Introduction to Management: Walmart Strategies and Analysis Report

This report provides a comprehensive analysis of Walmart, a leading global retailer, examining its organizational structure, strategies, and management practices. The report begins with a summary of the organization, highlighting its strengths, such as its customer-centric approach and low-pricing strategies, and weaknesses, like employee treatment and working conditions. It then delves into a SWOT analysis, outlining opportunities for expansion and strategic partnerships, as well as threats such as competition and environmental constraints. The report explores the political, economic, social, and technological factors impacting Walmart. It also identifies key stakeholders, including investors, customers, employees, and suppliers, and their respective priorities. Furthermore, the report examines Walmart's organizational structure, employee motivation strategies, and control processes. The report concludes with recommendations for improvement, emphasizing employee motivation, technological advancements, and customer interaction. This report offers valuable insights into Walmart's operations and strategic management.

Management
Introduction to management
Student’s name
8/9/2019

Introduction to management 1
Contents
Summary of organization................................................................................................................2
SWOT- formulating strategies.........................................................................................................2
Environmental constraints...............................................................................................................3
Stakeholders.....................................................................................................................................4
Organizational structure and design................................................................................................5
Motivating employees.....................................................................................................................5
Recommendations............................................................................................................................6
Control.............................................................................................................................................6
References........................................................................................................................................7

Introduction to management 2
Summary of organization
Wal-Mart, one of the renowned Australian corporations who mainly works as a chain of
superstore, grocery supplies, and the discounted departmental stores. By gaining achievement,
now it has become of the world’s major business with the revenue over US$500 billion. Around
2.2 million workers’ workings in the association. Moreover, Wal-Mart always upholds its
highest position with its effectiveness, strong logistic and supply chain administration. The main
aspect behind its achievement is adoption of low pricing strategies and thus, uses customer-
centric method to endure to be the market front-runner. Hence, it is openly operated family-
owned industry (Jurevicius, 2017).
Further, this report mostly displays about the various strategies after knowing about the
companies strength, weakness, opportunities and threats.
SWOT- formulating strategies
After the analysis of the internal strength of Wal-Mart, the advantages linked with it highlights
that they are following the customer- centric approach and targeting the large customers base.
Along with this, by making the innovative use of the knowledge and pother skills they are
covering up and targeting many locations in order to generate success not only in financial terms
but also in reputation aspect. Other than this, with the strategy of “ everyday low prices they are
targeting the large customers base along set itself as one of the cheapest shopping in the world
with good quality of products. Due this this, they have gained the strong market power over their
suppliers as well as competitors (Xu, SEJand, 2017).
Weaknesses aspect mainly highlights about companies shortfalls, which majorly hampers the
future success of the organization. Similarly, Wal-Mart with its strength also has certain
weaknesses, which affect the success of the organization, hence, for minimizing, or removing
those weaknesses companies needs to work over their employee treatment aspect and working
conditions, providing their labor the proper wages, incentives adequate healthcare facilities and
good working environment. Moreover, removal of the gender discrimination within an
organization and lastly applies various other different innovative strategies to win over its

Introduction to management 3
competitors to generate more success than usual. All these ways not only affects the company’s
future outcomes but also leads to the generation of good reputation in the market in terms of
labor handling and overall applying of innovative strategies (Jurevicius, 2017).
Opportunities- For every business it is important to keep a check over its external opportunities
and grasp them for the future success, like for Wal-Mart, expansion of company in various
markets such as china, middle east countries. Other than this, grasping an opportunity to create
the strategic partnerships with the other firms or the global retailers, which not only help the
company to tap various markets but also through this, more customers will be able to know about
the companies’ offerings and dealings. Moreover, enhancing the human resource practice,
brining innovations to working styles will definitely improve the organization outcomes at large
(Xu, SEJand, 2017).
Threats- major threat to Wal-Mart is competition with the other firms, in which they need to
make people aware about their new offerings and should work over the development of new
product offerings so that people could find something new and different in comparative to the
other firms and get attracted. They should also try out the sell their products online, which will
be an new and the digital strategic to start and tap market through internet (Hwang,& Park,
2015).
Environmental constraints
Political aspect of Wal-Mart highlights that currently they are facing the threat of the higher
wages and due to these environmental constraints, Wal-Mart needs to go against the cost
minimization strategy, which highlights the Wal-Mart cost leadership generic strategy. In this,
walmart is operating in discounts, variety stores and also exposing themselves in different
political environment an system risks (Nandonde, 2019).
Economic aspect highlights about inflation rate, interest rate, foreign direct exchange rate and
competition which mainly affects the competitive of the firm. For this, Wal-Mart is using
countries economic factors such as growth rate, discount strategies, varieties stores industries
growth arte and customers spending for growth of the organization (Nandonde, 2019).

Introduction to management 4
Social factor highlights about society culture, beliefs and lifestyle of the people which mainly
targets the customers perceptions and preferences. Such aspect brings the opportunity for Wal-
Mart to grow by increasing its array of healthy lifestyle and trends products in the market. They
should also target the varieties of products, which satisfying the needs of the cultural preferences
people demand (Michelson, et al, 2018).
Technological aspect mainly affects the retail industries competitive landscape. AS technology
advancement brings the greater opportunities for growth to Wal-Mart. Likewise, trends of using
marketing using of internet and many other technological tricks, online selling of the products
are the technological sources through which the company can gain more success.
Stakeholders
Wal-Mart stakeholders comprises of investors, customers, employees and suppliers which
mainly affects the company reputation as well as the strategic decision of the firm which help in
achieving the organization success in long run and also affects the reputation and the efficiency
of the firm.
Investors are on the top priority, which helps in generating profits, translates the higher
dividends. Other than this, investors are also interested in minimizing the operational cost, which
further leads to higher profits, as this is primary objective of Wal-Mart.
Customers are on the second priority in which they are interested because they are attracted
through the lower prices, which company sets, high on affordability with good quality of
products. Through this, company easily maintains its cost leadership strategy, which mainly talks
about the offerings the lowest prices to its customers and due to this company generates success
in longer run (Barrington, 2016).
Employees are on third priority, which helps in making strategic and managerial decisions.
Moreover, Wal-Mart, effectively addresses the interest of employees in which they provide
certain degree of job security to their employees but less wages. Hence, this highlights that Wal-
Mart does not effectively addresses the interest of employees in regard to wages (Śmigielska,
2016).

Introduction to management 5
Lastly, suppliers get more benefit from the Wal-Mart selling as they not only sell their product
but also earning at the profitable prices. In this aspect also Wal-Mart wants to purchase goods
from suppliers at the lowest prices and earn greater profits margins and success for longer run
(Gibson, 2017).
Organizational structure and design
(Eisenberger, Malone, & Presson, 2016).
Wal-Mart, organizational structure and design mainly comprised of management teams of
CEO’s, vice presidents, and various Wal-Mart subsidiaries. Below the CEO’s and vice presidents
there are many levels of management such as supervisors and workers.
Other than this, Wal-Mart also comprises of executive management teams, an executive boards
of the directors, which mainly handles the laws and the governs the business practices both
domestically and internationally. Moreover, executive board also has power to make decisions
regarding team and benefits of the company.
Hence, it highlights that Wal- Mart follows the departmentalization by function to geographic
departmentalization. There is a clear chain of command from top to bottom is followed within
Wal-Mart. Whereas span of control is also narrow in which management teams decide about the
product price and shipping and much more (Eisenberger, Malone, & Presson, 2016).

Introduction to management 6
Motivating employees
Wal-Mart applies both intrinsic and extrinsic rewards to motivate its employees so that it helps
the employees to take interest in task or the works, creates an excitement environment at the
workplace with respect, prospective and value (Lee, & Raschke, 2016). Other than this, they
also applies various motivational strategies which Wal-Mart follows such as employee
empowerment, providing various training programmes, incentives, benefits of both monetary as
well as non-monetary which helps in improving the working condition of their employees and
leads to continuous improvement as well as the organizations internal works and affects the
success at large (Hansen, & Levin, 2016).
Recommendations
According to my analysis, I think it is important to motivate employees more in monetary
terms as Wal-Mart already reduces the wages of the employees as due to this, they will work
more effectively and efficiently. Such as bonus over good delivery will surely generates the good
sense of motivation within the employees, which will finally leads to the success of organization
in long run.
More innovative techniques and strategies that are needs to be adopted by Wal-Mart
such they needs to improve interactions with customers so they get to know more about the
customers, their needs, wants, preferences and much more.
Other than this, they should also work over technological aspect in which selling out their
products online, over internet by forming its websites will also help in generating more success
to the company in an long run.
Company should also work over the innovate techniques and strategies which makes
them feel different for the other competitive firms in the same business. Such as expanding its
offerings in various other countries, generating the partnerships with the global retailers and also
should increase the company’s new offerings and new product range for the customers so that
they get more attracted and this generates more profits to the firm (Schuetz , 2015).

Introduction to management 7
Control
Control process helps in measuring the quality of products at that particular time and
evaluation is done when employees are engaged in their work. This is done to create and set the
training sessions, which helps the employees to enhance their productivity. According to my
analysis, Wal-Mart applies concurrent as well as feedback control in which they sees that
employees service charter is upheld and in feedback they keep taking regular feedbacks for the
future improvements and success of the organization.
References
Barrington, L. (2016). Engaging employers as stakeholders. Disability and employer practices:
Research across the disciplines, 27-56.
Eisenberger, R., Malone, G. P., & Presson, W. D. (2016). Optimizing perceived organizational
support to enhance employee engagement. Society for Human Resource Management and
Society for Industrial and Organizational Psychology, 2-22.
Gibson, K. (2017). Regarding marginal stakeholders. In Stakeholder Management (pp. 189-213).
Emerald Publishing Limited.
Hansen, J. M., & Levin, M. A. (2016). The effect of apathetic motivation on employees'
intentions to use social media for businesses. Journal of Business Research, 69(12),
6058-6066.
Hwang, M., & Park, S. (2015). The impact of walmart supercenter conversion on consumer
shopping behavior. Management Science, 62(3), 817-828.
Jurevicius, O. (2017). Walmart SWOT Analysis 2017. Strategic Management Insight. Np, 8.

Introduction to management 8
Lee, M. T., & Raschke, R. L. (2016). Understanding employee motivation and organizational
performance: Arguments for a set-theoretic approach. Journal of Innovation &
Knowledge, 1(3), 162-169.
Michelson, H., Boucher, S., Cheng, X., Huang, J., & Jia, X. (2018). Connecting supermarkets
and farms: the role of intermediaries in Walmart China's fresh produce supply
chains. Renewable Agriculture and Food Systems, 33(1), 47-59.
Nandonde, F. A. (2019). A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4), 54-61.
Schuetz, J. (2015). Why are Walmart and Target next-door neighbors?. Regional Science and
Urban Economics, 54, 38-48.
Śmigielska, G. (2016). The role of an entrepreneur in developing an organizational culture
fostering innovations. Studia Oeconomica Posnaniensia, 4(5), 54-68.
Xu, F. SEJand# ,(2017). SWOT Analysis and Innovations of the Lean Supply Chain. World
Journal of Research and Review, 6(2).