Walmart Case Essay Example For Students

Walmart Case Essay Definition of Main Problem: There can be no argument that Wal*Mart has revolutionized the discount retailing industry. Furthermore, CEO Glass and COO Soderquist have stepped in at the helm of this company and continued to take it in the right direction by quadrupling sales and profits from 1987 to 1993. The main problem they now face is how to sustain their phenomenal performance, and becoming number one has magnified this issue. No longer can they just sneak into small towns where the only competition is the local merchants shop. No longer can they copy larger companies like Sears and J. C. Pennys because of their size and scope. The fact is, Wal*Mart is bigger than these companies and their direct competitors Kmart and Target are doing everything in their power to close that gap. They are lurking not so quietly in the shadows, benefiting from Wal*Marts past choices, successes, and failures. They are there to blow the whistle if Wal*Mart steps outside the lines. Wal*Mart may be growing, but at a rate under 10% for the first time in years. Shareholders are concerned, the press is relentless, and many obstacles lie in their path if they hope to continue the trends Sam Walton set so ambitiously in 1962. Analysis: With one of their main issues being sustained profitability, Wal*Mart is at a critical time in their life. They are no longer the hero, a place commonly reserved for competitors striving to be number one, because Wal*Mart is number one. No one can debate how effective they have been in getting here. Through their focus on superior technology and low cost leadership, Wal*Mart reigned supreme. They are redefining Porters five forces model in the discount retailing industry, and are in the enviable position of having first movers advantage. We will write a custom essay on Walmart Case specifically for you for only $16.38 $13.9/page Order now Yet this blessing is also a curse. By virtue of their efficient, effective system and its proven success, companies like Kmart and Target are watching closely and both emulating and improving upon this system. An analysis of the five forces model will show Wal*Marts main competitive advantages in supplier power and barriers to entry. A look into their distribution centers and how they have been instrumental in reducing supplier power will be followed by an analysis of how effective first mover advantage has been and where they must take it next. Early in the history of the company, Walton recognized the importance of backward integration as a means to pass on lower prices to consumers. Though supplier power is high in the retail discounting industry, Wal*Mart changed the game with their two-step hub-and-spoke distribution network. Though building 1,000,000 square foot distribution centers seems costly, it allows Wal*Mart to purchase from their suppliers at a significantly reduced cost and deliver to their stores with 48 hours, sometimes even 24 hours. The networks become so effective that 80% of their inventory comes directly from these 27 centers. In contrast, Kmart has only 50% of their products coming from distribution centers with a full half being shipped directly from suppliers into their stores, thus raising costs to Kmart and their customers. Systems such as cross-docking are also aiding Wal*Mart in their fight to streamline every process by reducing inventory and restocking costs. Another decision that demonstrates Wal*Marts commitment to the future is their unyielding emphasis on superior information technology. Beginning in 1983 and standard by 1988, electronic scanning of Uniform Product Codes was installed in Wal*Mart stores. This and similar programs were effective in ensuring accurate pricing and reducing shrinkage, yet Kmart recognized its importance as well, and by 1990, had similar systems in place in its stores as well. Secondly, a $700 million investment in satellite systems made communication between headquarters, distribution centers, and stores much more effective. With this in place, sales data could be analyzed immediately and effectively, and Wal*Mart could better control inventory levels as well. Also instrumental as a means to achieving these ends was electronic data interchange. While UPC and satellite systems allowed sales to be collected and analyzed daily, EDI enabled 3,600 vendors to receive orders and interact with Wal*Mart electronically. All of these systems provided Wal*Mart the leeway to charge lower prices than their competitors, and though no supplier accounted for .

Osmolarity and Osmolality in Chemistry

Osmolarity and Osmolality in Chemistry Osmolarity and osmolality are units of solute concentration that are often used in reference to biochemistry and body fluids. While any polar solvent could be used, these units are used almost exclusively for aqueous (water) solutions. Learn what osmolarity and osmolality are and how to express them. Osmoles Both osmolarity and osmolality are defined in terms of osmoles. An osmole is a unit of measurement that describes the number of moles of a compound that contribute to the osmotic pressure of a chemical solution. The osmole is related to osmosis and is used in reference to a solution where osmotic pressure is important, such as blood and urine. Osmolarity Osmolarity is defined as the number of osmoles of solute per liter (L) of a solution. It is expressed in terms of osmol/L or Osm/L. Osmolarity depends on the number of particles in a chemical solution, but not on the identity of those molecules or ions. Sample Osmolarity Calculations A 1 mol/L NaCl solution has an osmolarity of 2 osmol/L. A mole of NaCl dissociates fully in water to yield  two moles  of particles: Na  ions and Cl-  ions. Each mole of NaCl becomes two osmoles in solution. A 1 M solution of sodium sulfate, Na2SO4, dissociates into 2 sodium ions and 1 sulfate anion, so each mole of sodium sulfate becomes 3 osmoles in solution (3 Osm). To find the osmolarity of a 0.3% NaCl solution, you first calculate the molarity of the salt solution and then convert the molarity to osmolarity. Convert percent to molarity:0.03 % 3 grams / 100 ml 3 grams / 0.1 L 30 g/Lmolarity NaCl moles / liter (30 g/L) x (1 mol / molecular weight of NaCl) Look up the atomic weights of Na and Cl on the periodic table and add the together to get the molecular weight. Na is 22.99 g and Cl is 35.45 g, so the molecular weight of NaCl is 22.99 35.45, which is 58.44 grams per mole. Plugging this in: molarity of the 3% salt solution (30 g/L) / (58.44 g/mol)molarity 0.51 M You know there are 2 osmoles of NaCl per mole, so: osmolarity of 3% NaCl molarity x 2osmolarity 0.51 x 2osmolarity 1.03 Osm Osmolality Osmolality is defined as the number of osmoles of solute per kilogram of solvent. It is expressed in terms of osmol/kg or Osm/kg. When the solvent is water, osmolarity and osmolality may be nearly the same under ordinary conditions, since the approximate density of water is 1 g/ml or 1 kg/L. The value changes as the temperature changes (e.g., the density of water at 100 C is 0.9974 kg/L). When to Use Osmolarity vs Osmolality Osmolality is convenient to use because the amount of solvent remains constant, regardless of changes in temperature and pressure. While osmolarity is easy to calculate, its less difficult to determine because the volume of a solution changes according to temperature and pressure. Osmolarity is most commonly used when all measurements are made at a constant temperature and pressure. Note a 1 molar (M) solution will usually have a higher concentration of solute than a 1 molal solution because solute accounts for some of the space in the solution volume.