Corporate Strategies Applicable to Wal-Mart - Term Paper Example

Summary The corporate strategies applicable to Wal-Mart can be categorized into five aspects. The first of their strategies looks at broadening theirappeal to their customers, they then aim to prioritize on employee empowerment, improving their operational efficiency is also one a key part of their corporate strategies followed by aiming for growth in their international business. Lastly they aim to insert an aspect of corporate social responsibility by keeping in mind unique contributions for the community. As far as their strategic controls are concerned their approach to managing their efforts to track down their strategy is quiet a traditional one. It is their management which is primarily responsible for the formulation of strategies, assigning goals, implementation of strategies, tracking the success of these by matching them to their predetermined goals. This is done in my forms however their strategic thrusts rely heavily on feedback which they receive. The most effective feedback is by the numbers which are generated by each store. These are then forwarded to the headquarters by the use of the vast digital network. In 2007 Wal-Mart was labeled one of the most competitive and innovative companies in the world (Plambeck, 2007). Their ability to be innovative is critical for them being able to achieve sustainability through measures that positively impact and reduce strain on the environment. This they do by three ambitious goals: incorporating as much of renewable energy as they can as part of their operations, minimizing the creation of waste and continuously striving to sell products which lead to sustaining their resources as well as the environment. Problem definition and Analysis As far as innovation is concerned an analysis of the activities and measures taken by Wal-Mart focus on incorporating a culture which aids the organization through making efficient use of a learning culture. This can be seen in the extensive measures taken by Wal-Mart to facilitate learning of the employees and introducing frequent training sessions. From the instance an employee starts working at Wal-Mart they undergo a extensive customer service training, they also undertake on the job training and ongoing formal training as far as responsibilities of the work are concerned. Analysis suggests that initially it was customer service and the ten foot rule applied to the workforce which served as driving forces for Wal-Mart’s innovative culture. Suggestions, feedback and communication with the employees were valued and some of their suggestions were even adopted through out each of the company stores. This led to employee empowerment at all levels. Their innovation as far as promoting a strong culture and building a effective workforce can also be reflected by how appreciated their My Education Connection service was set up for the employees. This aimed to give the employees academic learning opportunities and led to special pricing that was passed on to associates. Furthermore their diversification programs, through the utilization of internships served as another innovative asset as far as building a strong workforce, strengthening their ranks and roping in talent was concerned. Other highlighted aspects of their innovative measures can be evaluated by looking at Wal-Mart’s continuous measure of evolving the distributions channels. Their adoption of the RFID, Radio Frequency Identification, and technology aids them in tracking of shipments at all times. This enables them to stay competitive and gives them an edge as far as being able to more efficiently deliver products to their customers is concerned. It also enables them to track shipments as soon as it leaves the manufacturer, keep an eye on it when its in their distribution channel and as it moves onto the store, and finally off of the shelf to the customer. The overall impact of the effective use of this innovation allows them to save the company million in operational costs (Williams, 2004). In addition to this innovation, Wal-Mart’s commitment as far as the environment is concerned is another process which they have implemented. Their approach towards the implementation of this innovation process is through their “Sustainable Value Networks”. Through the use of this renewable energy, reducing waste and sustainable products are all aspects which are monitored and altered to benefit the company, the environment as well as the consumer. As far as the strategic controls adopted by Wal-Mart are concerned their approach encompasses premise, implementation, and strategic as well as special alert control. The decisions monitored and the controls put into place as well as the formulation of strategies are based on several elements. One of these is based on the information collection by the use of an investment center where profits from each store are evaluated and compared to inventory investments. A thorough analysis of store level date regarding sales and expenses, profit and losses is done and then based on this system Wal-Mart basis its critical decisions on a daily basis. Their strategies are also adjusted and updated accordingly. This implies that to a great extent Wal-Mart operates by using a contemporary approach because of each of the four control strategies that are realized and acted upon on a regular basis. This is a recent undertaking and the process was not as simple before the implementation of computers, as Wal-Mart used ledgers as a tool to track their data then. This principle which allows store managers to strategically control and monitor strategies within their own capacity, by making use of forecasting is something that was instilled in them. By allowing managers to be innovative and come up with practices which could be emulated into all the stores led to the development of new strategies and innovations for Wal-Mart. This creative process initiated by Walton is responsible for the creation of Wal-Mart’s flexible culture. Suggestions There are some suggestions which Wal-Mart could incorporate in their current undertakings and strategies in order to remain competitive in the market. The first of these is regarding strategic controls. Wal-Mart should set up a program which falls under their human resource department and monitors the strategic controls regarding the social problems which are rising from associates from the store level to make sure that the employee concerns are kept in mind and addressed correctly at the corporate level. Furthermore keeping in mind the number of lawsuits Wal-Mart has faced as far as unjust employee treatment and poor benefit packages are concerned the strategic controls should focus on incorporating in their strategy resolutions to ensure that all these concerns are addressed. By implanting controls which monitor and track the overall satisfaction of the workforce Wal-Mart can take measure to keep a value database of information in order to see how successful their strategies addressing these issues are. By employing a system which also monitors and keeps track of international markets, Wal-Mart can identify various trends and customer preferences in various markets before launching new ventures and corporate buyouts. Their strategic controls should focus on evaluating and monitoring their strategies as far as international markets are concerned. Their future sustaining their desired growth pattern is no doubt going to lie in the international markets. However their inability to pick out the right markets to enter and to understand foreign customer preferences leaves a need to implement and stress on strategic controls as well as research and innovation as far as adaptation to foreign tastes and consumer preferences is concerned. References Plambeck, Erica. “The Greening of Wal-Mart’s Supply Chain,” Supply Chain Management Review, July 1, 2007. http://www.scmr.com/article/CA6457969.html Wal-Mart. “Sams Rules For Business Building.” Retrieved from walmartstores.com Web site: http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=255 Williams, David. “The Strategic Implications of Wal-Mart’s RFID Mandate.” (2004). Web. Retrieved from: http://www.directionsmag.com/articles/the-strategic-implications-of-wal-marts-rfid-mandate/123667 Read More