MBA Operations: Analysis of Walmart Inc Challenges & Solutions

This report examines the operational challenges faced by Walmart Inc., a multinational retail business, focusing on issues like poor restocking procedures, high traffic leading to delays in online transactions, and long queues due to inefficient service delivery. The analysis uses the four Vs framework (volume, variety, variation, and visibility) to understand these challenges, which stem from the company's migration to online shopping and integration of digital services with physical stores. Key problems identified include delayed transactions, high digital traffic, store layout inefficiencies, and slow restocking processes. The report prioritizes solutions, emphasizing the need for improved restocking, better store layout design, and seamless e-commerce integration to enhance customer satisfaction and overall operational efficiency. Desklib is a platform where you can find more solved assignments and past papers.

Running head: Operation Management - MBA 1
OPERATION MANAGEMENT - MBA
Student Name
Institution

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Introduction
Operation management can be termed as the business areas that design and control
business operation and process that aim at production. Business process refers to an activity or
set of activities that will accomplish a specific organizational goal. The business operation
management is faced with many different operational challenges that need to be addressed. One
of the businesses that have been experiencing operational challenges is Walmart Inc (Walton
2012, pp. 299–306). Walmart Inc is a multinational retail business that is based in the United
States of America. The company has various stores throughout the United States of America and
other countries being the largest retailer in the United States of America. Operational
management uses the four Vs profiles as a tool to understand the operation processes of a
company. These four Vs include volume dimension, variety dimension, variation dimension and
visibility dimension. Some of the challenges that are cited by the management of the Walmart
Inc poor restocking procedures, high traffic leading to delays in online transaction and payment,
and long queues causing delays that is attributed to poor service delivery. The following paper,
therefore, explores various operational process challenges that are identified from Walmart Inc.
Operational processes
Despite the high ranking of Walmart Inc as shown in APPENDIX II, there are many
challenges that affect the company with most these challenges touching on the operational
processes. Some primary operational processes include restocking and brand design, delayed
payment and general transaction leading to long queues and high traffic in the digital services
delivery leading to delayed operational or transactions cited by customers visiting online shop.

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These processes aim to meet the company's objective and performance. Walmart as a
multinational retailer has clear set performance objectives and has robust operational processes.
Despite the Walmart Inc has good performance objective map that was developed to enhance the
performance of the retailer, there are some operational processes that are still not fully designed.
Some of these operational challenges are primary operational processes (Ryan, Stephen & Lee
2009).
Operational challenges
The key challenges that are experienced within the Walmart Inc retail being the largest
retailer include operational processes challenges Walmart Inc has been experiencing many
challenges due to the migration from in-house store business to online shopping. The business,
therefore, has different operational or primary process challenges that are connected to the four
Vs of operation management profile. Firstly, the company has experienced delayed transaction
and high traffic jam in digital due to online and physical store integration. Secondly, the retailer
also has restocking challenges where there has been delayed restocking leading to complainant
by customers. Thirdly, delays in payments leading to long queues in most of stores and this is
attributed to store layout and design causing operational process challenges within the business.
These operational challenges from the primary operational process that is fundamental to every
business and if not properly addressed may lead to more challenges (Ingram, Yue & Qingyuan
2010, pp 53–92).
The digital services have been delayed leading to complaints from customers and online
users. High traffic in the online shopping version of the Walmart Inc has seen high operational

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challenges that slow down the whole company’s digital services. The digital platform integration
with the physical facilities is one of the challenges that affect the business. The software
integration facilitates the variety dimension and visibility dimension of the four Vs operation
management profile. As this operational process touch on the flexibility and variety of services
that the company offers as compared to other similar businesses. E-commerce software
integration is one of the challenges that the business has been experiencing since the
development of the online shopping platform (Wisner & Linda 2008). Integration of the physical
store with the online shopping platform offers critical challenges that make the business to slow
down its operational processes. This is also due to the need to continuously update the software.
Moreover, the customers’ online purchasing modules need to be fully enjoined to the physical
location of the resources. This should offer smooth digital services that enhance the customer's
support services. Retail operational processes therefore currently have a slow services provision
that mainly lies in this operational process (Vollmann, William, Clay & Robert 2005).
Long queues and slowed payment services in Neighborhoods Market stores of Walmart
Inc. long queues challenges that are related to storing layout or design is also another important
operational challenge experience as shown in APPENDIX I. Designing and setting store layout is
another challenge that is deeply affecting the operation management of the Walmart Inc. The
store layout and design concerns particularly the visibility dimension that enables the customer
to reach the product at their convenience. The current layout in most Neighborhoods Market
stores makes the business operation slowdown thereby affecting the customer’s service delivery
(Birchall & Yeager 2006, p. 9). For instance, the digital service delivery wholly depends on the
layout and the design of the online shop. When compared to other retailers, stores such as

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Supercenters and Neighborhood Markets, the layout for these other retailers need to make it easy
to purchase products as compared to Walmart Inc. The layout challenges have also been
highlighted by both the United States of America Walmart Inc CEO Greg Foran and customers
that purchase products regularly at the business. According to the CEO, the design and layout of
the business currently compromise the customer’s service delivery and present serious
operational process problems.
Another operational process that can also be seen within the business is the restocking
process. Restocking process normally touches the variation and volume dimension profile of the
operation management since it concerns the variation that brings the different from other stores
that sell the similar product. These include the branding and pricing of the products at the
business. Firstly, pricing is primary operational process challenges that have made the business
profitability to drop over that past few years (Gareth & White 2016, pp. 302-323). The prices of
the products sold in the various store of the business throughout the United States of America are
higher as compared to similar products from other retailers. In addition, restocking of the stores
is slow making the business to lack convenience as compared to other retailers in the United
States. Secondly, the business lack diversification of the brands and branding that poses
challenges to business operation. Restocking of stores as operational challenges has been one of
the serious challenges that have cause fall in the number of customers visiting the stores of the
business (Shenoy & Zabelle 2016, pp 13-24).
Addressing operational challenges

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Addressing the operational challenges need consideration of the magnitude of the
challenges and the effect of these challenges in the business operation management. For instance,
layout play role in ensuring that there are smooth purchase and transaction and this is also true
with branding that increases the variation and variety detentions of the four Vs profile. The
analysis, therefore, provides the proper evaluation of these challenges based on the level of
priority when addressing each challenge (Zook & Graham 2006, pp. 15–25).
The operational challenges that affect the business need to be addressed based on the
level of priority. The first challenges that need to restocking of the stores that require urgent
correction since it touches both the online and in-house stores and brings dissatisfaction among
customers who find products missing. Restocking of the business plays an important role in
ensuring that all or many customers are attracted to the business and this means there is need to
put first customer’s choice (Fitzsimmons & Bordoloi 2014, pp 53). Customer’s preference
determines the stocks that need to be available for the business to continue selling. Furthermore,
branding needs to determine the price of products that is arrived at through the law of demand
and supply. The company has been experiencing restocking process challenges that are also part
of primary operational processes. In the order of priority, the restocking processes that present a
challenge that drives away customers and need to be addressed first (Johnston, Clark & Shulver
2012).
The second challenge that also is important when managing operation for the Walmart
Inc is the store layout and design. Improving service delivery through improving store layout and
design offer convenience of operation and service delivery. The process of designing stores
weather online or in-house need to reduce the slowdown in services delivered to customers. This

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can be achieved by ensuring those online stores are a design that eases both purchases and
transaction throughout the different branches of the business. This will attract more customers
since customers need to have easy access to the store and transaction. Designing store layout
requires thorough consideration of customers related factors such as convenience of usage and
restocking frequencies. Restocking of the stores ensures that there are continuous stocks within
the store and that customers obtain all they need within the store. The layout also plays an
important role since it should be attractive especially on the online shop platform. In addition,
setting store layout forms primary operational process that also plays an important role when
setting new store especially when expansion (Chase, Jacobs & Aquilano 2007, pp 23).
The third most important operational challenge is reducing traffic slowdown related jam
due to software integration concerning e-commerce software. The integration of the online
software and the physical store also enable smooth acquisition of products by customers when
they purchase. The online platform wholly depends on the e-commerce and their integration
ability with the in-house store to facilitate smooth shipping of purchased goods to customers to
any location. The software should make it easy to purchase goods from any point. E-commerce
normally has various modules that facilitate various operational and support processes. The
software also requires proper designing and development in terms of layout to make transaction
easy. This is important for continuity of online or digital services by the business. As pointed out
by many clients and staffs improper software integration has lead to slow purchases and digital
services in general (Barstow 2012, pp 245-250).
Restocking of Walmart Inc stores

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According to the United States of America Walmart Inc CEO, product diversification and
continuous restocking process is important problem in the business operation. Restocking
ensures there are stocks and products within the shelves of every store. Greg Foran says “The
brand needs to offer a wider product assortment of general merchandise, fresh produce, grocery
and private label.” Another stock aspect includes pricing of products where the CEO further
indicates that prices of products that are held in the stores are not competitive in the current
market. When designing brands for the company price setting has been an issue that has left the
business receiving critics from low-income holders that termed the prices of goods as not pocket-
friendly. The company therefore, needs to ensure there are stocks within the stores to minimize
restocking poblems (Heizer & Render 2011).
Payment delays and long queues
Poor store design that is causing payment delay and long queues is another important
operational challenge that currently brings more problems to the business. Many online
customers indicate that the current layouts of the store are not convenient causing high traffic
and concern not only online stores only but also physical store. The layout of the store reduces
operation among staffs and customers who purchase products from the stores. Designing of the
store layout has challenges that also extend to other problems such as software integration. The
online store is always connected to customers through the excellent layout. This is also true for
ease of customer purchase since the attractive layout of the online store brings more customers as
compared to the current store layout. The proper arrangement of various resources within the
store can speed the operational process or slow down the process. In case of slowdown process,

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there is most likely to experience the fall in profits has been witnessed within the Walmart Inc
(Chase, Jacobs & Aquilano2008).
Recommendation of the improvement on operational process
Since the challenges that are identified are mostly primary operational processes there is
a need for improvement to ensure good performance for the company. Firstly, the company
needs to review its restocking procedures and the current products it has. This is an important
step that the company needs to undertake first to ensure good sales. Restocking can be done
based on the feedback from customers since the main aim of the business is to satisfy customer’s
choice and preference. The company needs to have wider product assortment so as to diversify
products it currently holds in its stores. Moreover, the Walmart Inc need to focus on customers as
this will ensure that stocks are purchased according to customer’s choice (Norman 2004, p. 7).
Some of the areas where the company needs to focus on include groceries, the company need to
include fresh produce in its stores and private labels. Limited fresh produce and groceries where
the company has limitedly invested play a critical role in the current retail as many customers
prefer shopping all they want with the same store and if this is not available then these customers
will move on to the next store (Carlisle 2013, p. 23).
The second aspect that the company needs to improve on is the layout and designing of
the store to improve payment and reduce long queues within stores. The architecture of the stores
needs improvement weather on the in-house store or online store. The architecture of the online
store equally plays role in ensuring that customers reach the product as part of the visibility
dimension of the four operational Vs profiles. For instance, the company needs to improve its

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store's product arrangement (Aguilar-Saven 2004, pp.129-149). The general architecture of the
online shop that concerns to the e-commerce software that is used to run the online store also
needs redesigning to ensure that the layout of the store is both attractive and offers a convenient
shopping experience to customers. Layout problem mostly affects those recently opened
branches of Walmart Inc and need a review to ensure that they confer to the initial proper layout
used in major stores. Most the recently opened stores are not properly designed that jeopardize
operational processes. This layout challenges minimize the integration between digital and
physical store (Keil & Spector 2005, p336-355, 20p).
Conclusion
In conclusion, operational processes play an important role in development and success
of the company. This is also true for a company such as Walmart that has numerous branches
across the country and outside the united state of America. Despite the ranking and the
achievement of the company, the company has been experiencing fall in profit it makes over the
years. These challenges are based on operational processes that are a mostly primary process.
Some of these challenges are poor service delivery leading to delays, low restocking and high
traffic jam due to poor integration between online and physical stores. When evaluated based on
the level of importance, restocking comes as the first important challenges that need immediate
address followed by designing store layout and the improving of online and in-house store. There
is need to reduce these challenges with more focus on the business objective and the four Vs of
operation management. In addition, there is a need for synchronization of the operation processes
through proper operation management of the business.

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