Information System for Managers: A Case Study of Wal-Mart

This case study explores the use of information technology by Wal-Mart to increase efficiency and gain a competitive edge in the global market. It discusses the challenges faced by the company and how technology can be used to resolve them. The article also provides recommendations for the implementation of an ERP system and digital media marketing techniques.

Running Head: Information system for managers
Information system for managers

Information system for managers 1
Contents
Introduction.................................................................................................................................................1
Description about company........................................................................................................................1
Problems.....................................................................................................................................................2
Description of projected technology...........................................................................................................3
Justification.................................................................................................................................................3
Alternatives.................................................................................................................................................3
Recommended Actions................................................................................................................................3
Conclusion...................................................................................................................................................4
References...................................................................................................................................................4

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Introduction
The purpose of this task is to provide a brief overview of the information technology which the
managers in the organization use to increase the efficiency of the company in the global market.
Information technology has become an important part of the ongoing life cycle of the business as
it helps them to gain the competitive edge in the target market. With the use of IT, the
management in the organization improves their internal operations due to which the external
growth of the company subsequently increases.
Further, the below mentioned task explains the challenges faced by the company Wal-Mart in
securing their position in target market with the use of technological acceptance. Technology
helps an organization to innovate their on-going process and increase the satisfaction of the
customer. The below mentioned task explains the problems acquired by the company and how
the company can use technology to resolve such issues and increase profits as well.
Description of company
The company Wal-Mart was started with a small idea to sell more for less, this idea of the
company helped them to run their business from past 50 years and serves millions of customers
on daily basis. The company serves 260 million customers every week and the company has 11,
703 stores and clubs in 28 countries worldwide. The company is a multinational retail
corporation that operates their chain stores in grocery stores, hypermarket and, discount
department stores. Further, it should be noted that Wal-Mart is world’s largest company in terms
of revenue as it earned $485.9 billion of fiscal revenue in previous financial year. The company
has a huge network of 2.3 million employees working with them (Walmart, 2018). The vision
statement of the company states that they want to be the best retailer for the customers whom
they and the employees as well. Further, the company has adequately achieved the vision
statement by becoming the best retailer in the market. The mission of Wal-Mart suggests that
they want to initiate their strategic activities in such a way that they save people's money so that
they can live better (Huchzermeier, 2016).

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The company is a publically traded family owned Business Company which is controlled by
Walton family. The heir of Sam Walton owns more than 50 percent of the shares of Wal-Mart
holding company. The company originated in the year 1962 and was listed in the year 1972 on
New York stock exchange. By the year 1988, the company became most profitable retailer in the
U.S. which served products like, grocery, sport, home furnishing, footwear, electronics etc.
Services served by the company are Wal-Mart Money Card, Wal-Mart Pay, Wal-Mart-2-Wal-
Mart, Pickup Today and Walmart.com (Wisner, 2016). The biggest competitors of the company
in the international market are Aldi, Kmart, and Amazon as well. The company has earned
reputation in the market by initiating strategic activities to sustain. The organization focus on
technology to improve in the process; open software and big data analytics are some of the
technologies which are constantly used by the company to gain the satisfaction of customers
present in the market (Bolman, & Deal, 2017).
Problems
Wal-Mart is constantly aiming to improve their organizational structure by using innovative
techniques in their business. Technology is the need of the environment of the company as it will
help the company to grow their sales and reduce the problems attracted with the working as well.
The organization is facing many problems which are hampering their actual growth in both
monetary and non-monetary terms. Technology is considered as a way which can resolve the
below mentioned problems faced by the company Wal-Mart.
 Inventory control: being present in the retail sector, it is important for the organization
to maintain strict control on the inventory process so as to reduce waste in the
organization. But the management is incompetent in managing the proper account of
inventory (stock) with the warehouse of the company. Many times the organization faced
the crunch of specific product in the store which was not available at the warehouse as
well. So, the management shall update the store with the quantity of stock which they
have at the warehouse. So, inventory recording and control is one of the issues which
decrease the efficiencies of the business (Loeb, 2017).
 Assembly of physical store with online store: With the initiation of technology, the
company started operating their physical as well as online stores. Physical stores were

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handled by the existing employees of the company but the online stores were not well
managed because there was lack of information about the IT in the process. Resulting to
which, the company was unable to manage both the stores at a time and initiate sales with
both of them. Further, as the organization has opened new department through which
they can initiate sales, so it should also positively improve the sales margin of the
company but the management was unable to initiate sales through online process (Ahire,
Malhotra, & Jensen, 2015).
 Logistic supply management: from past many years IT has been looked at as a solution
for supply chain management challenges. But the company was unable to solve all of
their problems through information technology. As the functions of the company stated
that they purchase new products and the system automatically discharge the resupplied
stock. The trucks which carry the products follow the routes instructed by the program so
as to efficiently deliver the products as warehouse. The company faces the challenge of
increasing inventory turnover as the labor is becoming expensive day by day. But
efficient e-commerce can solve such problems in the market (Galbraith, 2014).
 Dissatisfaction with online customers and high e-commerce prices: As the online
services provided by the company lacks efficiency due to which it dissatisfies in the
interest of customers present in the market. The products ordered from Wal-Mart are not
delivered on time which makes the customers wait for a long time. Further, the company
also faces huge cost while maintaining their services online which is also an issue for the
company (Wall, et. al., 2017).
Description of projected technology
The company shall use the technology which is adequately understood and adopted by
employees in the organization. ERP system shall be implemented which should assist the
employees in managing the work efficiently. The ERP system of the company will help them to
accurately record the inventory and forward the message to the stores as well. The ERP system
will integrate all the data into one large unit and use the same in all stores of the company.
Further, in order to resolve the problem of e-commerce, digital media marketing techniques were
used by the company (Honrubia, 2017).

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Justification
90% of the US customers live within 15 miles of a Wal-Mart store, so it acts as an opportunity
for the company to serve more and more people in the market. So, in order to serve a large
number of clients, the company needs an efficient management system which shall supply
products and services on time and reduce waste in the company as well. Further, in order to
resolve such issues, the company also adopted the RIFD techniques to incubate, invest and work
with other emerging innovative techniques in the market (Gustafson, 2015).
Alternatives
The company can use alternatives to develop their business by incentivizing the employees to
increase the sales online and initiate proper logistic supply chain management. This can be
performed by employees in such a way that they shall increase online sales and offer customers
to pick up their items from the nearby store itself in order to lower the ticket price. In this way,
the efficiency of the staff of the company will not get hampered and the customer will attain
higher level of satisfaction as well.
Recommended Actions
In accordance with the projected technology, the below mentioned activities shall be
implemented by the organization to resolve problems.
 The employees shall be properly trained to use the ERP system introduced by the
company. They shall attain control over inventory management and reduce production of
waste in the company.
 The employees shall develop e-commerce activities by using information from the
system and attract the right type of customer and satisfy them (LeCavalier, 2016).
 E-commerce activities shall be improved by using the digital media marketing
techniques. The marketers shall analyze the future demand and prepare the employees to
fulfill the upcoming demand of the customers in the market.
 Thus, in this ay with the use of ERP system in the company, the organization can access
the opportunities and create profits for them in the upcoming years.

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 Lastly, as the company is leading in the market against its competitors (Amazon, Coles
etc.) through technology only, so it is accounted as the best way to grow in the future
circumstances (Mayer, & Noiseux, 2015).
Conclusion
Thus, in the limelight of above mentioned events, it should be noted that it is important for an
organization to use efficient technology in their business but it is more for them to train their
employees to use information technology in their business effectively. Wal-Mart shall use such
techniques to resolve the above mentioned issues attracted to them.

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References
Ahire, S. L., Malhotra, M. K., & Jensen, J. B. (2015). Carton-Mix Optimization for Walmart.
com Distribution Centers. Interfaces, 45(4), 341-357.
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.
Galbraith, J. R. (2014). Designing organizations: Strategy, structure, and process at the business
unit and enterprise levels. John Wiley & Sons.
Gustafson, K. (2015). Wal-Mart knows it has problems; how it plans to fix them. Viewed on
February 19, 2018, from < https://www.cnbc.com/2015/05/19/wal-mart-knows-it-has-
problems-how-it-plans-to-fix-them.html>
Honrubia, M. (2017). Walmart Innovation and their use of Big Data, Iot & Automatic Learning.
Viewed on February 19, 2018 from < https://www.ennomotive.com/walmart-
innovation/>
Huchzermeier, A. (2016). How Walmart built sustainability into the supply chain. The Business
& Management Collection.
LeCavalier, J. (2016). The Rule of Logistics: Walmart and the Architecture of Fulfillment.
University of Minnesota Press.
Loeb, W. (2017). How Walmart Challenges Its E-Commerce Sites For Greater Success. Viewed
on February 19, 2018 from < https://www.forbes.com/sites/walterloeb/2017/06/06/how-
walmart-challenges-its-e-commerce-sites-for-greater-success/#59165b7a4fa2>
Mayer, S., & Noiseux, Y. (2015). Organizing at Walmart: Lessons from Quebec's
Women. Global Labour Journal, 6(1).
Wall, G., Hill, W. A., Hargrove, T. M., Vaughan, B., Quarcoo, F., & Robinson, M. D. (2017).
The Challenges of Developing a Successful Cooperative through an Integrated Resource

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Approach: Small Farmer-Tuskegee University-Walmart Project. Professional
Agricultural Workers Journal, 4(2), 4.
Walmart, (2018). About Us. Viewed on February 19, 2018 from <
https://corporate.walmart.com/our-story>
Wisner, J. D. (2016). Operations management: A supply chain process approach. Sage
Publications.