An assessment of Walmart’s Performance

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BUS499 Business Administration Capstone

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An assessment of Walmart’s Performance

Introduction

Walmart is a multinational retail corporation with a chain of hyper supermarkets, discount department stores, and grocery stores globally. The focus of this paper is to determine the firm’s current performance and how it has applied various resources and strategies to maintain excellent performance. Globalization and technology have been discussed to explain the impact they have on the organization’s performance. Performance models have been used to describe how the company can use them to improve the performance .the vision and mission statement of Walmart are also looked into to determine their contribution to the overall performance of the organization.

Globalization

Walmart is a global retail company with more than 3200 stores in Europe, the United States of America, North America, and Asia. The expansion of Walmart into international markets has had various impacts on the international competition as well as and economy. Competition in the international scene is at a much higher level compared to local competition, Walmart has therefore devised the best marketing strategy possible to gain a higher market share (Hitt,  Ireland,  Hoskisson, 2016). For instance, the company has developed customized strategies to best suit particular nations or regions. Therefore, an approach used in Europe may be different from the one used in Asian countries. The economic impact of Walmart in the global market is significant. The effect is felt when Walmart opens a store in a location. The Walmart stores then gain more popularity in the area forcing small retailers out of business and a reduction in wages for their employees as well.

Technology

Technology is one of the significant drivers of business operations in the market today. Walmart has not been left behind as it uses technology to improve efficiency in services as well as enhancing employees’ working environment. This has, in turn, proven beneficial to the organization as the company experiences a reduction in turnover and operational costs. The company has incorporated apps and other technological tools in their operations, some of which have proven more effective than others. For instance, the use of robots in restocking shelves, locating and returning misplaced orders, and tracking inventory levels is one effective way that the firm has applied technology. The use of automation in unloading trucks and sorting inventory has made operations more effective and fast. Walmart has also installed various apps; one of them is an app that allows customers to make returns. Technology is a useful tool that ensures a corporation remains relevant in the market (Hitt, Ireland, Hoskisson, 2016). This explains why the firm has developed and incorporated several technological tools to improve its performance and efficiency in operations.

Industrial Organization Model

The industrial organization model is based on the idea that the external environment in which a company operates has the power to influence the strategies of the firm. According to this model, the industry in which a company operates influences the overall performance of organizations. This model emphasizes the impact of the external environment on an organization. Walmart should, therefore, take into account the context to make appropriate strategies. The environment, in this case, includes aspects such as technological trends, competitors, political stability, among others, which can affect the operations of the firm.

Resource-Based Model

The resource-based theory illustrates how a company can use strategic resources and capabilities to improve its performance. Strategic resources are different from ordinary resources such as cash and capital. Regular resources can easily be acquired through daily business operations, unlike strategic resources that may be protected legally, making it difficult for competitors to imitate. Walmart can, therefore, rely on these resources to which will help them become more competitive in the market. For instance, the company can use patents, trademarks, and copyrights to secure specific resources that are unique to the company. By doing so, other firms in the market cannot imitate their ideas and strategies (Sanzo-Perez,  Álvarez-González, Rey-García, 2015). The company can achieve this by bundling a couple of strategies into one overall strategy hence making it difficult for competitors to copy.

Vision

A vision statement is a declaration by an organization of the overall goal it would like to achieve in the long run. It forms the focal point from which all the organization strategies are formulated. Organizations must develop a good vision statement that captures their goal. Walmart’s vision statement is to ‘Be the destination for customers to save money, no matter how they want to shop.’ The vision is a reflection of the company’s strategies that are tailored towards saving customers money while they shop. The vision sets the compotation apart from its competitors by providing a unique identity in which customers can identify with. This explains why Walmart is known for its low-cost prices in comparison to other retail stores globally.

Mission

Walmart’s mission statement is ‘to save people money so they can live better.’ This mission statement is vital as it aids all the decisions made by the company. The statement is a promise to customers who expect to buy goods at a lower rate when they visit their stores (Hitt, Ireland, Hoskisson, 2016). The low-cost pricing strategy arises from the mission statement. Any plan that the company implements should bear in mind the overall mission statement of the firm to ensure consistency in delivering its promise to the customers. Walmart’s marketing mix is, therefore, a combination of strategies that are aimed at saving money for its customers.

Stakeholders

Stakeholders influence how a firm operates. The main stakeholders include customers, employees, and business partners. Customers control the decision made by the organization since their satisfaction is vital in the performance of the organization. Walmart, therefore, should developed strategies that ensure the optimal satisfaction of its customers. Employee motivation is the key to improving a company’s performance. Walmart can achieve this by treating its employees as valuable assets and involving them in decision making. Partnerships have become common in recent years to ensure competitiveness in the market. Walmart is a retail corporation, has collaborated with many suppliers to ensure that its stores run uninterrupted (McIntyre, Srinivasan, 2017). Walmart should consequently maintain good relations with its business partners to ensure success in their operation.

References

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and Cases: Competitiveness and globalization. Cengage Learning.

McIntyre, D. P., & Srinivasan, A. (2017). Networks, platforms, and strategy: Emerging views         and next steps. Strategic Management Journal, 38(1), 141-160.

https://doi.org/10.1002/smj.2596

Sanzo-Perez, M. J., Álvarez-González, L. I., & Rey-García, M. (2015). How to encourage social   innovations: a resource-based approach. The Service Industries Journal, 35(7-8), 430-     447.

https://doi.org/10.1080/02642069.2015.1015517