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Management Information System and its role in Walmart

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Added on  2023/06/16

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This report discusses the interconnection of different business divisions of Walmart, the role of data warehousing, and the GDPR data protection legislation. It also includes a data flow diagram and an evaluation of Walmart's current information system.

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Management
Information
System

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Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Different business divisions of Walmart are interconnected..................................................1
QUESTION 2...................................................................................................................................7
Different forms of data and the role or responsibility of data warehousing in Walmart........7
QUESTION 3 .................................................................................................................................9
Information about Code of Conduct and the new GDPR Data protection of Walmart..........9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................12
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INTRODUCTION
For the purpose of completing the business operations in an effective and efficient manner, it
is necessary for the organisation to develop several new technical skills so that organisation can
bring advancement in their operations and the collection of those skills is known as management
information system. Advancement of Technology in the modern businesses can easily seen as it
bring the effectiveness and efficiency in the performance of entire organisation and help them in
meeting the goals and objectives of the complete organisation. Employee relation is also
considered as the another aspect which directly leads to the performance of employees. The
management of organisation is responsible for managing the entire task by coordinating with the
work force along with making the correct decisions at time. Management information system
also performs the same task but it involves the use of technology or information system. Walmart
PLC is the selected organisation for this report. It is an American multinational retail
Corporation which have a chain of discount departmental stores grocery stores and hypermarkets
from United States. It was founded by Sam Walton in 1962. Below mentioned report deals with
the various divisions of Walmart along with their interconnection, different types of data, roles
and responsibilities of data warehousing in Walmart. Along with this it also covers the code of
conduct with the new GDPR data protection legislation.
QUESTION 1
Different business divisions of Walmart are interconnected
Walmart is an international company performing business operations all over the world.
They are providing a number of daily use products or groceries product to the customers by
hypermarkets, supermarket, convenience shops and discounted stores. It has been found that
almost 10000 stores are available all over the world in which more than 2300000 employees are
working. The constant growth and success of Walmart is the result of efforts of their employees.
Hence, they are consider as the assets of organisation. The management is constantly working for
achieving the organisational goals and objectives with the net income of approx $13.70 billion.
The business division of Walmart are given below:
Walmart US is generating more than 65% of total revenue of the entire Walmart and this
is possible only because of its extensive division. Furthermore, the Walmart US is divided
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among several retail businesses divisions such as neighborhood market, supercentres and
discount stores. Below mentioned is the brief description of these units:
Walmart Super Centres: This business unit can be identified on the basis of its
characteristic which are same as the features of supermarket. Both of shopping stores
provide same varieties of products i.e. frozen food, baked goods, garden products,
optical centres, dairy products and many more. Walmart has introduced supermarket
at first time in 1988 in Washington. As the Walmart is working globally, they are
working through more than 3500 stores only in the United states. Super centres are
dealing with the several varieties of daily use products. In order to cover the wide
area of customers, this organisation started using the technological tools such as
website and mobile application.
Walmart Discount Stores: It is also a retail business division of Walmart which
provide the products of daily use at a discounted prices. The management of walmart
introduce the idea of providing products on discount for the purpose of enhancing
their sales and this idea result in the outstanding performance of super centres of
Walmart. The discounted stores were firstly started from Bentonville in 1990. These
stores directly effect the sales of super centres.
Walmart Neighborhood Market: After 10 years of starting supermarkets, a chain of
small grocery stores has been introduced by the Walmart US which majorly focus on
the three categories of product i.e. fuel stores, groceries and pharmacy. From a recent
report, it has been analysed that almost 55% of the total revenue of Walmart has been
generated only by grocery part. The management of Walmart has introduced this unit
for the purpose of maintaining the difference between super centres and discounted
stores. Currently the management is performing business operation in more than 600
stores of Neighborhood market with almost 100 staff members in each store for full
time and part time.
Interconnection of all business units of Walmart
Technology and infrastructure are the two basis on which the interconnection of all
business units of Walmart can be established. Technology makes the process of supply chain
among all the business units easy. By the use of information system and technology, the
organisation can keep record of their transaction. The management is responsible for managing
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all the tasks, ensuring the proper utilization of resources and by the use of technology,
management can properly perform its function in an effective and efficient manner. Along with
this, they had developed their infrastructure which establish a relation among all the retail
business units of Walmart. Their infrastructure help the organisation in tracking all the business
operations which result in achievement of organisational goals and objectives. Effective
infrastructure is necessary for the success of organisation as it develop a positive relation among
all the departments and business units.
Structure of Walmart
It has been found that Walmart Plc is following hierarchical organisational structure at
their work place under which CEO is placed at the top management of organisation and take all
the important decisions at work place. The members of top level management are not answerable
to anyone. Al the departments and units of Walmart comes under the CEO. The middle level
management has divided several of departments for the purpose of bringing effectiveness in the
organisation. It makes the process of communication better at work place. Along with this, it is
also useful in the flow of data. This structure is beneficial for organisation because of
geographical base of company, customer base of company and the values of the founder.
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Data Flow Diagram
It is defined as the diagram which show the flow of data in the organisation. It makes
easy to analyse the flow of data in the organisations alike Walmart which are performing
business operations in several locations. Data flow diagrams are used to graphically represent the
flow of data in a business information system. Some of data flow diagrams are give nelow:
This data flow diagram represent the relationship among the customers and management
of organisation. Above mentioned diagram shows how the data flow from customers to
management and vice versa. Flow of data among management and customer is necessary as the
customers are required to get the informations regarding their purchases. Walmart is also
providing the informations related to any offers to their customers for making a better and
positive customers relationship.
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Above mentioned flow of data diagram shows the flow of data in internal management after
placing the order by the customers. In order to offering the best services and products to the
customers, the management is required to properly flow all the important data and information to
the specific person, unit and department.
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This data flow diagram is shoeing the4 flow of data among all the business units of
Walmart. This diagram is also showing the interrelation of all the retail business unit of walmart.
In order to performing all the business operations in an effective and efficient manner, the
organisation take care of its flow of data. Efficiency in the flow of data, result in proper
communication in the business organisation which plays an important role in achieving the
organisational goals and objectives.
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QUESTION 2
Different forms of data and the role or responsibility of data warehousing in Walmart
Walmart is a multinational organisation which is providing several variety of products to
their customers which include daily used products, groceries or general products through super
markets, discounted stores and hypermarkets. By following the divisional structure, the
management is providing several of products. It is a huge brand and performing their business
operations at several locations. Hence, it is necessary for them to follow a well defined structure
which bring effectiveness and efficiency in their work performance. The entire organisation have
been classified among several divisions which are being handled by the top level management.
All the divisions of Walmart plc are interconnected with each other with the help of information
system and technology. The technical department of Walmart is constantly working on bringing
the advancement in technology by introducing the new software and technology as it will help
the organisation in completing all the task in an effective and efficient manner along with saving
cost and timing. In recoding the data of warehousing, technology and information system has a
wide concept. Investigating and doing research of informations and knowledge which leads to
the introduction of new technology at work place. maintaining the data of warehousing has a
vital role in the organisation of Walmart plc. as it help the organisation in completing the task in
an effective and efficient manner. Some of information system used by the Walmart are given
below:
Executive Support System (ESS):
It refers to that information system which is very useful for top level management of
organisation as it is useful in decisions making related to the developing strategies. The
management use this information system for the purpose of gathering the essential informations
having a relation with their day to day working. The management use it to make the effective
decisions in Walmart by understanding all the aspects of business operations. Executive Support
System has been used by the Walmart plc for the purpose of collecting the informations related
top the inventory in the warehouse as per the ales and financial data of organisation. Collection
of data is essential for the management of organisation to make effective decisions on time. The
technologies which are involved in this information system do focus on the expansion of
business organisation.
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Knowledge Management System (KMS):
In order to improving the flow of information along with the share of relevant data,
knowledge management system plays an important role. This system is useful for the
management of organisation in understanding the employees of organisation. The presence of
several commercial opportunities is the only result of Knowledge management system. For
instance, expanding the area of varieties and categories of products which are being offered by
the organisation.
Decision Support system (DSS):
It is necessary for the management of organisation to take effective decisions regarding
the business operations at the situation of complex crises. For making the effective decisions, the
organisation is require to have accurate and correct data and Walmart plc is using several of IT
tools and equipments which are useful in collecting the accurate and relevant data. The
development of data oriented model include the spreadsheet of data along with the databases.
Walmart is using this information system, so that the management can come out from any
situation of difficulty or crises. By the use of this information system, the organisation develop
the skills of effective decision making in their managers so that they can find out the solution
which will save the firm from huge losses.
Big data is defined as the collection of structured and unstructured large data. Internal
Performance metrics system have been used by the Walmart to collect the effective information
which is highly useful for organisation. This is possible only because of skills of employees
which have been developed by the organisation by the use of information system. Along with
this, decision making power of employees increase their satisfaction level and work in an
appropriate manner to reach at the desired position.
Decision making process is an important aspect for every business organisation as the
procedures regarding all the operations are totally depend on the decisions. Management of
walmart plc is using the information systems for erasing the weaknesses of organisation along
with developing the skills and capabilities of mangers and employees so that they can work
effectively. The management is using several of software which bring the effectiveness in the
working performance along with the increase in productivity and profitability of organisation as
it provide a new and effective experience to the customers as well the employees. Adoption of
technology also result in the enhancement of career opportunities of employees. It has been
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found that Walmart is majorly gaining profit through the loyalty of customers by providing them
a new and unforgettable experience.
Evaluation of current IS at walmart
Currently, CAMELS is the approach which is an important part of curerent information
system of Walmart plc. This approach involve several of factors such as capital, liquidity,
earnings and many more. Walmart is using the APT model in order to assessing the large data.
The current information system of Walmart is useful for processing the data rather than keeping
that at rest. Installation of Public cloud is improved from last few years which bring several
advantages in the infrastructure.
Recommendation
The management of walmart is understanding all the practices with the help of correct
information system. They can use the information or data for the purpose of increasing the
satisfaction level of employees and customers. Grabbing the opportunities is the important aspect
for each and every organisation. The use of KMS, DSS and ESS in the organisation of Walmart
help them in catching all those opportunities which are available in the market.
QUESTION 3
Information about Code of Conduct and the new GDPR Data protection of Walmart
The full form of GDPR is General data protection regulation. It refers to the set of
guidelines which have been developed by the European Union for the purpose of providing the
protection to the information and data of an organisation. It has a vital role in doing the
protection of data of an organisation from any unauthorized user.
Ethical: The information system along with the software which are being used by the
Walmart, help the management to keep a record of business operations. It also helped them in
solving the several issues which error is a while performing business operations in an effective
and efficient manner. It has been found that it is necessary for the employees of organisation to
provide all the information related to the issues of which they are facing at the workplace to the
management before the situation get worse. There may be a lots of problems may come if the
software work in an ethical way. These ethical issues directly affected the entire working
performance of an organisation. Along with this it also create the risk of security. Ethics is an
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important part of work at workplace. It is necessary for organisation to work with ethics so that
the requirements of customers and government can be full filled.
Legal: The availability of general data protection regulation is considered in the laws of
European Union. The rules and regulations which come under GDPR are used by the business
organisation for the purpose of delivering the transactions outside the EEA and EU. Walmart is
taking decisions at their workplace regarding the products after a complete research and
discussion with their clients. It leads to the development of loyality in the customer which result
in the maximization of productivity and profitability of organisation. If the taken decision
regarding products make feel happy to the clients, it provide opportunity to the management to
gain the higher profit. The store of Walmart are required to fulfill all the legal rules and
regulations of a specified country while performing their business operations with in the nation.
Professional: It is necessary for organisation to perform in a professional manner. It has the
organisation in creating the positive reputation in the market and making of huge amount of
profit. Walmart is working in a professional manner at their workplace full stop along with this
they are not sharing any private information of their organisation to anybody. It has been found
that several of confidential information of customers, which are important for organisation are
required to keep safe in the management. Walmart is using several of information systems for the
purpose of keeping their information confidential so that no any unauthorized user can take the
advantage of such information. It also result in maintaining the interest of customers towards the
organization which is very useful for the purpose of maximization of productivity and
profitability of organization.
CONCLUSION
It has been concluded from the above report that Walmart is working with several
business units which are interrelated top each other. Interconnection among all the business units
result in the completion of all business operations in an effective and efficient manner. It also
help in making and developing the effective strategies and decisions on time. It has been found
that data in any organisation can flow in any direction as per the requirement. Data flow
diagrams plays an important role in any organisation. Some of data flow diagrams are shown in
this report. Data warehousing is also an important function in the organisation of Walmart. It is
necessary for them to keep the data and information confidential to make the loyalty of
customers along with growth and development of organisation. Data and information related to
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the customers help the organisation in developing the effective strategies which help them in
developing the products as per the expectation of customers. Use of several software and
information system bring effectiveness in the organisation. GDPR is the legislation which help
the organisations in keeping their data and informations safe from the various unauthorized
users.
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REFERENCES
Books and journal
Carpio-Aguilar, J.C., Rincón-Moreno, J. and Franco-García, M.L., 2019. Potential of Carbon
Footprint Reduction within Retailers: Food Waste at Walmart in Mexico. In Sustainable
Development Goals and Sustainable Supply Chains in the Post-global Economy (pp.
225-240). Springer, Cham.
Chatterjee, S., 2017. Two efficiency-driven networks on a collision course: ALDI’s innovative
grocery business model vs Walmart. Strategy & Leadership.
Cheung, S.Y., Wong, C.K., Sun, Y., Tan, Q.Y. and Yeung, J.H., 2018. Adopting information and
communication technology in green supply chain management. Advanced Science
Letters, 24(7), pp.4900-4903.
Clohessy, T. and Clohessy, S., 2020. What’s in the Box? Combating Counterfeit Medications in
Pharmaceutical Supply Chains with Blockchain Vigilant Information Systems.
In Blockchain and distributed ledger technology use cases (pp. 51-68). Springer, Cham.
Clohessy, T. and Clohessy, S., 2020. What’s in the Box? Combating Counterfeit Medications in
Pharmaceutical Supply Chains. Blockchain and Distributed Ledger Technology Use
Cases: Applications and Lessons Learned, p.51.
Elder, S.D., 2019. The impact of supermarket supply chain governance on smallholder farmer
cooperatives: the case of Walmart in Nicaragua. Agriculture and human values, 36(2),
pp.213-224.
Faridi, M.S., Ali, S., Duan, G. and Wang, G., 2020, December. Blockchain and IoT Based
Textile Manufacturing Traceability System in Industry 4.0. In International Conference
on Security, Privacy and Anonymity in Computation, Communication and Storage (pp.
331-344). Springer, Cham.
Martin, S.B., Veiga, J.P.C. and Galhera, K.M., 2021. Introduction: Labor Contestation at
Walmart in Latin America as Test Case of Global Diffusion by Multinationals. In Labor
Contestation at Walmart Brazil (pp. 1-10). Palgrave Pivot, Cham.
Shree, J., Kanimozhi, N.R., Dhanush, G.A., Haridas, A., Sravani, A. and Kumar, P., 2020,
October. To Design Smart and Secure Purchasing System integrated with ERP using
Block chain technology. In 2020 IEEE 5th International Conference on Computing
Communication and Automation (ICCCA) (pp. 146-150). IEEE.
Tsui-Auch, L.S. and Chow, D., 2019. MNEs' Agency Within Institutional Contexts: A Study of
Walmart's Post-acquisition Practices in Mexico, Germany, and Japan. Journal of
International Management, 25(2), p.100655.
Xie, Y. and Cooke, F.L., 2019. Quality and cost? The evolution of Walmart's business strategy
and human resource policies and practices in China and their impact (1996–
2017). Human Resource Management, 58(5), pp.521-541.
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