Category: Business analysis

Background

Walmart established its first e-commerce initiative in 2000 then invested in its international business development and purchased a large stake in the Indian e-commerce website Flipkart. On June 30, 2008, Walmart introduced the company with the new Walmart logo. In early 2009, Walmart entered Chile with the acquisition of D&S SA Distribution and Service. In May 2009, Walmart partnered with Bharti to gain access to the Indian market. On February 22, 2010, the company confirmed and valued $ 100 million. In June 2011, Walmart acquired 51% of Masmart Holdings. This acquisition gives the company access to the following African countries. Walmart offers its customers a wide range of quality goods and services at reasonable prices. The main reason why the brand has achieved a leading position in the retail market is its attractive pricing strategy. Walmart employs 2.3 million people worldwide, including 1.5 million in the US not only creates opportunities but also brings value to customers and communities worldwide.

Scope of Report

This report will discuss the information about Walmart and key strategic issues facing the organization. The resources and key capabilities of the company will also be analyzed with a particular focus on what gives it a competitive advantage in its industry, these will explored using Porter’s forces and SWOT analysis. Using VRIO and VRIN analysis and value chain analysis of the company informs decision-makers about the organizational resources and will create an innovative strategy for improvement that will be suggested.

Purpose

The purpose of this report is to explore the recent strategic issues of Walmart and understand if there are competitive advantages in addressing these issues or not.

Objectives

Technology is evolving Walmart is using it and integrating it with its mission and vision to better serve its target segment. And that is why Walmart is increasingly becoming a digital company.

External Environment of Walmart

Technology, operational efficiency, and customer service are some of the factors that have continued to grow in the retail industry. Retail sales are expected to exceed $ 28 billion by 2020. Walmart, Kroger, Costco, and Home Depot are some of the brands with the largest market share in the US retail sector. Also, demographic and technological factors, are affecting US retail sales and growth. The changing demographic makeup of the US population is also affecting sales. As we know is a generation of technology experts who enjoy online shopping, Brands that invest in technologies such as AI, robotics and virtual reality are seeing revenue and financial growth. Increasing online sales is also a sign that brands must harness the power of the internet to grow.

Porter’s Five Forces Analysis of the US Retail Industry

Walmart develops strategies to protect the business from challenges in its industry environment, such as those related to external factors identified in this five-company strength analysis. Michael E. Porter’s Five Forces analysis model is a strategic management tool that assesses the impact of external factors shaping the competitive landscape of the industry. These external factors determine the strength of customers’ or buyers’ shopping, the strength of suppliers’ shopping, the risk of replacement, the risk of new entrants, and their competition.

Bargaining power of suppliers: Many retailers compete for limited space in retail stores. High supply availability prevents suppliers from influencing Walmart’s strategic growth.

Bargaining power of buyers: The large number of shoppers is a weak force for Walmart and retailers. The low strength of the variety of buyers and the low strength of modest single purchases further weaken the strength of customer shopping. The greater variety of buyers makes it difficult for customers to exert collective pressure on society.

Threat of substitute products and brands: Some substitutes for Walmart’s goods are easily available. The external factor of replacement diversity prevents consumers from moving away from products offered by retailers such as Walmart, but some substitute products are more expensive than the low-cost goods and services that are offered by the company’s branches. According to Porter’s five-force analysis model is a low risk to replace Walmart’s industrial environment.

Threat of New Entrants:

Small retailers have lower transaction costs compared to large enterprises. This situation allows many small retailers to compete with Walmart. These external factors in the context of the Five Forces analysis indicate that new entrants continue to operate and pose potential threats to companies such as Walmart.

Level of competitive rivalry in the retail industry: External factors are key considerations in Walmart’s strategic management of competitive strength. We can name three key components: a large number of companies in the retail market, a large variety of retailers, strong retailer aggressiveness

Walmart SWOT Analysis:

Strength: The company has a key competence in using information technology to support its international logistics system. The strategy is focused on human resource management and development. Employees are key to Walmart’s business. They spend time and money on training and retaining their development staff.

Weakness: Some small retailers, particularly dollar stores such as Family Dollar and General Dollar, have managed to find a small niche market and compete with Walmart for sales to home customers. Walmart is the largest grocery retailer in the world, and controlling your empire can make you weak despite IT benefits in some areas due to the large area of control.

Opportunity: Walmart has a great opportunity to expand its store and online presence. Walmart has already begun to adopt some of the biggest e-commerce giants, such as Flipkart, etc., to sell their products through digital channels.

Threaten: The biggest threat to Walmart is competition from companies such as Target, Costco, Amazon, Tesco and Microsoft, Carrefour because they have the same business model as Walmart and ensure that organizations reduce the price difference between them. The growing social threats posed by Walmart’s presence in the local community can be detrimental to small business owners who cannot compete with one another in terms of prices and choices. The increase in labor costs and employee training affect the company’s profit margins and force the brand to rethink its pricing strategy.

Starbucks is a US-based, globally renowned independent coffeehouse founded in the year 1971 in Seattle, Pike Place. Being a seller of great quality coffee, it not only markets but roasts and retails it too. Spreading its arms wide across the global market, with approximately 25,000 stores all over the world Starbucks, has become one of the biggest brands in the coffee world.

The SWOT analysis table below, will identify the strengths, weaknesses, opportunities, and threats related to Starbucks and will throw light on its internal and external environment for the year 2019 (till now).

Strengths

The company has had a very strong and firm hold on its financial position in the world market. In the year 2018, Starbucks improved its financial standing which ensured higher returns to the shareholders, attracting further investments. Being one of the world’s most popular coffee brands, the loyalty of the customers also adds to its business and financial stability. The company has diversified its business, by developing subsidiaries and making acquisitions; like Teavana, Seattle’s Best Coffee, Evolution Fresh, TATA Starbucks, etc. Ensuring a great relationship with existing customers and constantly attracting new ones, Starbucks focuses on providing a great in-store experience to the customers. They provide free WIFI which is an amazing way to make the customer spend more time in the store. Starbucks’ popular loyalty program, “Starbucks Rewards” and Starbucks card ensures that customers keep coming back to have more coffee and earn stars (rewards). By providing perks like free coffee, upgrades, customizations and refills, discounts on food and beverages, etc., it keeps its customers on their toes wanting more.

Considering the heavy food delivery competition, Starbucks has also, in certain markets collaborated with Uber Eats to deliver its beverages and food items, which has brought coffee a step closer to its consumers. Starbucks is also known for being a great employer, making its employees the main assets of the company. Offering them options like retirement accounts, stocks, and a healthy culture, in return gets them to provide great customer service.

Starbucks won hearts in 2018 by opening its first sign language store in the US according to Independnt.co.uk.

Weakness

The US-based company is highly dependent on its home country for the majority of its income. With operations in Asia Pacific, Europe, the Middle East, and Africa, it generates the majority of its income from America. Being dependent on one region can have adverse effects on the company’s financial structure and it also poses a great weakness to the company altogether, in case of an unforeseen circumstance.

With the emerging competition and independent coffeehouses across the globe, the high prices of Starbucks coffee as well, pose a weakness for it to be successful in the developing markets of Asia Pacific, Europe, and the Middle East. The local coffee houses are trying their best to provide a similar experience to Starbucks, as they can imitate it easily and serve their beverages and food at a cheaper rate, which would be preferable for the majority of the customers.

Opportunities

Starbucks is yet to open its arms completely to the world, it has recently started selling its ready cold beverages through retail and convenience stores, and the same is yet to be fully realized by the consumers, which would provide the brand with great opportunities for the future to expand its financial boundaries. With limited markets offering Starbucks coffee delivery, the company needs to tie up with brands like Uber Eats, Zomato, etc in different regions and markets and venture into delivering its products.

With an extremely well-established name in the US, the company must as well, shift focus to the Asia Pacific region to increase its revenue. Starbucks has, indeed taken steps to establish a firm foot in countries like India, China, and Tokyo. With an intensive growth strategy of penetrating the markets, Starbucks focuses on opening more company-owned outlets. At the same time, the company ensures its presence and market share through partnerships and alliances with other firms. For example, the company entered into a joint venture with TATA Global beverages in India, a developing country and a land of opportunities. The joint venture, named TATA Starbucks would help the brand manage 145 outlets in the country by the end of the year. Also, in 2018, the brand announced it to open around 6000 outlets by 2021 in China, which would help it to increase its revenue. Starbucks, currently, has approximately 3300 outlets in China and according to the Starbucks SWOT Analysis by MarketLine https://web-b-ebscohost-com.simsrad.net.ocs.mq.edu.au/ehost/pdfviewer/pdfviewer?vid=2&sid=32c96eed-1654-4d2d-9ae1-9aeaaba9a076%40pdc-v-sessmgr01, the company generated 18.1% of its income through China in 2018. Starbucks also exclusively opened its biggest roastery in the world, earlier this year in Tokyo and named it Nakameguro, by the cherry blossom-lined Meguro River. Including Tokyo in the list, this is the fifth Starbucks reserve in the world, the first was opened in Seattle followed by Shanghai, Milan and New York.

While the company offers different menus in different regions, it tries to fit into the culture of that land, yet the basis of the same is still Western. With a huge opportunity in these developing countries, it is important to ensure the prices and taste fit the consumers. Mixing with the culture and customizing its menu accordingly, would attract more consumers and lead to successful operations of the brand in these countries.

Also, with the limited food options available, it is time, that Starbucks broadens its horizon and expands into food services as well, as the same remains a huge opportunity for the brand.

Threat

The biggest threat to the company is from its competitors like McDonald’s, the Dunkin brands, Barista, Costa Coffee, etc, plus the emerging local coffee houses which as well, offer great quality coffee and service; at times at a relatively cheaper price with better deals. Also, with the change in consumer taste and lifestyle, a shift to healthier products might pose a great threat to the very future of Starbucks and the coffee culture itself.

According to CNBC, Australia has almost no Starbucks as the brand could not manage to fit in. The coffee offered was too sweet, which is what the Aussies do not prefer, which led the brand to shut down 70% of its locations leaving the continent with hardly any stores. With a huge demand for great coffee, easily available at cheaper rates, people prefer to spend less, yet receive great quality coffee that fits their taste.

Starbucks’s vision (as mentioned on its website) is to “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.”

However, the very essence of the same is lost if its beverages and food are merely sold as products, which Starbucks is not focusing on now, as its prime area of concern is expanding business in just any way possible.

Introduction

Netflix is a subscription streaming service that originated in America, in Scotts Valley, California, U.S., on August 29, 1997. Netflix had over 221.8 million subscribers worldwide in December 2021. In February 2022, it was recorded that Netflix was the top second media company. Netflix collects an immense number of records from a huge range of customer bases. It collects data based on what the user watches. This research shows how Netflix manages data analytics and its methods of analysis.

Data Analytics

In 2006 Netflix was one of the first users of data analytics. To improve the existing recommendation system, Netflix came up with the challenge that would award $1 million to an individual who could enhance the existing system called Cinematch. Cinematch was a tool used in the early 2000s. In this challenge, participants were to develop an existing algorithm based on the older data, which predicts the movie preference of their subscribers. BellKor’s Pragmatic Chaos team which includes people from different streams, industries, and various institutes was the winner in 2008. Data science and big data analytics are strategies used by Netflix for its recommendation system. Data including the user’s location, watch history, interests, examined data, and viewing duration are gathered by the recommendation system. This allows customized recommendations based on what the subscribers like.

Recommendation system

A combination of content and a collaborative recommendation system is known as a hybrid recommendation. In this, the recommendation is made by blending the searching activities of the subscriber with the earlier history of recommendation and the viewing habit of the subscriber. This is a simple technique among all types. For example, the series is sweet and sour. The cover for the scene would change to a romantic scene for people who have an interest in romance. Whereas people who are interested in comedy would get a cover of the people laughing. So people who have an interest in, for example, K-dramas, would get more of those kinds of recommendations than other movies and series types and genres.

Based on the user’s first choice, various recommendations will be given to them by Netflix, from this, the first and last choice of the subscribers the system will combine the different scores to increase its accuracy. In this approach, the input and output of the recommendation system work opposite here.

SWOT and PESTLE analysis

Netflix uses SWOT analysis to identify internal and external factors. Swot analysis helps to develop four strategies for the organization. Strengths established brand name, product innovation, trustworthy supply network, and successful market strategies. Weaknesses like huge debt, more investment in newer technologies, and limited copyrights also occur. It does have opportunities to expand into the new country including China, and partnerships in Europe. Threats of increased competition, liability laws in different countries, and changes in subscriber behaviors arise.

Netflix utilizes PESTLE analysis to identify the macro-environment of an organization. A political issue like censorship takes place because different country has different laws, and many contents may not be appropriate for many countries. The economic exchange rate impacts the profits of Netflix and the cost per employee. Netflix is known for charity work which is called Socio-cultural. Technological advancement is increasing day by day and improving content to 4k with less data consumption. Netflix must work legally so customer protection law is necessary. Netflix needs to work out more towards the use of ecological products. Based on SWOT and PESTLE analysis it is recommended that Netflix on the way to stay its use to advance the subscriber’s involvement, explore other countries for expansion, use multi-factor authentication for subscriber authentication, reduce the subscription cost for developing countries like India, use more advanced authentication or multi-factor authentication and produce more original content for a specific region.

Business Analytics

Business analytics is the process where statistical analysis is used. To support the analysis and control of coming business intelligence forecasts, multiple possibility techniques including data mining, statistical modeling, and machine algorithm learning are used in this strategy (Georgetown University, 2018). To sum up, the main aim is to investigate analysis insights and gain information about their subscriber’s preferences.

Subscriber’s experience

AB test is used to individualize subscribers’ understanding. There are two different editions for subscribers and monitor and record subscriber reactions. Netflix uses Landing cards. Every video teaser or image found on the web page of the customer is known as a landing card. This strategy allows Netflix to hook its subscriber’s attention. When the images and videos shown are aesthetically pleasing to their audience, they are more likely to pay attention.

Conclusion

In conclusion, we have discussed regarding Netflix prize competition and the winning team. We also have discussed the recommendation system and recommendation technique used by Netflix. We also discussed how data analytics is used in creating the content which would be a huge victory. We also discussed SWOT and PESTLE analysis and presented a few suggestions on how to improve Netflix.

Steve Paul Jobs, one of the most influential entrepreneurs of the 20th century, was best known as one of the main founders of the American multinational technology company known today as ‘Apple.’ Jobs was born on the 24th of February, 1955 in San Francisco, California, and was born into a family of two university students. However, the students were unmarried at the time, making them unable to provide the care that Steve needed, forcing them to give him up for adoption. Steve was then adopted by Paul and Clara Jobs who were living in Cupertino, California, now known as Silicon Valley. At a young age, Steve was fascinated by his dad and was taught mechanics and electronics. At the age of 10, he was able to take apart a small engine and put it together.

Although he was good with electronics and mechanics, he was a mischievous child at school. He didn’t listen to the teacher, frequently misbehaved, played pranks, and has been suspended from school a few times. However, his father Paul (who was abused when he was young) never showed any disapproval but instead blamed it all on the school for not giving his son an education that challenging. However, Job’s Behavior was changed in year 4 when a teacher called Imogene Hill, bribed him into learning. Job later recounted, ‘ She bribed me into learning. She would say, ‘I want you to finish this homework. I’ll give you five bucks if you finish it.’ that kindled a passion in me for learning things!’ After that, the school wanted Jobs to skip 2 years of school and go straight to year 7, but his parents didn’t want him to skip that much learning and ended up skipping one year to year 6. In year six, people thought that he was weird and that soon led him to become socially awkward. This led to people bullying him and for his parents, this was not acceptable. So, they used all their savings to buy a new house so that he could change schools.

After he moved, he went to Cupertino Junior High and he made a few friends including a kid called Bill Fernandez. He later said that kids in grade 8 didn’t like him as they thought that he was odd as he didn’t play with toys or play games but instead, he builds little devices and electronics. In Job’s life, Fernadez played a big part in the reason for Jobs’s success as he introduced him to an electronic whiz called Steve Wozniak, one of the other co-founders of Apple.

For jobs, meeting Wozniak was a great part of his life as Wozniak knew even more about electronics than his dad. This was a big part of Jobs’ life as Wozniak taught him things that he never even heard about. Soon, they became great friends and got together as much as they could. Surprisingly, Wozniak also was a prankster like jobs and that has led to even more pranks than before the difference between the pranks after he met Wozniak was that it was more technical and complicated.

About a year after he met Wozniak, he started to have a passion for literature. He recounted that after he learned about the classic book, he started to read Shakespeare and Plato, and for the first time he started to read lots of books other than books in the genre of science and technology. This has led him to have a group of friends who are interested in technology but also a group of friends who are interested in art and literature.

In 1976, the first computer was designed and produced by Wozniak which was later called the Apple I. The computer had a keyboard, a motherboard, and an old tiny screen TV. Wozniak showed it to Jobs and he suggested that they should sell it. They soon started but it was a hard time trying to find an investor. But in the end, Authur Rock invested 60,000 dollars that was when Apple started to get the attention of people’s eye.

Although Apple 1 was a great success, Jobs didn’t stop there, and as an entrepreneur, he knew that a personal computer would be a 1976 Apple 2. They introduced it at the West Coast Computer Faire and it was highly successful and was a mass product. Next came the Macintosh, an even better computer that had colors but also a lot of different uses. Apple soon came up with, iPods, iPhones iMacs, and the newest invention, iPhone X . Sadly, Jobs died in 2011, aged 56. His net worth was estimated at 7 billion and would’ve been and staggering number of 36 billion if he didn’t sell his share. He was then buried at Alta Mesa Memorial Park.

I think that nature and nurture both played a big part in forming who Jobs is like right now.

In the book ‘Five Minds for the Future’ written by Howard Gardner, it talks about the five minds that you need to thrive in the world. These five minds are the disciplined mind, the synthesizing mind, the creating mind, the respectful mind, and the ethical mind. Although Jobs shows some of all the five minds, two of the five minds that Jobs shows the most are the creating and ethical minds.

The creating mind is the mind that is always discovering and thinking of new ideas. This mindset is really important to anything as ideas that seem impossible and have never been thought about can change the world. A good example to show my point is the light bulb, one of Thomas Edison’s famous inventions. Before it was created, everybody lit candles and used lamps and thought that he was crazy and this would never work. But, it succeeded in becoming the first electrical light. I think the same applies to reasons for Job’s success. He thought beyond what existed now and went beyond seeing things that were beyond the obvious. Without this mind, Apple would never turned into the company that we know now. To support my point, Steve was the person who thought about the need for a personal computer in nowadays society which was the reason that Apple 2 was created to be a computer that can be owned by anyone. Also, iMac, iTunes, Macintosh, iPad, and iPhone were all the ideas of Jobs.

An ethical mind is when a person thinks of his role in society and not just thinks of himself but about other people and how his or her actions will impact the community. Thinking ethically plays a big part in whether you’ll succeed as not thinking ethically can cause disagreement or uproar that will have a negative impact you’ll need peers and coworkers on your way to success as without them, you will soon become corrupted but also alone. People such as entrepreneurs, presidents, team leaders, and more. I think Jobs had an ethical mindset as he thought about the result of him doing this

According to Laanti et al. (2007), the rapid change in the global business environment at the time had a strong impact on the internalization processes of companies all over the world. Some researchers argued that one of the biggest challenges to Born Globals seems to be the lack of adequate managerial resources to handle the decision making processes in various departments, such as finance, marketing, or operations. Therefore, the rapid growth of businesses and the massive change in the business environment have led to the need for a deeper understanding and more effective practice of decision-making methodologies. From the researcher’s point of view, the tools and techniques of the decision-making process can contribute to addressing business problems and finding optimal business solutions.

The main purpose of this report is to argue the need to have an understanding of the decision-making concepts in the business environment by using relevant academic sources, such as journals, books, websites, and articles. Moreover, the report focuses on presenting the main techniques that can facilitate the decision-making process, together with their advantages and limitations. Therefore, the report will critically analyze and discuss the importance of understanding the tools surrounding the business decision-making process.

I.1. What is the decision-making process?

The decision-making process was defined by the Oxford Dictionary (2020) as being the process of deciding about something important, especially in a group of people or in an organization. In addition, Harrison (1996) stated that the decision-making process refers to the making of a judgment regarding what one ought to do in a certain situation after having deliberated on some alternative course of action. Moreover, decision-making is the most significant process engaged in by managers in all types of organizations. It is the activity that characterizes the behavior of managers, and the one that clearly distinguishes managers from other people in the organization.

I. Decision-making and human cognition

This section of the report will present what is understood by human cognition in the decision-making process. The literature around decision-making and human cognition has drawn some interesting aspects which will be discussed further. First of all, Hollnagel (2007) argued that research into decision-making has mainly focused on how people choose between alternatives and specifically on how they make the right decision. More exactly, the origins of the decision-making process can be related to the early history of thinking, beginning with the evolution of logic. Therefore, a decision can be seen as the result of rational reasoning, which is exactly what logic is about. For example, a rational decision-maker is informed which means that he is aware of all the alternatives and outcomes of any action. In addition, decision-making is a basic cognitive process by which a preferred option is chosen from among a set of alternatives based on certain criteria.

Furthermore, decision-making is one of the fundamental cognitive processes of human beings and it is used mostly in determining rational, heuristic, and intuitive selections in complex scientific, engineering, economic, and management situations, but also in almost every situation of daily life. Since decision-making is a basic mental process, it occurs every few seconds in the thinking courses of the human mind consciously or subconsciously (Wang and Ruhe, 2007). Decision-making was viewed as a matter of estimating which of the different alternative actions would bring the most positive consequences. Decision makers were assumed to evaluate the potential consequences of their decisions objectively and to choose actions that maximized the utility of those consequences. Once chosen, it was assumed that the utility-maximizing course of action would be implemented automatically (Loewenstein and Lerner, 2003).

From the researcher’s point of view, cognition can facilitate the decision-making process because the decision-makers can use their previous personal experience to evaluate the options and choose the right one. Also, as cognition refers to the awareness of options around decision makers, the decision-making process can be more based rationally, thus without emotional engagement.

II. Decision-making and role of leaders

Schwarber (2005) highlighted that the minds of leaders naturally go from objectives to alternatives to risks, gathering and processing the relevant information in the right order. However, one of the most important roles of a leader in an organization is to train the successors. That means coaching and mentoring subordinates in every essential management skill, including decision-making. Beshears and Gino (2015) found another approach of leaders in the decision-making process. More exactly, alter the environment in which decisions are made so that people are more likely to make choices that lead to good outcomes. Leaders can do this by acting as architects. The goal of choice architecture is to improve people’s decisions by carefully structuring how information and options are presented to them. In this way, companies can push employees in a certain direction without taking away their freedom to make their own decisions. Adjustments to the choice environment can drive big improvements. They include simply varying the order in which options are presented, altering the wording used to describe them, adjusting the process by which they are selected, and carefully choosing defaults.

However, other researchers stated that businesses need better leadership. Many organizations are looking for more or better leadership to serve as a solution to different business problems. The hope is that by turning managers into leaders, leadership will transform problems into opportunities and make full use of the right decisions ( Meyer et.al., 1998). The research conducted around the role of leaders in making accurate decisions highlighted that leaders can have a positive impact on the decision-making process. Particularly, it was found that some of the leadership behaviors, including supportiveness, task emphasis, technological skill, and participation, had a positive relationship with creative performance in research and development firms. Indeed, leaders impact creative decisions in many ways. For example, leaders provide support to build the confidence of their subordinates which stimulates the generation of more ideas and opinions which can facilitate the decision-making process. Also, engaged leaders in supportive behavior help their subordinates to feel good about their work, thus the subordinates’ positive affect then leads to enhanced creativity and better performance. Organizational leaders are in a unique position to have the opportunity to engage in specific cognitions and behaviors that will cultivate different perspectives of decisions (Stenmark et.al., 2011).

Useem et.al. (2005) observed that good decision-making is one of the core components of leadership. Organizational leaders communicate in public but decide in private, thus the decision-making process is not easy. All organizations have a deep interest in ensuring that their managers make optimal decisions, especially when they have leadership roles. However, the improvement of the decision-making process remains a desirable organizational objective and leaders should ensure they make effective choices that can stimulate the well-being of the businesses.

III. Ethical decision making

According to Ford and Richardson (1994), ethical decision-making is a topic of great interest in the literature of business ethics. Moreover, Husted and Allen (2008) highlighted that one of the most recent challenges of management research is to help managers understand business ethics across different cultures when they are making organizational decisions. Unfortunately, people rarely make ethical decisions. Additionally, individuals perceive problems and make judgments that affect collective behavior. Ethical decision-making is impacted by individualism and collectivism which concerns the way people resolve conflicts in human interests and optimize mutual benefits. More exactly, individualism and collectivism affect the way people think, judge, and behave during the decision-making process. However, the ethics are not always easy to be applied in business. For instance, Ferrell and Gresham (1985) noticed that many people agree that a set of moral principles should govern the actions of marketing decision markers, and most decision-makers agree that their decisions should be by ethical values. Because of the lack of agreement regarding ethical standards, it is difficult to find incidents of unethical behavior. Therefore, the absence of a clear consensus about what moral conduct for marketing managers may result in unfavorable results for the business.

Conclusion

To sum up, the report has highlighted the importance of tools and techniques which can contribute to the decision-making process. The relevant sources of academic literature prove that the decision-making concept is a complex process that requires deep attention and research to be effective in the business environment. Also, managers need to make optimal use of tools in the decision-making process, which means that they need to understand the cognitive and ethical parts of the process together with the leadership attributes.

Introduction

Walmart stands as a retail giant with a global presence and a range of strengths that have propelled its success. However, to ensure continued growth and competitiveness, it is crucial for Walmart to address its weaknesses, capitalize on opportunities, and mitigate threats. This analytical essay explores strategic recommendations for Walmart’s improvement.

Addressing Monopolistic Concerns

Walmart’s dominance in the retail industry has raised concerns about its monopolistic power and impact on small retailers. To alleviate these concerns, Walmart should initiate community-focused campaigns that support local businesses. By actively promoting and collaborating with small specialty stores, Walmart can enhance its image as a company that cares about the community and fosters economic diversity.

Employee Welfare Enhancement

Employee welfare is another area where Walmart can make significant improvements. Public initiatives and rewards programs aimed at enhancing employee benefits and morale can contribute to a positive work environment. By investing in its workforce, Walmart can improve productivity, reduce turnover rates, and enhance its reputation as a responsible employer.

Expanding International Presence

While Walmart has established a strong presence in certain international markets, there are still untapped opportunities for expansion. By focusing on developing countries and Asian markets with high growth potential, Walmart can further increase its global footprint. Strategic alliances, licensing agreements, and leveraging technology for market penetration can facilitate this expansion and drive long-term growth.

Sustainability and Environmental Initiatives

In light of growing environmental concerns, Walmart should continue to prioritize sustainability initiatives. By further enhancing its commitment to environmental sustainability and improving working conditions, Walmart can bolster its corporate social responsibility efforts and enhance its reputation as an environmentally conscious retailer. This can also attract environmentally conscious consumers and investors.

Optimizing Inventory Management

Challenges in inventory management, pricing strategies, and meeting earnings expectations pose significant obstacles for Walmart. To address these challenges, Walmart should focus on optimizing its inventory management processes to reduce overstocking and maintain profit margins. Investing in technology for supply chain management, such as RFID, can streamline operations and improve efficiency.

Conclusion

In conclusion, Walmart’s success hinges on its ability to address weaknesses, capitalize on opportunities, and mitigate threats. By implementing strategic recommendations such as supporting local businesses, enhancing employee welfare, expanding international presence, prioritizing sustainability initiatives, and optimizing inventory management, Walmart can position itself for sustained growth and competitiveness in the ever-evolving retail landscape. Continuous adaptation and improvement are essential to navigate the dynamic market dynamics and meet the evolving needs of consumers.

Introduction

Walmart, founded in 1962 by Sam Walton, has grown to become one of the largest retail corporations globally. Its presence spans across various countries, serving millions of customers with a wide range of products at competitive prices. However, despite its success, Walmart faces numerous challenges and controversies. This essay delves into Walmart’s objectives, analyzing its strategic goals and the methods it employs to achieve them.

Walmart’s Established Objectives

Walmart’s primary objective is to provide customers with everyday low prices (EDLP) on a broad assortment of goods. This objective aligns with its mission of “saving people money so they can live better.” By offering lower prices than competitors, Walmart aims to attract customers and build loyalty. Additionally, Walmart strives to maintain its position as a market leader in the retail industry, continuously expanding its market share and geographic presence.

Strategic Analysis of Walmart’s Objectives

A key aspect of Walmart’s strategy is its low-cost, high-volume business model. By leveraging economies of scale and efficient supply chain management, Walmart minimizes operational costs, enabling it to offer lower prices to customers. Moreover, Walmart aims to enhance customer satisfaction through convenient shopping experiences and superior customer service. These objectives are supported by Walmart’s investment in technology and innovation, such as online platforms and automated inventory management systems.

Objectives in Addressing Ethical and Environmental Concerns

In recent years, Walmart has faced criticism regarding its labor practices and environmental impact. To address these concerns, Walmart has set objectives related to ethical sourcing, labor rights, and environmental sustainability. For instance, Walmart aims to source products ethically, ensuring fair labor practices and environmental responsibility throughout its supply chain. Additionally, Walmart has committed to reducing its carbon footprint and promoting renewable energy usage in its operations.

Challenges in Achieving Objectives

Despite its clear objectives, Walmart faces several challenges in achieving them. Stiff competition from both traditional retailers and e-commerce giants poses a threat to Walmart’s market dominance. Moreover, addressing ethical and environmental concerns requires significant investments and changes in organizational practices, which may face resistance from stakeholders. Additionally, Walmart must navigate complex regulatory environments and cultural differences in international markets, complicating its expansion efforts.

Analyzing Walmart’s Progress Towards Objectives

To evaluate Walmart’s progress towards its objectives, one must consider various performance indicators. Key metrics include financial performance, market share, customer satisfaction ratings, and sustainability initiatives. By analyzing these metrics, stakeholders can assess Walmart’s effectiveness in achieving its strategic goals and identify areas for improvement.

Conclusion

In conclusion, Walmart’s objectives are centered around providing customers with low prices, maintaining market leadership, and addressing ethical and environmental concerns. Through its low-cost, high-volume strategy and investment in technology, Walmart strives to achieve these objectives while adapting to changing market dynamics. However, challenges such as competition, ethical dilemmas, and regulatory constraints present obstacles to Walmart’s success. Nevertheless, with a proactive approach and a commitment to its core values, Walmart remains poised for continued growth and sustainability in the global market.

Introduction

Walmart stands as a global retail giant with a sprawling network of operations, making it imperative to understand the diverse array of stakeholders vested in its success. From top management to customers, each stakeholder plays a crucial role in shaping the trajectory of the company.

Stakeholders’ Interests

Top management at Walmart holds a vested interest in strategic decision-making, aiming to steer the company towards sustained competitive advantage in the dynamic retail landscape. Shareholders, on the other hand, are primarily concerned with maximizing wealth through effective governance, expecting strong financial performance and value creation. Employees seek fair treatment, conducive working conditions, and equitable remuneration for their contributions, emphasizing the importance of a supportive organizational culture. Meanwhile, customers prioritize quality products and services at affordable prices, driving their loyalty and satisfaction. Furthermore, Walmart’s commitment to corporate social responsibility resonates with stakeholders as they expect the company to uphold ethical standards and contribute positively to society.

Stakeholders’ Authority and Responsibilities

In the decision-making realm, both managers and employees bear significant responsibility, with the former tasked with strategic planning and the latter contributing insights from the operational frontlines. Informed decision-making is paramount for organizational performance enhancement, requiring stakeholders to analyze data, anticipate market trends, and assess risks meticulously. Moreover, employee involvement in decision-making fosters adaptability to changing business environments, enabling Walmart to remain agile and responsive in an ever-evolving market landscape. As champions of innovation and creativity, stakeholders, particularly managers, must nurture a culture that encourages experimentation and novel approaches to problem-solving. Effective communication of organizational changes is another vital responsibility, ensuring transparency and alignment across all levels of the company.

Conclusion

The success of Walmart hinges on the collective efforts of its diverse stakeholders, each contributing their unique perspectives and expertise towards common goals. By recognizing and addressing the interests and responsibilities of stakeholders, Walmart can cultivate a harmonious ecosystem conducive to sustainable growth and prosperity. However, the dynamic nature of stakeholder dynamics necessitates continuous adaptation and improvement, underscoring the importance of ongoing dialogue and collaboration. As Walmart navigates the complexities of the retail landscape, prioritizing stakeholder engagement remains paramount, serving as a cornerstone for organizational success in an increasingly interconnected world.

Walmart, the world’s largest retailer, is known for its vast network of stores, competitive pricing, and diverse range of products. Behind its success lies a carefully crafted mission statement that guides the company’s operations and strategic decisions. In this essay, we will explore Walmart’s mission statement, dissecting its key components, analyzing its significance, and evaluating its alignment with the company’s actions and objectives.

Origins and Evolution

Walmart’s mission statement has evolved over time to reflect the company’s growth, changing market dynamics, and shifting priorities. Founded by Sam Walton in 1962, Walmart started as a small discount store in Arkansas with a mission to provide affordable products to customers in rural areas. Over the decades, as Walmart expanded its operations across the United States and globally, its mission statement adapted to encompass broader goals and aspirations.

Core Components

At its core, Walmart’s mission statement revolves around the concept of “saving people money so they can live better.” This succinct phrase encapsulates Walmart’s commitment to offering low prices and value to its customers. By emphasizing savings, Walmart aims to enhance the quality of life for its customers, enabling them to stretch their budgets and afford essential items.

Customer Focus

Central to Walmart’s mission is its relentless focus on customer satisfaction. The mission statement underscores Walmart’s dedication to meeting the needs and preferences of its diverse customer base. Whether through everyday low prices, convenient shopping experiences, or a wide selection of products, Walmart strives to deliver value and convenience to its customers, fostering long-term loyalty and trust.

Employee Empowerment

Beyond its commitment to customers, Walmart’s mission statement also emphasizes the importance of its employees. The statement acknowledges the role of Walmart associates in delivering on the company’s promise of value and service. By empowering its employees, Walmart aims to create a supportive work environment where associates feel valued, motivated, and invested in the company’s success.

Community Impact

Another key aspect of Walmart’s mission statement is its focus on community impact. The statement reflects Walmart’s recognition of its broader societal responsibilities beyond profit generation. Walmart aims to be a good corporate citizen by supporting local communities, promoting sustainability, and contributing to social causes. Through initiatives such as charitable giving, environmental stewardship, and disaster relief efforts, Walmart seeks to make a positive difference in the communities it serves.

Strategic Implications

Walmart’s mission statement has significant strategic implications for the company’s operations and decision-making processes. It serves as a guiding principle that informs Walmart’s business strategies, initiatives, and investments. For instance, Walmart’s emphasis on low prices drives its procurement and supply chain strategies, enabling the company to negotiate favorable terms with suppliers and pass on cost savings to customers.

Moreover, Walmart’s mission statement influences its marketing and branding efforts, shaping how the company communicates its value proposition to customers. By consistently reinforcing its commitment to saving money and improving lives, Walmart strengthens its brand identity and differentiation in the highly competitive retail landscape.

Conclusion

In conclusion, Walmart’s mission statement serves as a compass that guides the company’s actions and defines its purpose in the retail industry. By prioritizing customer value, employee empowerment, and community impact, Walmart seeks to fulfill its mission of “saving people money so they can live better.” As Walmart continues to evolve and adapt to changing market dynamics, its mission statement will remain a foundational element that shapes its strategic direction and fosters its ongoing success as a global retail leader.

Introduction

In the realm of retail, technological advancements have become paramount in driving efficiency, enhancing customer experiences, and optimizing operations. Among the pioneers in embracing innovative solutions is Walmart, a retail giant renowned for its commitment to leveraging cutting-edge technology. At the forefront of this endeavor is the Walmart Smart System, a comprehensive network of interconnected technologies aimed at revolutionizing the retail landscape. This profile essay delves into the Walmart Smart System, exploring its components, functionalities, and impact on the retail industry.

Components of the Walmart Smart System

The Walmart Smart System comprises a multifaceted array of technologies seamlessly integrated to streamline various aspects of retail operations. At its core lies advanced data analytics capabilities, enabling real-time monitoring and analysis of sales trends, inventory levels, and customer preferences. This data-driven approach empowers Walmart to make informed decisions regarding product placement, pricing strategies, and supply chain management.

Augmenting the data analytics infrastructure are state-of-the-art sensors and IoT devices strategically deployed throughout Walmart stores. These sensors track foot traffic, monitor shelf inventory, and provide insights into customer behavior. Leveraging this granular data, Walmart can optimize store layouts, ensure product availability, and enhance the overall shopping experience for customers.

Functionalities of the Walmart Smart System

The Walmart Smart System encompasses a wide range of functionalities designed to enhance operational efficiency and drive business growth. One key aspect is inventory management, where RFID technology plays a pivotal role. RFID tags attached to merchandise enable automated inventory tracking, reducing stockouts, minimizing shrinkage, and improving overall inventory accuracy.

Furthermore, the Walmart Smart System incorporates machine learning algorithms to forecast demand, optimize pricing strategies, and personalize marketing initiatives. By analyzing historical sales data and customer preferences, Walmart can dynamically adjust prices, offer targeted promotions, and tailor product recommendations to individual shoppers, thereby maximizing sales and customer satisfaction.

Another integral component of the Walmart Smart System is the implementation of autonomous robots for various tasks such as inventory auditing, floor cleaning, and shelf restocking. These robots operate seamlessly alongside Walmart associates, augmenting workforce capabilities and freeing up employees to focus on more value-added tasks.

Impact on the Retail Industry

The adoption of the Walmart Smart System has had a profound impact on the retail industry, setting new benchmarks for operational excellence and customer-centricity. By leveraging advanced technologies, Walmart has been able to enhance store efficiency, optimize inventory management, and deliver personalized experiences to shoppers.

Moreover, the Walmart Smart System has redefined the role of employees within the retail environment. Rather than displacing human workers, automation and AI-driven technologies have augmented their capabilities, enabling them to focus on tasks that require creativity, problem-solving, and interpersonal skills. This symbiotic relationship between technology and human capital has resulted in a more agile and efficient workforce.

Furthermore, the success of the Walmart Smart System has spurred increased investment in technology across the retail sector, with competitors seeking to emulate Walmart’s innovative approach. This proliferation of technology-driven solutions has led to greater digitization of retail operations, driving industry-wide transformation and ushering in a new era of retail innovation.

Conclusion

In conclusion, the Walmart Smart System stands as a testament to the transformative power of technology in the retail industry. By harnessing the capabilities of data analytics, IoT, machine learning, and robotics, Walmart has established a robust ecosystem that drives operational efficiency, enhances customer experiences, and fosters business growth. As Walmart continues to evolve its smart system and embrace emerging technologies, it is poised to maintain its position as a trailblazer in the retail landscape, shaping the future of commerce in the digital age.