Management Information Systems in Walmart: Business Units, Data Forms, and Ethical Implications

This report discusses the different business units and their connection, forms of data and the role of data warehousing, and ethical, legal, and professional implications in Walmart's latest programmes and data protection legislation. It also includes an illustration of Walmart's organizational structure and recommendations for improving big data solutions.

MANAGEMENT
INFORMATION SYSTEMS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Describing the different business units and their connection......................................................3
Explaining the different forms of data and the role of data warehousing....................................5
Ethical, legal and professional implications in Walmart’s latest programmes and data
protection legislation....................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Walmart is one of the biggest retail multinational company of United States and its
headquarter is situated in Bentonville and also it is world's largest company in terms of revenue
generation. This report shows the different types of business units and the big data analysis used
by Walmart.
MAIN BODY
Describing the different business units and their connection
The structure of the Walmart describes or explains the activities or the functions of the
company that includes the operations of the organization related to the e-commerce activities.
The organizational structure of the Walmart help them in analysis the market and also helpful in
making the strategic implementations so that the firm is able to capture the bigger share in the
retail industry. On the other hand the culture of the Walmart determines or explains the way of
their employees respond to any problem, issue or the challenge that the firm is going to face
(Porter, M., 2019). The main or the important features of the culture of the Walmart help the
enterprise to adapt the new changes according to the trends of the market and also assist the
company to analyse the emerging challenges in the international market. However, it can also be
state the structure as well as the culture of the Walmart helps to achieve the competitive
advantage and leads the firm towards success.
The structure of the Walmart have the hierarchical functions of the organizational
structure. This type of structure mainly has two features such as function- based and hierarchy.
In this hierarchical feature states that the authority of the command and decision making goes in
a vertical line which means every employee has a direct supervisor or the superior and also every
department have its own head. Whereas the function- based feature states or involves various
type of functions or the activities that are fulfilled by the employees of Walmart (Begley and
et.al., 2019). The company have a separate department or the sector for each and every functions
or the operations such as finance department, human resources management, sales department,
technology, marketing, etc. The main impact or the effect of this type of structure is the ability
or the capability of the managers of Walmart that are handling the issues and the challenges of
the firm effectively and also contributes to the growth of the Walmart. Hierarchical functional
structure of the company facilitates them to fulfil or achieve the goals and the objectives of the

business and also help them to increases the productivity and the profitability of the Walmart. On
the other hand the drawback or the disadvantage of this type of structure is that it gives minimum
or the less support to the organization regarding the flexibility and also affect the lower level of
the company as it involves lengthy process of communication from top to the low level at
Walmart.
Source:Walmart Organization Chart,2021
The culture of the Walmart mainly has the four components or the elements that give the
guidance to the workers or the employees regarding their behaviour and the performance in order
to attract customers and also to increase the brand value of the firm. Walmart organizational
culture gave emphasis or focuses on the services given to the consumers, tries for the excellence,
respect for the employees and for every individual and also takes adequate or the relevant actions
along with integrity. As Walmart is a retail organization and also engages in the wholesale
Illustration 1: Organizational Structure

business so it has different segments or the business units and all these units are interconnected.
Following are the segments of Walmart_
Walmart International – This unit of Walmart operates in the different countries that are outside
the U.S. It comprises of wholesale, retail and other business or the activities. It includes the
supermarkets, super centres, warehouse clubs, hypermarkets as well as e- commerce in order to
reach new and the existing customers daily and also tries to fulfil the demands of the buyers
regarding the goods and services (Prajapati and Nakum, 2019). This unit provides offers to the
consumers related to the discount prices and many other offers to make the customers happy and
satisfied. It also contributes to the sales of the Walmart and helps in increasing the profit rate of
the company.
Walmart U.S. - This segment or the unit of Walmart is one of the largest and the biggest unit of
the firm in terms of sales and also have the branches in all the sates of U.S. And Washington
D.C. The Walmart U.S. Follows or have three major or the primary stores and also the e-
commerce department. This unit of Walmart tries to fulfil the needs of the customers and also
put efforts to give them the best quality goods and services required by them at the stores as well
as online (Chen and et.al., 2021). This segment generates the maximum percentage of the net
sales so it directly contributes to the profits and the growth of the organization.
Sam's Club – It is that unit or the segment of Walmart which is consists of the membership
warehouse where the buyers get the membership of the firm and operates in the states of Puerto
Rico and U.S. In this segment income generate from the membership is one of the important
component for the operating income (Smith, 2019). It offers or provides grocery and dairy
products, tools and power equipments, fuels, home goods and apparel, health and wellness
services, electronic items, etc. It also offers products like video games, books, cards, software,
tire and battery and many more goods and services.
From the above discussion it can be analysed that all these units are interconnected in
terms of goods and services and also the policies or the strategies of every segment focuses on
the requirements of the customers and tries to fulfil their needs of products according to the
preference, demand and the changing trends.
Explaining the different forms of data and the role of data warehousing
Data act as an important tool for the organization that are helpful in making the adequate
and correct strategies and also in analysing the current market situation. It shows the right path

and the clear ways to the firm so that they can be able to achieve the goals and objectives.
Mainly there are two types or forms of data such as Qualitative data and Quantitative data
(Livingston and et.al., 2021).
Qualitative data form- This data type is also known as Categorical Data that explain or describes
the object that are should be considered by using a set of discrete classes. This type of data
cannot be counted easily and can be extracted from images, text medium, audio, etc. For
example smart phones that give information about the various things like colour of cell phone,
current rating about the brand, category, etc (Buchmann and et.al., 2019). qualitative data can be
further divided into two parts, they are as follows:
Nominal - It refers to the collection of the values that can not be compared with each other like
the gender of the person and the colour of the phone, etc.
Ordinal - It has natural ordering and can be measurable and also these are helpful in deciding
the encoding strategy.
Quantitative data form- This type of data is countable in nature and considered numeric values.
Foe example price of the product, number of ratings, discount prices offered by the company,
etc. It is also divided in two categories such as:
Discrete- In this numeric values like whole numbers and integers are involved. It also includes
the numbers related to the camera, sims, speakers, cores in the processor of the smart phone.
Continuous- In this type of data fractional numbers like frequency of the processor, wifi
frequency, android version of cell phone, temperature of core etc. are considered.
In addition to the above discussion the Walmart uses data mining in order to collect the
sales as well as the customer data. Data mining is very helpful for the Walmart as it provides
recommendations and the suggestions to the company about the sales and the demand of the
products that are in the market by analysing the situations of the market such as preferences of
the customers, demand of the particular product and the changing trends, etc. It is one of the
speciality of the Walmart that it targets and track the each and every customer individually this
will help the organization to maintain the strong customer base. Walmart is having customer data
of approx 145 million people out of which 60% are adults of US(How Big Data Analysis helped
increase Walmarts Sales turnover, 2021).
Role of data warehouse

Data warehouse refers to a system or the process of management of data that are designed
in such a way so that it can be able to support the activities related to business intelligence
mainly the analytics. The main purpose of the data warehouse is to properly examines or analysis
and also to perform queries and contains a huge amount of historical data. Walmart keep the
record or the track of approx 100 million users or the customers those are buying the products
everyday (Dowsett and Harty, 2019). The collection of the data and its using assist the Walmart
firm to achieve or reach more and more customers daily and can also achieve the low prices.
Now, Walmart has become one of the most profitable company in the whole world, this is
possible only because of the data warehouse. Walmart use web- based systems from Dayton,
Ohio, NCR and also from software developed by the company itself. These warehouse solves the
queries of average 120,000 consumers every week (WAL-MART TO EXPAND DATA
WAREHOUSE TO ASSIST SUPPLIERS, 2021). Walmart tries and put efforts in order to expand
the data warehouse that facilities or assist the suppliers as well as the buyers.
The management information system (MIS) refers to the process that are used by the firm
in order to get the relevant informations that are needed by them to manage all the activities
effectively. Walmart uses the EDI system and this system refers to an electronic data interchange
system that are used mainly to transfer the data by using the internet and also allows suppliers to
keep an eye or regular check the sales of their products (Mesároš and et.al., 2021). In simple
words EDI refers to the process of exchange of electronic documents of the business from one
computer to the other computer.
After analysing the strategies of Amazon and also after examining the information system
used by the them, it can be recommended that in order to improve the plans or the strategies
related to big data solutions Walmart should use new and advanced technology of cloud
computing as it is one of the best solution for the issues or the problems related to the big data
solution as it helps in analysing and evaluating the data and the information of the customers as
well as stores the data of the organization safely (Jeyaraj and Zadeh, 2020). The main advantages
or the benefits of cloud computing are that it provides back up solutions and restores data for the
future use and also improves the collaboration by allowing the group of people in order to share
the data and the information at a time easily and quickly. It facilitates instant and the easy
accessibility of the stored information by using the internet connection from anywhere and
anytime worldwide. The quick accessibility of the data and information contributes to the

efficiency and the productivity of the company and also leads the firm towards growth and
development. It ensures the mobility, unlimited storage capacity and also the security of the data.
Cloud computing reduces or eliminates the cost of maintenance of the hardware and software of
the enterprise.
Along with the benefits there are some disadvantages of cloud computing such as
internet connectivity is the only way to access the data and information from the cloud so it
needs good internet connection in this context. One of the biggest drawback of cloud computing
is that it may creates problems or the hurdles for the vendors at the time of transferring the
services from one vendor to the other as they provides various platforms. Other disadvantages
are related to the control and the security as the users of the cloud have less control in their hands
regarding the execution and the functions of the services and also there is a chance of hacking of
the data and information.
Ethical, legal and professional implications in Walmart’s latest programmes and data protection
legislation
Information systems today have crucial impact far beyond the world of business.
Information handling by the information systems raises various ethical, legal and professional
implications. As Walmart have implement its latest program and new GDPR data protection
legislation, various concerns have also been identified (Entzeridou, Markopoulou and Mollaki,
2018). These concerns as explained as follows:
Harmful actions: As Walmart have created the policy regarding serving its clients better with
keeping in mind the protocols and post COVID impact, it have introduced various technology
and Information technology programmes. However, these programmes are nor prone to the
negative consequences do information ethics such as loss of important information, loss of
ownership, destruction of property, undesirable substantial impacts or loss of property as well.
Trade secrets: It is also a major ethical issue in information technology. Walmart’s trade secrets
are something of value and usefulness to it. If the trade secret of Walmart is lost the company
can lose its business and its position as well. The use of information technology makes the
company vulnerable to this issue. Having information technology for operations can put the
company into ethical issues. Trade secrets if lost can be copied by other competitors easily
though hacking the systems of Walmart. A little change or a little advancement in software or

hardware of the product copied can put the company in a huge competitive influence (Tanwar, S.
and et.al, 2019).
Privacy: Privacy is another major issues which Walmart can face. Privacy refers to the activity
in which creating a copy of the software is made illegal (without knowledge or permission). As
due to the new policy of the company creating a copy of the software of the company is
prohibited and is illegal. There are various legislation in which authorised duplication of a
software is in consideration. The software industry have filed cases for the same. If they win the
battle protection of software will be difficult for the companies; such as Walmart. It will put the
company into major ethical information handling and security issues.
Digital exchange: Now digital exchange have become a universal right. People can access the
information on internet from every corner of the world. It make it easy for the people to access
and save information. It raises the legal issues for the companies such as Walmart. The issue
extends to the private internet usage as the cost of services in some areas can be cost prohibitive.
This creates a legal issue for the company. If the information of the company is accessible on
such a wide level, it can make it difficult for the company to manage it. The information of the
company can be misused and misinterpreted. It can lead to creation of various ethical and legal
issues in the programmes and policies created by the company (Anderson, Baskerville, and Kaul,
2017).
Patents: It is one of the difficult ethical issue to deal with as it means or refers to the
preservation of the secret and unique aspect of an organizations idea. As per this context a patent
requires full disclosure with the software. So, Walmart should patent its information systems in
order to escape the duplication or the repetition of the information. It creates some issues or the
problems that are related to the legal implications and the Walmart should put efforts so that this
will not harm the company.
Some of the professional issues related to the handling of the information and the security
of the information are that the Walmart should maintain the information and the data confidential
and also maintain or handles the anonymity. This will help the Walmart to save the information
from duplication and hacking (Luciano, Mahmood and Mansouri Rad, 2020). The other issue is
lacking in the respect and the integrity of the copyright. So. It is necessary to give respect to it
and should also reference the work done. One of the common issue is the access right as it
becomes the priority for the cyberspace and the information technology because of the

advancement in the technology and the greater use of the new and advanced technologies. Now a
days the most of the customers prefer the use of electronic payment system through internet
which is becoming the reason for the problems or the issues for Walmart. So, Walmart should
focuses on the accessibility of the proper internet connection and also must use the intrusion
detection system in order to overcome this issue.
In addition to the above discussion, the other issues are unethical leadership and the toxic
culture in the organization. Walmart should gave emphasis on the culture and must provide the
good and healthy environment to the employees and also tries to make the workers familiar with
the organizational culture so that the employees can be able to work with their full potential and
gave their 100% for the growth of the company (Wang and et.al., 2021.). Walmart should also
focuses on the issues related to the ethics of the leadership that the leaders should not bulling the
employees and the enterprise can be able to save the cost instead of spending money on the
inappropriate activities.
CONCLUSION
From the above discussion it can be concluded that Walmart is using EDI information
systems and the data warehouse to facilitates its suppliers and the customers. It is also concluded
that the business units of the organization are interconnected with each other and also give
impact on performance of the firm.
REFERENCES
Books and journals
Anderson, C., Baskerville, R.L. and Kaul, M., 2017. Information security control theory:
Achieving a sustainable reconciliation between sharing and protecting the privacy of
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Begley, S. and et.al., 2019. Automation in retail: An executive overview for getting
ready. McKinsey & Company. 23.
Buchmann, N. and et.al., 2019. Different treatment forms of type II diabetes and the risk of
dementia in German health claims data. Acta diabetologica. 56(9). pp.995-1003.
Chen, Y. and et.al., 2021. A Multiobjective Optimization for Clearance in Walmart Brick-and-
Mortar Stores. INFORMS Journal on Applied Analytics. 51(1). pp.76-89.
Dowsett, R.M. and Harty, C.F., 2019. Assessing the implementation of BIM–an information
systems approach. Construction management and economics, 37(10), pp.551-566.

Entzeridou, E., Markopoulou, E. and Mollaki, V., 2018. Public and physician’s expectations and
ethical concerns about electronic health record: Benefits outweigh risks except for information
security. International journal of medical informatics. 110. pp.98-107.
Jeyaraj, A. and Zadeh, A.H., 2020. Evolution of information systems research: Insights from
topic modeling. Information & Management. 57(4). p.103207.
Livingston, M. and et.al., 2021. Exploiting new forms of data to study the private rented sector:
Strengths and limitations of a database of rental listings. Journal of the Royal Statistical
Society: Series A (Statistics in Society). 184(2). pp.663-682.
Luciano, E., Mahmood, M.A. and Mansouri Rad, P., 2020. Telemedicine adoption issues in the
United States and Brazil: perception of healthcare professionals. Health informatics
journal. 26(4). pp.2344-2361.
Mesároš, P. and et.al., 2021. Impact of enterprise information systems on selected key
performance indicators in construction project management: An empirical
study. Wireless Networks. 27(3). pp.1641-1648.
Porter, M., 2019. Supply chain integration: Does organizational culture matter?. Operations and
Supply Chain Management: An International Journal. 12(1). pp.49-59.
Prajapati, M. and Nakum, D., 2019. MERGER AND ACQUITISION IN E-COMMERCE
SECTOR. A Global Journal of Interdisciplinary Studies. 2(4). pp.41-45.
Smith, J., 2019. Big Box Supermarkets (Walmart Supercenters). Increasing Access to Food: A
Comprehensive Report on Food Supply Options. p.5.
Tanwar, S. and et.al., 2019. Ethical, legal, and social implications of biometric technologies.
In Biometric-based physical and cybersecurity systems (pp. 535-569). Springer, Cham.
Wang, W. and et.al., 2021. Entrustable Professional Activities for Undergraduate Nutrition
Student Clinical Training: Development and Implementation. Current Developments in
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Online references
How Big Data Analysis helped increase Walmarts Sales turnover, 2021. [Online]. Available
through <https://www.projectpro.io/article/how-big-data-analysis-helped-increase-
walmarts-sales-turnover/109>
WAL-MART TO EXPAND DATA WAREHOUSE TO ASSIST SUPPLIERS, 2021. [Online].
Available through <https://www.supermarketnews.com/archive/wal-mart-expand-data-
warehouse-assist-suppliers>
Walmart Organization Chart,2021. [Online]. Available through
<https://creately.com/diagram/example/he5ake7d2/walmart-organization-chart>