Question

Make a judgement with regards to the absorptive capacity

of Walmart based on the four dimensions that determine the
absorptive capacity of an organisation.

Answer 1

Wal-Mart's absorptive capacity can be evaluated based on four dimensions: acquisition, assimilation, transformation, and exploitation. The company has demonstrated a strong absorptive capacity by continuously acquiring knowledge, assimilating and transforming it into actionable strategies, and effectively exploiting the knowledge to drive its success.

Step-by-step explanation:

Wal-Mart's absorptive capacity can be evaluated based on four dimensions: acquisition, assimilation, transformation, and exploitation.

1. Acquisition: This dimension refers to how Wal-Mart acquires new knowledge or information. For example, the company may gather market research data or collaborate with suppliers to gather insights on customer preferences.
2. Assimilation: This dimension focuses on how Wal-Mart internalizes and understands the acquired knowledge. For instance, the company may analyze the data collected and identify trends or patterns in consumer behavior.
3. Transformation: This dimension involves using the acquired knowledge to create new ideas, products, or services. For instance, based on the insights gained, Wal-Mart could develop new marketing strategies or introduce innovative offerings.
4. Exploitation: This dimension relates to how Wal-Mart effectively and efficiently utilizes the knowledge to gain a competitive advantage. For example, the company may implement the new marketing strategies and offerings to attract more customers and increase sales.

Based on these dimensions, Wal-Mart has demonstrated a strong absorptive capacity. The company continuously acquires knowledge through various channels, assimilates and transforms it into actionable insights and strategies, and effectively exploits the knowledge to drive its success.