise that becomes severe due to inability of store in providing trainings of discipline management.
Role of Strong Competitive Advantage in Directing and Motivating Organizations
According to Gottschalg and Zollo, it is very crucial for organizations to obtain competitive advantage. The need to obtain competitive advantage is to dominate power over rivals and to motivate organizations in the right direction. It has furthermore stated that strong competitive advantage is a key to survival in the marketplace. As prescribed by Wagner and Hollenbeck, competitive advantage referred to a skill or an ability of organization in performing certain activities that no other player in the industry can perform better and in an economical manner. Similarly, Aldrich also supported the role of competitive advantage in directing and motivating organization by stating that without obtaining competitive advantage it is not possible to endure tough competition of the market place. In view of Miller and Le Breton-Miller, achieving competitive advantage depends upon two factors that are, degree of differentiation and economies of scale and for organizations to survive for long term it is mandatory to obtain either of the factors. Macey et al argued that the skills of managers in formulating and implementing strategies and the ability of leaders to manage change effectively play a major role in the motivation of organizations.