MGMT1101: Walmart Assessment - Strategies, Analysis, and Structure

This report provides a comprehensive analysis of Walmart, examining its strategies, environmental constraints, stakeholders, and organizational structure. The report begins with an overview of Walmart's mission, vision, and corporate-level strategies, including its focus on cost leadership and expansion. A detailed SWOT analysis is presented, followed by strategies for leveraging strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats. The report further explores the internal and external environments, including political, economic, social, technological, ecological, and legal factors, along with stakeholder analysis. It then delves into Walmart's organizational structure, highlighting its mechanistic structure and chain of command. The report concludes with a discussion of employee motivation, recommending the use of McGregor's Theory Y to enhance employee engagement, along with recommendations for improving the internal environment through feedback mechanisms and concurrent control.

RUNNING HEAD: WALMART ASSESMENT
Introduction to Management
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WALMART ASSESMENT 1
Contents
Summary..........................................................................................................................................2
Strategies for SWOT usage.............................................................................................................2
Environmental Constraints..............................................................................................................3
Internal environment....................................................................................................................3
External Environment and its analysis.........................................................................................4
Stakeholders.....................................................................................................................................5
Organizational Structure and Design...............................................................................................6
Organizational chart.....................................................................................................................6
Organization structure..................................................................................................................7
Motivating Employees.....................................................................................................................7
Recommendation.............................................................................................................................7
Control and Recommendation.........................................................................................................8
Bibliography....................................................................................................................................9

WALMART ASSESMENT 2
Summary
The previous research report was prepared on ‘Walmart’. It is a recognized American
retail stores offering wide variety of products including groceries, home decor and electronics.
Additionally, it also serves the consumers through online channels and from its website. Its
customer base was middle and upper class consumers as it offers wide variety of products
differing in price. Its mission was ‘saving people money’ whereas its core value is to provide the
customer with low priced product so they can save money and live better. The vision of the
company is to be an appropriate destination that enables the potential customers in cost saving
regardless of the product shopping.
Walmart Corporate Level Strategies includes enhancing its profit by offering better
product quality, sustainability in the exiting market rather than expanding and investing in the
new country. Moreover, it is focusing on the recruitment of skilled human resource and
developing trainings to improve the efficiency of exiting employees in the Walmart. Its Business
Level Strategies includes giving high competition to the other retailors by adopting cost
leadership strategy. Lastly, it also includes the strength, weakness opportunities and threats of the
company in the environment.
The analysis report deals with formulating strategies for the SWOT done previously. It
also includes determining the environmental constraints, stakeholders and organizational
structure of the Walmart. Moreover, it also comprises of the usage of motivation theory for
enhancing employee motivation with suitable recommendations.
Strategies for SWOT usage
1. ‘Walmart’ recognized brand name in the international environment would help the
company to establish its retail stores in other countries. It will save the marketing cost of
the company to a huge extent.
2. The better economies of scale would further help the company to overcome from the
emerging new competitor in the market.

WALMART ASSESMENT 3
3. It was assed that Walmart has a reliable Information System as it perform the functions of
monitoring order and managing sales. Thus, it can be help in minimizing the need of the
human resource in the company.
4. The availability of selling diversified products would help the company in inviting the
other brands product in its retail stores. Additionally, it removes the dependence on one
major supplier.
The ‘Weakness’ of low morale employees and poor retail store atmosphere can be
overcome by developing monthly reward based activities for the staff and customers in the retail
stores. The ‘Opportunity’ of emerging in developed countries can be availed by establishing its
services in online channels of the host country. The ‘Threat’ of change in customer preference
can be overcome by assuring the regular customers with the product quality. It should also
develop a scheme of ‘Product exchange’ for customers facing issue with the product quality.
Additionally, the risk of competition can be ignored by offering the customers with the timely
discounts and product schemes.
Environmental Constraints
Internal environment
Figure1: Walmart Employee Review

WALMART ASSESMENT 4
(Indeed, 2019)
From the Walmart ratings and its employee reviews, it is analyzed that it offer safe and
healthy work environment to its human resource. Additionally, it develops fun and team
activities to and thus offer environment full of learning and enjoyment.
(Indeed, 2019)
External Environment and its analysis
Political Environment: The Canadian government favors fossil fuel industry. Hence, being a
manufacturing company, Walmart has to pays a high corporate tax rate of 15% (Heritage, 2019).
Economic Environment: Walmart attains decent economic environment, as Canada has a GDP
of $1.8 trillion with population of 37.7 million. Its high GDP and population offer great demand
for its product (Heritage, 2019).
Social Environment: Canadians are great lovers of non-veg food. Walmart does not attain much
role in its social environment as it does not deal with much non-veg product (Culture, 2019).
Technological Environment: Technology is upgrading thus offers advantages to the Walmart
through technological innovation in the coming future (Randstad, 2019).
Ecological Environment: Walmart ecological environment deals with protecting and conserving
the Canadian natural resources (Canada, 2019).
Legal Environment: Walmart is experiencing similar treatment from the Canadian government
as they favor both the native and foreign business (Trade, 2019).
Global Environment
It is analyzed that Walmart is availing the benefits from the global environment thus
developing progress in respect of Economic, Societal and Environment progress (Walmart,
2018).
 In relation to the external environment, Walmart is facing an issue in the Political and
Social environment. In political environment, it is experiencing the issue of high tax rate.
Additionally, t is facing the constraint of low demand for the vegetarian food products as
Canadian rely mainly on non-veg food.

WALMART ASSESMENT 5
 Walmart has no control over the government imposed tax rate whereas the constraint of
low demand for vegetarian product addressed by less production. The constraint of high
tax rate is one of the major challenges for the company.
 The Technological environment will benefit the Walmart by offering advanced
technology.
Stakeholders
1. Investors
2. Customers
3. Employees
4. Suppliers (Roberts & Berg, 2012)
Investors have the role of assisting the company growth as they provide expansion money
and skills to grow the business in respect of ownership and future return. Their absence will lead
to cash inadequacy and will hinder the company’s growth. Customers assist the company in
gaining revenue, as they are the main source of income. Unsatisfied and less customers will lead
to direct decline in the company’s sale and profit. Employees also have a key importance, as they
are the human resource that fulfills the work requirement and act as helping hand of the
company. Demotivated and low morale employees will produce poor output that will reduces the
overall sale and company’s goodwill in the market. Moreover, supplier also attains significance
as they provide the company with the product essentials for meeting the customer demand. Lack
of suppliers will results in insufficient supply of raw material. Hence, it would fail in fulfilling
the customer overall demand. Thus, each stakeholder has its unique importance and another
stakeholder cannot fulfill the absence of one (Roberts & Berg, 2012).
Walmart Investors attain prior importance as they want the company to have major
profits because they acquire share in the company overall profit. Moreover, they try to minimize
the operational cost, as low cost would yield them more profits.

WALMART ASSESMENT 6
Organizational Structure and Design
Organizational chart
(Draw, 2019)
The hierarchy flows from Top authority of CEO and President to Lower level
department. Initiating rom the lower level, workers report to Hr. MANAGER about their
problems and grievances that in turn reports to sales person and Forman. They reports to sales
and production manager about the issue. Further, the issue carried to CEO and President through
formal procedure. Lastly, CEO and President take corrective measure and provide a solution to
address the issue.
CEO/President
MANAGER (Production/sales)
()
Foreman/Sales Officer
HR Manager
Workers

WALMART ASSESMENT 7
Organization Structure
(Dudovskiy, 2016)
‘Mechanic Structure’ usually followed in manufacturing organizations. Similarly,
Walmart is a follower of Mechanic structure. This is because it has a long hierarchical chain of
authority with centralized authority as CEO and president of the Walmart stores. Each authority
has a specific and specialized function. It has a long chain of command from the President to the
employee thus follow formal communication to address the employee issue. Walmart attain high
control over the employee activities. As it is a follower of centralized authority its decision
making process is centralized. Lastly, there is major degree of formalization in its work process.
Thus, employees are assigned with their roles and responsibilities in the Walmart (Tech, 2019).
Motivating Employees
Use of McGregor’s Theory Y will be best suitable for the enhancement of employee motivation
in Walmart. In order to initiate this practice, employee should be given responsible and
challenging job. This practice can be developed in Walmart by providing the employees with
challenging and attainable targets and linking the same with rewards. This practice will help in
boosting their motivation (Tools, 2019).
Recommendation
From the figure 1, (Employee reviews on internal environment) it is assed that Walmart
has not been successful in providing excellent work environment to its employees. It has
received an above average rating of only ‘3.6’. Hence, it is recommended that Walmart should

WALMART ASSESMENT 8
laid emphasis in improving its internal environment. This can be done by imitating a system of
‘Employee Feedback box’ in the working area. This would help in gaining information about the
employee’s suggestion for improvement in the internal environment of Walmart.
Control and Recommendation
 In order to monitor activities, Concurrent control will be best suitable. Any change or
correction in the plan will be addressed by effective concurrent control. Through proper
feedback from the top authorities, corrections can be done in respect of plan or activity
(Control, 2019).
 It will be effective in measuring the progress of the recommendation as it takes place
while the activity is already in progress and thus eradicates delay in process.
 For Concurrent control, ‘Management by walking around’ and ‘tracking employee
performance’ would be best suitable. The former method will provide the live analysis of
employee behavior and performance. The latter method will assist in knowing the change
in employee performance level in respect of implemented recommendation.
 The goal of providing the employee with better internal environment will be
accomplished as the number of suggestions from the ‘Employee Feedback Box’ decline
in number. It states those employees are satisfied with the environment.

WALMART ASSESMENT 9
Bibliography
Canada. (2019, Julty 20). Environment and Climate Change Canada. Retrieved from Canada :
https://www.canada.ca/en/environment-climate-change.html
Control, S. (2019, July 21). Strategic Management: Formulation and Implementation. Retrieved
from Strategic Control : https://www.strategic-control.24xls.com/en106
Culture, E. (2019, July 20). Canada. Retrieved from Every Culture:
https://www.everyculture.com/Bo-Co/Canada.html
Draw, S. (2019, July 21). Organizational Chart. Retrieved from Smart Draw:
https://www.smartdraw.com/organizational-chart/
Dudovskiy, J. (2016, March 29). Walmart Leadership and Walmart Organizational Structure.
Retrieved from Research Methodology: https://research-methodology.net/walmart-
leadership-and-walmart-organizational-structure/
Heritage. (2019, July 20). 2019 INDEX OF ECONOMIC FREEDOM. Retrieved from Heritage :
https://www.heritage.org/index/country/canada
Indeed. (2019, July 20). Walmart Employee Reviews. Retrieved from Indeed:
https://www.indeed.co.in/cmp/Walmart/reviews
Randstad. (2019, July 20). canada’s tech industry is growing up: where we’re headed next.
Retrieved from Randstad: https://www.randstad.ca/employers/workplace-insights/job-
market-in-canada/canadas-tech-industry-is-growing-up-where-were-headed-next/
Roberts, B., & Berg, N. (2012). Walmart: Key Insights and Practical Lessons from the World's
Largest Retailer. Kogan Page Publishers.
Tech, A. (2019, July 21). Organic vs Mechanistic Structures. Retrieved from Analytic Tech:
http://www.analytictech.com/mb021/organic_vs_mechanistic_structure.htm
Tools, M. (2019, July 22). Theory X and Theory Y. Retrieved from Mind Tools:
https://www.mindtools.com/pages/article/newLDR_74.htm

WALMART ASSESMENT 10
Trade, N. (2019, July 20). Canada: Business EnvironmentCanada: Business Environment.
Retrieved from Nordea Trade :
https://www.nordeatrade.com/en/explore-new-market/canada/legal-environment
Walmart. (2018, April 23). Walmart Highlights Economic, Societal and Environmental Progress
in 2018 Global Responsibility Report Summary. Retrieved from Walmart :
https://corporate.walmart.com/newsroom/2018/04/23/walmart-highlights-economic-
societal-and-environmental-progress-in-2018-global-responsibility-report-summary