Board Summary of Walmart Management
1. Summarize in a 2-3 page response an essay that combines and addresses the various items that you researched in the previous discussion boards.
2. Prepare an additional 1 paragraph response, as to what you found to be the most interesting facts you discovered.
Document all sources in text and in a works cited.
These are the items I researched about Walmart
1. Explain how the dimensions of the general environment impact Walamrt, examples within each of the six areas: international, technological, sociocultural, economic, natural, and legal-political.
2. Walmart global operations. Where do they operate? What is the scope of their operations abroad? developing a training program to acclimate a US based manager for a position in one of the locations outside the United States, where the company operates. What types of items would you consider? Be specific regarding language, religion, cultural norms, business practices and other key considerations you can identify. https://www.hofstede-insights.com/country-comparison. In a full paragraph response provide a comparison of the United States and Walmart, along the various dimensions of Hofstede's cultural dimensions. You need to reference specific numerical values. For example: Power Distance 34. Note: You can enter multiple countries and compare them on the website. Put the United States in and compare it to your chosen country.
3. Walmart commitment to Social Responsibility. What initiatives (Programs) are evident based on researching Walmart’s commitment to the various stakeholders?
4. Please research Walmart’s mission, vision and value statements. They could have different names for these statements depending on the company. Be sure to provide the statements in their entirety, along with an explanation as to what these statements say about the companies commitment to their stakeholders. Explain how top managers use these statements to develop the corporate strategy.
5. Assume you are organizing the structure of your particular company. Consider a functional approach. First, determine the functional areas, that would be relevant to Walmart. Second , draw the chart. Third, explain the rationale for your chart design. Show multiple management levels. Do not include names of actual people in positions. Consider a divisional structure. Remember a divisional approach can be based on many types of departmentalization. First , consider geographic segments, product segments, customer type considerations. Second, draw the chart. Third, explain the rationale for your chart design. Do not include names of actual people in positions.
Sample Solution
Impact of the General Environment on Walmart
The general environment encompasses broad societal trends and forces that can significantly influence an organization like Walmart. Here's how each of the six dimensions can impact Walmart, with specific examples:
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International: This dimension involves factors related to global events, cross-border trade, and the political and economic situations in other countries.
- Impact: Walmart's global sourcing and international operations are directly affected by international trade agreements (e.g., tariffs, quotas), political stability in supplier countries, currency exchange rates, and global supply chain disruptions (e.g., geopolitical conflicts, pandemics).
Full Answer Section
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- Example: Increased tariffs on goods imported from China could raise Walmart's cost of goods sold, potentially impacting pricing for consumers. Political instability in a key sourcing region could disrupt Walmart's supply chain and lead to inventory shortages.
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Technological: This dimension includes advancements in technology, automation, and information systems.
- Impact: Walmart must continuously adapt to new technologies to improve efficiency, enhance customer experience, and manage its vast operations. This includes e-commerce platforms, AI-powered inventory management, self-checkout systems, and data analytics for understanding consumer behavior.
- Example: The rise of e-commerce and online grocery delivery services necessitates Walmart investing heavily in its online platforms and delivery infrastructure to compete with companies like Amazon. AI-powered inventory management systems help Walmart optimize stock levels, reduce waste, and ensure product availability.
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Sociocultural: This dimension encompasses the values, beliefs, attitudes, demographic trends, and lifestyles of a society.
- Impact: Walmart's product offerings, marketing strategies, and store formats need to align with the cultural norms and preferences of the communities it serves. Changing demographics (e.g., aging population, increasing diversity) also influence consumer needs.
- Example: In markets with a strong emphasis on fresh, locally sourced produce, Walmart has adapted its sourcing strategies and store layouts to feature these items prominently. Growing health consciousness among consumers has led Walmart to expand its organic and healthy food options.
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Economic: This dimension includes factors like inflation, interest rates, economic growth, unemployment rates, and consumer income.
- Impact: Economic conditions directly affect consumer spending power and their willingness to purchase goods. During economic downturns, Walmart's focus on value and affordability can be a strength, while during periods of high inflation, it faces pressure to manage costs and pricing.
- Example: During a recession, consumers may trade down to more affordable private-label brands sold at Walmart, increasing their market share. Rising inflation can increase Walmart's operating costs (e.g., transportation, labor) and potentially lead to higher prices for consumers.
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Natural: This dimension involves environmental concerns, resource availability, and sustainability issues.
- Impact: Growing environmental awareness puts pressure on companies like Walmart to adopt sustainable practices in sourcing, packaging, and operations. Natural disasters can also disrupt supply chains and impact store operations.
- Example: Walmart's initiatives to reduce plastic packaging, source sustainable products (e.g., sustainably harvested seafood), and invest in renewable energy demonstrate its response to environmental concerns. A major hurricane in a coastal region could temporarily close Walmart stores and disrupt the supply of goods to affected areas.
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Legal-Political: This dimension includes laws, regulations, government policies, and political stability.
- Impact: Walmart must comply with a wide range of laws and regulations related to labor, safety, environmental protection, and consumer protection in each market where it operates. Changes in government policies (e.g., minimum wage laws, trade regulations) can significantly impact its business.
- Example: Increases in the minimum wage in certain states or countries can raise Walmart's labor costs. New regulations regarding the labeling of food products require Walmart to update its packaging and ensure compliance.
2. Walmart Global Operations and Manager Training Program
Walmart's Global Operations:
Walmart operates in numerous countries across the globe. While the exact list can fluctuate, as of my last update, their major international markets include:
- North America: Canada, Mexico
- Central and South America: Brazil, Argentina, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Peru
- Africa: South Africa
- Asia: China, India (primarily e-commerce through Flipkart), Japan (through a stake in Seiyu), Philippines
- Europe: United Kingdom (Asda, though ownership has changed), and historically had a presence in other European markets.