Walmart Corporation - Management Information System - Case Study Example

Student’s Name Instructor’s Name Course Date Walmart Corporation is a multinational retail company operating in many countries around the globe. The varied kinds of products include clothing, electronics, food stuff, detergents, groceries, etc. The company has been in operation for quite some time now. The success of the company can be strongly attributed to the strategies it has employed. Over this time, Walmart has been known for employing cost leadership strategy to generate profits. The company sells products in large quantities that are relatively priced and therefore makes profit through large volumes sold. On the other hand, National Bank of Abu Dhabi is an institution that provides financial services. This is the largest lender bank in Emirates. It has grown impressively ever since it started its operation to gain such a large market share. The bank offers different kinds of services to its diverse market including retail banking, corporate, wholesale and investment banking, wealth management, private banking, Islamic banking etc. Considering the nature of products offered by the bank, it is clear that it is using differentiation strategy to strengthen its competitiveness in the market. Differentiation strategy enables a business to give theconsumer or potential customer a reason to choose a particular product over the others. In National Bank of Abu Dhabi, there are three main divisions. These are meant to serve the diverse needs of its customers around the globe. The three divisions include Global Wholesale, Gulf Retail and Global Wealth. MIS Management Information System is a term used to refer to the appreciation of information technology in the process of facilitating the various functionalities in any given entity. In the current business environment, it is literally impossible to compete effectively in the market without embracing the new technologies (Laudon & Traver 217). Many organizations are using such technologies as a way of enhancing competitiveness in the market. In real sense, almost all organizations engaged in serious business transactions have the management information system division put in place to deal with all issues to do with information technology. One of the greatest contributions of technology in the life of humanity is the fact that it has improved the access to information (Laudon & Traver 78). It is quite easy for information to be transmitted to other players over a particular channel as a result of technology. Information is supposed to facilitate decision making process in an organization. Therefore, the ease access to information is working to enable business make crucial decisions whenever they are expected. Statistics indicate that information access is the main factor organizations are using to create competitive advantage. Therefore, MIS enables organizations to gather information, process that information and disseminate it to the appropriate centers where it can help managers to make appropriate decisions. This division is expected to fulfill all the information needs of an organization. MIS function is critical in collecting information in relation to the following: Customers There is a lot of information concerning customers that can be very critical in an organization. Management information systems can be used to gather information regarding aspects like preferences & tastes, loyalty index, market segments, demographics, etc. (Kotler 116)All this information about the customers is very essential for the organization. It is the basis upon which an organization can understand its main stakeholders in order to differentiate goods and services to meet their unique needs. Information systems can help in gathering information about customers through an online market research platform (Kotler & Keller 253). Proper understanding of customers in itself is a way of creating competitive advantage. It is only when a marketer fully understands the needs of customers that goods and services can be differentiated appropriately. Competitors Information concerning the performance of competitors is important in the current competitive business environment. Understanding the key activities of competitors can enable an entity to seek means of dealing with fierce competition. Information systems can enable an entity to gather information about promotions, offers, trade deals being brokered by competitors. Understanding this kind of information is important in assisting an entity to find ways of striking counter offers and promotions (Kerin, Hartley & Rudelius 187). For instance, when a retail business is offering holiday gift hampers, competitors will come up with even better offers as a way of countering that effect. This works to cushion customers from shifting to other organizations as a result of promotions. All this is possible only if an organization has the appropriate information management systems in place. Industry Performance The performance of the industry is very important in trying to understand means of enhancing competitiveness. The performance of an industry or sector has a way of affecting individual business within that particular sector. It is important therefore for businesses to access information concerning the trends in the sector within which the business operates (Kotler 91). Such trends will guide the organization in relation to where, when and how to invest. When the industry is performing so well, it is possible for the business to invest even more in its products as opposed to when the industry is experiencing a downfall. With this in mind, the organization will be better placed to make investment decisions that are based on information and therefore making the organization more competitive. The above highlighted elements represent merely a portion of the benefits derived from using information technology in an organization as a way of creating a competitive advantage. Information technology can be used in many other ways to improve the performance of any organization. Information systems are used in organizations to handle functions like accounting, human resource, purchasing & supplies, procurement, etc. All these are means through which an organization can create a competitive advantage overother players in the industry. Porter’s Value Chain Analysis Value chain is actually a way of viewing an organization in relation to the functionalities that define that particular entity. An organization is perceived to be a chain-like link connected through the various activities whose end result is the desired products (Porter 111). In that particular chain, inputs are involved and transformation is taking place throughout the various points on the chain-link. In the process, an organization has to invest different kinds of resources in order to gain the required output. According to Porter, value chain consists of five primary activities which include inbound logistics, operations, outbound logistics, marketing & sales, and service. On the other hand, secondary activities include procurement, human resource, infrastructure development and technological development. In the case of Walmart, not every step is involved as provided by Michael Porter. There are definitely some of the activities that are not involved since the company does not manufacture most of its products but rather buy directly from manufacturers. According to the chain link provided by Michael Porter, the five primary activities can be fully involved only in manufacturing entities (Porter 76). For Walmart, the chain begins from the outbound logistics to marketing & sales and finally to services. The chain for this company starts by buying goods from manufacturers. This according to Porter is represented by outbound logistics. The next on the chain is marketing & sales which actually is critical to any business. The last step is services which involves maintenance related activities which are mostly applicable to electronic products. On the other hand, the bank also has a unique value chain given the nature of products the organization is involved in. since this organization is involved in services, the main component of the service chain that is relevant to it is the marketing and sales. Marketing and sales is the main function of the bank. The other relevant stage is the services provided thereafter. In most cases, the bank may be forced to follow-up the loan in order to monitor repayments. The other secondary functions of the Porter’s Supply Chain are applicable in both organizations. Porters Five Forces Porter’s five forces analysis tool is critical in assessing industry forces that are likely to shape the direction of individual firms within it. Beginning with Walmart Company, one of the main forces that define the sustainability of the business is competition in the industry. This is the competition that is build up as a result of players that are already in the market. Some of the competitors include Publix, Target and Meijer. Another threat is the potential of new entrants. The retail industry does not have monopoly and therefore, firms are free to enter as well as exit. It is important for Walmart to ensure that mechanisms are put in place to deal with the threat posed by the new entrants into the industry. On the other hand, the supplier power is quite weak in this industry. In the same way, customer bargaining power is not very strong. This is because the customers targeted are large in number and therefore it is a bit harder for them to exert pressure that can force prices downwards. When it comes toNational Bank of Abu Dhabi, a number of the forces highlighted above do not literally apply. For example, the bargaining power of supplier is something untenable because banks do not deal with suppliers. Nevertheless, the competition from other players is such a huge factor. Many banks are offering similar services and therefore this makes it tough for all the players. On the other hand, entrance into the industry by new firms can be influenced by a number of factors including high initial investment. For a bank to be registered the minimum capital required sometimes is so huge and this makes it a bit difficult for new players. Recommendations From my analysis, the two organizations are on the right pathway of succeeding in the current competitive environment. Nevertheless, a number of issues must be fixed in order for them to have competitive advantage over other players. For Walmart, the company may need to invest more funds in diversification of its investment. This will help cushion it against fluctuation in profits. In addition, the company may be required to invest more in market research to ensure that it is updated on the changing needs of its consumers. When it comes to the bank, product differentiation is very critical. Differentiated products will ensure that the bank is able to serve customers better in the market. Work Cited Jacobs, Robert F. & Chase, Richard. Operations and Supply Chain Management. New York: McGraw-Hill, 2010. Print. Laudon, Kenneth C and Traver, Guercio C. Management Information Systems. New York: Prentice Hall, 2011. Print. Kerin, Roger; Hartley, Steven & Rudelius, William. Marketing. New York: McGraw-Hill, 2012. Print. Kotler, Philip. Kotler on Marketing. London: Free Press, 2001. Print. Kotler, Philip & Keller, Kevin. Marketing Management. New York: Prentice Hall, 2011. Print. Porter, Michael E. Competitive Advantage. New York: The Free Press, 1985. Print. Rowe, Mason, Dickel, Mann, Mockler. Strategic Management: a methodological approach. Reading Mass: Addison-Wesley, 1994. Print. Read More