Strategic Leadership 2 - Essay Example

  Strategic Leadership 2       Strategic Leadership 2 Outside-in thinking refers to a management approach and philosophy that puts the interest of the client before the capabilities of the organization. Organizations that utilize the outside-in thinking method concentrate on satisfying their clients by consistently and efficiently providing a mixture of outstanding services experience and successful results for clients (Adair 2003, p. 43). During harsh economic periods, an organization’s management may concentrate on almost an entirely internally practice, for example, downsizing, enhancing productivity, among others (Emiliani 2008, p. 71). In contrast, inside-out thinking refers to a collaborative and integrative approach to build a comprehension of the thinking of customers, recognizing their system of belief, and establishing a convincing plan that can be marketed to the world (Mullen & Stumpf 1992, p. 31). In addition, choices are made on the basis of internal instincts and knowledge.

Nonetheless, this thinking may make an organization to lose contact with clients (Lewis & Pendrill 2000, p. 17). This paper will assess whether or not Wal-Mart has utilized outside-in thinking or inside-out thinking in its various activities. Wal-Mart follows both outside-in thinking and inside-out thinking in its numerous organizational activities. Sam Walton, Wal-Mart’s founder, had employed homespun business knowledge and folksy charm with progressive supply-chain and information technology management to establish the globe’s most sufficient retail company (Walton 2009, p. 553). The company utilized Outside-in thinking under the leadership of one of the chief executive officer, Lee Scott, by embracing environmental and social responsibility.

As the organization enlarged in its variety of services and goods, for example, health clinics, groceries, financial services, fashion clothing, online prescription drugs, and music downloads, it was compelled to puts the interest of the client before the capacities of the organization (Graham, Zweig & Buffett 2003, p. 24). The company utilized large size with rapid responsiveness and speed towards customers (Sullivan & Sheffrin 2003, p. 33). In addition to providing a wide variety of commodities, Wal-Mart’s Bud and Sam started establishing their individual discount store idea.

During this period, discount stores were only found in large towns. Sam Walton asserted that if the prices were favourable, discount stores could be of tremendous help for customers in their respective areas (Rotwell, Prescott & Taylor 2008, p. 63). Wal-Mart has also used inside-out thinking during diversification. The organization continuously experimented with a number of retail designs (Merritt 2008, p. 97). The organization developed retail formats, for example, Dot Deep Discount Drugstores, Supercenters, warehouse clubs, and Helen’s Art and Crafts to promote their products and services.

The warehouse clubs utilized a few lines and numerous commodities were available on minimal customer service and pallets. The idea was to make the most of economies during buying, limit operating prices, and ensure the members get the savings through extremely minimal prices (Walton 2009, p. 554). In addition, a Supercenter mixed a grocery supermarket with a discount store. The Supercenter was open every day and hour of the week and included a number of speciality units, for example, photo lab, eyeglass store, dry cleaners, and hair salon.

Wal-Mart also established a considerable online business via its websites. All these were based on internal instincts and knowledge of the leaders (Lianabel 2004, p. 61). Wal-Mart followed outside-in thinking in its international expansion. The organization penetrated the Canadian economy by buying 120 Woolco stores from Woolworth and making them discount stores. This made Wal-Mart Canada’s leading retailer. Additionally, during the last ten years, the organization’s international enlargement has focused on Asia and Latin America (Sanders 1998, p. 71). Wal-Mart’s international expansion concentrates on meeting the needs of the clients by steadily and adequately offering a mixture of considerable services and successful results for the customers.

Conversely, the organization has received mixed responses in Asia (Walton 2009, p. 555). Moreover, Sam Walton’s laid emphasis on customer satisfaction and his employees. He largely utilized outside-in thinking by emphasizing that the organization’s employees create value for the customers (McFayden 2009, p. 75). He also spent most of his time in Wal-Mart stores, and making random visits to distribution centres and stores to ensure customers are properly served and satisfied. The organization also illustrated its business as an organization that runs retail stores in a number of formats all over the globe and is dedicated to enhance better living by allowing customers to save money (Freedman 2004, p. 111). The company asserts that it earns the belief of clients by offering a wide range of quality commodities and services at affordable prices while advancing a culture that incorporates and rewards integrity, mutual respect, and diversity (Walton 2009, p. 557). Wal-Mart also affirms that its pricing beliefs values commodities at a minimal price so as to guarantee customers that the organization’s prices will remain stable under regular promotional activity (Arthur & Sheffrin 2003, p. 56). Also, Wal-Mart’s customers are fully conscious of the organization’s capacity to maximize on their suppliers economies of scale and lessen their margins to the extreme low.

The management of Wal-Mart’s retail stores was also found on the basis of its goal of developing client satisfaction by combining a variety of quality commodities and affordable prices cautiously connected to client needs and an exciting shopping event. All these follow outside-in thinking (Morrill 2007, p. 112). References Adair, J 2003, Effective strategic leadership, Pan Macmillan, London. Arthur, S & Sheffrin, SM 2003, Economics: principles in action, Pearson Prentice Hall, New Jersey.

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McFayden, KJ 2009, Strategic leadership for a change: facing our losses, finding our future, The Alban Institute, The Alban Institute, Washington, D.C. Merritt, EA 2008, Strategic leadership: essential concepts, Aventine Press, California. Morrill, RL, 2007, Strategic leadership, Greenwood Publishing Group, Connecticut. Mullen, T & Stumpf, S 1992, Taking charge: strategic leadership in the middle game, Prentice Hall, New Jersey. Rotwell, WJ, Prescott, RK & Taylor, MW 2008, Human resource transformation: demonstrating strategic leadership in the face of future trends, Nicholas Brealey Publishing, London.

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