This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Write an extended essay (c. 4500 words 15 typed, double-spaced pages) analyzing how and why American business corporations have restructured their organization and operation since the 1970s in ways that have changed the nature and significance of big business as the dominant form of American business organization. 1) Your analysis will focus on a specific dimension of the corporate restructuring process: the changing structure of a single business ; or 1. changing face of American consumer culture a. changing even further through globalization b. Wal-mart successful in innovative strategies to meet market demands 2. Logistics and Operating Efficiency gaining the competitive advantage a. Answering consumers needs i. The pursuit of everyday low price ii. The growing power of the consumers in shaping marketing and production choices throughout the distribution channel iii. One step ahead of everyone else b. Great at targeting markets i. Middle America ii. Culture and ideology c. Power shift from manufacturers to retailers i. Since the late 1970s, an increasing number of industry observers have been describing the shift in market power from manufacturers to retailers. They have identified several cuases of such a power from manufacturers to retailers. They have identified severl cause of such a power shift 1. Including the retailers ability to use point of sale data to directly asses consumer preferences, the increase in retail concentration, the decrease in effectiveness of mass media as marketing channels, and the proliferation of store brands. Large retailers, they argue, are increasingly able to squeeze their suppliers and induce various forms of price concessions. - 109 ii. 1970s 1980s 1. The relations between retailers and their suppliers started to change in the early 1970s as a result of three major factors: retailers ability to deploy new information techonologies to asses consumer demand; increased concentration in the retail sector; and the rise in global competiton in suppliers industries. a. While the impact of these was felt throughout the 1970s it wasnt unitl the early 1980s that they converged to bring about a dramatic change in retail power and enabled the new generation of big box retailers to become a major driving force in shaping the American economy. b. A worldwide revolution in retailing wich reveals consumer willingness to dispense with certain services in exchange for chas savings and the shpping for all manner of goods under a single roof, wigh self-selection and checkout counters. -111 c. Discounting revolution-11 d. Massive inefficiencies would be squeezed out of traditional retailing i. Automotive and gasoline sectors where distribution was tighly controlled by large manufacturers, other retailing firms enjoyed the benefits, little direct price competition, and little incentive to innovate....
View Full Document
- Fall '08
- Big-box store, Wal Mart