...Operation Management for Wal Mart In: Business and Management Operation Management for Wal Mart Operation Management The process strategy that is applied at Wal-Mart Wal-Mart, a premier Grocery store and the largest chain store in the USA has been constantly striving to improve its product design. In the design of a consumer product not only is the manufactured cost of interest, but also the quality of the product delivered and how well the product meets customer expectations is studied. Wal-Mart has there own brand name (Sams later named Great Value), a study on there private label soft drink showed new packaging was needed to stay competitive, while not knocking out the brand names as Wal-Mart sells those products also (Fracenda 2007). Wal-Mart has been able to sustain this competitive advantage by staying ahead of others in designing and delivering products in new fashion, Wal-Mart product can be distinguished just by design and packaging. Products sold by Wal-Mart have measurable and non measurable attributes, both have to consider while preparing a design plan for its products. Cost is a very important attribute of product design. A key decision making process is the constitution of cost. Wal-Mart works with several hundred suppliers and product testing facilities to measure more than 5,250 products up against leading national brands, to ensure Great Value quality is equal to or better (Canning 2009). Having scored on this advantage Wal-Mart needs to design its product...
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...Operation Management The process strategy that is applied at Wal-Mart Wal-Mart, a premier Grocery store and the largest chain store in the USA has been constantly striving to improve its product design. In the design of a consumer product not only is the manufactured cost of interest, but also the quality of the product delivered and how well the product meets customer expectations is studied. Wal-Mart has there own brand name (Sams later named Great Value), a study on there private label soft drink showed new packaging was needed to stay competitive, while not knocking out the brand names as Wal-Mart sells those products also (Fracenda 2007). Wal-Mart has been able to sustain this competitive advantage by staying ahead of others in designing and delivering products in new fashion, Wal-Mart product can be distinguished just by design and packaging. Products sold by Wal-Mart have measurable and non measurable attributes, both have to consider while preparing a design plan for its products. Cost is a very important attribute of product design. A key decision making process is the constitution of cost. Wal-Mart works with several hundred suppliers and product testing facilities to measure more than 5,250 products up against leading national brands, to ensure Great Value quality is equal to or better (Canning 2009). Having scored on this advantage Wal-Mart needs to design its product and decide on the most important factor of cost. Many of the decisions regarding cost...
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...Organizational Structure of Wal-Mart Timothy Frost MGT230 May 24, 2012 Howard Kersey Abstract Wal-Mart, the world’s largest retailer, can be viewed as a model of success upon reviewing the internal structure of its organization from within. Comparing the various types of organization structures gives an insight regarding the type of structure Wal-Mart is composed of. As we take a closer look at this company’s structure it enables us to understand better the management functions and elements of control and coordination in place to achieve strategic planning and goals and to implement those into specific actions. We will also explore how this structure affects the relationships among the various departments. I will discuss three objectives throughout this paper. First, I will describe Wal-Mart’s organizational structure and make a comparison to that of other organizational structures used today so as to clarify differences and similarities. Second, I will evaluate how the organizational functions influence and determine its structure. Third, I will explain how organizational design helps determine the best structure. Organizational Structure of Wal-Mart Wal-Mart operates under three divisions, which are Wal-Mart US, Sam’s Club, and Wal-Mart International. Its global operations expands over several continents with numerous subsidiaries geographically located in several countries. These subsidiaries operate under different business names to include ASDA,...
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...WAL-MART IN GERMANY The case features in David Needle (2010), Business in Context, 5th edition, Cengage/South-Western, pp. 159-62. The Wal-Mart Success Story The first Wal-Mart store was established by Sam Walton in 1962 in Rogers, Arkansas. At first expansion was steady with 24 stores by 1967. The initial focus for Wal-Mart operations was small town, rural America. The company grew to 276 stores by 1980 and the Wal-Mart empire reached 640 stores by 1984. The company currently has around 4,100 stores in the USA and by 2003 it was the world’s largest retailer, three times as large as its nearest rival, the French company, Carrefour. It was also the world’s largest employer with 1.9 million employed worldwide in 2007. In terms of revenue, it remains the world’s largest company and in 2002 it was ranked number one in the Fortune 500. Wal-Mart is noted for its large and diverse product range, which includes food, clothing, electrical goods, homeware, pharmaceuticals and so on. The USA business comprised four types of operation, ‘supercenters’, ‘discount stores’, ‘Sam’s Club’ and a small number of convenience stores. The ‘supercenters’ carry the full range of goods, including food and a large variety of other types of merchandise. The ‘discount stores’ are like the ‘supercenters’ without the food and ‘Sam’s Club’ is a membership discount warehouse for bulk purchases. According to Knorr and Arndt (2003) the success of Wal-mart is based on four factors. • Low prices. • A focus on...
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...Analyse The Wal Marts Case Study Management Essay ukessays.com /essays/management/analyse-the-wal-marts-case-study-management-essay.php Wal-Mart Stores, Inc. opened in 1962 by Sam Walton and his brother. Nowadays, it is ranks as the largest corporation in the World. In early 1990s, the company announced that it would initiate the international operations, which commenced in 1991 in some countries like Canada, Puerto Rico, Argentina, China, etc. (Reference for Business, 2012). PEST Analysis In order to analyse the Wal-Mart's case study we are going to apply the PEST analysis which is 'A type of situation analysis in which political-legal, economic, socio-cultural and technological factors are examined to chart an organization's long-term plans' (Business Dictionary, 2012). II.1. Political Factors When a firm desires to undertake businesses in a foreign country there are some factors to investigate before taking a final decision, for example, the system of the government, law and local trade unions, language, religious and ethical values. Wal-Mart faced numerous complications on the legal and political front in many countries. For example, in Mexico the company participated in an aggressive lobbying campaign to amend the long-standing U.S. anti-bribery law that the company might have violated. The 1977 law, well-known as the Foreign Corrupt Practices Act, prohibits U.S. firms from offering fees or gifts to foreign officials to advance corporate interests (Hamburger, Dennis & Yang...
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...Analysis and Recommendations Introduction – Wal-Mart, founded by Sam Walton in 1962, is one of the world largest companies by market capitalization and number of people employed and touching millions of customers everyday. There are more than 7,800 Wal-Mart stores and Sam’s Club locations in 16 markets worldwide and there are more than 2 million associates serving more than 100 million customers per year (About Us, n.d.) It is the largest grocery retailer in the United States with an estimated market share of around 20% of the retail grocery and consumables business. To be able to efficiently operate such a complex operation at such a large and do it consistently would only be possible by the huge effort by Wal-Mart’s ‘associates’ as its employees are called. This papers looks at the human resources practices of Wal-Mart with a special focus on group and team behavior, leadership, conflict and negotiation, human resource practices and organizational culture and diversity within the company to understand them and also provide some recommendations to make them better in the future. Analysis of various HR related areas of Wal-Mart – One of the reasons why Wal-Mart has been so successful and scale up its model across so many locations is the values and beliefs established by its founder and the customer centric culture that is replicated across locations. The company right from the time of its inception has a clear mission which is to save its customers money and enable them to...
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...in some kinds of products. Take contraband cigarettes, for example. Not only is contraband cigarettes killing small businesses and threatening the livelihoods of many convenience store owners, but it is also robbing government millions of dollar every year because these are cigarettes that are being illegally imported among countries with absolutely no government inspection, testing, oversight and taxation. Moreover, many organized crime groups use the lucrative trade in contraband tobacco to finance other, more serious criminal activities such as contraband drugs and guns. As a result, we should avoid this type of business that causes severe damages to the development of worldwide economy. WAL-MART INTRODUCTION Wal-Mart's history is one of innovation, leadership and success. Wal-Mart was founded...
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...Business Model Comparison Name Institution Wal-Mart and Tarket Wal-Mart and Tarket are the two leading retail stores in the United States with a customer base of more than 100 million shoppers. The stores run their operations in different parts of the United States and their annual posting for revenue accounts for a significant percentage of earnings for retails businesses in the US (Zikmund & Babin, 2013). Together, the stores have a capital base worth billions in dollars. Over the years, the stores have engaged in stiff competition in trying to increase their customer base. The companies share commonalities for being the only retailing businesses that record growth in times of financial crisis. However, difference exists in the approach used by the management in running the operations of the stores. At Wal-Mart for instance, the administration is open to communication and they encourage employees to use of stratagems that increase profits at the company (Böhm, 2008). Tarket on the other hand uses similar strategies but they emphasize on satisfying both customers and the employees. Moreover, Tarket is inclined towards promoting high quality products that give consumers value for their money. For the past few years, the two companies have been engaging in stiff competition in trying to outwit each other by using modern techniques in running their operations (Böhm, 2008). In a bid to entice customers, Walmart have been offering bargain on prices for their commodities...
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...International Business, 7th Edition CLOSING CASE: Wal-Mart’s Global Expansion Summary The closing case describes Wal-Mart’s international expansion strategy. Wal-Mart, today the largest retailer in the world, was a purely domestic company until 1991. When the company decided to expand into Mexico, critics warned that the company was too American, that its model would not work in other where markets where infrastructure, consumer tastes and preferences vary, and where established retailers already dominated. Wal-Mart went ahead with its expansion plans anyway, opening a joint venture operation in Mexico with local retailer Cifera. Discussion of the closing can revolve around the following questions: QUESTION1: How does expanding internationally benefit Wal-Mart? ANSWER 1: Wal-Mart really had no choice but to expand internationally if the company was to continue to grow. The company had reached a saturation point in the U.S. market, and needed to expand elsewhere in order to grow revenues. However, other benefits have accrued as a result of the international expansion including the ability to reap significant economies of scale from its global buying power, and gains from the cross-flow of ideas across the thirteen countries in which the company now competes. QUESTION 2: What are the risks that Wal-Mart faces when entering other retail markets? How can these risks be mitigated? ANSWER 2: While Wal-Mart is often considered to be the biggest retailer of its...
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...Strategy | Wal-Mart Case Study | | Aneesha Radia | | 09466782 | 1/28/2013 | | Contents 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations in the 1950s? 3 THE THREAT OF ENTRY 3 THE DEGREE OF RIVALRY 3 THE THREAT OF SUBSTITUES 3 BARGAINING POWER OF BUYERS 4 SUPPLIER POWER 4 2. With reference to the key components of its Business Model, describe the sources of Wal-Mart’s competitive advantage in the USA 4 FIRM INFASTRUCTURE 4 HUMAN RESOURCES 5 INFORMATION TECHNOLOGY 5 PROCUREMENT 5 INBOUND LOGISTICS 5 OPERATIONS 5 MARKETING AND SALES 6 3. How sustainable is Wal-Mart’s competitive advantage in discount retailing in the USA? 6 IMITATION 6 SUSTITUTION 6 SLACK 7 HOLD-UP 7 4. With reference to Dunning’s Eclectic Paradigm of foreign direct Investment (FDI), compare and contrast Wal-Mart’s entry into the German market in 1997 with it’s subsequent entry into the UK market in 1999. Why was Wal-Mart unsuccessful in Germany, withdrawing in 2006, and relatively successful in the UK? 7 FIRM SPECIFIC ADVANTAGES 7 LOCATION SPECIFIC ADVANTAGES 8 INTERNALIZATION 9 APPENDICIES 10 APPENDIX 1 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 2 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 3 11 SOURCE: GOOGLE IMAGES APPENDIX 4 11 SOURCE: GOOGLE IMAGES 11 REFERENCES 12 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations in the 1950s...
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...In today’s society, consumers have many choices on what grocery store to buy groceries, retail store to purchase clothing, and pharmacies to fill ones prescriptions. The CEO of Wal-Mart thought it would be extremely convenient for consumers to be able to shop at one store for all of his/her needs. This concept helped Wal-Mart to become one of the largest corporations in the United States and also nationwide. The foundation of the organizational structure, function, and design molded Wal-Mart into a successful organization. Sam Walton founded Wal-Mart in 1962. Walton (1962) believed that each Wal-Mart store should reflect the values of its customers and support the vision they held for their community. The organizational structure Walton chose to organize his company is the divisional structure. This structure is made up of separate, semi-autonomous units or divisions. Wal-Mart had different divisions and each division has its own goals to accomplish. A manager oversees their division and is completely responsible for the success or failure of the division. Managers knew they would be held accountable for the results of their department. There are difference and similarities in the divisional structure compared to other organizational structures. For example, in the functional structure the employees are grouped into different departments, which is similar to the divisional structure. However, unlike the divisional structure, the functional structure does not have a manager...
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...1-Wal-Mart history and Introduction The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success. 2-Wal-Mart Strategy Once plans have been developed, an organization must address how management will be accomplishing be those plans. This involves operational plans that must flow from strategy; specify resource, time issues, and commitment of human resources. Operational plans at the lower - levels of the organization, have a shorter time horizon, and are narrower in scope (Bateman...
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...Assignment 3: Wal-Mart, 2005 MKTG 6301.PI1: Marketing for Managers Saturday, 4 August 2013 Summary “Give me a W! Give an A! Give me an L! ...” If you just listen close enough, you just might hear this cheer echoing in a neighborhood near you. The likelihood of this happening has increased right along with Wal-Mart’s growing global presence to 4,900 U.S. stores along with a global presence to 11 countries around the world. Lee Scott, CEO Wal-Mart, was quoted as saying, “Could we be two times larger? Sure. Could we be three times larger? I think so.” The question then becomes, is this healthy for the U.S. business climate as well as for Americans in general? Wal-Mart’s growth is two fold. First is their “Everyday low prices”(EDLP) model combined with their low-wage and little to no benefits model. Through maximizing these models, Wal-Mart has grown into the super giant they are today. This has created a reputation for them as the corporate bully or the wimpy rich kid who owns the bat and ball. Either way they control the game and the output. Which leads to our discussion today, where we will take a look at the company from a variety of angles and viewpoints, some of their key issues, review a SWOT analysis that will guide us to our decision and why we believe this is the best path forward for Wal-Mart. Questions to keep in mind as we go along are: “Does Wal-Mart know what’s best?” and “Do consumers even care?” Whether one is a fanatic of Wal-Mart, or resents the...
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...Picking Wal-Mart's POCKETS By Michael Bergdahl, International Speaker, Author & Wal-Mart Competition Authority Author of the Books: “What I Learned From Sam Walton” & “The 10 Rules of Sam Walton” Wal-Mart is coming! Wal-Mart is coming! Wal-Mart is coming! The mere mention of the name Wal-Mart engenders fear in the hearts of competitors around the globe. The reality is that Wal-Mart is coming to a town near you . . . so what are competitor’s to do? Historically, as Wal-Mart has expanded its operations around the globe the local competitive environment changes . . . forever! Wal-Mart has trounced hapless competitors worldwide so what can you do to make certain you are not one of them? The fact is that in every market Wal-Mart has entered there are retailers who were there before Wal-Mart arrived and they are still there today, competing surviving and even thriving! Unfortunately there are many other retailers who break under the pressure of Wal-Mart’s Every Day Low Prices. Where can you learn the lessons you need to learn in order to insure the success of your business in a Wal-Mart World? The answer is by Picking Wal-Mart’s POCKETS! POCKETS is actually an acronym “P.O.C.K.E.T.S.” which defines the seven strategies of Wal-Mart. The symbolism of P.O.C.K.E.T.S. is that for any business to compete effectively it has to identify its own unique market, niche or “POCKETS”. The acronym stands for: P = Price, O = Operations, C = Culture K = Key Item Promotion/Product...
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...Wal-Mart Principles of Management Introduction Wal-Mart (Wal-Mart Stores, Inc.) is currently ranked not only as America’s largest, but also as the world’s largest company (Soderquist, 2005). The store’s three business segments, Wal-Mart International, Wal-Mart Stores and Sam’s Club all operate in discount retail industry. Currently Wal-Mart’s leadership is facing challenging issues including an invariable customer base, a declining same store base and a crumbling reputation. However, Wal-Mart’s history is a living example of innovative and successful leadership. The company started with a single store in 1962, in Rogers, Arkansas and it has grown into what is now regarded as the world’s largest retailer. Wal-Mart runs each store with the products stocked in the store, to the front-end equipments, helping to speed up checkouts. Using the same philosophy in all its stores to provide low prices and superior customer service, Wal-Mart can sell at low prices and thus eliminate expenses associated with frequent sales promotions as well as have predictable sales. Wal-Mart has invented its own unique inventory system, the cross-docking system that has enabled the company to achieve economies of scale, thus reducing the cost of sales. In this system, goods are continually delivered to Wal-Mart’s stores within 48 hours and without the store having to inventory them. This allows the stores to replenish their shelves four times faster than...
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