Sample Essay
The criteria which can be set for the evaluation of the alternatives pertain to the specific goals of the company. The goal of the Wal-Mart company should be to decrease the costs of operations while increasing the sales of the company and therefore increasing the profit margin and the revenue base.
Keeping this in mind the performance targets could be to increase the growth of the company to 15 percent in the next three years, increase the profitability of the company to 25 percent GP margin in one year and 30 percent GP margin in the next 5 years. Similarly the cost of inventory could be decreased by 5 percent in the following one year, with a total 25 percent decrease in the next five years. Other targets could pertain to the increase of net profit margin to 3.6 percent in the following one year and 5.0 percent in the next five years.
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