People Management: A Case Study on Wal-Mart's Change Strategies

This report provides an in-depth analysis of people management and change strategies, focusing on Wal-Mart as a case study. It begins with an executive summary that highlights the complexities of mergers and acquisitions, the importance of cultural suitability, and the significance of communication during organizational changes. The introduction provides background on Wal-Mart's expansion into international markets, driven by competition in the US and the opportunities presented by globalization. The report then delves into Wal-Mart's history, mission, and the company's approach to change management in a multinational firm, considering factors like the marketing environment, economic and demographic influences, and the impact of natural and political environments. It explores Wal-Mart's marketing strategies and the principles that guide its operations, including providing value to customers and fostering a strong team spirit. The report examines Wal-Mart's commitment to its core principles and the business process transformation model, concluding with an overview of the challenges and strategies involved in managing change within the organization. The report emphasizes the importance of clear communication, understanding the advantages of change, and articulating a clear process for achieving it.

RUNNING HEAD: PEOPLE MANAGEMENT
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Executive Summary
The concept of merger and acquisitions are combined with complicated events with
organizational life which can be incomplete clarity that too in part since the authors have the
intention to focus specifically only on the partial understanding of the concept. The research also
set the concept of suitability of so many distinct cultures along with functional procedure which
is a function of the same as well as complementary of two big mergers of the businesses. It is
also based on the extent of communication as well as coordination specifically during the change
process of the company (Laudon and Laudon, 2016). This approach completely changes from the
old or traditional methods of understanding the concept of mergers and acquisition in two
methods: -
1. The overall success of the acquisition just by the level of collaboration and realization
rather than potential and more removed with so many confused grounds of criteria like
accounting with distinct market returns.
2. The key features are the combination of different capacities and potential concept which
are conceptualized just by terms of similar features across different businesses. As per
different studies in change management since it is based in term of marketing and
production with so many similarities that exist between the two organizations (Bolman
and Deal, 2017).
The base of this study will be settled on the impact of organization change or any MNC like
Wal-Mart with the aim on the factors they keep into consideration right before the change
process as well as the positions right after the change. The main motive of the research will be
based on a case study of Wal-Mart specifically to try getting some understanding about the
process of transforming different process. Here it is important to understand different factors that

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drive Wal-Mart to change as per the market situation and the study will also look to gain clarity
on how change management in MNC can impact the pace as well as the direction of the
international process (Drucker, 2017).

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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................5
Wal-Mart- an Introduction...............................................................................................................5
Change management in multi-national firm....................................................................................6
Marketing environment of Wal-Mart..............................................................................................7
Change management for Wal-Mart.................................................................................................9
Business process transformational model......................................................................................10
System modeling...........................................................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................14

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Introduction
In the initial stage of strategic history of the company Wal-Mart that it always had an unchanged
vision to offer low prices for the consumers. In fact, in 1990s the company also announced to go
international. The company started looking for the global markets for many reasons discussed as
following: -
1. The company faced a very strong competition in US like Target or K mart. These two
companies were very aggressive in expansion of the business and had also initiated the
market share of Wal-Mart (ten Have et al., 2016).
2. The market of US is a saturated market and it was also becoming challenging for the
company to continue with its present development rate. The population of US is based on
just 4% of the population of the world and if the company wants to expand the
international market, the country like China has the potential and huge development
because of the huge population of over one billion of people (ten Have et al., 2016).
3. The concept of globalization has opened up different and diverse market in China which
has also developed number of options for discount stores like Wal-Mart.
Company like Wal-Mart is utilizing the present strategy that can also cooperated with domestic
suppliers to buy the products, even thought the culture of the organization can be standardized
with the home country. This strategy is not just to utilize to purchasing products since they also
adapted the domestic cultures and the decoration of the stores and designs are also transformed
to meet the domestic taste worldwide (Fawcett et al., 2013).

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Wal-Mart- an Introduction
As mentioned, the company discussed here is Wal-Mart Inc. which is not just a retail giant
however it is also considered as largest chain of grocery worldwide. The company was founded
in the year 1962. The company was founded by Samuel Walton along with his brother J.L
Walton established there first Wal-Mart discount store in Arkansas. The common mission of the
company is saving the money of people so that they can live in a better manner. The main
competition like Target and K-Mart the sales were up by fifty more since the giant size as well as
purchasing power (Helms and Oliver, 2015). The company has the capacity to buy its products at
less prices where exchange is based on high purchases volumes for comparatively less cost
where saving is passed to the consumers. The company presently has over eight thousands stores
worldwide with three distinct business sections associated with retail stores which also include
Sam’s Club, Wal-Mart Store and International chain of Wal-Mart. All the stores provides so
many kinds of merchandises which also include the section of electronic appliances, furniture’s,
apparels and groceries and many more. The organization usually aims on providing the low price
to gain the customers.
Change management in multi-national firm
The concept of globalization has transformed forever in the form as well as with different
substance of the present business. It is important to understand here that it is not sufficient to
develop in an organic manner or expand on a local level. The options lie in addition and with
competitiveness on a global scale that needs new skill set and it should also be in tune all across
the world. The issues are important where managing the overall risk in global market is based on
the development of the market and the overall entry with growth strategies and building an agile
form of international teams and also overcoming the physical as well as all kinds of cultural

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barriers to gain some kind of success (Helms and Oliver, 2015). The volume of global business
has also overtaken the local business and this is why it is important to gain some clarity on how
critical global business is for the survival and the overall success of MNC. The culture, political
systems, socio-economic characteristics, geographic boundaries and language impacts the
business practices of an organization. Research the businesses when one wish to do the business
which consist of the business practices with right culture and tradition which is crucial for the
success of the business in the international market. This is why, for any kind of global business
and its success, these are the key issues in marketplaces including different trade agreements,
degradation of environment, supply chain management and barriers in cultural boundaries
(Helms and Oliver, 2015).
Marketing environment of Wal-Mart
Wal-Mart and all related actors that function in large macro environment of forces that can shape
options and also pose different kinds of threats for the organization. Following are six important
forces: -
1. Economic environment: the present environment of Wal-Mart is some of those
characteristic that can impact the purchasing power of consumer and expenditure
patterns.
2. Demographic Environment: the concept of demography is actually a study of the
populations which is in term of density, location, size, age and many other similar
statistics. It is an important interest for the marketer since it consist of people and make
up market of people with demographic trend which is changing continuously (Frynas and
Mellahi, 2015).

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3. Natural environment: the present natural environment consist of different natural base of
resources that are required as some inputs by the marketing manager or people that are
impacted by different marketing activities. In last twenty years, environment is related to
steady development. There are some important analysis of trends which are labeled the
particular concern which are discussed in detail below: -
a. Shortage in raw material: factors like air, wood products and water that have been
damaging the non-renewable products like oil, various minerals and coals that
have been depleted in a serious manner and it also impacts the industrial
expansion.
b. Rise in pollution all across the world issues and industrial level damage for the
environment is a serious matter.
c. The intervention from the government is related to management of natural
resources that has caused a lot of concerns of environment and it is important to
be more practical and important in business as well as industry. The concept of
leadership is not about punishing especially for sustaining or attaining long term
outcomes (Frynas and Mellahi, 2015). Despite of so many opposing rules as well
as regulations, the marketers must also provide some help in providing outcomes
for the material and all the energy related issues faces by the world.
4. Political: the political surrounding consist of laws, pressure groups and government
agencies that impacts and also restricts many companies and people in the present
society. There are many kind of legislation which properly regulates the business.
5. Technological: the technological surrounding consists of forces that can develop new
kind of technologies, developing new base for products and market options.

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Marketing strategy the market strategy of the company primarily based two important goals that
have worked as guidelines for the firm through their developing years. The consumers here are
characterized in first goal which says that customers will be given what they need, when they
need it and all of it with a value. The team spirit of the company is mainly focused on the second
set of goals where the importance of equal treatment is emphasized. The goal of the customer
consists of providing the consumer with what can be reasonable and with right values. The
second goal is actually the foundation of the organization and its members (Johnston and
Marshall, 2016). The workforce of any company is basis for the success of the company and it
drives the routine functions. The employees of the company are the associate partners which
provide them a feeling based on empowering them with pride that literally drive the culture of
the company. The company has launched successful marketing strategies that are based on
factors associated with environment and social issues.
Change management for Wal-Mart
The company has enjoyed the success by agreeing to three important principles since its
inception. The first or basic principle is based on the concept of providing right value along with
services to the customer by providing the high quality merchandise at low prices each day. The
company has built the association with the customer on this basis and there is a belief it is base
reason for the quick development of the company’s success and development. The second
principle followed by the company is based on dedication to partnership that exists between the
associates of the company along with management and ownership. The basic concept is further
extended to the company’s vendors who have expanded the business as the company is growing.
The basic principle is based on commitment by the company to US and the communities where
the stores as well as distribution centers on different location (Johnston and Marshall, 2016). The

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company also strives to conduct the business in a manner which shows these three basic
principles and the outcomes fundamental values. Every vendor partners containing the varied
Vendor Partners which is external of US and are expected to conform to those approaches and
values to make sure that there is compliance in all base for contracting and other associations.
The process of change is very complicated by nature and is also consist with anxiety based on
time and there is an uncertainty for the employees. Company also needs to understand as well as
articulate the advantages of changes and a clear process for accomplishing the change when they
are winning the overall commitment (Surmann et al., 2016).
Business process transformational model
The concept of business process modeling is based on the technology aiming at modeling the
processes of business and also evaluating them with the goal of utilizing the analysis in order to
drive the process based transformations. The concept of business process modeling is actually a
tool that has some important capabilities like simulating the help of business analysts to gain
clarity and also quantifying the present impact of different kind of process of KPIs which is also
known as Key Performance Indicators. Business model process modeling can be use widely with
the right analytic capacities like stimulating the less degree since development and functioning
on the simulation models and also interpreting the current outcomes which can be seen as a
complex process by so many business analysts. Business process changes or the transformational
model is the base of rethinking as well as radical amount of redesign of the present business
processes to accomplish dramatically improving in a critical manner with contemporary
measures based on performance like cost, service and quality (Surmann et al., 2016). The model
is actually top-down approach and it was never about the projects which were carried from

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isolation to evaluate a specific function. Business process model of transformation is all about
looking for the complete processes rather than a particular function. It also requires to be
customer based or centric approach and look at the chain of functions which lead by the
consumer results. The mission of the company is to increase as well as integrating the supplier
based diversity programs into every of our procurement activities and it is based on advocating
for minor as well as a business owned by women (Benn et al., 2014).
System modeling
The 7-S model is also known as McKinsey 7-S model because the two individuals who
progressed this model, Robert Waterman and Tom Peters.
Following is the detail discussion of 7-S model for Wal-Mart: -
1. Strategy: there are activities with a plan of a company which is actually in response to
with an interference of transformation in it external environment of the company. Wal-
Mart has always responded and formed strategies as per the change in the market
condition and diverse market.
2. Structure: on the basis of the present specialization as well as co-ordination that was
primarily impact by the strategy and the size of the company and its diversity. There are
number formal system along with informal process that provides support the structure
and strategy. Wal-Mart follows a basic structure however, the company adapts with the
change in the market as well as the localities (Benn et al., 2014).
3. Style: the culture of the company like Wal-Mart consists of two elements. These elements
are organizational culture which is related to dominant set of values along with beliefs as

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well as norms are developed over a period of time. It is further becoming relative with
endured characteristics of the organization.
4. Staff: the human resource management follows a process which is mainly used to
develop the socialization procedure with number of different skilled managers and it also
consist of methods to shape the base values for the management and ways to introduce
the new recruits to the company and many more (Benn et al., 2014).
5. Skills: this consists of unique or different set of competences where the company is able
to perform in best manner and with varied ways to expand or move competences.
6. Super ordinate objectives: these shows as the aspiration of the company like Wal-Mart
has the right beliefs, principles and has an aim which must take the company towards the
success. Wal-Mart has the shared views and is based on strong competitive benefits for a
huge company like this to grow and develop (Hallinger et al., 2017).
Conclusion
The most challenging issue for Wal-Mart involves the resentment from the public. The company
in addition to it has completely wiped so many establishments in retail industry. This far the big
box competitors have completely stopped the company from particular expansion since the
company is tried to fight back. As per the point of view of the company, it is important to focus
on expansion on international platform. If a particular areas are completely against the company
that can pass different laws in order to stop the company from manufacturing in the present area.
It is important that the company understand this and consider staying away. For instance, the
company will have bad time that expanded in places like Oakland. It is important base this
assumption on the laws that were executed and have a great deal of bad publicity (Sullivan and
Gouldson, 2016). The company is primarily aiming to expand on global platform. Another