Competitive Advantage Action Plan: The Wal-Mart Lending Plan

Competitive Advantage Action Plan: The Wal-Mart Lending Plan
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Competitive Advantage Action Plan: The Wal-Mart Lending Plan
The lending plan has proven to be a significant competitive advantage for Wal-Mart as it gives loans to the less fortunate in society and those who are unable to access funds from the banks and other financial institutions. In a way, the lenders have an opportunity and an equal purchase power with the rest of the buyers.
Lenders
Wal-Mart was established in the year 1950. The business has grown since that time until today is one of the world’s greatest business enterprises. The brand loyalty and quality of products sold at Wal-Mart are of extraordinary quality. In the year 2013, the Wal-Mart started to offer loans to its customers. The lenders are given the money in their purchase cards which they can only spend in the Wal-Mart stores, and they can pay later based on the amount of the loan and the duration agreed for payment. This strategy proves to be very necessary especially for many Hispanics and other immigrant communities who are not legally allowed to obtain loans and other financial services from the USA banks (Dudley, 2013).
For the organization to meet the needs of the lenders and promote the business functions as well, the organization should offer flexible loans with smaller amounts. In this case, the organization should not have higher loan limitations so that they can allow a large number of people to acquire the loans. Also, the payment period for the loans should be lower to allow faster payment of the loans. In this manner, the organization will meet its operational expenses and avoid cases of business breakdowns due to bad debts.
Manager
The manager plays a great role in ensuring that the business activities run effectively. The manager controls the business so as to ensure that every aspect of the business is met effectively without business problems. In this case, the manager ensures that the workers are paid, and the suppliers are paid for their supplies. Therefore, to protect the manager from serious business incapacities, it’s very necessary to manage the lenders effectively.
One of the strategies by the manager in managing lenders is ensuring compliance with all the regulations for loan approvals. The manager should approve the loans after confirmi...