Managerial Control in Walmart - Case Study Example

Managers’ ability to Implement, Manage Change, and Innovation: A case of Walmart Name Affiliation Introduction In the present world, knowledge plays a pivotal role in economic processes. Those organizations with enough knowledge have a competitive advantage over those with less. In an economy that is knowledge based, innovation plays an essential and central role. An organization can maintain competitive advantage through quality and price (Francis, Bessant, & Hobday, 2003). Organization does innovation in order to defend and maintain their competitive stand and to seek their competitive advantage (Francis, Bessant, & Hobday, 2003). Innovation is the heart of economic change; it shapes the momentous changes in the world and fills in the process of change continuously. It turns ideas and knowledge into products and services. The stumbling block of innovation is management innovation. The present management systems that are in place in every firm today develop over the last 160 years. The dynamic business innovation transforms by management innovation and as a result, business models and practices, can meet challenges of change. The ability to spot new opportunities and create new better strategies is the heart of every management innovation (Genus & Cloes, 2006). Walmart is the largest stores in the United State of America, and one big chain store the world. It operates more than 4,000 retail store globally. On top of this, company is a dominant retail in Mexico, Canada, and United Kingdom. A survey by Fortune 500 index shows that Walmart is the richest and most powerful corporation in the world. It holds the number one when ranked by its total sales. It is the second most admired company in the world (Vance, Sandra, & Roy, 1994). The company provides diverse merchandise ranging from household needs, electronics, toys, fabrics, jewelery and shoes, crafts, family apparel, lawn and garden. It also runs a pharmacy department and photo processing center (Vance, Sandra, & Roy, 19 Product innovation. Walmart examine the life cycle of their products and the supply chain try to make products that are sustainable from farm to the shelf. They work with the research consortium who delivers research findings, metrics and reporting system. This assists Walmart to engage suppliers so that they understand the products they sell. In 2011, the company used the metrics from the research firm to develop an index for six products. By engaging research results and integrating them into the core merchandise processes, will help transform their products to better suit customers’ needs. In my own view, this is a product innovation process because the company will use research findings to improve on their products. Furthermore, their supply chain, which is transparent, is also one of the product innovations. Walmart implemented an information system that is transparent. For example, when scanning the band-aid at the register, the information sent Walmart D C and also to suppliers. This will give information to suppliers, and are able to know the amount to ship out. These have reduced time, labor and paper work. The supplier forecast demand and plan production hence greater efficiencies. Process innovation. Locally Walmart is the largest US retailer. It has over 3,000 stores, and 77 distribution centers serving over 100million customers. In my own view, I see this as process innovation because Walmart started small but gradually developed with time to what it is today. There have been changes in the way in which products produced and supplied to customers. Its expansion globally has been aggressive and dynamic in the sense that their products are unique in every step of the way. So the process, they undertook to diversify,expand, and innovative. Position innovation. Walmart has an elaborate, efficient supply chain system. They have combined supply chain, technology, and services. This has changed customers’ shopping behaviors, suppliers, and employees. Suppliers are able to forecast and the demand of items required and are able to arrange and plan for products in advance. Paradigm innovation. As the world is changing rapidly, business as usual in organizations is no longer an option. Managers are adopting new approaches that are friendly to the environment and society. They adopt deep, systemic change. Walmart is not an exception. They are developing and selling products that are environmentally friendly. For instance, one of they sell is the green light bulbs. This is a product that consumes little energy. By adopting this product, they are promoting the fight against global warming, which is, a great challenge on the globe. Creative climate. When creating creativity enhances in the workplace, employees can generate brilliant ideas than one true leader coming up with more ideas. By the same token, creativity, which relates to knowledge, claimed to be an essential organizational competence. This is the engine of growth in every organization. If a leader creates a creative climate in the workplace, employees will bring out a new idea, thought, concept, design, or process which might revolutionize their products and services. The three basic beliefs of the company built by Sam Walton still hold. The company's beliefs are as follows: Respect for individuals- this is a call for treating employees well and strengthening them to do what they do. Service to customers- this is the commitment to the customers where stores respect a pricing philosophy to sell items at prices as low as they could and providing excellent customer service. Strive for excellence- this is to expand, innovate, and reach further to new markets and grow (Vance, Sandra, & Roy, 1994). The “Sundown Rule”, which is, a corporate directive applying to all employees is that each one must answer to customer or supplier request within twenty four hours. The “Ten Foot Rule” stipulates that all employees must greet, smile, and attend to a client in a store when within ten feet of them. This is an aggressive hospitality policy. Staff compelled to engage in morning cheers by reciting the company’s sayings. The company develops staff to flourish in the environment. The “Sundown Rule” and the “Ten Foot Rule” is an example. Every employee adheres to it irrespective of ranks. This gives freedom to employees and can have the confidence to challenge, question, and suggest ideas as part of a group with a common objective unconstrained by day-to-day operational environment (Cooper, 2001). Competitive Strategy. The strategy used is to dominate every sector of the business and sell goods at low process, outsell competitors and expand. Typical Walmart model is to build stores, make existing stores bigger, and dominate its competitors. In every step, it takes the company works hard to make a profit and remain on top of its competitors, to a point of shunning some of them out of business (Francis, Bessant, & Hobday, 2003). The organization uses its size, financial stability, and resources to dominate retail. This transform to effective use of strategy whether operating locally, or acquiring another retail chain in another country. The size and power of the company allows it to achieve its goals (Vance, Sandra, & Roy, 1994). Their strategy is clear and direct. Sam Walton on 1960 lay down it and refined over decades. The company is proud of it and incorporates it within its advertisements. The message of the company by the CEO is consistent and has been so over time. Scott Lee in his annual speech repeated the main message of the firm, repeating the culture of the organization as explained by founder Sam Walton. There is an emphasis of selling less, respecting employees and communities, and expanding (Francis, Bessant, & Hobday, 2003). The company manager strives to create and sustain a culture in which innovation can flourish. Whenever they entered into a market, they set up physical and organizational space. We can see that they capture an area by putting up building and making it stands out among the rest (Francis, Bessant, & Hobday, 2003). Innovation Strategy. In order to keep at the breast with other competitors in the market, the firm adopted the steady state archetype where the manager guided the organization to take strategic position that highly depended (Francis, Bessant, & Hobday, 2003). They also utilized decision making by allocating resources to the basis of risk management and operate with a set of routine and structures that embedded them (Cooper, 2001). In order to cope up with the innovation change, a wide range of potential targets for innovation set up. They diversify to different, new sectors of the market. Networks put up various parts of the region and expanded globally. In every sector, they encouraged competitiveness within themselves (Tidd & Bessant, 2009). For example, Walmart has a history of exploring future options and driving innovations. Most recently, through research the company assessed the market. This provided a focal point for various, diverse kinds of goods which might form and generate future goods and services (Cooper, 2001). I think that implementing an innovation strategy ensures that core competencies aligned with organizations' objectives and goals because communication is the core competence, commitments, and dedication. This applies to all organization boundaries. It is also beneficial in accelerating changes, quick acceptance, and new products adoption. Conclusion Firms that manage works have a greater chance of succeeding in an aggressive successful business setting. Managerial control in organizations accomplished through the implementation management innovation strategies. Prudent management rules, proper structures of the organization, tools of the project and project techniques that are in line with the project scope and risks must be put in place. Management novelty though requiring much effort to embrace quickly is a process. Organizations need to react favorably and adopt to change quickly so as to remain relevant in the competitive environment. Managers and its employees need to work together as a team. The manager must create a conducive environment for innovation where every member has freedom. This way, ideas suggested and adopted. Model of innovation leadership must be embraced. This allows building on past work and adding some perspective from the field of change and innovation. Change is inevitable; therefore, managers must respond to change. In my own view, I see Walmart’s innovation strategy as unique and ‘SMART’. The reason is that it is specific, measurable, attainable, and timely. It is specific because they venture into a particular market, establishes, and compete. In their innovation strategy, targets that are measureable and attainable are set. We can see this in the way they produce a product for a specific market for example, the green bulb. This is a section dealing with energy saving bulbs. In the present day world where everybody is encouraged to go green so as to curb global warming, Walmart have curved the niche setting measurable and attainable targets. On the other hand, I see it also as real and timely. When I use the same example, the introduction of the green bulbs came in handy with the environmental concerns which everybody young and old are embracing. This in itself is an innovation of responding to change in the environment and at the same time grow in business. The lesson I can learn from Walmart’s innovation strategy is that as an entrepreneur and an innovator, one need to think big, respond to changes rapidly, and travel the road of achievement as a team. The reason is that one need to see a broader perspective of issues, come up with new ideas as a team, and implement them to reality. My recommendation to Walmart is that besides their supply chain information system that is efficient and effective, they need to focus on online systems where customers are able to inquire, purchase products, and deliver these products to customers at their door steps on within 24 hours. On the other hand, customers are able to pay online with their master card. The information system must be one that can show case all Walmart’s products online without jamming. This calls for their own independent and secure information system, competent expert with high integrity virtues. Read More