MBA 718: Strategic Leadership and Decision-Making at Walmart

This essay provides a comprehensive analysis of strategic leadership and decision-making within Walmart, examining the company's organizational structure, leadership styles, and their impact on strategic choices. The essay delves into the application of transformational and transactional leadership, illustrating how top management influences employees to achieve organizational goals. It explores the importance of strategic management, the role of the top management team, and the decision-making processes, including setting objectives, identifying alternatives, and evaluating choices. The essay also discusses specific examples of strategic decisions made by Walmart, such as those related to cost leadership, market expansion, and employee management, and how these decisions align with the company's mission and vision. Furthermore, the essay examines various leadership theories, including charismatic, visionary, and ethical leadership, and their influence on Walmart's success. The analysis incorporates the importance of persuasive leadership, situational theory, and the application of strategies at business, corporate, and functional levels, providing a detailed understanding of Walmart's approach to strategic leadership.

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Walmart

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Contents
Introduction.................................................................................................................................................2
Company profile..........................................................................................................................................2
Strategic management and leadership..........................................................................................................2
Transformational leadership....................................................................................................................4
Transactional leadership..........................................................................................................................4
Examples of latest strategic decisions..........................................................................................................7
Conclusion...................................................................................................................................................9
Reference..................................................................................................................................................10

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Introduction
A strategic decision is a process for managing long term goals and visions. Strategic decision
making includes the aligning of short term objectives with long term goals. This report includes
the requirement of strategic decision making in Walmart. Top management is required to make
effective decisions and they are required to adopt the managerial leadership styles for influencing
the employees for achieving the goals and objectives of the organization. The analysis of
management and leadership styles will be discussed for making strategic decisions. In the
organization, strategic management and leadership are essential for strengthening the future.
Management includes the process of working with people and resources for accomplishing the
goals of the organization. Leadership includes the setting of a new vision for the group to follow.
In the process of strategic decision making is required to be followed by top management. The
analysis of leadership in Walmart will be discussed which are followed by the management for
achieving the goals and objectives.
Company profile
Walmart is an American multinational retail corporation that helps in operating the chain in
hypermarket, grocery stores, discount department stores. It was founded in 1962 by Sam Walton.
The mission statement of Walmart saves money for people for their better living. The vision is
for increasing the standard of living is providing the quality products at lower prices for
increasing the customer case and facilitating for the leader in the market. It operates the business
in more than 28 countries and includes more than 11,700 retail units (Walmart, 2018). Walmart
has become the largest U.S. retailer by revenue. The process of decision
Strategic management and leadership
In an organization, leadership is crucial in the top management to achieve the goals and
objectives. Leadership is required to be combined with the strategic management for the vision,
purpose, direction, and success of the organization. It helps in facilitating the outside-the-box for
thinking about the growth in the future. Strategic management requires effective leadership for
the strategies in the business (Hussain, et al., 2014).

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Strategic decision making is considered one of the most critical activities in the organization.
Top management is responsible for making strategic decisions. At the time of decision making,
top management pertains to adopt the managerial functions for selecting the right course of
action (Negulescu, 2014). The process which is included in strategic decision making includes
the setting of objective, identifying alternatives for achieving objectives, evaluation of
alternatives, choosing the best alternatives. Top management in Walmart is required to adopt the
strategic process to employ for developing the market and growing the customer base. The
objectives are set by the management for delivering the products to customers.
In an enterprise, the organization is required to engage in the retailing and wholesaling
operations (Jones and Hill, 2010). Walmart is engaged in various decisions like operation
planning and controlling decisions. In Walmart, the decision regarding the embarking on
efficiency and providing cost-effective products. The management can make the decisions nu
emphasizing on minimizing the cost of production and maximizing the efficiency by providing
the retail service employees. For the motivation, employees are required to learn the experiences
for providing the training and develop the skills with the help of techniques to achieve the goals
and objectives in an effective manner. It is important in leadership for inspiring the employees.
In Walmart, the leadership will are followed by the top management includes transformational
and transactional. Transformational Leadership is the leadership style for making the changes
effectively for people's life. Transactional leadership includes focussing on various transactions
that the leaders and managers make for subordinates. It includes the give and takes the
relationship for providing the reward or punishment at the workplace. It includes the aim of
reaching the goals. For the success of the company, Walmart considers both the leadership as
essential. In the case of transformational leadership, the management is required to make an
effective vision and in the case of transactional leadership, Walmart requires it for making the
day to day operations (Yuan, et al., 2011). For the strategic decision-making process, top
management makes the decisions for the active participation of the employees. In Walmart,
persuasive leadership and management style is followed by the top management. In the
organization, persuasive leadership style in which all the qualities in leader includes to convince
the people in an effective manner for achieving the goals. In Walmart, persuasion is important
for the leaders to take the employees on level for performing their best and to be more

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productive. Leaders are required to adopt the ideas and approaches for leaders in order to achieve
the goals and objectives. Persuasion style helps in developing the unity in the employees for
making the decisions for increasing accountability in the organization. Implementation of
leadership style is required for different situations (Robert Mitchell, et al., 2011). Leadership
skills are required to be essential for making strategic decisions. In the process of strategic
decision making, it requires to promote the different leadership theories for success.
Transformational leadership
In Walmart, transformational leadership is followed by the top management for making an
effective vision. The stores are visited by top management including the CEOs for having the
regular features. Managers and leaders understand the business in an effective way of motivating
the employees and analyzing the working conditions. Employees get the chance of meeting
management and providing opinions and ideas. It is analyzed that the leaders emphasize to get
the ideas and opinions from the people who work in the stores and access the ideas and
implement them for improving the business. Leaders are required to be willing to taking tough
decisions (Stankevičiūtė, et al., 2012). Top management is required to take tough decisions for
competitive advantages.
Transactional leadership
Transformational leadership helps in analyzing the vision and strategy and in the case of
transactional leadership, it helps in executing the strategy and making the day to day operations
in the stores. Transactional leadership helps in promoting high-performance individuals. At the
workplace, people are required to be promoted for improving performance. It is considered as the
motivation factor. It is analyzed that Mike Duke was promoted as the CEO for successfully
handling the situation at the international level. He had adopted strong strategies for promoting
and rewarding the employees (Sperandio and Girard, 2010). It helps in effectively balancing the
control and standards. The freedom is given to store managers and associates for setting up and
making the decisions for the stock. Walmart has launched the project impact which has occurred
the loss in the autonomy for the managers of the store.
Relationship with suppliers is maintained by the top management which includes the give and
takes. Walmart includes the cheapest prices and in return, it provides the assured orders in large

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quantities. Effective knowledge is provided for improving the process and supply chain
efficiency of suppliers (Weinberger, 2009).
In the strategic decision-making process, the other aspects of leadership are required to be
considered by Walmart. Leaders contribute in an effective manner for the success of the
Walmart. With the help of leadership, the organization is able to achieve the heights. It includes
the Charismatic leadership in which leaders are required to garner strong personal attraction from
followers. It requires articulating a compelling and effective vision and requires to enhance the
follower's self-conception. In Walmart, top management is required to have confidence,
ownership and customer service qualities. Top management is required to consider the value of
employees as happy customers lead in making customers happy (Nielsen and Nielsen, 2011). It
requires encouraging the associates to express their views.
Visionary leadership is essential for building the company. It includes the interpret current reality
and shaping the collective visions of the future. The leaders are required to provide directions
and setting the objectives for achieving. It provides good objectives which are followed by the
employees. Effective services are provided to customers. The goods are provided at lower prices
for attracting customers. The vision of the company is providing the tool for motivating
(Nummela, et al., 2014).
Ethical leadership
Top management is required to follow ethical leadership which includes following the dignity
and rights of respecting others. In Walmart, leaders are required to emphasize on employee
satisfaction and keeping the employee happy. It requires improving the image of the company.
Strategic leadership
Strategic leadership includes the abilities for anticipating, envision, maintaining flexibility and
empowering others for creating the strategic change. Top management is required to make the
effective strategic decisions for the success and improving the performance. Strategy can be
adopted for becoming the cost leaders and expanding the right time for the company (Hollenbeck
and Zinkhan, 2010). A leader in Walmart helps in designing the strategy and shaping the future.
Top management requires taking the decision for making the process effective.

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Distributed leadership
It includes emphasizing on sharing the functions with the help of empowering the mechanisms
like participation and delegations. Leadership is required to be shared which is based on the
normative assumptions (Muñoz, 2017).
Situational theory
In Walmart, leaders are required to behave in a manner for making the decisions on the various
situations and scenarios. In different situations, the behavior of leaders is required to be effective.
Walmart is required to create a leadership strategy for supporting the direction. It is analyzed that
the top management is required to adopt the strategy is an innovation which is very effective and
includes the major factor for the organization. It is necessary for the organization to bring change
and creativity for developing innovation. The strategy is required to be unique and effective
strength (Ahmed, et al., 2014).
Top management is required to adopt the planning and development strategy for the effective
strategic decision-making process. It is analyzed that leadership helps in making effective
decisions. Top management requires to adopt the leadership style and implementation is required
for a different situation (Jansen, et al., 2011).
In Walmart, the strategies are adopted by top management for increasing competitiveness and
profitability. It includes the three-level of strategies for increasing competitiveness and
profitability. At the business level strategy, the necessity is to create a competitive position in
distinguishing operational activities (Citroen, 2011). The strategy of current cost leadership is
used by the top management for the development of product and market in the new or existing
regions for attracting the customers and retaining them for the long term. It helps in increasing
the market share into segments by making the target in narrow segments which helps in
increasing the performance and sales. In the case of integration actions, the top management
takes the decisions for attracting the customers and creating a distinctive image for the customers
and competitors. In the case of the corporate level, the strategy of merger and acquisition
strategy is adopted for entering into the new market. In the process of strategic decision making,
for developing the core competencies, it helps in working positively. In the case of functional
level strategy, top management is required to identify the market niches which help in generating

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the profits with the increase in sales. It is analyzed that the cost leadership strategy helps in
increasing the market share in an effective manner by targeting the customers. It is necessary for
the management of Walmart to focus on quality. It will be effective for enhancing the
international market and producing positive results by sharing and competitiveness (Beck, et al.,
2012).
In Walmart, the decision which is taken by top management is for retaining employees. The
implementation of effective strategies is for the long term. The top management of Walmart took
the decision for managing the inventory and supply chain. In the process of decision making,
Consumer decision making is required for satisfying the needs of the customers. It is
recommended to Walmart to adopt the level of strategies for participating in a strategic, tactical,
operational and contingency. The strategic decision in Walmart which can be taken by top
management is making the long term investment by opening the stores in new markets. It will
help in gaining a competitive advantage in the market (Hendry, 2011). Top management will be
required to take the consultation with the shareholders for making the strategic decision. The
strategic decision which is taken by top management in Walmart includes the save money, live
better. Walmart's top management always aims to keep the customers satisfied with improving
the economy. Walmart has implemented the project impact which included widening the aisles,
lowering fixtures, improved signage and added natural light for giving customers which are fees
friendlier stores. The initiative which is taken by top management after the failure includes the
save money and live better includes the components as price leadership. In price leadership,
Walmart is famous for providing products on low prices and top management aimed at giving
greater value to the customer for different product categories. With the help of price leadership,
it helps in achieving and targeting the market share (Yue, et al., 2013).
Examples of latest strategic decisions
In the case of consumables, the top management took the decision of reducing the outlay.
Changes were made in the promotional cadence and signage in in-store. The strategic decision
which is taken by top management includes increasing the revenue by expanding the private-
label categories. They consider the current economic climate which includes the consumers for
saving money and valuing for products that satisfy the customers. The top management took the
decision of integrating the brand communication in which they required to reduce the number of

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products and suppliers. The recent decision which is taken by the top management is the zero
waste facility in which sustainability is considered as a key component in the green policies of
Walmart. The company has adopted the strategy for maximizing the efficiency in the different
phases and centers and stores to homes for the goal of zero wastage. For the supply chain, the
strategic decision-making process was implemented for improving efficiency. In the supply
chain, majorly the changes were required in transportation in which an increase in fuel efficiency
helps in success and reducing the miles. Project impact was implemented which took the process
the strategic decision making (Bharadwaj, 2018).
Managerial planning was required in which blueprint is considered for achieving goals and
specifying the allocation of resources. Project impact was considered as the formal mission who
aimed for improving Walmart's experience of shopping and increasing the sales during the
financial crises. Top management is responsible to establish the strategic goals and planning for
commitment to efficiency and effectiveness. The strategic levels were included for the goals and
plans at tactical and operational levels. Walmart is required to be more selective for carrying the
products and commitment to selling high volume. Operational plans help in identifying the
process and procedures in the different levels. The authority is given to the front-line managers
and supervisors for developing the operational plans by focusing on the specific task which helps
in meeting the tactical and strategic goals (Arli, et al., 2013). Tactical decision requires to take
the information which includes the human intelligence like the collection of information from the
store managers and information technologies.
The implementation of decision making helps the top management in seeing existing
opportunities for accomplishing the current goals for enhancing the performances. For increasing
the sales and improving the shopping experience, the decisions were taken by the management.
In the process of strategic decision making, the errors were faced by the management for the
success of project impact. It was analysed that the project impact should not be established at the
time of financial crisis. At that time, only the customers with high income were able to do
shopping at Walmart for taking the advantage of low prices and the condition was unfair for the
customers with low income.

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Conclusion
For concluding the report, it is analyzed that strategic decision making requires leadership. In
Walmart, top management is responsible for making strategic decisions for making effective
changes and satisfying the employees. The top management requires to make the generic
competitive strategy and intensive growth strategy. It will help the organization in achieving
competitive advantages at low costs. The strategy of minimizing costs is adopted as it will help
the top management in setting the prices. It is necessary for top management to consider the
competitor's strategy as the competitors of Walmart is Costco Wholesale, Amazon.com, etc. The
leadership at Walmart can make the business to new heights. In the process of decision making,
the top management requires to make decisions regarding employees and customer satisfaction.
The analysis of the strategic decision-making approach helps in perceiving the multiple
dimensions and their interconnections.

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