Walmart’s Business Organization

Walmart’s Business Organization

                                                                    Introduction

Walmart’s business is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores across the globe. The Company headquarter is located at Bentonville, Arkansas, in the United States. Walmart has been successful in the industry based on its continuous expansion and the increased revenue of the Company. The research paper will focus on the Company’s business organization. The paper will focus on various elements of the organization. These elements are the Company’s history, mission, vision, values, and strategy. Also, SWOT analysis, the importance of adequate staffing, the current selection process, an overview of the competition of selection process, recruitment plan both internal and external employed by the organization. Besides, the research paper will also recommend new selection programs and training programs that the organization should operate. Lastly, the retention plan will be explored, and the conclusion where the main ideas discussed in the paper will be summarized.

Company’s History, Mission, Vision, and Values of the Organization

The Company was started in 1950 by a businessman, Sam Walton, who purchased a store from Luther E. Harrison in Bentonville, Arkansas, and open Walton’s five and ten (Loken, Benton & Erickson, 2018). The stores grew and expanded, leading to the founding of the Walmart chain in 1962, which had a single store in Rogers from where it expanded outside Arkansas by 1968. From 1968 the store started developing throughout the rest of the Southern United States by the 980s, where the store started operating in every State in the country. The Company established its first store in Canada in 1995 (Loken, Benton & Erickson, 2018). The global expansion of the Walmart store was catalyzed by the move to construct a new store and acquisition of Mohr-value and Kuhn’s Big K chains. From there, the country started starting new stores in various countries across the world.

The mission of the Company is “to save people money so they can live better,” where the Company sells its products at an affordable price for many people to afford. In full-filling, the mission, the Company sell their products at meager prices compared to other businesses (Ferguson, 2020). It is cheaper for the customer to buy products from Walmart’s stores in comparison to the similar high-end stores from the competitors. On the other hand, the Company’s vision statement is “To be the destination for customers to save money, no matter how they want to shop.”  The new Company’s vision was articulated officially during the 2017 investment community meetings (Ferguson, 2020). The previous vision statement was, “To be the best retailer in the hearts and minds of consumers and employees.” The Company decided to change the vision statement to reflect the strategic modifications by the firm aimed at implementing the competitive landscape and overall condition of the retail industry. Walmart has four values, followed and maintained by all the stores across the globe. These values are: service to the customer, respect for the individual, strive for excellence, and act with Integrity (Meeks & Chen, 2011). The values guide the Company’s employees and staff in the business to ensure they are not working against the business values.

Company Strategies

Walmart uses both generic and competitive strategies and intensive growth strategies. The generic approach is where the business employ measure to help in increasing the competitive advantages in the industry. The standard used in this strategy is selling the products to consumers at low prices compared to other retailers in the same sector (Smith & Crawford, 2019). The approach is employed across all the stores where the business increases its competitive advantage by making its products more affordable to the consumers. The affordability of Walmart’s predict across the stores in various countries has offered stiff competition to other businesses that offer high prices of their products. The Company deals with a broad range of products where the low pricing strategy is applied in each item.  The Company operates stores in various countries that have made it convenient for customers to buy from the business. Also, quality is not an issue with the Walmart product, making them more attractive to the customer (Smith & Crawford, 2019). To complete the three things that attract the millennial in the business, the Company introduced the pricing strategy, which has played crucial roles in increasing competitive business advantages.

The second strategy is generic, which is applied in the business to minimize the cost of doing the business. For the Company to reduce the prices it offered for its products, it employed the generic strategy to help in the reduction of the cost of running the business (Smith & Crawford, 2019). The cost is reduced by reducing wastage in terms of high allowances and other wastage incurred by the HR department and other structures, enabling the business to reduce the price for their commodities. Operating online stores has helped the Company in reducing the cost involved in the physical location of stores as the number of employees tasked with the operation of the business as most of the things are done online. Walmart has employed technology much in the provision of the services to the customers, saving some of the costs that could be incurred in the manual operations in the business (Smith & Crawford, 2019). The price saved through these technological innovations is affected by the pricing of the products.

SWOT Analysis

The SWOT analysis of Walmart Inc. places the Company as one of the leading international retailer business in the industry. The positioning of the business is attributed to its strengths and opportunities the firm has identified and utilized, thus increasing its competitive advantages in the sector (Martínez, Galván & Alam, 2017). The first item of the tool is the strength where the business has taken advantage of its strength, such as global organization size the Company enjoys due to the multiple stores the firm operates across the country.

The other strengths are the global supply chain and the high efficiency of the supply chain that have attracted vast customers, increasing the sales that have contributed to the success of the business (Martínez, Galván & Alam, 2017). On the weakness, the business face issues such as a thin profit margin due to the low prices offered on the products as it has implemented a low pricing strategy in the business operation. Secondly, the business model is easily copied by the competitors due to the lack of significant competitive differentiators to address the issue. Also, another weakness is the competitive disadvantage against high-end specialty sellers who have more advantages in attracting quality-seeking buyers who have low sensitivity to price (Martínez, Galván & Alam, 2017). The weaknesses outline how the business is vulnerable to innovative competitors and disruptions in the industry, affecting the growth of the Company.

Another item of the analysis is the opportunity where Walmart enjoys some benefits that have allowed the business to grow and expand. One of the changes is the expansion in developing countries where the high-end economic condition enables the industry to open more stores in the developing countries. Secondly, the Company has the opportunity of improving human resources to increase business competitiveness in the labor market (David, Creek & David, 2019). Walmart has the possibility of enhancing human resource practices to address global critics on the firm human resource practice. The improvement will help in attracting more customers to the business.

The next opportunity is quality improvement, where the move aimed at addressing the various issues with the consumers on the quality of the products. Lastly, Walmart faces threats that change the consumers’ perceptions who leave the business to the other competing businesses. The first threat is a healthy lifestyle trend where most of the Company’s product is perceived to be not healthful and inorganic, scaring customers from the store (David, Creek & David, 2019). The second threat is stiff competition from other retailers who use all manners of strategies to compete with Walmart. Lastly, the number of online retailers of varied sizes offering the same products have increased, leading to stiff competition to Walmart.

Importance of Effective Staffing

Staffing is a crucial part of the organization that influences the productivity and success of the business. Staffing is the process of hiring candidates in the organization for specific vacancies. Sufficient staffing is where an organization employs the right and enough employees consistently and in the right position in the organizational functions where their skills and competencies suit those positions they are working (Sohal, 2018). One advantage of adequate staffing is the efficient performance of various tasks in the organization. Effective staffing ensures the staff hired are competent in those areas, helping ineffective performances as the employee have the capacity and capabilities to deliver the best as they are well qualified. The second advantage is the effective use of various facilities in the organization where putting employees in the right position in various departments of the organization, making it possible for them to operate multiple facilities and equipment in the organization. With technological advancement, there are numerous technologies and facilities developed to make work more manageable in the organization (Sohal, 2018). The competencies and skills the employees make it useful for them to use various facilities within the organization, thus reducing the cases of equipment and facilities destruction and breakdown due to poor handling, resulting from the lack of skills or competencies.

The next advantage is the proper utilization of human resources in the organization where effective staffing help in putting into consideration various factors that could make the process of hiring, selection, recruitment, training, and development of employees (Sohal, 2018). Putting in place an effective method helps in the proper utilization of human resources where employees are employed as per the needs and requirements of the organization. There are various types of skills required in the organization where adequate staffing helping in choosing and selecting the employees based on the needs and requirements of specific positions, reducing the cases of high wage bills that are avoidable if the right skills were hired. Also, effective staffing put in place various measures and strategies to help in the motivation of human resources, which ensure that workforces in the organization g motivated through both financial and non-financial incentives, which encourage them to work and deliver their services effectively (Sohal, 2018). Additionally, practical staffing help in the building of higher morale as it creates a climate and enabling environment which contributes to the achievement of the goals and objectives of the organization.

Recruitment Plan (Internal and External)

Walmart Company uses different methods of internal recruitment to help address the organization’s needs and objectives. The first internal process is the use of current employees in senior positions, such as supervisors and managers (Thompson, 2020). The Company promotes the existing employees to the top ranks as they have the knowledge and necessary information about organizational functioning, making it easy for them to adapt to the high-level operation of the business. The next internal recruitment is the use of job trainees who work mostly as sales and marketing personnel in the business. These trainees working in the Company are occasionally absorbed in the store where they work as permanent employees in various fields. Besides, the transfer is another form of internal recruitment by the Company, where employees are transferred from one position to the other (Thompson, 2020). With various departments in the Company, it is a norm for employees to be moved from multiple areas in the business where they are transferred to help in meeting particular objectives in the market or bring in some changes.

For the external recruitment process, Walmart uses various approaches to recruit the required number of employees. The first approach is respondents to the job advertisement. As it is the case with other businesses where they advertise for jobs when vacancies arise in the market, Walmart uses the same strategy where they use various platforms such as social media, newspapers among others, to promote for multiple positions in the organization (Thompson, 2020). Secondly, the Company uses a campus approach to recruit employees into the business where Walmart entered an agreement with American Public University (APU) to give academic credits to the Company’s employees based on period employment and performance reviews. The approach helps in promoting the university and also improving the Walmart’s human resource ability to reach to the student in the university who are willing and interested to work in the Company, thus increasing the Company reach to the labor market (Thompson, 2020). Lastly, the previous applicant who had applied for the previous jobs advertised by the Company were not shortlisted for various reasons are considered in future opportunities. These previous applicants were evaluated and met the qualification thresholds but were not employed by the Company are given priority in future employments.

Current Selection Process

Walmart uses selection criteria that are dependent on the job position where the Company considers some qualities such as education and training background of the candidates. Besides ensuring the company hire and recruit candidates who are honest and credible, the company check on the previous criminal records of the candidates (Thompson, 2020). In hourly sales positions arising in the organization, Walmart uses a knowledge retention approach in the selection where candidates are hired based on the product details know-how and other interpersonal skills possessed by the candidates (Thompson, 2020). The interpersonal skills criteria used by the organization help in the recruiting of the candidate will have practical communication skills as such personnel deal with the customers directly in the field.

Another selection criterion used by Walmart’s HR is analytical and problem-solving abilities and conflict management skills required in the supervisory and managerial positions in the organization (Thompson, 2020). These recruitment criteria are employed as the candidates are expected to analyze and solve issues in the organization and help in addressing various conflicting problems in the organization. Structured interviews and job valuations methods are also used during the selection process. The interview method is used to help in determining the applicant’s details, such as their perspectives and expectation, to ensure they are in alignment with the Walmart visions and missions (Thompson, 2020). Personality tests and situational judgment tests are used for most of the positions in the organization to help in deciding whether the applicant can function and operates as per the culture and nature of the business.

New Selection Program Recommendations

The Company should use the selection process that is not only based on the academic qualification but also passion and skills possessed by the individuals. Passion will enable the employees to love and dedicate their efforts in delivering capabilities in the firm in various capacities. The method will ensure the company hire and get employees who are passion oriented and not money-oriented where they are taking the job because they want to earn a living. The next method that the firm should employ is considering the experience of the employees in a related filed where the Company should select employees based on what they have achieved in various areas. In this approach, the Company should choose the employees who have positive records and achievements of the employees in multiple fields that are related to the business functions. The Company should employ these new selection methods to raise the quality of the employees the Company will select who is more passionate about the business to help in achieving the Company’s objectives.

Training Recommendations

Walmart is a multinational company with stores across various parts of the country. The Company should establish some of the stores that make more sales and learn the various skills employed by the HR department in those areas and engage them as the training basic that to employ across the board (Cocuľová, 2017). The organization should employ technology-based learning methods such as the use of teleconferencing where the employees are taught similar skills from the firm’s main headquarter where the training program is developed to ensure the same skills are passed to all people across the board. The training program will ensure best and persuasive skills are given to all employees in all stores for consistent success in the company business. The method will save the company cost that could be incurred while hiring personnel in countries to train their employees (Cocuľová, 2017). The next training method is instructor-led classroom training, where most qualified employees in a particular area, more also the senior management where classroom experience is prepared and presented to the other employees to help them improve on such fields. The presentation with the lectures is then given to the trainees who are equipped with such experiences to help them improve on their skills and competencies.

Retention Plan

Walmart Company employs different retention program to ensure its employees in the business and is not quickly poached by the competing market. To retain the employees in the industry require the use of methods that will make the employees feel part of the Company and value them where they cannot quickly move to the competing business (Weinstein, M. D. (2019). One of the methods is financial recognition, where employees are given economic benefits such as monetary increments and bonuses on top of their annual pay to motivate them and make them feel valued by the business.

The other method involves the promotion of the employees from junior to senior position where they are more benefits compared to the junior ranks in the business. Through the current recruitment approach used in the internal wiring of the employees required for the senior position in the Company, employees in the junior area are prioritized in occupying the vacant top and managerial position in the firm. Also, the absorption of the trainees in the Company as part of the employees is one of the approaches used in the retention of the employees (Weinstein, M. D. (2019). By giving academic credits to students from the American Public University (APU), which provides the Company with an added advantage of recruiting and retaining students from the institution who are interested in working with the business.

Conclusion

The research paper has addressed various elements about the Walmart Company. The first part in on the history, mission, vision, and values set by the Company to guide its business operation. The benefits discussed include service to the customers, respect for the individuals, and strive for excellence and the act of integrity, values that should be embraced by all people across the Company. The next part involves the strategies employed by the Company to increase its competitiveness. Some of the procedures are generic and pricing used by the Company. The research paper has also conducted a SWOT analysis for the business that establishes the business position in a competitive environment. The effectiveness of staff and how it’s essential to the organization has been explored. Additionally, recruitment, plan selection, and retention methods employed by Walmart Company have been explored where there are various methods used on the same to help the Company address the human resources requirements. Besides, the research paper has recommended some of the selection and recruitment methods should be used to meet the demand of employees in the organization.

References

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Thompson, A. (2020). Walmart’s HRM: Recruitment, Selection, Employee Retention – Panmure Institute. Retrieved 11 February 2020, from http://panmore.com/walmart-human-resource-management-recruitment-selection-employee-retention

Weinstein, M. D. (2019). Prestigious Walmart Scholars Programs Picks Local Student and Alumna.