Evaluation of Walmart's Operations and Management Strategies Report

This report provides a detailed analysis of Walmart's business operations and management strategies. It begins with an introduction to operations management and its significance, followed by an explanation of the core functions of business operations, including processes, staffing, and location. The report then offers a brief overview of Walmart, highlighting its history and evolution. The main body of the report delves into an evaluation of Walmart's operational management decisions, focusing on production, location strategy, human resources, logistics, and quality control. It examines how these decisions impact the company's supply chain, efficiency, and overall success. The report also considers external factors, such as government regulations and their impact on business costs. The conclusion summarizes the key findings and emphasizes the importance of effective operations management in the retail industry. References are provided to support the analysis.

Operations and
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Meaning of business operation...............................................................................................1
Functions of business operation.............................................................................................2
Brief description about Walmart............................................................................................3
Evaluation of Walmart operation management decision........................................................4
CONCLUSION................................................................................................................................6
.........................................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The term operations management refers to the administration of business practices that is used
for creating and generating high level of efficiency for performing all work with a possible
approach among organisation. The main motive of operation management is to convert raw-
material or semi-finished products into finished products for earning more amount of profits and
retaining into market for longer period. This report is written from perspective of Walmart Inc.
formerly known as Wal-Mart-Stores is an American multi-national organisation or corporation
and it control a chain of hypermarket, grocery store and discount department stores and it
headquarter is situated in Bentonville, Arkansas (Abideen, Mohamad and Fernando, 2020).
Moreover, this report highlights on meaning and functions of business operations and the
description or brief detail about Walmart. In the last, evaluation of operation management
decisions will also be included in this report. Along with this case study selected for Walmart
emphasis on increase in cost of business operations due to change in government rules and
regulations.
MAIN BODY
Meaning of business operation
All activities, actions and tactics that are performed by an organisation for earning
sufficient amount of money refers to the operations. In simple terms, operations state the system,
equipment, process and people that are performed by organisation to manage all operations in an
appropriate manner. Business operations are according to industry and size which undertakes
longer process, staffing and selecting location for performing business operations according to
required productivity and efficiency. Operation process is an important aspect and it helps
organisation for performing business operations with right cost business time and money. In
order to understand business operations some aspects are mention as below:
 Process- The process of retail organisation includes action and activities that is used for
selling products and services to consumer with use of multiple channels in order to earn
high amount of profits (Choi, Wallace and Wang, 2018). From perspective of retail
business management sale products through grocery store and super-market to maintain
an effective supply chain management for delivering company products in international
market. Government of country increase labour cost with 4% in retail sector and it
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increase cost for operations. This results process for business operations is increased that
reduce profits of business.
 Staffing- It is determined by the processes and task that are used for performing work
which is outlined in work processes. Walmart is a large organisation so operations are
performed at large level. Therefore, staff or human resources are required by
management in a large number for performing all operations by engagement of
professional. From perspective of staffing government support labour to earn sufficient
income but it increases the staff cost for business because the rule of increase in salary
and wage of workforce. Growth and international expansion aids management to
establish recruitment process that match with global staff requirements (Das Nair, 2019).
 Location- one of the crucial step which is included in operation management is to decide
actual location for sale of products. This is because an appropriate location aids
customers to decide the right location. Retail market interact with buyers on daily basis.
Therefore, with selection of right location business management easily interact with
customers and it aids to satisfy need of customers in an appropriate manner. Individuals
perform work but persons manage all task for getting support international expansion in
order to manage store at different geographical areas. Moreover, cost for business is
increased and this aids persons for generating support through which task are managed at
a low-level to manage prices of products in different areas.
Functions of business operation
Retail business is one of the leading sector that is increasing at global level and
organisation is engaged at complex production process. The main function of retail business
operations includes retail stores, managing & establishing supplier network and distribution of
products or services at global level. Operations of business measure and share complexity that
start from piece of paper. They are intended and interest about managing business function for
formulating easily access to develop a better part for organisation (Grover, Kar and Dwivedi,
2020). Personnel, processes and equipment enhance in organisation value to perform business
operations with an organised manner. Some function of Walmart operations is mention as
follow:
 Maintaining effective communication- The first initiative which is implemented and
performed is to generate a systematic communication system for improving strength of
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organisation within traditional business methods and E-commerce business. This aids
management to perform their work with develop of communication system through
which better and effective alliance are developed by management to perform all task in
an appropriate manner.
 Role of supply chain- The main function of operation is to manage supply chain of
business operational as it increase efficiency and business success for completion of work
with a competitive-edge in market. Organisation formulate supply system that focus on
managing work to obtain high results. This also refers that cost of merchandise is
controlled and managed by organisation for performing within a decided budget (High
and et. al., 2019). It also undertakes about constant growth and international expansion of
business operations in different market.
 Competitive-edge in organisation- Retail business is one of the largest sector.
Organisation is acquired by different types of business operations and it aids management
to gain competitive-edge in market. Investment in technology, continues expansion and
human resource are main aspects and this aids management for managing pricing strategy
in order to drive more footfall of potential buyers within organisation. Along with this
management is focused towards constant growth and international expansion. It results all
individuals perform and complete their task with high motivation and it aids persons to
work with development of competitive-edge in market. Pricing strategy also enhance
better aspects and it aids persons for managing prices with right approach in order to
manage as well as control prices of products.
Brief description about Walmart
Walmart Inc. is an American global retail enterprise that works a chain of hypermarkets,
markdown retail establishments, and supermarkets, settled in Bentonville, Arkansas. The
organization was established by Sam Walton in 1962 and joined on October 31, 1969. It
additionally possesses and works Sam's Club retail warehouses. As of October 31, 2020,
Walmart has 11,510 stores and clubs in 27 nations, working under 56 distinct names. The
historical backdrop of Walmart, an American rebate retail chain, started in 1950 when money
manager Sam Walton bought a store from Luther E. Harrison in Bentonville, Arkansas, and
opened Walton's 5 and 10. The Walmart chain appropriate was established in 1962 with a
solitary store in Rogers, growing external Arkansas by 1968 and all through the remainder of the
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Southern United States by the 1980s, at last working a store in each condition of the United
States, in addition to its first stores in Canada, by 1995 (Jones and et. al., 2020). The
development was generally energized by new store development, in spite of the fact that the
chains Mohr-Value and Kuhn's Big K were likewise procured. In the course of the most recent
decade or so Walmart has gotten associated with various claims for an assortment of reasons.
Most of the suits are legal claims in which workers are suing for unpaid wages. They have
additionally run into various separation cases in which representatives are suing for being
profiled out of cash or out of occupations. For instance, there were two separate cases, one out of
2004 and one out of 2005, in which dark workers were suing two diverse Walmart for denying
them occupations dependent on race and it is other issue that generates problems for
organisation. These turned out to be well known to the point that the Reverend Jesse Jackson
interceded and talked during both of the procedures. There are additionally numerous claims in
which ladies are suing Wal-Mart for victimizing them. In one article written in 2004 USA retail
market referenced 32 unique claims that elaborates individuals or engaged staff to manage and
complete work with same opportunity.
Evaluation of Walmart operation management decision
Walmart operation management undertakes a large variety of approaches and it is focused
towards managing and taking decisions related with production, supply chain, location strategy,
logistic, HR and quality control. Organisation accomplish high success and it is based on
effective performance related with retail operations management. Walmart’s decisions and area
of operations and it is used for completion of work according to emphasize supply on supply
chain management. Some of major operation management decisions are mention as follow:
 Production- Walmart operation management decide three tier related with production
standards and all of them specify minimum quality prospects for majority of buyers (Lee
and Tang, 2018). Moreover, management keep most of its brands that declare great value
with deciding last tier perspective. Production relates with cost of labour because they
perform an important role for developing and manufacturing Walmart product and
services. Middle tier specify average quality of products for cost retailer. In the last,
highest tier define quality levels which exceed market average in retail industry. Retail
business organisation define and manage quality measure to manage operation cost of
production department according to labour perspective.
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 Location strategy- The decision area of operation management make emphasize on
efficiency of organisation materials, business information and specifically human
resources that is used to complete work with retail organisation. In this regard, Walmart
location strategy undertake aspects which is used to manage and control stores at place
that are near about population cluster. Moreover, organisation aim to boost and enhance
market reach for formulating better accessibility of consumers. It also refers that products
defines about managing operation with use of internet technology and computer network.
 Human resource- Walmart define aspects about human resource and management
strategy which is used to involve constant recruitment (Lu and et. al., 2018). Retail
business face challenges and it suffer from high turnover because of low wages. This
define cost of business operations relates with human resources and it define about
strategic decisions by which operation management to maintain Walmart’s organisation
culture and structure. It also defines organisation maintain standardised process,
especially for position in their stores. Walmart training program support need for
standardization to manage task according to quality standards of business. Company
satisfy and define about operation management for managing work with turnover. By
decision of government cost for labour market is improved that minimise turnover of
worker and staff in organisation.
 Logistic- With the regard of organisation needs this is identified by organisation that
Walmart address decision area for operation management by use of training programs for
maintain human resources, dedicated about personnel with involvement of maintaining
facilities that improves transport systems for organisation. It also defines about
development of training programmes that is used to obtain better position in market by
managing overall supply of products (Paunov and Planes-Satorra, 2019). Cost control is
an important perspective for Walmart and it include logistic system also because logistic
system of Walmart is managed at a large level. Further, effective and efficient results is
gained by managing work with development of organised transport system. Time
management and schedule for delegation of individual roles aids organisation to obtain
longer results with proper transport system.
 Quality control- From the recent years, products are recalled by organisation because of
breach or brake in product quality. This results Walmart face different challenges and it
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generate problems for management to perform work in proper manner. Their are different
procedure and benchmark is implemented by management and it is used for managing
experience that develop quality by which work is completed with quality control aspects.
Global safety initiative rules is followed by Walmart to perform all task according to
quality.
 Human resources- Walmart manage and retain people at a large scale and it ensure that
individuals are engaged in organisation to perform their work with decided values. Along
with this human-resource management consider about business through which work is
managed in proper manner by delegating right roles to employee's that match with their
skills. It aids to perform work operations with more efficiency and effectiveness.
CONCLUSION
With the analyses of above report it is concluded that operation management perform an
important role for organisation and it aids management to complete all work with decided
approach. With an effective business operation process organisation consider to complete all
work in decided manner through performing all functions in an appropriate manner.
Management decisions and operations is evaluated for completion of work with decided
decision-making. In the last, methods to control company operation cost is focused and it is used
to manage all work with decided government rules and regulations.
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REFERENCES
Books and journals
Abideen, A.Z., Mohamad, F.B. and Fernando, Y., 2020. Lean simulations in production and
operations management–a systematic literature review and bibliometric
analysis. Journal of Modelling in Management.
Choi, T.M., Wallace, S.W. and Wang, Y., 2018. Big data analytics in operations
management. Production and Operations Management, 27(10), pp.1868-1883.
Das Nair, R., 2019. The spread and internationalisation of South African retail chains and the
implications of market power. International Review of Applied Economics, 33(1),
pp.30-50.
Grover, P., Kar, A.K. and Dwivedi, Y.K., 2020. Understanding artificial intelligence adoption in
operations management: insights from the review of academic literature and social
media discussions. Annals of Operations Research, pp.1-37.
High, D.R and et. al., 2019. Method and apparatus for an airborne drone training track. U.S.
Patent 10,486,831.
Jones, N and et. al., 2020. Operational control of wireless charging. U.S. Patent Application
16/517,665.
Lee, H.L. and Tang, C.S., 2018. Socially and environmentally responsible value chain
innovations: New operations management research opportunities. Management
Science, 64(3), pp.983-996.
Lu, G and et. al., 2018. Addressing endogeneity in operations management research: Recent
developments, common problems, and directions for future research. Journal of
Operations Management, 64, pp.53-64.
Paunov, C. and Planes-Satorra, S., 2019. How are digital technologies changing innovation?:
Evidence from agriculture, the automotive industry and retail.
Tönnissen, S. and Teuteberg, F., 2020. Analysing the impact of blockchain-technology for
operations and supply chain management: An explanatory model drawn from multiple
case studies. International Journal of Information Management, 52, p.101953.
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