MGMT6013 Policy Proposal Report: Information Systems at WalMart

This policy proposal report examines WalMart's adoption of information systems to enhance market share and productivity. It highlights how information systems facilitate innovation and creative thinking, detailing security policies and ethical considerations to mitigate strategic issues. The report analyzes the influence of MIS on WalMart's business activities, assessing its strengths and limitations, and emphasizes IS compliance with legal and ethical frameworks for secure business operations. It explores innovative approaches through CRM and supply chain management, analyzes strategic issues using various methodologies like analytical, contingency-based, and resource-centric approaches, and addresses ethical considerations such as data privacy, email policies, and network security. Ultimately, the report provides a comprehensive overview of how WalMart can strategically leverage information systems for growth and efficiency.

Running head: POLICY PROPOSAL REPORT
Assessment 2: Policy Proposal Report
Name of the Student
Name of the University
Author’s note

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Executive Summary
The business organisations are adopting the information system to meet their business
deliverables. WalMart, one of the renowned retail company located in the US have planned to
expand their market share and productivity. The report has highlighted how the information
system can facilitate innovative approach and creative thinking. The security policies along
with social and ethical considerations have been elaborated in the report by which WalMart
can mitigate the strategic issues related to the information system. The influence of MIS on
the business activities of WalMart has been detailed in the report. WalMart’s strength, as well
as limitations, has been explained in the report in details. The IS compliance with legal and
ethical frameworks have been illustrated by which WalMart can securely conduct their
business.

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Table of Contents
1. Introduction................................................................................................................2
2. Innovative approach and creative thinking................................................................2
3. Description of the procedures used to analyse the strategic issues...........................4
4. Ethical and social considerations for strategic solutions............................................6
5. Global perspective strategy........................................................................................9
6. Ethical and social considerations for strategic issues................................................9
7. Assessment of WalMart’s strengths and limitations................................................12
8. Conclusion................................................................................................................13
9. References................................................................................................................14

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1. Introduction
The technology has advanced a lot in recent times, the business organisations can
acquire several benefits using the business information system software applications (Laudon
& Laudon, 2016). WalMart is one such organization that has planned to enhance their
productivity and market share and adaptation of information system has made them the most
popular retail company in the US.
The report will highlight how they can be benefitted with the usage of the information
system. The detailed analysis has been provided in the report showcasing how they have
enhanced their growth.
2. Innovative approach and creative thinking
The information system is enhancing the business structure of the organisations. The
information system is facilitating the innovative approach and creative thinking of the
professionals so the organisations can now get effective and agile service. Also, the
information system can give one organisation the competitive edge by which they can stay
ahead of their peers. The Wal-Mart has recently decided to adopt the information system in
their premises (Chakraborty et al., 2016). The initiation of information system can
subsequently reduce the pressure from the staff. The information system can cater an
infrastructure for the development of the managerial roles as well. The IS definitely helps the
stakeholders to run the business activities smoothly. The productivity of Wal-Mart has
augmented a lot due to the adaptation of IS. The IS initiates innovative approach by which
Wal-Mart can ensure business effectiveness and flexibility in case of workings.
The IS can enhance the customer relationship management. The retail store can now
facilitate their existing customer relationship management via CRM software. The
information system can facilitate them to connect with the customers all throughout day and

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night 24x7. WalMart needs to have a clear objective about the usage of the CRM software.
They will need to know how the CRM software can enhance their business activities. The
effective usage of IS software can help WalMart to take an innovative approach. Thus
through CRM software, WalMart can set a specific goal and specific strategy (Cavusoglu et
al., 2015). The organization can serve well to the customers. They can offer services to the
customers all throughout day and night. In this way, the customers’ demands can be met. The
CRM software can gather the customers’ data and WalMart can use the customers’ data for
their business. The WalMart can know the customers’ wish lists, the customers’ purchase
lists (Walters, 2014). Thus, CRM software can help to know the customers’ shopping
behaviour and the shopping patterns, Wal-Mart can attract customers, can offer discounts.
The activities are associated with the efficiency of the supply chain.
WalMart can be benefitted by adopting the information system to the supply chain.
They need to control the supply chain. WalMart, the retailers’ main objective to offer cost-
effective service and goods to the customers, however, they need to consider the redundant
costs as well. They need to diminish the redundant costs. Thus with aid of the information
system, they can take the innovative approach. Thus, WalMart wants to embellish the
efficiency of the supply chain (Suryandari & Paswan, 2014). The information system has
influenced the supply chain management. The adaptation of the IS services and the
elimination of the redundant activities can play an active role in conducting the business
operations successfully. Thus the information can help them in creative thinking.
The information system also has the capability to enhance the flexibility of the
workplace. The business opportunities can increase due to the benefits and the opportunities.
All these approaches can help the company to increase the business effectiveness through
various innovative solutions (Hovav & Gray, 2014). Wal-Mart is the booming industry and
thus it needs improvising. The information system with their innovative features can provide

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a lot to the retail store. The retail store with the aid of IS can conduct the business operations
completely online (Niranjanamurthy et al., 2013). The customers can see the products
available over the internet that are also present in the physical stores. The customers can
order products online and can enjoy the online service sitting at home. The products once
ordered will be delivered to the customers via home delivery. This feature generally put them
ahead of all others (Orel & Kara, 2014). In this way, Wal-mart can gain the competitive
advantage over others. The productivity thus will increase as result of the information system.
3. Description of the procedures used to analyse the strategic issues
The Management Information System utilizes a digital computer-based database to
administer and monitor the financial as well as the company’s financial data. This can be
helpful to detect and recognize the strategic issues (Redlich & Nemzow, 2013). The
systematic technology of MIS in Wal-Mart Company utilizes the logistics data gathering by
examining the external communication as well as the internal communication.
Analysis
An analytical approach can be helpful to know the structure of Management
Information System (Clemes, Gan & Zhang, 2014). The strategic growth and the value of
using IT can be helpful to develop the backbone of the information system.
Contingency Based Approach
The contingency based approach provides the enterprises with the cost-effective IT
services. This approach can assist in further development of the project (Demirkan &
Spohrer, 2014). This approach also has the capability to reduce the price of the products.
Resource-Centric Approach

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The resource-centric approach can be helpful in enhancing the flexibility of the retail
services. The IT applications can improve the profitability by enhancing the revenues of Wal-
Mart (Flanagin et al., 2014). The approach uses the various techniques to incorporate the
company’s resources to the latest information system.
RSM approach
The Wal-Mart’s business operations can get furnished with the aid of information
system. The company’s productivity can get increased due to the improved performance the
information system provides (Peppard & Ward, 2016). Wal-Mart can even handle the
financial services with the help of information system.
Impacts of Information system
MIS offers multiple advantages to the organisations. Wal-Mart is no exception. The
MIS can bring immense benefits to the enterprise. The production can get enhanced due to
the demands of the customers, the working flow and the latest innovative approaches. Thus it
is a great opportunity to earn great profits (Demirkan & Spohrer, 2014). The annual revenue
of the company accounts for $466 billion approximately in the year 2017. The effective
management of the information system can aid in handling the augmented business demands.
There are various advantages of MIS-
The scheduled works of Wal-Mart can get enhanced as a result of the MIS, thus MIS
leads to high productivity. MIS can also help Wal-Mart to configure the strategic control by
storing backups. The MIS can also prove to be helpful to develop SWOT analysis within the
company (Posey et al., 2014). The SWOT analysis is used to develop a formula, the formula
can predict the success of the business of Wal-Mart. The decision-making procedures can be
enriched due to the adoption of MIS. The effective synchronization of the symmetric

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approach can help to maintain the effective time management procedures of the designing
architecture. Wal-Mart Company can utilise the effective synchronization to manage the
effective time management.
Managing Risks
The risk management of the MIS system for the Wal-Mart company is a vital activity
that needs to be maintained. The risk management can ensure that Wal-Mart can help to track
the risks. Based on the risks, they can take appropriate strategy to carry out the business
activities. The appropriate risks management procedure can help to control the risks. Wal-
Mart can handle the risks quite well before they become an issue (Modi, Wiles & Mishra,
2015). The risk management of information security should be maintained through technical
efficiency and the information security can be maintained by keeping the information of the
company safe and secure.
4. Ethical and social considerations for strategic solutions
i. Appropriate usage of policy
The inappropriate use of information system in the enterprise can lead to several kinds
of threats and risks. It must be specified pretty early what is permitted and what is not
permitted. Thus the acceptable usage value can protect all the parties associated. The scope of
this usage policy involves correct usage of the IT resources like the emails and the Internet
connectivity (Smith, 2015). WalMart by applying the usage policy ensures the confidentiality
and proper usage of web browsers and emails.
ii. Confidential Data Policy
The confidential data holds the value to the company. WalMart confidential data is
the customers’ data and company’s financial data. Thus they must have proper standards by

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which they can protect the confidential data of the enterprise. Therefore, the confidential data
policy should be handled with care.
iii. Email policy
The email is a vital prospect for any organisations. The security risks and
vulnerabilities can be a threat to emails. WalMart must have email policy and in this way,
they can lessen the risks of email-related security incidents. WalMart can enrich the business
communications within the enterprise (Moody & Galletta, 2015). The employees of the
enterprise can safely and securely communicate with each other via emails, can share
confidential data via emails.
iv. Mobile device policy
The mobile applications and the mobile platform acts as a productive workforce. The
smartphone apps are furnishing the business usage of the enterprises. The customers stay
connected with the smartphone all the time and so the mobile apps can be used to effectively
communicate with the customers (Coll, 2014). WalMart ensures security for the mobile apps
so that the customers can purchase retail goods and can transact money via mobile platform
with ease.
v. Incident Response policy
An incident response policy is must for every enterprise and similarly, WalMart can
be benefitted by the appropriate usage of the policy. They can safeguard their system and
database from the attackers as well as the malware attack. The policy can protect them from
the potential threats.
vi. Network Security policy

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Every company needs the network security policy and WalMart is no exception. The
sole objective of the network architecture is to install and configure the best network
infrastructure. The e-commerce activities depend much on the network framework and the
associated network security (Taylor & Levin, 2014). The policy for the network security
includes the IT security, networked hardware, device passwords, firewalls and security
testing.
vii. Password Policy
The easiest way to secure the database as well the system is simply applying a
password. WalMart employees and the customers can safeguard their system by applying a
password, however, the password must be strong enough to hack. It must contain at least one
numeric value, one small letter alphabet, one capital letter alphabet, one numeric value and
the password length must be 8 digits long.
viii. Physical security policy
The goal of this policy is to protect the company’s physical information system. The
company’s IT services must be secured to protect from the risk and vulnerabilities. The
policy must be applied to the WalMart’s owned network resources or network devices.
ix. Wireless Network and Guest Access policy
WalMart by the wireless network policy can get significant benefits. The policy will
assist the company to take initiatives and secure the wireless infrastructure (Sharif et al.,
2015). The workers of the company who uses the wireless network must abide by the security
policies.

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Walmart adopting the information system policies can enhance their business
operations and can continue their business venture. In this way, they can also mitigate the
threats and vulnerabilities of the system.
5. Global perspective strategy
Wal-Mart must need to sell quality products. Their objective must be to sell good
quality products and goods at a reasonably low price. In this way, they can reach out to the
local customers. They can only increase their customer base via consistent quality service
over a longer period of time. The information system can help them in gaining the
globalization. They can stay connected to the customers all the time. The customers can solve
their queries immediately with the help of WalMart’s 24x7 services. Besides, through
information system, they can reach to a large number of customers at a single time. The
customers can give orders and can their desired products with ease without hassle (Glanz et
al., 2016). WalMart uses the globalization strategy to diminish the cultural gap and caters
user-friendly products keeping in mind the specified culture of that country. In this way,
WalMart with the aid of information system can reach to several millions of customers all
over the world. The customer positive feedback can give them the reputation, thus give the
competitive advantage over other top retail brands in the world.
6. Ethical and social considerations for strategic issues
Ethical responsibilities
The business officials as well the business managers must act responsibly while using
the technology. The workers working in the company must be knowledgeable about the
ethics and the policies and the information security standards (Masoud, 2013). In this way,
the company can save time and money, and they can earn credentials, the productivity of the
company can increase a lot. The managers and the must educate their subordinates so that

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they can use the information system ineffective way such that it can offer benefits to the
organisation.
Technological crime
The information technology adaptation can lead to all kinds of security threats and
issues and cybercrime is one such issue. The unethical usage of WalMart’s computer and
network resources can lead to technological crime. The attackers or hackers can hack the
system and can sabotage the system and the database. They can take away the confidential
data of the customers and the financial data. The hackers also take advantage of the weak and
insecure network as well. The hackers locked the system and restrict the owners of the system
to use their own system (Masoud, 2013). These are all illegal techniques and unethical
practice by which they exploit one’s system using technical expertise and skill, in this way
they gain illegal access to one’s system. There may be a threat from physical means as well.
The accessing, using or destroying hardware and software contained in the information
system can be done by someone who wants to take revenge, also they steal data from the
database and can leak the same. WalMart must install hardware firewall as well as software
firewall to restrict unauthorized access.
Privacy issues and Identity theft
The information system has revolutionized the way the retail industry and WalMart
are also enjoying the benefits of the information system. The hackers hack the customers’
personal information from the database of WalMart. WalMart uses the data for their business,
the customers’ data help them to know the customers’ shopping behaviour, customers’ wish
list and customers’ purchase list, in this way they can know the latest trends and can acquire a
list of products which customers prefer, they offer discounts on those products and in this
way they maximize their profit. The hackers hacking that sensitive information can use them

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for their benefits, the customers’ personal details thus get compromised which threatens the
privacy of the customers (Glanz et al., 2016). Again they can hack the smartphone of the
customers those who use the WalMart service on the mobile phone and can take away the
card details.
This can be restricted by installing and configuring antivirus on the system and the
smartphones. The antivirus software must be updated regularly as this can reduce the chance
of malware and intruders attack.
Further Recommendation
i. The information system uses the authentic data security policy and via this security policy,
the confidentiality of the database can be properly maintained.
ii. WalMart should keep backup of their daily activities and daily tasks. That should help
them to know the employees’ skills.
iii. The technical awareness can get enhanced by managing effective accountability and thus
it increases the customers’ reliability on WalMart services.
iv. The company should engage human resources in developing the socioeconomic aspects of
the business.
v. WalMart must secure their system providing the end-to-end authenticated connection.
7. Assessment of WalMart’s strengths and limitations
i. WalMart is a multinational and reputed retail organisation located in the US. The company
uses the innovative technology by ensuring the working flexibility and the integrity of the
product development techniques (Hauser et al., 2017).

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ii. WalMart has decided to upgrade their information system and that help them to take
appropriate strategic solutions. The upgraded information system can give them the
competitive edge and along with that, they can conduct the business operations in agile and
effective means (Glanz et al., 2016). The upgraded information system has given the
opportunity to earn about $480 million.
iii. Accessing WalMart’s assets it can be found that WalMart earns about $466 billion that
can be considered as world’s largest company in terms of revenue. The company also deals
with about 2.3 million employees, so they are also known as the World’s largest employer.
iii. The strategic information helps them to make critical decisions. The information system
also facilitates creative thinking.
v. The information system helps in accurate measurement of accounting and it provides the
accurate conceptual framework to carry out the business activities (Collins, Ricks & Van
Meter, 2015).
vi. They also impart knowledge to the subordinates and that helps them to carry out the
business activities in an efficient manner.
The factors influencing economic aspects
The factors that influence the economic aspects are the capital investment, the
product’s demands and the market developing assets (Sahney, 2015). The economic
profitability can be achieved by appropriate usage of IT strategic planning.
The factor developing technical aspects

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The technical factors that aid in prospering the business activities are database
management and artificial intelligence (Sahney, 2015). The financial stability can be
achieved by managing the information system accountability.
The factor developing social aspects
The information system manages the strategy of effective analysis by ensuring
workers via usage of effective staff management.
WalMart’s Limitations
WalMart in order to provide cost-effective service to their customers has decided to
move to overseas. They have planned to move to China and thus new job opportunities have
emerged in China. For this reason, American employees are losing jobs. America already has
the worker policy whereas WalMart will have to build the policies once again in China.
8. Conclusion
It can be concluded from the above discourse that the technological advancement can
help WalMart to carry out the business activities in agile and effective means. The
information system helps them in providing the business opportunities and maintaining
sustainability. The report has highlighted the implementation of MIS in WalMart. The
various IT applications aid in can help in enhancing the business development. The impact of
information system has been discussed in the report. WalMart can get significant benefits via
information system all these aspects have been elaborated in the report. The impact of MIS
has been discussed as well. The information security policies must be implemented and the
report has elaborately explained the implementation of security policies in WalMart. The IS
compliance with the legal and ethical frameworks have been showcased in the report.

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9. References
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security management: Direct and indirect influences on organizational investment in
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Chakraborty, R., Lee, J., Bagchi-Sen, S., Upadhyaya, S., & Rao, H. R. (2016). Online
shopping intention in the context of data breach in online retail stores: An
examination of older and younger adults. Decision Support Systems, 83, 47-56.
Clemes, M. D., Gan, C., & Zhang, J. (2014). An empirical analysis of online shopping
adoption in Beijing, China. Journal of Retailing and Consumer Services, 21(3), 364-
375.
Coll, S. (2014). Power, knowledge, and the subjects of privacy: understanding privacy as the
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Collins, P. A., Ricks, T. A., & Van Meter, C. W. (2015). Principles of security and crime
prevention. Routledge.
Demirkan, H., & Spohrer, J. (2014). Developing a framework to improve virtual shopping in
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Flanagin, A. J., Metzger, M. J., Pure, R., Markov, A., & Hartsell, E. (2014). Mitigating risk in
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G. Taylor, D., & Levin, M. (2014). Predicting mobile app usage for purchasing and
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Niranjanamurthy, M., Kavyashree, N., Jagannath, S., & Chahar, D. (2013). Analysis of e-
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Suryandari, R. T., & Paswan, A. K. (2014). Online customer service and retail type-product
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