Category: Walmart

Introduction

Wal-Mart is an American, transnational retail company, which runs warehouse stores and chains of large-scale discount stores. It is the worlds largest public corporation and the largest private employer globally, employing more than 2 million employees around the world (Vance and Scott, 1997). The company runs 8,500 stores throughout 15 nations, operating under 55 diverse names (Wal-Mart, 2012).

This paper explores the innovative operations of Wal-Mart, through the development of new, innovative products taking into account different market forces like competition, internal and external environments as well as the regulatory climate.

The innovative strategies of Wal-Mart

Competition and Wal-Mart

Gregory (2009) discussed Wal-Marts strategy of competing out its competition in the international market, through its shocking product prices. An example is the case of the USD8 Jeans offer, besides its strategy of stocking all consumer products, ranging from matchboxes, milk, and toys among others. Wal-Mart has employed a wide-reaching massive stocking and strategy remodeling known as project Impact.

The second innovative characteristic is enhancing the customer service capacity and the friendliness of their staffs. The third innovation is capitalizing on the stocking of the product categories, where the company can kill its competitors (Gregory, 2009).

Product life cycle of Wal-Marts products

Product innovation is one of the seven areas that are given emphasis at Wal-Mart. The goal of the company, in this area is channeling the capacity of the product development team, at exposing the deep-reaching social and environmental hot spots  with regard to the life cycles of their products. According to EDF (2010), the aim of the company is to realize an improvement of the overall sustainability of the products produced by the company.

The company requires the suppliers to deliver groceries and food inputs that can be processed into products with a longer shelf life. The effort is aimed at increasing the health and the safety aspects of the products sold by Wal-Mart (EDF, 2010).

New needs of a customer

Wal-Mart has been a favorite shopping destination for many low and middle class shoppers (Blair, 2010). Wal-Mart is losing out on the changing needs of its customers, including the need for budget shopping, limited customer services and the need for variety, which are areas that Wal-Mart stores are failing in.

Wal-Mart stores are losing in the capacity of service delivery, with many employees answering to customers, that is not my department, when they are requested to offer their help. Wal-Mart stores are also characterized by a dwindling selection of the products they offered (Blair, 2010).

Regulations and Wal-Mart

Straight (2010) discussed Wal-Marts innovative approach to regulation, towards realizing wider freight control. The change of approach to the supply chain will allow their suppliers to focus on the manufactory of products. The issue by employing the innovative supply chain approach, which will reduce the operational costs of suppliers.

The company will worsen the US trucking industry, which had been undergoing recovery after a three-year flight downturn. This approach by Wal-Mart, as discussed by Thomas and Stoneham (2011, p. 5), is likely to inflict uncompensated impacts on third parties.

Social Consciousness of Wal-Mart

Wal-Mart uses its reputation as a seller offering products at low prices to cover its lack of social consciousness (Kaiser, 2005). The effects felt by Wal-Mart include their failure of the attempts to expand into Europe, particularly Norway.

Norway disinvested Wal-Mart (Berglund, 2006), and in Germany, it had to sell 85% of its chains to Metro (Norton, 2006). These cases show that Wal-Mart uses their dismal social consciousness as an unethically innovative approach to the realization of more profits, at the expense of their employees and areas of operation.

The obstacles in the way of the Innovative strategies

Risk facing Wal-Marts innovativeness

The risks facing the innovative strategies of Wal-Mart, in the area of product development include the sharp increase in competition from other enterprises like Costco, which compete Wal-Marts Sams club to a great extent. Costco, as opposed to Wal-Marts outlet registers more sales volumes, thus revenues.

Costco is also visited frequently. For instance, it was the first outlet to sell luxury items and products like gasoline and fresh meat (Courtemanche and Carden, 2011). Wal-Mart faces the risk of restrictive trade and regulatory policies, which do not favor the business outlook of the company and its business (Berglund, 2006).

The project itself

Bender et al. (2001) discussed that Wal-Marts investment into new and innovative products has been a major source of value. Examples include their investments in infrastructure, including the use of point-of-sale UPC (Uniform Product Codes) scanning.

They also introduced the pricing of products using radio frequency broadcast between the central inventory and scanners operated by personnel at the shelves. Wal-Mart has also invested greatly in the facilitation of new and innovative ways of product offering, including the connectivity of its operations.

These innovative approaches to product offering have continually offered Wal-Mart a competitive edge, since the 1980s, including its installation of a satellite connectivity system for all its networks (Bender et al., 2001).

The uncertainty facing Wal-Mart

The uncertainties facing Wal-Mart include the threat of the pending lawsuits, which were filed by discontented employees, who felt that they were abused by the company (UW, 2013). Some of the lawsuits, which could affect the company in a negative manner, include those on the discrimination of female workers, forceful overtime work, minimal wage rates, and practices of firing the workers that question the negative strategies of the company.

Wal-Mart faces uncertainty, regarding the actions that could be employed by its major rivals. Therefore, Wal-Mart has remained watchful of their actions, so they can employ parallel innovative strategies to offset their strategies. As a result, Wal-Mart is faced by the uncertainty of strategies to employ, so as to maintain their position in the retailing industry (Wailgum, 2008).

The internal and the External environment of Wal-Mart

The internal environment of Wal-Mart is composed of its tangible resources including financial, technological, physical and organizational resources. The organization structure of Wal-Mart is organized according to regions. Thus, Wal-Mart is likely to battle with the same problems at different operational locations (Berglund, 2006).

In the aspect of physical resources, Wal-Mart buildings are located at remote centers, which require the transportation of supplies. This resource allocation increases the costs resulting from the logistics of the company, towards getting the products to the customers (Jones, 2010).

The second aspect of the internal environment is the intangible resources of the company, including the innovation, human resources, and reputation. Wal-Marts innovation is suppressed by its inability to safeguard the rights and the welfare of their employees as exemplified from the suits leveled against the company (UW, 2013).

The external environment of Wal-Mart includes the general environment of Wal-Mart: economic, global, and social-cultural. Wal-Mart maintains its warehouse style shops with minimal decorations, which are not favored by the outlook of different socio-cultural contexts, including the upcoming generation, which is inclined to social dynamics.

The global environment has not favored Wal-Mart at all its target markets as exemplified by the European outlook that did not allow the company to grow in Norway and Germany, as opposed to its success in America (Kaiser, 2005).

The second aspect of the external environment is the industry environment (Wailgum, 2008). In this environment, there is the obstacle presented by the need to maintain the expected standards of price and quality, which could shift customers to the competitors of Wal-Mart.

The external environment is also composed of the opportunities available to Wal-Mart and the threats facing it, including the lawsuits leveled against it and the many competitors that are re-grouping towards developing strategies of breaking Wal-Marts dominance (UW, 2013).

Wal-Mart as an obstacle in itself

From the review of the corporate profile of Wal-Mart, the company has tainted its social image many times and in many aspects of operation, which could impair the companys success in business. Examples include that the company has not maintained long term relations with their employees as exemplified in the male dominance issue and the wrangles between the company and its employees (UW, 2013).

Wal-Mart has also focused on the narrow business outlook, which should emphasize on tapping emerging markets like India and China, as opposed to limiting their operations at established markets (Norton, 2006).

Justification of pushing innovation to a higher level

Pushing innovation levels and technological change to higher levels at Wal-Mart will increase the closure of employment opportunities and increase the resources consumed on the training of employees. In the case of Wal-Mart, the change of technology and the adoption of higher innovation levels will not be cost-effective for the company (UW, 2013).

For a company that emphasizes on employing low cost employees, the change will not be justified as it will eliminate the need for untrained or semi-trained labor, to pave the way for the trained employees who are likely to require better salaries.

The best innovation process to implement

The best innovation processes available to Wal-Mart include eliminating the structural and the administrative incoherence that makes the company a non-preferred economic player among many target markets like Norway and Germany (Berglund, 2006; Kaiser, 2005).

Wal-Mart should also focus on eliminating the obstacles within its internal and external environment as they are likely to limit its market entry strategies at different global (Wailgum, 2008). The other innovative strategy that Wal-Mart can employ towards realizing future market success is increasing their social consciousness (Kaiser, 2005).

Recommendations

Wal-Mart should emphasize on the need to develop long term relationships with their employees, as a way of reducing the high turnover of employees. In this case, the company will also improve its tainted corporate image globally, which is likely to affect its success within the target market areas (Berglund, 2006).

Wal-Mart should focus on developing a wide business perspective, as opposed to maintaining its narrow one. Through the change, they will be able to expand their business in emerging markets like those in Asia, including India and China. Wal-Mart should emphasize on the improvement of its corporate image, with regard to the cultural and the social responsibility expected from it.

Conclusion

The innovative strategy of project impact, which sought to eliminate Wal-Marts competitors have worked well for the company. The improvement of product life cycle and confronting limiting regulations can help Wal-Mart to gain higher capacity. The social consciousness of Wal-Mart does not favor the future of the company.

The obstacles in the ways of the innovativeness of the company include the risks of increasing competition, the uncertainty regarding the legal suits facing the company and the internal and the external environment, including increasing market rivalry. The best innovations to implement include eliminating structural incoherence of the companys outlook.

References

Bender, A., Howell, A., Lavin, A., and Torgerson, D. (2001). WAL-MART.COM: A Case Study in Managing Technical Transitions. Web.

Berglund, N. (2006). Norway dumps Wal-Mart stock. Web.

Blair, B. (2010). Wal-Mart Stores Not Catering to Customer Needs, Losing Customers. Web.

Courtemanche, C. and Carden, A. (2011). Competing with Costco and Sams Club: Warehouse Club Entry and Grocery Prices. Web.

EDF. (2010). Wal-Mart: Our Seven Areas of Focus. Web.

Gregory, S. (2009). Wal-Marts Latest Move to Crush the Competition: Time, Business and Money. Web.

Jones, G. R. (2010). Organizational theory, design, and change. Upper Saddle River, NJ: Pearson.

Kaiser, E. (2005). Majority Says Wal-Mart Bad for America: Poll. Web.

Norton, K. (2006). Wal-Marts German Retreat. Web.

Straight, B. (2010). Wal-Mart seeking greater freight control. Web.

Thomas, C., and Stoneham, G. (2011). Innovative Approaches to Regulation: The role of Information and Incentives. Web.

UW. (2013). Trust Funds: Wal-Mart Corporate Record. Web.

Vance, S. and Scott, R. (1997). Wal-Mart: A History of Sam Waltons Retail Phenomenon (Twaynes Evolution of Modern Business Series). Woodbridge, CT: Twayne Publishers.

Wailgum, T. (2008). How Wal-Mart lost Its Technology Edge. Web.

Wal-Mart. (2012). Wal-Mart: Our Story. Web.

Company background (Karen)

Wal-Mart is the leading retailer that provides products at a moderate price to American families with an average income level. To improve performance and profitability, the company has hired a consultancy team to introduce changes to automotive and customer service departments.

Our primary goal consists in advancing Wal-Mart employees knowledge and skills to ensure the optimization of customer service area, as well as reorganize storage space. The solutions have been provided to increase the number of employees and strengthen the retention culture to manage customers time efficiently and reduce checkout lines. Automotive department is another important focus of the proposal.

Specifically, the consultants should work out strategies to develop advance operational activities and allow the producers to cease the manufacturing process in case of emergency and regulate the working hours efficiently.

The STEEPLE analysis of the company has defined future directions and changes that should be implemented. It has defined the importance of enhancing social and ethical perspectives to consider customers and employees as valuable assets of an organization. Additionally, technological base is another concern that should be taken into consideration because it will contribute to the companys operational capacity.

The main scope of the project plan is to enter new markets by improving customer service and integrating new technological base. The project will also imply proper training, efficient teamwork, collaboration, and discipline. These aspects will create the basis for fulfilling the companys objectives.

Implementation plan (Karen)

Objectives, Functional Tactics, Action Items, Milestones, Tasks, and Resource Allocation

The main objective of the implementation plan lies in changing the attitude to consumers and employees and developing a strong ideological framework. In particular, the company plan should premise on social corporate responsibility that considers human resources to be valuable assets (Wickham & Wickham, 2008).

Enhancing communication between employees and clients will be the key to companys successful performance. Rational distribution of responsibilities should be the priority for companys executive managers because it will contribute to the production process and will promote efficient information exchange among the departments.

Analyze Key Success Factors

The project will be successful in case the following circumstances and issues will be taken into deeper consideration. To begin with, the main role of consultants is to take control of the communication strategies that managers employ while monitoring the stages of project accomplishment.

Specific attention should be given to the way employees adopt new policies while communicating and negotiating with clients (Wickham & Wickham, 2008). There should be specific performance measurement system that will address their readiness to establish and sustain fruitful cooperation.

Determine Strategies to Monitor and Control the Projects Implementation

The role of the consultants is confined to controlling the research and development processes to make sure that the company successfully integrates new technology for enhancing communication and advancing the automotive production process (Block & Nowlan, 2011). The level of interpersonal skills is important because it defines employees ability to sustain conversation, generate ideas, and engage into crucial thinking.

Reasonable discussions should be premised on reasonable argument between managers and their subordinates and, therefore, workers should not be afraid of expressing their ideas that can improve internal business operations (Block & Nowlan, 2011). Therefore, the project implementation should be controlled on the basis of performance measures and evaluation of the overall climate in the workplace.

Evaluation plan (Karen)

Method for Evaluating Projects Success

To assess the projects effectiveness, performance reviews, distribution of tools and techniques, trends analysis, and earned value evaluation will be among the most effective measurement instruments. Specifically, performance reviews are necessary for estimating project status. This evaluation tool can be adopted to trace the changes weekly (Rasila et al. 2010).

As soon as the reviews are performed, it is possible to detect any deviation from the initial instructions. Trend analysis focuses on examining the project outcomes through report evaluation.

Such a system can provide information about possible adverse trends that could be prevented (Rasila et al. 2010). Schedule and costs could be regulated by earned value analysis whereas project performance will be measured by the effectiveness of information distribution techniques.

Survey for Evaluating Project Effectiveness

To evaluate the effectiveness of the project, a cross-sectional survey will be conducted that involves interview and a single questionnaire. Interviews will be held for each member of the sample to understand the character of responses, as well as define the participants feedback.

The questionnaire will be premised on general, special, and multi-choice questions to understand the level of effectiveness and perceptions of the project by both managers and employees.

CWE

While estimating the common weaknesses and vulnerabilities of software programs, specific emphasis should be placed on CWE documentation in terms of its functionality. Thus, transparent reporting is essential for improving communication within an organization. Cooperation with clients is also supported by accurate information exchange.

CWE Test Results demonstrate how new computer-mediated environment can estimate the level of performance among the employees. At this point, the project should integrate these tools for assessing the way technological tools contribute to the project accomplishment.

References

Block, P., & Nowlan, J. (2011). Flawless consulting. A guide to getting your expertise used (3rd ed.). John Wiley & Sons.

Rasila, H., Alho, J., & Nenone, S. (2010). Using Balanced Scorecard in Operationalising FM Strategies. Journal of Corporate Real Estate. 12(4), 279-288.

Wickham, P., & Wickham, L. (2008). Management consulting: Delivering an effective project (3rd ed.). Harlow, England: Pearson.

Walmart Company Profile

Walmart is a large retail chain with well-arranged and strategically located stores in various continents. These stores apply the latest technology in the management of their activities. The company has had a substantial growth in its client base due to the development of mobile shopping technology. Using this technology, most customers can shop online and collect the goods bought from the nearest Walmart store (Corporate Reports 6).

The companys unique features such as allowing customers to propose the prices of commodities, access, experience, and assortment have made it the preferred seller to many consumers. The chain has a wide range of commodities exceeding 10 million items as of 2015 (Corporate Reports 8).

The company operates in countries such as China, Canada, Mexico, United Kingdom, and Brazil (Corporate Reports 3). The ability of the company to stock fresh food and innovative e-commerce gives the establishment a competitive edge over other retail chains. The Walmart chain was among the best performers among large retail chains in the United States with high sales exceeding $141 billion in 2015 (Corporate Reports 4). The stores serve nearly 260 million customers in 27 countries with a large number of employees. The large number of employees (approximately 800,000) is an indication of the companys commitment to offering quality services to its client base.

Financial Overview for Five Years

The financial stability of every firm is determined by the ability of the firm to manage its financial resources appropriately. The progress of a company is pegged on the soundness of its financial acquisition, utilization, and planning. The growth of Walmarts financial base and profitability can be attributed to good financial management systems and tools. The company employs the latest technology that enables it to achieve exceptional results.

From the above graphs, net sales, operating income, and net revenue have had an upward trend since 2011. The finances indicate that the company has realized positive growth over the last five years as indicated by an increase in the total assets and shareholders equity (the financial position graph). In the year 2015, the net sales hit the highest mark.

Current Market Situation

The market is highly competitive with numerous stores that offer similar products and services. Therefore, the market poses opportunities as well as challenges to the retail chain (McCammon 35). The ability of the retail chain to diversify and stock millions of items keeps it ahead of market expectations. The market that is served by e-commerce in the major areas where the retail chain operates has grown rapidly. As a result, the retail chain has also invested in e-commerce to keep up with the market demands.

Market Description

The markets served by the company consist of informed consumers who are aware of the latest trends, bargains, after-sale services among many other customer services. Serving knowledgeable consumers is quite challenging because such clients have adequate facts regarding their rights as consumers including the prices of similar commodities from other sellers. The retail chain understands its market and offers a wide range of products at competitive prices to its customers. The market consists of other large and small retail outlets that pose competition to Walmart. However, Walmart manages to keep up with the competition due to its specialization in the retail market. The market also comprises consumers of various ages, gender, attitudes, and lifestyles. Additionally, the geographic location of the market varies since Walmart serves a global market.

Product Review

The retail market is unique with millions of products from all over the world. Therefore, consumers can make choices from a wide selection of commodities. The range of products available for a single line may be from different manufacturers, for instance, washing detergents that are sold by hundreds of manufacturers. Therefore, the retail chains have to stock a variety of these commodities to suit their customers needs and tastes. The Walmart market in the United States, for example, is not as competitive as that in Brazil and the United Kingdom. The differences in competitiveness indicate that product variability exists in different countries.

Competitive Review

Competition in the business arena is a constant phenomenon. Therefore, competitive companies have the advantage of remaining in profitable business. The ability of a firm to compete effectively is determined by the nature of the competition and the financial capability of the firm (Lynch 309). The application of technology also plays a vital role in giving a firm a competitive advantage over its business rivals. Walmart, for instance, uses e-commerce to target clients who live away from their retail stores. This move has enabled the company to increase its sales. Such clients can order goods from the firms online stores and collect the purchased items from retail stores in their vicinity. Bulky items can be delivered to the clients residential addresses using company trucks.

Logistics Review

The nature of the customers and their locality substantially influences the processes that goods undergo before being delivered to the customers. The channels that the store chooses are dependent on the number of clients to be served and their geographical concentration. As a result, it becomes challenging to provide home delivery services to widely dispersed customer populations because the per-unit costs of delivery increase significantly (Frazier 37).

The use of logistic companies to ferry goods also becomes uneconomical to the business. These complications have discouraged the company from venturing into such markets. The company, however, has used the e-commerce platform effectively. The companys ability to purchase its commodities in large volumes directly from manufacturers has enabled its source and ship goods at fair prices. Consequently, the reduced logistic costs of the company have enabled customers to benefit in terms of buying goods at fair prices and better customer services.

The ability of the company to use trucks to deliver commodities has contributed to the increased sales volumes realized by the company. Most companies can meet their sales targets through intensive marketing without growing their distribution channels (Manna 78).

Walmart maintains short distribution channels for most of its products to lower handling costs and minimize the time taken to make deliveries. The management of short distribution channels is more rewarding than the management of longer channels, which make planning work tedious and time-consuming. Product factors that dictate the distribution and logistics of products include perishable goods, breakables, and luxury items. The handling of goods belonging to these categories is done at departmental levels to ensure that every category of goods receives specialized attention (Shang et al. 56).

Works Cited

Corporate Reports 2015. Walmart Annual Report 2015. Web.

Frazier, Gary L., Elliot Maltz, Kerry Antia, and Aric Rindfleisch. Distributor Sharing of Strategic Information with Suppliers. Journal of Marketing 73.2(2009): 3143. Print.

Lynch, Richard. Corporate Strategy. 4th ed. 2006. Harlow, Essex: Prentice-Hall. Print.

Manna, Dean R. Just-In-Time: Case Studies of Supplier Relationships Across Industries. Journal of Applied Business Research 24.1(2008): 7583. Print.

McCammon, B.C., Jr. Perspective for Distribution Programming. Marketing Channels. Eds. A. Coughlan, E. Anderson, L.W. Stern, and A.I. El-Ansary, London: Pearson International Edition, 2008. 30-55. Print.

Shang, Jennifer, Tuba Pinar Yildirim, Pandu Tadikamalla, Vikas Mittal, and Lawrence H. Brown. Distribution Redesign for Marketing Competitiveness. Journal of Marketing 73.2(2009): 146163. Print.

It is natural for a company that has experienced domestic success to expand internationally. Expansion into other markets helps in supporting the growth of the company. The company attempts to replicate the domestic success in these markets. However, the business environment in these markets may make it hard for companies to replicate their domestic success (Gaughan, 2007).

This is what happened to Wal-Mart, one of the most successful American companies. Expansion into the German and South Korean market did not have the financial success that the company predicted. This forced the company to terminate its operations in these countries. Wal-Mart did not experience considerable financial success in Germany.

The company recorded a pretax loss of $1 billion in the last quarter of Germans operations prior to the closure (Troy, 2006). Despite making huge investments in the German operations, Wal-Mart was not reaping good returns on its investment. In fact, investments in the German market were jeopardizing the operations of the entire company.

Huge losses from the company siphoned off valuable finances of the company. In addition, continued losses in Germany and other international markets led to a significant decline in the companys share value. Reduced share value indicated that there was a significant reduction in the attractiveness of the company to investors (Stegmann, 2009).

Therefore, it was vital for the company to terminate operations in regions that were making huge losses. This would safeguard the interests of the company and ensure that the losses do not affect the entire operations of the company. Companies use various strategies to venture into international markets. Mergers and joint ventures are some of the common strategies (Neelankavil & Rai, 2009).

Wal-Mart used the wrong strategy in venturing into the German market. The company enticed customers using low prices of its products. However, this was not successful. Customers in the German market enjoyed low priced products prior to the entry of Wal-Mart. Therefore, customers could not understand why there was so much fuss about Wal-Marts low prices (Troy, 2006).

The German business environment did not provide a favorable ground for the success of Wal-Mart. Germany had restrictive policies on store hours and new development. In addition, the demographics of the country were unfavorable to the company. The intense price wars in the German market limited the success of Wal-Marts operations in the market (Troy, 2006).

Wal-Mart knew that it would face these problems if it ventured into the German market beforehand. However, the company overlooked these limitations. These problems haunted the company for the entire period that it was in operation in the country. They limited the financial profitability of the German operations. The only way out for the company was to shut its German stores.

The losses in international operations led to a significant decline in share value of the company. Significant reduction in the share value reduced financial worth of the company. Reduced market capitalization of the company of the company placed the operations of the entire company in jeopardy (Mantysaari, 2010). The failure of Wal-Mart in Germany is proof to the fact that a company can be successful in a certain region and experience dismal results in another.

The business environment and determines the success of a company in foreign locations. Unfavorable business environment forced Wal-Mart to terminate its German operations. Huge losses in Germany and other international locations led to a significant decline in the companys share value.

References

Gaughan, P. A. (2007). Mergers, acquisitions, and corporate restructurings. Hoboken, NJ: John Wiley & Sons.

Mantysaari, P. (2010). The law of corporate finance: General principles and EU law. Berlin: Springer.

Neelankavil, J. P. & Rai, A. (2009). Basics of international business. Armonk, NY: M.E. Sharpe.

Stegmann, J.P. (2009). Strategic value management. Hoboken, NJ: John Wiley & Sons.

Troy, M. (2006). Wal-mart bids auf wiedersehen, ends nine-year grind in Germany. Retailing Today, 45(14), 1-2.

Web development

Placement

Online placement is one of the areas that can either make or break an e-commerce venture. It makes no sense to have a fantastic website that users cannot find. In order to ensure proper placement, Walmart has hired technology gurus Rajaraman and Harinarayan who were former Amazon employees.

The duo sharpened Walmarts search engine optimization. They introduced a new search engine for the company that would translate customers queries into tangible results.

Before their employment in the company, a customer who typed cotton socks would get results like cotton candy or cotton shirts and no socks (Manjoo, 2013). Therefore, streamlining internal processes to ensure fast response to customers searches was critical.

Placement of Walmart on Google searches has also been streamlined as the first six search results on Walmart USA are links to the companys website. Walmart has also worked on a series of social media applications that analyze consumers profiles and helps them get gifts for their friends.

Merchandise and audience size

Walmart has taken advantage of its online platform to merchandise its products effectively. One way of doing this is displaying items on the basis of their appeal. Customers are likely to find the latest offers, in-demand and seasonal items first on the companys webpage.

For instance, Easter gift packages are prominently on display now because the Easter holiday is around the corner (Walmart, 2013). Additionally, images contain descriptions, prices and necessary details to acquire the item. Price cuts and discounts are especially prominent in these descriptions.

It is quite easy to access other products sold at Walmart other than the ones on display. Every webpage has a link of product categories on the top left corner that customers can click and peruse. Besides these, the retailer takes advantage of cross selling by displaying related products alongside search items.

The firms search engine recommends story books to someone who wants to purchase a toy for their child. The firm also has a shopping cart that it uses to assess a clients interests and makes recommendations on how they can improve their selections.

The check out page is quite clear such that customers can complete their transactions with confidence on the same (Walmart, 2013).

Presentation  online customer size

Walmart sells a range of household items that cut across a large spectrum of individuals. This implies that its customer size is as large as the online shopping market. Current statistics indicate that internet advertising cost about $72.18 billion in 2012. Therefore, the firm has a large market to reach through the internet.

It works on converting prospects to buyers through an effective presentation on its website. Clients could either be first-time visitors or current ones. These individuals can all find the right information easily on their website. Additionally, the firm refrains from placing too much clutter on its website.

Given the large customer size, having a direct option for completion of transactions is essential in the success of its e-commerce venture.

Therefore, Walmart makes it easy for non members to buy items without having an account. Account users also navigate the companys website easily through a streamlined process (Walmart, 2013).

Payment

When selecting a payment system, one must consider what one sells. Walmart sells multiple items, so a shopping cart was ideal for such an arrangement. It considers shipping costs and includes those charges in the final payment (Walmart, 2013).

One must also consider the popularity of online payment methods as it is pointless to have methods that no one will use. Walmart uses credit and debit cards, Bill-me-later and PayPal as its key methods. It selected such platforms because they are popular and relatively inexpensive (Laudon & Traver, 2007).

Security

The retail chain has a privacy policy that details how it handles information. For instance, it does not sell information to third parties. However, it may share it with supply chain partners who need to enable effective consumer transactions (Walmart, 2013).

The information can also be used to market other products. It secures other privileged information on well protected servers. After a sale, Walmart authenticates the sales transaction through an email.

Fulfillment

Walmart has worked on improving its ability to fulfill orders in the e-commerce world (Rayport and Jaworski, 2004). It now has a same-day shipping program that mirrors online giant Amazon. Furthermore, repeat online clients are increasing in number owing to the transparency, support and speed of online transaction.

Four infrastructures of e-commerce

This retail giant has also taken advantage of media, capital, technology and public policy infrastructure to boost its e-commerce effort (Rayport & Jaworski, 2004). For instance, it has dependable servers that handle the large volumes of transactions that take place on a daily basis.

It has invested in a lot of software to optimize customer experiences. One such case is the use of technology to tap into the social media world (Manjoo, 2013). With regard to capital, the company has organized its budgetary systems in a manner that gives the online aspect as much financial support as is necessary.

Walmart also takes advantage of media infrastructure in order to boost its stylistic and design interfaces. When one visits the companys website, one will have no problem in identifying what the company sells.

It is easy to deduce what the organization is about and how a client can benefit from it through choices on media infrastructure. Finally, the organization understands public policy infrastructure by setting up procedures that protect consumers during online transactions.

Online and brick and motor business model comparisons

Value propositions

The key value proposition for Walmart in its e-commerce portfolio is to give buyers access to their products at any time and in any location. The company believes that the internet is the future as seen through the rapid proliferation of smart phones and other devices (Manjoo, 2013).

If Walmarts consumers are heading in this direction, then the company needs to follow suit. The organization perceives online retailing as a long-term strategy. Although it has only recently entered the e-commerce world, the retail chain plans on growing with its clientele.

The company uses both online and brick and motor models (Rayport & Jaworski, 2004). For instance, promotion of products occurs through the traditional media channels.

Retail outlets are part of the distributional system in e-commerce. However, it also markets products on the internet and avails them in its stores. Both models coexist; although the online platform is yet to catch up.

Online offering

The key offering in this technology platform is convenience (Laudon & Traver, 2007). Individuals can get whatever they require from the retailer at the comfort of their homes.

Certainly this works hand in hand with its brick and mortar system; that is everyday low prices. Therefore, clients get cheap commodities in a convenient way.

Resource system

Walmart has the largest supply chain and greatest income revenue in the retail sector. These have all been used to enhance the e-commerce platform. For instance, when shopping online, clients have the option of picking the item from a brick and mortar store.

Since there are Walmart stores in 20 mile-radii from every citizen in the country, then online sales can be revamped in this way.

The organization also uses its strong revenue base to hire top IT talent for its e-commerce portfolio. Revamping an online shopping experience takes a lot of monetary resources, of which the company has plenty.

References

Laudon, K. & Traver. C. (2007). E-commerce: Business, technology and society. NY: Prentice Hall.

Manjoo, F. (2013, January 13). Walmarts evolution from big box giant to e-commerce innovator. Fast Company, 22.

Rayport, J. & Jaworski, B. (2004). Introduction to e-commerce. NY: McGrawhill Companies.

Walmart (2013). Walmart Homepage. Web.

Profile of Red Cross

The Red Cross is a nonprofit organization that addresses humanitarian projects across the world. The organizations main agenda is to help victims of humanitarian crimes and to facilitate different basic resources to the poor people in different parts of the world. The Red Cross was founded in 1881, and it has developed into a global organization, with its various regional headquarters located in different cities across the world.

The Red Cross is funded by different nations through donations. The organization also receives donations from private business entities and individuals. The donations are primarily used to fund the organizational projects because of most of the workers in the organization work on a voluntary basis (Mission, Vision, and Fundamental Principles, 2003).

The mission statement of the Red Cross states that it is committed to helping in alleviating suffering for humans (Mission, Vision, and Fundamental Principles, 2003). The organization calls for people to embrace generosity, and it compels individuals to continue volunteering and donating toward its various humanitarian ventures.

The values of the organization are deeply enshrined in humanitarian ethics. The company looks to ensure that it alleviates the suffering of all people regardless of their backgrounds. The Red Cross is a 501(c)(3) nonprofit organization, and it was granted this status in 1986. The umbrella organization of the Red Cross is called the International Red Cross Red Crescent Movement. The organization has a human asset base of millions of volunteers from different parts of the world. One of the obstacles that the company faces is the lack of sufficient funds.

The company keeps appealing to different companies from the private sector to increase their donations. In 2003, the Westchester Charter of the American Red Cross was facing a dire challenge in raising funds for its processes (Zhao, 2003). This is a common challenge for the entire organization. The organization was rescued by donations from private companies and individuals.

Profile of Walmart

Walmart is a for-profit giant retailer. The company is a multinational organization that has its headquarters in Bentonville, Arkansas. The company specializes in the retail industry, and it has ventured into developed and developing nations. Walmart was founded in 1962, and it has grown into a giant retailer with business entities in different countries (History, 2015).

The company provides its customers with the most affordable products. The company has developed a chain of retail stores in the United States, and it also has international business entities. The company is funded through the revenue that it generates through the retail business. The mission statement of the company states that it is committed to providing its customers with products that allow them to make huge savings.

The main value of the company is to provide satisfactory services to the customers, and a good working environment for the employees. Walmarts revenue in 2014 was $476.29 billion (Gross Profit Margins, 2015). The gross profit of the company in 2014 was $115, 007 million. The company has had a tremendous growth rate over the past several decades, growing from a profit margin of $1.08 billion in 1990 to the current state.

Compared to other companies in the sector, Walmart is the leading retailer in the United States and in the international markets. Walmart employs more than 2.1 million employees. The main obstacle for the company is the rising competition from Target and other retailing giants. The company has maintained a cheap supply chain to stay at the top of the competition. In 2006, the company faced a human resource crisis, which was solved by introducing appraisal programs and training and development programs.

References

Gross Profit Margin. (2015).

History. (2015).

Mission, Vision, and Fundamental Principles. (2003).

Zhao, Y. (2003). The Red Cross Faces Its Own Crisis.

Internal and External Stakeholders, Their Needs and Motivations Affecting the Proposed Change

Due to the fact that Wal-Mart is one of the largest retail stores, it is purposeful to pay attention to such internal stakeholders as employees who communicate directly with their customers.

Lack of personnel can negatively influence the service sphere and, therefore, the executive officer should be concerned with Human Resources policies (Block & Nowlan, 2011). Internal environment should premise on an extensive ethical and moral codes.

Facility management is also among the leading internal factors that should be treated by employees. It is highly important to take control of innovation and technological advancement to increase the quality of services.

Finally, developing communicational skills and leadership is also an important perspective that contributes to the companys performance (Wickham & Wickham, 2008b).

As per external stakeholders, the focus should be made on customers and their feedback to the quality of the services provided. In fact, consumers needs should be among the leading priorities, contributing to the reputation of the company, as well as level of supply and demand (Wickham & Wickham, 2008a).

More importantly, the customers could also be actively involved into companys improvement and, therefore, launching surveys and questionnaires is beneficial.

Project Risk Management Plans

Financial Risks

Introducing training programs for employees and developing new schemes that should be integrated into organizational structure. Employers should be more concerned with financial support of the programs for establishing testing procedures, as well as conducting surveys and research studies.

Investment into technology should be considered as well to define what devices and tools are necessary to facilitate the production and enhance employees competence and experience.

Specific attention should be paid to the analysis of internal environment, as well as research and development practices oriented on creative incentives for employees.

Operational Risks

Distribution of responsibilities should be the major concern at Wal-Mart because managers must monitor how duties should be accomplished. Imposing too much responsibility on employees can diminish their productivity, leading to a decline in operational efficiency.

Moreover, accountability is an important issue because it reduces the risk of fraud and concealed information. Transparent reporting ensures companys sustainability and reduces the risk of information leakage.

Hazard Risks

Health and safety of employees defines the effectiveness of human resources management. At this point, the main task of managers consists in developing and integrating health care insurance programs, pension plans, and social schemes.

Health care coverage does not only guarantee good reputation for the company, but also contributes to its global competition. Employees protection premises on introduction of specialized instructions that all workers should follow to prevent contingencies and dangerous situations.

Apart from internal risks, there are natural environment hazards that should also be taken into the deepest consideration.

Strategic Risks

Strategic risks refer to business development threats, business environmental threats, market risks, and technology threats. Business development risks are associated with business acquisitions, new products, and market segments.

This issue is especially significant for Wal-Mart because its global market share is large. Market risks refer to the shifts in consumer demand that have a potent impact on the companys operations (Block & Nowlan, 2011).

Offering exceptional services through good communication and technological advancement can be considered the main competitive advantage of Wall-Mart.

Additionally, the company should develop a strong philosophical framework for employees to adhere to the main principles of interacting with clients and developing strong communication skills.

References

Block, P., & Nowlan, J. (2011). Flawless consulting. A guide to getting your expertise used (3rd ed.). John Wiley & Sons.

Wickham, P., & Wickham, L. (2008a). Communications Skills and Presenting your Ideas. In P. Wickham and L. Wickham. (Eds) Management consulting: Delivering an effective project. (pp. 258-275) Harlow, England: Pearson.

Wickham, P., & Wickham, L. (2008b). Contracting, Influence and Team Leadership. In P. Wickham and L. Wickham. (Eds) Management consulting: Delivering an effective project. (pp. 151-178) Harlow, England: Pearson.

Introduction to Financial Statements

Financial accounting statements are important indicators of the performance of a given business. They indicate the extent to which the company has achieved its financial objectives as outlined in the strategic plans. Zimmerman (2010) highlights the important link between business operations and transactions. According to Zimmerman (2010), these two elements have a direct impact on financial accounting statements. The organizations performance and its fiscal position make up the financial accounting statements. Zimmerman (2010) identifies four main types of accounting statements. They include the balance sheet, income statement, cash flow statement, and statement of changes in equity (Zimmerman 2010).

In this paper, the author will analyze Wal-Marts latest financial statements. To this end, the author will assess how the companys statements are affected by its business operations and transactions. In addition, the fiscal information will be used to resolve problems identified within the firms financial framework. Finally, the importance of ethics in business operations in relation to Wal-Mart will be reviewed.

An Analysis of Wal-Marts Financial Statements

According to Zimmerman (2010), the growth or decline of a business can be seen in the figures represented in the companys financial statements. Wal-Mart Stores Incorporated is no exception. Its performance in the market can be gauged using the fiscal returns reported by the management. Wal-Mart is one of the fortune 500 companies in the world (Wal-Mart annual report, 2013). Its performance in the period ending 2013 illustrates a positive growth in profits (Wal-Mart annual report 2013). Zimmerman (2010) points out that when there is growth in business, a corresponding surge in the income statements is apparent. In addition, changes in the market climate affect the status of the financial accounting statements. For instance, Wal-Mart Stores Incorporated adopted a number of strategies to allow for the growth in profits, as illustrated in the fiscal reports. Such a move is reflected in the changes made in the equity of a given company.

The dynamic nature of business is experienced on a global scale. What this means is that the world market is not a static phenomenon. It changes on a regular basis, depending on prevailing conditions. A good example of the effects of economic fluctuations on the performance of a company is seen in the case of Wal-Mart Stores Incorporated. In this instance, changes in the American economy were regarded as major factors behind the growth of the company (Wal-Mart annual report 2013).

Zimmerman (2010) affirms that changes in the global economy affect business transactions and operations. With regard to business operations, an organization is forced to adjust its fiscal policies to respond to the said dynamics. Wal-Marts 2013 financial report indicates that the company made changes to its cash flow statements to ensure that growth is realized. Consequently, the financial accounting systems of a company are seen as dependent on the core operations of the organization.

Resolving Problems within a Financial Framework

Issues associated with the financial framework of a company can be addressed using the entitys fiscal and accounting information. In the case of Wal-Mart, return on investment (ROI), return on net assets (RONA), and residual income will be used to highlight the various fiscal issues.

Return on Investment

As far as the financial statements of a company are concerned, return on investment enables the accountant and other stakeholders to appreciate the performance of an organization in a comprehensive manner. According to Zimmerman (2010), ROI evaluates the efficiency of a given investment undertaken by a firm. To this end, financial statements need to outline the actual return associated with a given investment and the initial cost incurred in acquiring the same.

Wal-Mart Stores 2013 financial report indicates a decline in ROI between 2012 and 2013. Based on the figures presented in the report, 2012s ROI stood at 18.6%. The figure dropped slightly to 18.2% in 2013. Zimmerman (2010) is of the view that the return on investment is computed based on the acquisitions made by a company over a given period of time. The prevailing exchange rates are also taken into consideration when determining this figure. In light of the figures given above in relation to Wal-Mart, it is apparent that ROI is seen as a problem in the companys financial framework. The problem can be resolved once all the constituent elements are factored in during the calculations.

Wal-Marts Return on Net Assets

Return on Net Assets (RONA) is another financial ratio that enables one to evaluate the financial performance of a given organization. The ratio is also regarded as a problem within the financial framework of an entity. Zimmerman (2010) argues that RONA is obtained based on three main factors. Net income, fixed assets, and networking capital are seen as the constituent elements of a firms RONA. In light of this, the ratio is arrived at by obtaining the sum total of fixed assets and the networking capital. A quotient of the net income and the sum mentioned gives rise to the RONA of an organization.

An analysis of Wal-Marts RONA between 2012 and 2013 shows a slight gain in this figure. The figure is an indication that the returns made on the companys assets increased within this period (Wal-Mart annual report 2013).

Ethical Standards of Running a Business

The growth of a business entity is affected by a number of ethical standards. According to Zimmerman (2010), effective management of a company requires the stakeholders to take into consideration a number of ethical issues. The most common ethical element is honesty. To this end, Zimmerman (2010) argues that it is important for the company to be sincere in its communications and actions. The running of a business requires the managers to disseminate accurate information to stakeholders, such as investors. Honesty requires these professionals to give a precise account of the companys core operations. Wal-Mart tries to achieve this ethical objective by contracting the services of external auditors, who are involved in the generation of the companys financial statements.

Integrity is the second ethical component that business executives require to address. Zimmerman (2010) points out that this is a personal initiative that individual members of an organization ought to employ. A business should be operated on principles that are not affected by external pressures. For instance, integrity manifests itself when managers fight attempts to inflate figures to indicate the growth of a business. Wal-Mart managers adhere to this provision by making sure that they provide the right information to the investors.

Conclusion

In addition to honesty and integrity, managers need to be loyal to the shareholders. Loyalty is particularly important in the service industry. To this end, the manager should ensure that they meet the expectations of their clients by avoiding deceit. Wal-Mart has maintained a loyal base of consumers, which helps in maintaining the financial performance of the company.

References

Wal-Mart annual report 2013, Web.

Zimmerman, 2010, Accounting for decision making and control, 7th edn, McGraw-Hill, London.

Abstract

The given paper is devoted to the analysis of the main ways of organization and coordination of the channel which could help various companies to achieve success and evolve. The article revolves around the main needs of the partners who organize the channel and the most important procedures which could be used to regulate its functioning. Moreover, the ways in which the efficiency and profitableness of the given channel could be determined are also presented. Finally, the main roles of the channel partners are also discussed and their responsibilities are taken into account and analyzed.

Introduction

There is no use denying the fact that the modern world introduces a great number of various challenges to companies and organizations which try to become prosperous and continue their development. In terms of the world financial crisis companies have to create new channels that might help them to remain prosperous and attract new partners and customers. Walmart company is not an exception.

Channel between the Walmart company and Zumiez

Trying to enlarge the sphere of its influence it creates new channels. That is why, the company moves to the pacific northwest (Ferguson, 2015). One of the channels that could be described under these conditions is the relations between the Walmart company and Zumiez. Being a retailing company, Walmart has to find new partners who could contribute to its development (Our Business, n.d.). Thus, the main needs of these partners could be the beneficial partnership which could result in the increase of the level of incomes.

These companies could be taken as rather beneficial and powerful ones (About Zumiez, n.d.), that is why, the channel between them should be organized in accordance with all existing procedures which coordinate the functioning of the given sector. The procedure of the initiation of the given channel should be accepted by the officials of both these companies for the further partnership to be clear and efficient (Sales and channel management, n.d.). A certain set of procedures to control the functioning of the channel should also be introduced. First of all, it is the constant monitoring of the state of channel and data and goods transferred with its help.

Channel efficiency improvement

However, to remain topical and important for the functioning of these companies, the channel should remain efficient and the level of its performance should be high (Axelrod, Day, & Garnick, 2015). With this in mind, the tools to determine this level should be created. First of all, it is possible to suggest the implementation of a certain assessment tool which could help to evaluate the partners performance and the general state of the channel. First of all, this very tool should take into account such showings as the level of incomes and the state of companies who act as partners. This very tool could help to make the channel more efficient

Finally, it is vital to consider the responsibilities of the partners. Usually, they are determined by the contract which is the main document that coordinates the functioning of the channel of this sort.

Conclusion

Thus, it is obvious, that both companies should look after the state of the channel and contribute to its development suggesting new ideas and ways to develop the project (Sharma, 2014). Being the equal partners, companies play an important role in the functioning of the channel, trying to make it more efficient and significant. With this in mind, it is possible to conclude that the existence of the channel of this sort cold help companies to evolve.

References

About Zumiez. (n.d.). Web.

Axelrod, J., Day, M., & Garnick, C. (2015). Best of the northwest. Forbes. Web.

Ferguson, E. (2015). Walmarts Marketing Mix (4Ps) Analysis & Recommendations. Web.

Our Business. (n.d.). Web.

Sales and channel management. (n.d.). Web.

Sharma, R. (2014). Why Walmart And Best Buy Are Not The Only Retail Channels For Hardware Entrepreneurs. Forbes. Web.

Intro

It is necessary to mention that Wal-Mart had to deal with a channel conflict in 2005, and the decision that was made by the company can be regarded as incredibly efficient and has helped to address this issue. The problem that occurred is that core telephone suppliers had to revise their strategies all the time and were competing at that time. The issue that needs to be noted is that many suppliers had to reduce prices of their products, and it has resulted in less profit (Hittt, Black, & Porter, 2009).The decision to separate products in particular groups that are aimed at different consumers was an efficient choice in this case and has helped the company to resolve the conflict.

Discussion

It is a responsibility of the retailer to find the best possible solution in such situations, and cooperation is of utmost importance most of the time. Also, it is paramount to understand that it is necessary to provide suppliers with a range of benefits to address such issues because it may help the enterprise to get a significant competitive advantage. It is understandable that a company may have to deal with several difficulties when manufacturers provide products that are incredibly similar and it is necessary to come up with various approaches because it could lead to severe consequences in some cases.

The fact that it is one of the biggest retailers also played a vital role because the company was able to get an excellent position on the market, and the overall goal is to receive the most profit (Bloom & Perry, 2001). Another core aspect that should not be overlooked is that the enterprise takes advantage of the fact that manufacturers make a significant percentage of their sales through this retail channel. They may be forced to sign deals that would be beneficial for Wal-Mart (Putting screws to suppliers means big cash for Wal-Mart, 2010).

However, the company is determined to build long-term relationships with its partners, and it is one of the core aspects that have led to such tremendous growth over the years. It is imperative to note that a company like Wal-Mart wants to ensure that its suppliers are reliable because any issues may affect the experience of the consumers, and it is an aspect that is highly valued by the enterprise. Another aspect that is worth noting is that it has access to enormous amounts of information and knowledge because it operates all over the global and the company can use such data to develop approaches that would be the most useful and channel power is also increased as the result (Govindarajan & Gupta, 2009).

The fact that the company has invested many resources into information technologies also needs to be discussed, and the enterprise can determine possible sales and how they would be affected by differences in price (Perner, n.d.). Also, it is imperative to understand that the data that is available on social media and the Internet is collected and analyzed, and it is possible to get a better understanding of the amount and types of products that are needed, and such factors are considered during the decision-making process (Perez, 2011). Overall, it is evident that Wal-Mart can leverage channel power because it keeps track of latest trends in the industry and has access to many resources.

References

Bloom, P. N., & Perry, V. G. (2001). Retailer power and supplier welfare: The case of Wal-Mart. Journal of retailing, 77(1), 379-396.

Govindarajan, V., & Gupta, A. K. (2002). Taking Wal-Mart global: Lessons from retailings giant. Strategy + Business. Web.

Hittt, M., Black, S. & Porter, L. (2009). Management (2nd ed.). Upper Saddle River, NJ: Prentice Hall.

Perez, S. (2011). How your social data will power Walmarts e-commerce revolution. Web.

Perner, L. (n.d.). Channel management and conflict. Web.

Putting screws to suppliers means big cash for Wal-Mart. (2010). Web.