Implementing Strategic Quality Change in an Organization

This report covers the implementation of strategic quality change in an organization, focusing on the importance of operations management and quality management in achieving organizational objectives. It evaluates the success of existing processes, plans a strategic quality change, and examines the wider implications of the change. It also discusses the design of monitoring systems and the implementation of the change, as well as the evaluation of outcomes and recommendations for improvement.

Assignment Cover Sheet
Course/Unit Information
Course Pearson BTEC Level 7 – Diploma / Extended Diploma in
Strategic Management & Leadership
Unit No. Unit 11
Unit Name Strategic Quality and Systems Management
Unit code H/602/2327
Batch OME6-SQSM-BincyKaluvilla-1803
Instructor Information
Name Bincy Kaluvilla
Phone
Email [e-mail]
Assignment Information
Full/ Part Assignment Full Assignment
Date Assignment Issued 11th March 2018
Date Assignment Due 31st March 2018
Turnitin Class ID 17666758
Turnitin Enrollment PW 1803
Student Information
(To be filled by the student prior submitting the assignment)
Name Jamilah Kayin
Email [e-mail]
Date of Submission 31-3-2018
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Student Declaration
I, Jamilah (Name) hereby confirm that this assignment is my own work and not copied
or plagiarized. It has not previously been submitted as part of any assessment for this
qualification. All the sources, from which information has been obtained for this
assignment, have been referenced as per Harvard Referencing format. I further confirm
that I have read and understood the Westford School of Management rules and
regulations about plagiarism and copying and agree to be bound by them.
Students Signature : JamilahAK
Student Name : Jamilah
Date : 31-Mar-18
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Learning Outcomes and Assessment Feedback
Name of the Assessor Bincy Kaluvilla
Learning Outcomes Assessment Criteria (AC) Assessor Feedback
LO 1
AC MET
Understand the role of
operations management
in an organization
1.1 - explain the importance of effective
operations management in achieving
organizational objectives
1.2 - evaluate the success of existing
operations management processes in
meeting an organization’s overall strategic
management objectives
AC MET
LO 2
AC MET
Understand the
importance of
managing quality
in an organization
2.1 - explain the importance of effective
quality management in achieving
organizational objectives
2.2 - evaluate the success of existing
quality management processes in meeting
an organization’s overall strategic
management objectives
AC MET
LO 3
AC MET
Be able to plan a
strategic quality change
in an organization
3.1 - plan a strategic quality change to
improve organizational performance
3.2 - define resources, tools and systems
to support business processes in a
strategic quality change
NOT MET
3.3 - evaluate the wider implications of
planned strategic quality change in an
organization
AC MET
3.4 design systems to monitor the
implementation of a strategic quality
change in an organization NOT MET
LO 4
NOT MET
Be able to implement a
strategic quality change
in an organization
4.1 - implement a strategic quality change
in an organization.
4.2 - embed a quality culture in an
organization to ensure continuous
monitoring and development
AC MET
NOT MET
4.3 - monitor the implementation of a
strategic quality change in an organization
LO 5
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Be able to evaluate the
outcomes of a strategic
quality change in an
Organization
5.1 - evaluate the outcomes of a strategic
quality change in an organization AC MET
5.2 - Recommend areas for improvement
to a strategic quality change that align
with organizational objectives AC MET
Internal Verification Report
Internal Verification Done By Date
Assignment Brief
Assessors Decision
General Guidelines
(Please read the instructions carefully)
1. Complete the title page with all necessary student details and ensure that the signature
of the student is marked in the declaration form.
2. All assignments must be submitted as an electronic document in MS Word to the
LMS (Use 12 Times New Roman script).
3. Assignment that is not submitted to the LMS by the prescribed deadline will be
accepted ONLY under the REDO and RESIT submission policy of Westford.
4. You will PASS the full assignment task only if you achieve “AC Met” in each of the
Assessment Criteria.
5. The results are declared only if the student has met the mandatory attendance
requirement of 75% and/or a minimum of 50% under extenuating circumstances
approved and ratified by the Academic Director. The student has to repeat the module
(with additional fees applicable) if the attendance is below 50%.
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Over All Result/Grade REDO Date: 17/05/2019
Summative Feedback:
Overall Feedback on
current work with
emphasis on how the
student can further
improve in future.
The answer could have better stated the organizational objectives and
detailed on the importance of effective operations management and
quality management processes in meeting an organization’s overall
strategic management objectives. Rest of the answers remain un
attempted.

6. The assignment should not contain any contents including references cited from
websites like www.ukessays.com, www.studymode.com, www.slideshare.net ,
www.scribd.com.
7. Students can refer Wikipedia as a source of information, but the references cited
in Wikipedia has to be mentioned.
8. Submit the assignment in a MS Word document with the file name being:
First Name Last Name_ abbreviation of the subject.
Example: John Smith_SQSM.
Quick reference Checklist for the Faculty/Instructor to accept/reject the assignment
before evaluation:
1. Adherence to the deadline of submission date.
2. Original cover sheet and format retained.
3. Student information and signature intact.
4. Font style and size used as instructed.
5. Harvard Referencing System and Citations are strictly followed.
Task : Report covering LO1, LO2, LO3, LO4 & LO5.
Assignment title Implementing Strategic Quality Change in an Organization.
Scope (LOs and ACs) of this assignment:
Learning Outcome 1: Understand the role of ‘Operations Management’ in an Organization.
 AC 1.1: Explain the importance of effective operations management in achieving organizational
objectives
 AC 1.2: Evaluate the success of existing operations management processes in meeting an
organization’s overall strategic management objectives
Learning Outcome 2: Understand the importance of managing quality in an organization.
 AC 2.1: Explain the importance of effective quality management in achieving organizational
objectives
 AC 2.2: Evaluate the success of existing quality management processes in meeting an
organization’s overall strategic management objectives
Learning Outcome 3: Be able to plan a strategic quality change in an organization.
 AC 3.1: Plan a strategic quality change to improve organizational performance
 AC 3.2: Define resources, tools and systems to support business processes in a strategic quality
change
 AC 3.3: Evaluate the wider implications of planned strategic quality change in an organization
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 AC 3.4: Design systems to monitor the implementation of a strategic quality change in an
organization
Learning Outcome 4: Be able to implement a strategic quality change in an organization.
 AC 4.1: Implement a strategic quality change in an organization.
 AC 4.2: Embed a quality culture in an organization to ensure continuous monitoring and
development
 AC 4.3: Monitor the implementation of a strategic quality change in an organization
Learning Outcome 5: Be able to evaluate the outcomes of a strategic quality change in an
organization.
 AC 5.1: Evaluate the outcomes of a strategic quality change in an organization
 AC 5.2: Recommend areas for improvement to a strategic quality change that align with
organizational objectives
Assignment Task: Read the following Scenario, and prepare a report with the guidelines
provided.
Scenario: The learner is acting as an internal quality consultant for a chosen organization (preferably
where the learner is currently working). The learner is required to look at the existing quality
management procedures and systems within the organization, and, implement a strategic quality
change, ensuring the monitoring evaluation systems are in place and evaluating the outcomes of
change.
The report should include the following:
1. Executive Summary
2. Introduction of the Chosen Organization and existing quality management systems within the
organization
3. Explain the importance of effective operations management and quality management in
achieving the organizational objectives. (AC 1.1, 2.1)
4. Evaluate the success of existing operations management processes and quality management
processes in achieving the chosen organization’s strategic management objectives. (AC 1.2,
2.2)
5. Examine the need for strategic quality change and assess the factors that drive the need for the
strategic quality change. Assess the resource implications for not responding to these changes.
Plan a strategic quality change and implement it to improve organizational performance.
Provide measures and design systems to monitor the implementation of the planned strategic
quality change. The plan done needs to be action oriented, detailed, and should clearly define
the resources, tools and systems that will support the business processes involved in the quality
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change process. (AC 3.1, 3.2, 3.4, 4.1, 4.3)
6. Evaluate the wider implications of strategic quality change on the organization from an
external perspective and the impact on people, systems and functions influencing performance
within the organization. (AC 3.3)
7. What is the quality culture in the chosen organization? Propose and embed an effective quality
culture to ensure continuous monitoring and progress.(AC 4.2)
8. Evaluate the outcomes of the strategic quality change and recommend areas of improvement to
the strategic quality change that aligns with the overall organizational objectives (AC 5.1, 5.2).
9. References (Adhering to Harvard Referencing Format)
The report shall not exceed 10,000 words and should include relevant examples and
illustrations.
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Table of Content
Executive Summary.............................................................................................................9
Introduction........................................................................................................................10
The Importance of Effective Operations Management and Quality Management in
Achieving the Organizational Objectives..........................................................................11
The Success of Existing Operations Management Processes and Quality Management
Processes............................................................................................................................14
The Need for Strategic Quality Change.............................................................................17
Definition of resources, tools and systems to support business processes in a strategic
quality change....................................................................................................................20
Implications of Strategic Quality Change..........................................................................21
Deigning of systems to monitor the implementation of Strategic change in Walmart......23
Implementation of Strategic quality change in Walmart...................................................24
Quality Culture at Walmart...............................................................................................25
Monitoring the implementation of strategic Quality change in Walmart..........................27
The Outcomes of the Strategic Quality Change and Recommendations...........................28
References..........................................................................................................................31
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Executive Summary
In the current market conditions of high competition, it is necessary to be sure that
the provided trade services fully satisfy and take into account all the requirements of
consumers. For this, it is necessary to constantly improve the quality of the provided
trade services. It is very important to improve the processes aimed at determining the
consumer valuation of the Walmart and changing the representation of customers about
how fully the organization can meet their needs.
It was found that the goals of operations management are to competently manage
business processes with the greatest benefit and increase the efficiency of the enterprise.
In this regard, the quality system can be used as an effective tool not only for improving
the management system but also for its substantial reorganization. At the same time, the
process of introduction of innovations in the company is easier and painless. Through the
use of setting the quality system as a legend of changes during the reorganization of the
company, a significant reduction in resistance to changes by the staff is achieved.
The plan of the main activities of the company to improve the quality of Walmart
products was presented, which included an increase in the level of material and technical
base, the implementation of statistical quality control and processing of its data, the
improvement of professional skills and quality of labor of workers, and the improvement
of the marketing policy of the enterprise. Thus, the quality system is an effective tool for
streamlining the company’s activities. Due to documenting, control, analysis, and
periodic review of key production and management processes in accordance with the
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requirements of the international standard, transparency, better manageability and
continuous improvement of the company’s activities are ensured.
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Introduction
Currently, Walmart Stores, Inc. is a key player in the global retail market. Being
young enough (founded in 1962), this company subdued huge territories, bypassed all
other large retail companies in terms of financial performance, and is even able to
compete in the main indicators of its financial and economic activity with the largest
enterprises of the oil refining and automotive industry (Basker, 2007). According to the
data for 2016, the company’s total sales amounted to more than 482 billion dollars, and in
terms of indicators in 2017 - over 485 billion dollars (Walmart Stores, Inc., 2017).
The continued and successful operation of Walmart in the United States and
elsewhere has made it one of the most influential commercial organizations in the world.
Accordingly, in order to understand the processes occurring on the world market, a
regular comprehensive analysis of the activities of this powerful global commercial and
financial structure is necessary. The company’s economic indicators are of great interest
to the world community and are reflected in a large number of different world ratings.
According to these ratings, based mainly on the financial statements of companies,
Walmart can be compared with the competitors and draw conclusions about the strengths
and weaknesses of the company. In addition, the ratings allow comparing the
performance of the largest companies in various areas of their activities in order to
determine the overall degree of the company’s influence on the world market.
The Forbes rating of The World’s Biggest Public Companies is widely known.
According to this rating, Walmart ranks 17th in the world (Forbes, 2017). This
assessment is synthetic and is based on the revenues and profits of companies, as well as
the value of their assets. The analysis of the Fortune 500 rating, which is based on the
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total revenue received by the United States companies during the fiscal year, shows that
Walmart ranks first with a total revenue of over $485 billion (Fortune, 2017).
Low prices on the one hand, of course, is a huge plus for buyers. However, on the
other side of the scale, there are low wages of employees of Walmart and the ruin of
smaller competitors of the retail giant (including local players), which is why many
people lose their jobs (Fishman, 2006). Finally, in this eternal race for low prices,
Walmart involuntarily contributed to lowering the quality of some products. The quality
of not only the goods sold in the stores but also those that are sold through other retail
chains suffers. The manufacturers of these products still have to make adjustments to the
production process since Walmart’s low prices do not allow them to breathe freely. The
company dictates its terms to suppliers, even as large as Procter & Gamble.
Despite the fact that the management of the company at the time of its founder
placed the quality management of the service sector higher than the quality of products
sold, Sam Walton’s heirs in time began to make the right steps to improve the company
and its image. Although they can afford it only because for more than half a century the
American consumer voted the dollar for cheapness at the expense of quality.
The Importance of Effective Operations Management and Quality
Management in Achieving the Organizational Objectives
The organization is a means to achieve goals that allows people to perform
collectively what they could not accomplish individually. The organization begins to
exist only when people understand that they are unable to achieve their goals alone, and
that joint actions within the organization provide better opportunities to meet the needs.
The goal is the benchmark, the planned result of the organization’s activity, which is a
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complex system consisting of a large number of system units (Daft, 2013). The task of
the manager is to turn the organization’s goal into the goals of individual services and
units, to make heterogeneous system units work for one result in the most efficient
manner.
At present, a business education assumes obligatory familiarization of specialists
with the modern methods of managing operations and processes. Modern requirements
for business renewal, product quality improvement, rapidly changing competition
conditions, as well as a general view of management problems, indicate that the proper
management of operations is a prerequisite for the successful operation and survival of
any company.
The objectives of operations management are to competently manage business
processes with the greatest benefit and increase the efficiency of the enterprise (Henry,
2011). At the same time, products may not even appear in the processes, because the
theoretical bases of operational management are equally applied in medical institutions,
insurance companies, and also in factories and factory plants (Heizer and Render, 2013).
Operations management is aimed at achieving efficiency and rationality in the
management of any operations. Efficiency and rationality can be taken as the main
indicators that characterize operations management as a certain kind of activity of the
organization.
Efficiency should be understood as a certain degree of achievement of the goals
set for the operating system. For the production system, the organization is, in a certain
way, the degree of satisfaction of the consumers’ needs and obtaining the maximum
possible profit. In the case of an operation with efficiency, it is necessary to understand
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the degree of achievement of the goals set before it (Heizer and Render, 2013).
Moreover, the main principle of quantitative evaluation of effectiveness is to compare the
results of the operation and the costs of its implementation. Therefore, the effectiveness
of an operation can be uniquely determined by such indicators as the magnitude of the
expected useful effect (result), taking into account the probability of its achievement in
relation to the resource costs to achieve this effect with a given probability.
In the operations management, rationality is understood to achieve the highest
possible efficiency of the system as a whole, and operations in particular, with the
minimum possible costs. Efficiency and rationality are those indicators that shape the
profitability of the organization as an operating system that functions in the market
economic space.
The quality of products is indeed a system-forming factor in the competitiveness
of goods produced by economically independent units. There comes a realization of the
market importance of improving the management of costs of quality as a basis for
increasing the effectiveness of the quality management system (QMS). The cost of
quality is the internal economic basis of the quality system, which makes it possible to
determine the economic consequences of any managerial decisions made in the quality
management system (Heizer and Render, 2013).
The goal of quality is an integrating set of ideas aimed at increasing the
satisfaction of the expected and anticipated needs of all those who are interested in the
successful activities of the organization, namely owners, administration, personnel,
consumers, investors, individuals, and society (Daft, 2013). The formation of quality
objectives in the modern theory of quality management is aimed at creating conditions
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for the effective management of the organization through quality. In order to achieve the
set goals of quality, top management must provide relevant resources and evaluate
progress in their implementation. Methods and tools for the implementation of such
objectives remain within the responsibility of managers at lower levels and contractors.
Thus, it should always be borne in mind that the standardization of goals at all
levels, namely, dreams, missions, visions, philosophies, concepts, cultures, policies,
goals, objectives, plans, and other elements of the organization’s strategy, in addition to
the positive side of improving activities, has drawbacks. It leads to the desire to use
known achievements, that is, to sum up the really existing task of quality management
under the typical scheme of its solution, while the questions of setting goals in the quality
system have a creative, inventive, innovative character. For the optimal decision to be
taken, the entire chain of interrelated actions should be considered from planning goals
and targets to analyzing the effectiveness and efficiency of the quality system to achieve
them, including a simultaneous study of trends in target changes in specific economic
situations, based on the organization’s quality strategy and projections.
The Success of Existing Operations Management Processes and Quality
Management Processes
Operations management consists of four important elements, namely the
development and maintenance of relationships with suppliers, the production of goods
and services, the distribution and delivery of products and services to the client, and risk
management (Heizer and Render, 2013). Walmart depends on its suppliers in the
production of quality goods in the shortest time and delivery to their destinations. This
corporation enjoys a significant advantage, using already established networks of extra-
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class suppliers. The best suppliers are those that offer a low cost, not just a low price,
because the purchase price is not the only component of the full cost of purchasing
materials.
Walmart started with the goal of delivering the product to customers anytime,
anywhere. Then it focused on the development of the cost structure, which allowed
offering daily low prices. The next point of the strategy was the focus on more structured
and advanced supply chain management. The high prices from suppliers irritated Walton
at the beginning of his entrepreneurial career (Fishman, 2006). In the process of
development of Walmart, he decided to completely abandon the intermediaries,
artificially raising prices. Initially, this approach looked disastrous, given the complexity
of supply chain testing. In the 1980s, Walmart began working directly with suppliers to
cut costs and manage supplies more efficiently (Basker, 2007). This initiative was called
VMI - Vendor Managed Inventory, and suppliers became responsible for the
management of goods in warehouses of Walmart (Spotts and Greenwald, 2005).
With the increase in the number of Walmart stores, the situation changed, and
most of the manufacturers were willing to contact Walton on their own, understanding
the benefits of cooperation. As a result, retail has come close to 100% fulfillment of the
order for merchandising. In 1989, Volmart was called the retail of the decade, with
logistics costs of only about 1.7% of total sales costs - far less than competitors such as
Kmart (3.5%) or Sears (5%) (Fishman, 2006). The company’s supply chain has only
improved since then.
Walmart developed a strategic logistics management system to find products at
the best price from suppliers, who objectively knew what was in demand. The next step
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was establishing a strategic partnership with the majority of these producers, offering
them potential long-term and bulk purchases in exchange for the lowest possible prices
(Basker, 2007). Moreover, Walmart simplified the development of logistics by building
relationships and communication with manufacturers in such a way as to improve the
flow of materials with the less inventory. The network of suppliers around the world,
warehouses, and retail outlets is described as almost a single organism.
Cross-docking is the practice of production planning, which is the central block of
Walmart’s strategy in order to effectively manage stocks (Gilbert, 2012). It means direct
delivery of products from an incoming or outgoing trailer without additional storage by
unloading goods from the incoming trailer, railway and loading these goods to outgoing
machines or wagons without storage between processes. The manufacturers brought
products to the supply centers of Walmart, where they were cross-docked and went
straight to the stores of Walmart. This technology keeps the costs of inventory and
transportation at a low level, reduces the time that passes after it, and corrects the
inefficiency.
Walmart owns a fleet of unrelated drivers, who continuously bring goods to
supply centers (they are located on average 130 miles from the store), where they are
unloaded, repacked, and shipped without being held in the warehouse (Walmart Stores,
Inc., 2017). Goods roam from one loading platform to another, mostly within 24 hours or
even less. The cars no longer return empty, if the goods are not sold. Using cross-
docking, Walmart significantly reduced costs and allowed the saved money for its
customers, attracting them with highly competitive prices.
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In its endless race for low prices for consumers, Walmart embarked on the
introduction of innovative logistics management technologies to become an innovator in
the field of stock management and shelf reorganization, thereby reducing costs. The
suppliers and manufacturers within the supply chain synchronize their needs through a
joint planning, forecasting, and interchange schemes (Gilbert, 2012). Each link in the
chain is connected by a technology that is based on a central database, a POS system at
the level of the hotel store and satellite links within the network.
Thus, the Walmart’s approach means frequent, informal cooperation between
stores, supply centers, and suppliers, as well as less a centralized control. Moreover, the
company’s supply chain, tracking purchases and demand, allows consumers to effectively
influence the logistics of suppliers, rather than forcing companies to push their goods
onto the shelves.
The Need for Strategic Quality Change
In recent years, the consumer has become much better at understanding his/her
needs and makes very clear demands on the organization, which services he/she is going
to use to fulfill his/her desires. One of such requirements was the requirement of quality
assurance for the services offered by the organization in the form of various certificates
confirming the firm’s ability to provide services of appropriate quality (Henry, 2011).
Thus, the introduction of TQM (total quality management) methods will enable the
organization to increase profits by reducing the costs of organizational activities.
Each of the customers, who applies for the service, should be viewed as an
external customer, and it is necessary to build tactics of conducting business negotiations
in such a way as to maximize to themselves. If the external consumers are sufficiently
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identified, it is necessary to envisage the possibility of combining existing and potential
customers into a database, for further marketing procedures, for example, for sending out
targeted advertising products (Daft, 2013).
The technical factors most significantly affect the quality of products, so the
introduction of new technology, the use of new materials, and better quality raw materials
form the material basis for the production of competitive products (Henry, 2011). The
organizational factors are associated with improving the organization of production and
labor, increasing production discipline and responsibility for product quality, providing a
culture of production and an appropriate level of personnel skills (Grewal and Levy,
2016). The economic factors are caused by the costs of production and sale of products,
pricing policies and the system of economic incentives for the production of high-quality
products. The socio-economic factors significantly influence the creation of healthy
working conditions, loyalty and pride for the brand of their enterprise, moral incentives
for employees - these are all important components for the production of competitive
products (Grewal and Levy, 2016).
The scheme of the main activities of the company to improve the quality of
Walmart products requires the following steps:
1. Increasing the level of material and technical base. To improve the state of this
factor, it is advisable to conduct the following activities at enterprises, aimed at
strengthening the material and technical base, namely, to introduce the practice of weekly
inspection of equipment and regulation of its operation; systematically carry out
qualitative repair of equipment to restore lost due to the physical deterioration; and
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conduct an annual update of 10-12% of obsolete equipment to increase the progressivity
of the material and technical base (Heizer and Render, 2013).
2. The implementation of statistical quality control and processing of its data. It is
necessary to draw up a quality control plan, in which the following data are reflected: the
sample size - n (% of the total batch - the total population), methods of control and the
principles of deciding on the suitability of products, depending on the acceptance and
rejection values. As a scheme for conducting such control, it is recommended to apply a
multistage control plan, in which a number of n1 items determine the amount of defective
production t1 (Heizer and Render, 2013). Then the first stage of control is carried out, the
results of which establish: if the number of defective items t1 in the sample does not
exceed the acceptance number c1 (t1 <C1), then the batch of products is accepted as
suitable. If t1 is greater than the deflection number d1, the batch is rejected. In the event
that the number of actually defective items falls within the interval between acceptance
and rejection numbers, a decision must be made to select a re-sample with a volume P2
of products in which t2 defective items are determined, and a second control stage is
performed, etc. (Heizer and Render, 2013). At the last stage of control, if the total number
of defective products in all samples does not exceed the final acceptance number, then
the batch must be accepted, otherwise - rejected.
3. The improvement of professional skills and quality of labor of workers. For the
successful implementation of changes in the activities of the company, employees should
be interested in the final result of their activities. To reduce the turnover of staff and the
formation of a full-fledged team, as well as to stimulate quality improvement, it is
necessary to introduce a mechanism for motivating employees for the achieved indicators
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in the field of quality improvement (Henry, 2011). The most important incentive for
successful accomplishment of the set tasks is the moral and material compensation of
employees.
4. The improvement of the marketing policy of the enterprise. It is necessary to
pay special attention to the technologies of production of goods in the advertising and
labeling of goods, which distinguishes the company under study from others, thereby
positioning it as a leader in the field of high quality of goods and the best taste
characteristics (Daft, 2013).
The above plan of a strategic quality change totally covering the main factors of
competitiveness of Walmart products will allow it to improve the quality of its products
and consolidate the effect for future periods. To solve the strategic tasks of increasing the
efficiency of the company, it is necessary to reduce all proposals to product quality
improvement programs that allow reconciling strategic and tactical goals, tasks, means of
achieving them, and also available resources.
Definition of resources, tools and systems to support business processes
in a strategic quality change
Various resources, tools and systems are essential for improvement of the business
Process of Walmart. As per the opinion of Rafati, Roelens & Poels (2018), an essential
type of resource for effective functioning of the management activities of Walmart and
improve the Strategic quality are physical, human and Financial resources.
Human resources
Human resources play an important role to support the business process of Walmart in a
strategic quality change. As per the opinion of Rafati & Poels (2016), the Walmart
Company has been focusing to provide necessary skills to the staffs of this organization
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so that they can help in improvement of the business process. Effective supply chain
management plays an important role in improving the business process of Walmart
because it helps to reduce the cost and deliver the products to the customers in a proper
time.
Physical resources
This is another important resource that can play an important role in improvement of the
Strategic quality management process of Walmart Company. Proper stock management
system helps in quick processing of the stock level of the products.
Financial resources
The analysis of financial resources in the process associated with business management
of Walmart helps in the process of internal cash flow in the business and proper usage of
the financial resources in innovation as well as improvement of the sales volume of
Walmart.
Proper tools and Systems for the business process
Technology plays an important role to provide information of the quality and lifestyle of
the customers of Walmart. This organization analyses the feedbacks provided by the
customers of this organization on various social media accounts like Facebook and
Twitter. Thus, usage of proper technological tolls helps to improver the quality of the
products of Walmart Company.
Implications of Strategic Quality Change
The continuous growth of consumer requirements for product quality, while
maintaining the same level of prices, increasing competition, and globalization, has
forced the producer to seek new ways to solve the problem of satisfying the consumer in
the field of quality while improving production efficiency by reducing costs (Henry,
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2011). The consequence of this should be a complication of quality systems. The
provision and improvement of their functioning will depend both on the introduction of a
more advanced technical component and on the strengthening of the role of a particular
employee of the organization as an independent individual with a certain set of
knowledge, experience, and capabilities (Daft, 2013).
In addition, the effectiveness of accounting, processing, and analysis of the
increasing volumes of operated information in quality systems will be directly dependent
on the information technologies used, which will also open up a new level of interaction
between the employees of the organization. Thus, the main directions of the development
of quality management methods are seen in the improvement of quality systems,
functioning on the basis of high technologies, and using the intellectual potential of
employees.
When implementing such a management strategy, the following effects should be
obtained (Daft, 2013):
- The employees’ understanding of the organization’s goals and benefits from
changes in activities;
- A personal interest in the success of the organization;
- An increased activity and initiative of employees;
- The elimination or, at least, minimizing conflicts between business units.
One of the ways to improve the quality management system is the use of
information technology. Providing the enterprise with such management systems that
take into account industry specifics allows increasing the economic efficiency of sale,
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contributing to its rationalization, providing an opportunity to quickly obtain production
and economic data for successful planning and management of production processes
(Heizer and Render, 2013). The automation of the quality management of the enterprise
enables:
- To detail the process of interaction between the organization and the customer
from the receipt of the order to the transfer of project documentation;
- To ensure the planned interaction of all structural units;
- To ensure the control over the release of the working documentation;
- To organize an effective redistribution of work between performers, if they need
to be replaced;
- To provide all levels of management with the relevant information on the progress
of pre-design and design work.
Thus, the quality of products due to its complexity and versatility is one of the
main indicators that can help assess the prospects for the participation of the economy in
the international division of labor, which is certainly important for shaping development
forecasts and creating effective national strategies. The interest in studying the influence
of product quality on the competitiveness of goods on the external market is growing,
which suggests further development and improvement of the methodology for its
determination.
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Deigning of systems to monitor the implementation of Strategic change
in Walmart
Designing of an effective process for implementation of Strategic change is very
important for the Walmart Company. As per the opinion of Rafati, Roelens & Poels
(2018), this organization shall focus to create a proper action plan for improvement of
strategic quality management so that it is easily acceptable to the employees and
stakeholders of the organization. As per the opinion of Rafati, Roelens & Poels (2018),
the Walmart Company shall focus to analyze the feedbacks of the customers and conduct
survey on the employees for improvement of Strategic Quality management process. It
shall also focus to provide regular training to the employees of the organization so that
they can understand how to provide quality services to the customers. According to
Rafati, Roelens & Poels (2018), this organization shall focus to improve the Stock
management system and shall regularly analyze the daily inventory to improve the
business process.
Resource planning plays an important role in improvement of the process of business in
an organization and Walmart focuses to introduce self-checkout machines for reducing
the customers queue and improve their level of satisfaction. As per the opinion of Rafati,
Roelens & Poels (2018), the company shall focus to hire new designers so that they can
help in improving the business process of Walmart Company. Analysis of the needs of
the employees plays an important role and for this reason, this organization shall focus to
conduct regular seminars and Staff meetings to understand their needs.
Process of Implementation of Strategic Business Management Change
in Walmart
Analysis of the recent business technologies and their proper implementation based on
recent Management regulations is very essential for Walamart Company. As per the
opinion of Rafati & Poels (2016), the business process of Walmart Company can be done
25

by analysis of the feedbacks of the customers as well as analysis of the Survey reports.
The implementation of various management practices in the business process of
Walamart Company can be done by analysis of the feedbacks of the customers on
different Social media accounts like Facebook and Twitter. As per the opinion of
Trautrims, MacCarthy & Okade (2017), monitoring of the business reports is very
essential for creating a proper business strategy as it contains various statistical as well as
Qualitative data about sales Turnover and liquidity ratio of the business. It has been
found out that the sale of the Walamrt Company has increased because of various
marketing campaigns. The implementation effective change in the process of
management of Walmart Company is also is done by analysis of the daily stock inventory
of the business and focusing to boost the standards of the Stock management process.
That is why identifying the gaps in the business strategy of Walmart shall be done by
analysis of the feedbacks.
Quality Culture at Walmart
The basis for the success of Walmart concerned the original ideas. Many of them
Sam Walton took over from competitors, such as the idea of a self-service store or the
idea of discount trading. At the same time, he was able to develop other people’s
achievements and create from them a holistic algorithm, the philosophy of the company
(Basker, 2007). There is no wonder that Walmart was one of the first companies to use
readers in their calculations with customers. This not only dramatically increased
turnover but also allowed to receive a daily detailed picture of demand.
However, Walmart was repeatedly attacked by trade unions, as well as Christian
and green organizations. They blamed the store chain for violating environmental norms,
26

bad handling of personnel (the understatement of salaries, poor medical care), dishonest
business, discrimination against women, national and sexual minorities. In order to
radically change the situation, the management of Walmart made a decision on a large-
scale transformation of the company and a change in the strategy for the introduction of
business. The retailer makes the main bet in the new strategy on e-commerce. Walmart
intends to make it more convenient and affordable.
To improve e-commerce and increase sales, Walmart opens new centers for the
delivery of online orders: points will help increase the speed and quality of service.
Walmart also intends to open small store formats, the so-called neighboring markets, to
become even closer to the buyer. To improve and change its site, as well as the opening
of new dispatch centers, the retailer intends to spend $1 billion (Gilbert, 2012).
The corporation has created the best diversified electronic system of orders and
delivery of goods in the industry. Walmart entered into contracts with more than 3,000
suppliers, including leading international corporations, but none of the suppliers has more
than 4% of the total volume of orders (Walmart Stores, Inc., 2017). Most of the products
sold in the network come through their own special distribution centers. As a result,
Walmart has the ability to deliver the right product to any of its stores four times faster
than its competitors.
The most effective and reliable tool for improving the quality of customer service,
adopted today by the absolute majority of service companies is Mystery Shopping.
Walmart is among the enterprises using Mystery Shopping as the main tool for measuring
and managing the quality of service (Fishman, 2006). The turnover in the Mystery
Shopping market in the US alone is more than 1 billion dollars. Specialized agencies of
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the United States and Great Britain, which carry out Mystery Shopping programs for their
customers, occupy the top ten in terms of financial turnover among research companies.
Mystery Shopping is the most dynamically developing branch in the sector of
marketing research. The most intensive use of Mystery Shopping programs as a tool for
measuring and improving the quality of trade and services has occurred in the last few
years (Grewal and Levy, 2016). Previously, companies in the service market were
solving the problem of improving the quality of service, for example, in retail trade, using
two main tools, namely customer surveys and staff training.
The specialists who have passed special training of Mystery Shoppers visit a retail
store, a bank branch, a restaurant, etc. as ordinary buyers. They communicate with the
staff, noting the friendliness, politeness, and competence of the staff or their absence.
Mystery Shoppers pay attention to the use of personal selling techniques, fulfill a number
of specific standards of work, for example, informing the buyer of the seller about new
goods receipts, special promotions, etc. (Grewal and Levy, 2016). They take note of the
appearance of the staff, the cleanliness of the store, freshness, the level of background
music in the shopping halls, etc. If necessary, a visit of the Mysterious Buyer can be
accompanied by audio or video recording (of course, hidden).
Thus, for the company, its buyer is not an accidental atomic unit, but an agent of a
certain cultural environment, part of local social networks. Hence, the well-known tactic
of Walmart aimed at creating the human face of the company, its active work - at its
image, in particular providing financial assistance to the local educational institutions,
religious organizations, etc. The fact that the company prefers to buy existing networks of
shopping centers, and then rebuild them in accordance with their principles and connect
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to a unified system of delivery and accounting of goods contributes to the cost reduction
in moving to new markets. Obviously, along with such networks, the company also
acquires their clientele.
Monitoring the implementation of strategic Quality change in Walmart
Effective analysis of the process associated with business management and their
successful implementation for strategic change is very essential for the Walmart
Company. As per the opinion of Landale et al. (2017), understanding the needs of the
employees and implementation of strategic Quality Management system is very
important for the Walmart Company. An important tool to monitor the business
procedures and implementation of the techniques of Strategic based management of
Walmart is Action learning because it helps to involve the staffs of the organization in the
business process and improve their performance. As influenced by Handfield et al.
(2015), HR department of Walmart provides regular training to the employees of
Walmart so that they can improve their skills. Moreover, this organization focuses to
analyze the feedbacks of the customers to improve the quality and design of the products.
The Walmart Company shall focus to evaluate the Sales and profit to create a competitive
advantage for the business.
The Outcomes of the Strategic Quality Change and Recommendations
The key goal of an enterprise in a market economy is profit, so the management of an
organization must clearly understand the interdependence of quality - profit. The effect of
quality on the profit of the company can occur in two ways, namely over the
improvement of the quality of products leads to an increase in revenue and profit, with a
constant cost price due to the increased sales, and increase in profit is possible due to a
decrease in cost with constant income (Daft, 2013).
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In general, the quality products must meet the following requirements, namely
satisfy the needs of the consumer, meet clearly defined needs or purposes, be cost-
effective for the manufacturer, comply with the applicable standards and specifications,
consider environmental protection requirements, and have a competitive price. In this
regard, in relation to the consumer, the following policy should be pursued (Henry,
2011):
- In the matters related to the achievement of profit, it is recommended that more
attention should be given to reducing costs, improving the functional suitability of
goods, and thus more satisfying needs and increasing confidence.
- In the area of cost-related activities, it is recommended that attention should be
paid to the costs of securing purchase costs, safety, operating costs, maintenance
costs, downtime and repair costs, and possible disposal costs;
- In the area of risk-related activities, it is recommended that more attention should
be paid to the risks related to the people’s health and safety, product
dissatisfaction, and loss of trust.
30

As for the company, the following actions are necessary in its relation to (Heizer
and Render, 2013):
- The matters concerning the achievement of profit, it is recommended to pay
attention to reducing costs, improving the functional suitability of goods, and,
therefore, to better meet needs and increase confidence;
- The area of cost-related activities, attention should be paid to the costs due to poor
sales of products and design flaws, including poor quality goods, repairs,
replacement, re-processing, reduced production, warranties and repairs in service
conditions;
- The area of risk-related activities, it is necessary to pay attention to the risks
associated with the defective products, which lead to the loss of credibility, loss of
market, claims, and legal liability.
To fight for customer loyalty is now decided with the help of the following know-
how: the world’s largest retailer opens 200 training academies for staff of nearby stores.
Training in them will be staffed with the managers of departments and their assistants.
Along with the professional knowledge, a thorough psychological preparation will be
conducted, methods for creating a system of work and control in the trade department
will be disclosed. In addition, managers will teach possible methods of stimulating and
monitoring the quality of servicing of subordinates. The training course will include
interactive classes in the classroom, as well as field tests - in a working retail outlet.
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To establish the effectiveness of the functioning of the QMS and to determine the
directions for improving the activities in the company, there should be a constant
collection and analysis of information on the following sources:
- The status of achieving the quality objectives, as well as the results of the
company’s activities to improve the processes and quality of providing goods and
services;
- The results of internal or external QMS audits;
- The feedback from the consumer;
- The factors related to the retail services market, such as technology, research and
development, the activities of competitors;
- The results of comparison with the best achievements;
- The information on the work of suppliers;
- The management of process inconsistencies;
- The status of preventive and corrective actions;
- The actions that followed previous analyzes;
- The financial results of the company;
- The changes that could affect the QMS;
- The recommendations for improving the QMS; and
- Other factors that may affect the functioning of the company, such as financial,
social, or environmental conditions and the corresponding changes in the
regulatory and legislative framework.
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Thus, the increase in the quality of Walmart’s logistics supply chain strategy has
given the company several stable competitive advantages, including lower product prices,
lower storage costs, as well as increased diversity and choice in stores. It was this
strategy that allowed the company to become the dominant force in the world market.
Regarding technologies, Walmart continues to focus on innovative processes and
systems, improve production planning and achieve greater efficiency.
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