Wall Mart stores - Essay Example

Wall Mart stores I visited Wall Mart stores and had an exciting experience in the organization. Wal-Mart is a successful company started by Walton in Arkansas. It is highly famous for their extremely low prices and the money that it helps the average family save and also the middle class paper (Fishman, 2006). In order for a person to comprehend and appreciate Wall Mart, one must comprehend the company’s ethics programs, motivational principles, and also their approaches in conflict management (Bonacich, 2004). The motivational principles are at all times functional to increase the firm’s performance level. I had to understand that growth is mandatory for the firm, and the company has a number of reward systems to increase the employees’ motivation (Hughes, 2012). The organization’s primary source of growth, numerous achievements, and customer satisfaction levels, get encouraged through their employees (Edward, 2006). The staff level of production affects the customers’ satisfaction directly, as they are the company’s leading source of income (Chazen, 2002). I witnessed a number of contests that provide employees with an opportunity to compete for the top spot in, attendance, or the department that possess the highest quality level and a few customer complaints. The best get rewarded with trips, shopping vouchers or even free vacation days but with a pay. As I witnessed, the performance excellence becomes highly achieved by the firm. Wal-Mart has continued to colonize the global market through its relentless expansion (Edward, 2006). Wall mart has over the years opened new megastores nearly every two business days, and it has at the same time continued to expand on average into a new nation every year (Bonacich, 2004). Being a true global company, Wall Mart has redefined and changed the shopping experience for each and every American customer. I managed to see the employees of the firm work. They give the necessary human resources that move the engine of production of goods and marketing of the produced goods (Chazen, 2002). They work tirelessly to ensure that customers get served well. Without them, the company is unlikely to function even if there exists customers and shareholders ready to purchase the goods offered by the company. Employees of Wall Mart are valuable since they are the ones selling and marketing the products to consumers (Bonaich, 2004). They take all the necessary procedures to make sure that they perform over the set limits. Suppliers of the goods and services are vital as they provide the goods which the company depends on to produce or sell its outputs (Chazen, 2002). Without them, marketing and production become rendered null and void. I saw how the organization relates with the community in their activities. Society impacts the organization in a big way (Ruta, 2009). Even though, they gain economically from the company, they require protection from unethical, unjust, illegal and irresponsible acts by the company (Feser, 2011). Through the use of pressure groups, protests, and also the legal system, the community regulates the company’s behavior. The company is working extra hard to ensure a positive impact to the society. In my tour of the organization, I noticed that the organization has a unique, competitive environment. Although the company’s main competition comes from local merchandise retailers, a number of warehouse clubs and also, supermarket retailers (Bonaich, 2004). The company’s retailing industry is immense in size and is always experiencing a number of growths and changes (Chazen, 2002). The main competitors compete both in the national and international market. There is massive competition on the pricing, layout, location, store size, environment and also technology and innovation (Griffin, 2010). Nevertheless, the firm is performing beyond expectations. The market Wall mart is in gets characterized by large economies of scale (Bonaich, 2004). Wal-Mart gives cheap prices, better commodity variety and selection, and also superior quality. This has not affected its performance excellence, but it has rather added on it massively. Consumer needs are a valuable economic feature in all of the existing competitive environments (Chazen, 2002). What prompts the consumers to select one retailer over the other is an essential feature in the competitive landscape. Wal-Mart also faces indirect competition from a number of supermarket retailers. This proves that the firm is a threat in the market (Chazen, 2002). The production level in its grocery sector becomes highly populated, and the company poses significant threats to the local supermarket retailers (Ruta, 2009). The supermarkets are finding it hard to compete with the organization cheap prices. The company puts a terrific deal of work in ensuring that they are highly innovative, and they meet the consumers demand. Suppliers bargaining power is not a threat at all to the organization (Chazen, 2002). For a number of producers, Wal-Mart is their largest buyer. This means that they would do nearly whatever the firm wants them to do (Ruta, 2009). This adds on to their accolades as a high performing organization. As to prove their dominance in the market, the buyers bargaining power is weak. Wall Mart has a vast consumer base, therefore, a growing demand for the products low prices (Ruta, 2009). Another one is the new entrants’ threat is low. Wal-mart has enormous scale of operation making it hard for any organization to come into the market and try to compete on the same platform with Wall Mart (Schermerhon, 2011). Majority of successful companies would also find it difficult to compete with Wall Mart. Wall Marts value chain enables it identify activities how the company obtains these strategies. The supply chain of Wall Mart is highly cost effective (Edward, 2006). The firm can track the movement of their commodities through the value chain (Chazen, 2002). It does not matter where the product is, whether inside the in store inventory, shipment, at the cash register, the company can track as it moves (Ruta, 2009). The firm’s ability in streamlining the supplies among the warehouses and suppliers has enabled them maintain adequate stock and check on what sells and what does not sell (Edward, 2006). The firms distribution and operations strategies, have enabled Wall Mart obtain lower prices, increasing their profitability and competitiveness (Schlegelmilch, 1998). How quality outcomes could be improved In order to improve the quality outcomes, I suggest that the management of Wall Mart uses the balanced score board for the business strategic planning and the management system. It gives the framework that shows the performance measurements, but helps the organizations planners to identify what needs to be done and measured. It is a management system that enables the corporation to clarify their vision and the firm’s strategy and translate them into the necessary action. I also suggest that the stores should place a lot of emphasis on the achievement of quality on time performances, which will enable it to compete with a number of the rivals in the industry. Wall Mart should ensure that they face risks likely to be encountered in the business. They should come up with talks with workers union to ensure that strikes no longer happen in the organization. The organization has the mandate to increase the rate of their growth in the global market (Schermerhon, 2011). I have a few important suggestions on how the firm can improve their quality levels. I strongly feel that the benefits and compensation given to the employees of Wal-Mart should be improved. Any worker that gets paid well tends to work efficiently increasing the firm’s productivity. According to a survey done, if 60 percent of workers have health insurance (in comparison to the 72 percent found in the retail sector as a whole), I feel that the workers benefit package should be reevaluated (Chazen, 2002). According to research, the reason why a number of employees did not sign up for their health insurance coverage is because they got it through a family member. I’m sure that this is the case for a number, if not all. Nevertheless, Wal-Mart does not pay their retirees any health care costs (Schermerhon, 2011). I strongly feel that the two examples are ways in which Wal-Mart uses to cut their costs, and both of them should be reconsidered. An organizational engagement activity should be developed to accelerate the staff awareness and also personal stake in the firm vision, and their current state of success in following that vision. I also think that accessing the sales performance will play a large role in checking the quality of outcomes. An easy method such as the cover contribution or the turnover is no longer viable. Questioning the clients on a more regular basis about their satisfaction with the sales personnel is the way of checking the performance of the sales team (Bonacich, 2004). I support the idea of the firm to introduce a survey on determining the kinds of customers they have and what the customers need to improve the satisfaction of the customers. They should also ensure that the consumers still have confidence in their products (Edward, 2006). A regular check on the products and their safety standards should be carried out more frequently to improve the safety of the goods and customers, and also introduce new methods of marketing the global stores and improve on their budget efficiencies (Hughes, 2012). The metrics in this perspective allows managers to know how the stores are running, and whether all its products and services conform to what the customers’ need. The most vital part of ensuring quality outcomes becomes improved Learning and Growth perspective. I commend that Wall Mart come up with ways of ensuring that the employees become trained well by the firm this is to increase their knowledge and productivity of the firm (Chazen, 2002). In the current world of the rapidly changing technological ways, it is necessary for the workers to be in a continuous process of learning (Bonacich, 2004). Metrics should be introduced to guide the mangers and the top executives in focusing the training funds where they can be of absolute importance. Learning is arguably the best foundation for success compared to training (Schlegelmilch, 1998). I suggest that the management should also introduce tutors and mentors within the firm, and ensure that there is an ease of communication among the employees that allow them to seek for help when it gets required. Improving performance in the Learning and Growth perspective will enable the stores improve its businesses processes, which in turn will enable the organization come up with the best possible results in the financial and customers’ perspective (Chazen, 2002). Explain the most valuable learning experience gained from researching this organization? In my research of Wall Mart, I have managed to learn a number of things. First and foremost, employees are the background of any successful organization (Chazen, 2002). How the employees get treated, will reflect on their performance. I have also managed to learn that managers play a vital role in an organization (Bonacich, 2004). They are the ones who organize the employees and ensure that whatever they do gets done in accordance to the company’s rules and regulations. References Bonacich, E. (2004). Inside the Worlds Largest Company. Frontline, 1-8. Chazen, L. (2002). What Investment Managers Need to Know About Charters and Bylaws. ISSue Alert, 14-24. Edward, F. (2006). The Stakeholder Theory of the Modern Organization. Ethical Theory and Business. New Jersey: Prentice Hall. Fishman, C. (2006). The Wal-Mart Effects. New York: Penguin Group. Ruta, G. (2009). The New Wall-Mart Leadership: Seemingly Small City Change Has Huge Impact. Management Forum, 15-18. Feser, C. (2011). Serial Innovators: Firms That Change the World. New York: John Wiley and Sons Griffin, R. W. (2010). Management. New York: Cengage Learning. Hughes, R. (2012). International Handbook of Workplace Trauma Support. New York: John Wiley & Sons. Schermerhorn, J. (2011). Exploring Management. New York: John Wiley & Sons. Schlegelmilch, B. B. (1998). Marketing Ethics: An International Perspective. New York: Cengage Learning. Read More