MGT604 Assignment Report

Assessment Task

Individually, you are required to:

• Monitor news and online sources of opinion to identify three (3) separate strategic influences that together impact on the outcomes of an organization of your choice
• Discuss how the practice of strategy categories these strategic influences and identify the    implications for the organization in question
• Identify a strategic course of action to address these circumstances

Please refer to the Task Instructions for details on how to complete this task.

Context

The assessment of this subject supports students in developing their skills and knowledge in the foundational management topics that include external environmental assessment, problem diagnosis, strategy development, and the consideration of cultural and ethical contexts. Effective strategic management is designed to proactively respond to changes in technology, external environment, and market tastes. A contemporary understanding of the dynamic forces shaping strategic choices is essential for the successful execution and delivery of strategy.

Instructions and Deliverables

1. Over the duration of the course, you are to monitor news and online sources of opinion to identify three (3) separate strategic influences that together impact on the outcomes of an organisation of your choice. These influential factors may be local, national, or international in nature, but they must represent a changing or evolving story. For example, advances in battery technology, stricter emission controls, and a general move towards sustainable energy has resulted in General Motors (and indeed almost all car manufacturers) actively marketing electric or hybrid models for release in coming years.
Note this example is not to be used in your submission.

2. You are to discuss how the practice of strategy categorises these strategic influences and identify the implications for the organization in question.

3. Drawing upon your understanding of theories, models and frameworks discussed in class, you are to identify a strategic course of action to address these circumstances (by either capitalizing on positive influences or minimising the impact of negative influence) in a way that will result in long-term benefit to the organization. This should include a statement of the firm’s revised goals as a result of this change in strategy.

Solution

Introduction

Walmart is the largest retailer in the United States, earning roughly US$572.8 billion annually from its many outlets (including department stores, supermarkets, and so on). The corporation runs some of the largest retail outlets in the world and provides services via an online marketplace (About Walmart, 2022).
Through its website, Walmart has started providing online services to customers. On the other hand, at the time, customers could order products online and pick them up in store (Indigo digital (2022).

The company has adopted strategic planning in response to the altering market circumstances and technological advancement in order to fortify their supply chain and start selling their products through various online platforms. MBA Assignment Expert Walmart's operations and bottom line are sensitive to shifts in consumer tastes and technology developments. If the company entered the e-commerce sector with efficient supply chain management, it might help its customers live better for less money.

Aim:

The purpose of the study is to comprehend strategic management and organisational core competencies that support the company's adoption of various strategies to get a competitive edge 4in the market. Walmart has several rivals on a worldwide scale, including Costco, Kroger, and Amazon, therefore the planning and tactics they have created will help Walmart increase its profits in the next years. Report will make it easier to comprehend the dangers that Walmart faces as it enters the world of online shopping. Despite the difficulties they experienced, Walmart will be able to overcome them via careful strategic planning and execution.

Discussion

Analysis for Addressing Key Deliverables

Since Walmart is the biggest retail hypermarket, it has chosen the low-cost leadership approach and offers its products at the lowest possible prices, regardless of the size of the shop. The business operates physical and virtual stores, selling a wide variety of brands. As a result of intense competition in the market, the firm uses a number of tactics to guarantee that it can meet the needs of its clients at an affordable price while still turning a profit (Tanwar, 2013). 
The firm runs a greater risk of being left behind by the market and its clients since its goods and services are not very novel. As a result, the firm has implemented these policies to ensure the highest quality of service for its clientele by using cutting-edge supply chain management technology (NNE D’INNOCENZIO, 2021). The organisation offers a low-priced approach by using efficient and cost-effective procurement strategies in supply chain management. The company's success depends on its ability to keep its suppliers happy so that it may continue to meet its consumers' needs promptly (Steve Banker, 2022).

As a result, the firm has been able to boost output while also cutting costs thanks to the use of more sophisticated electronic systems across the supply chain. As a result, Walmart has used several techniques in an effort to fulfil its stated goals and stay competitive in the face of industry shifts.

Three Strategic Influence

Daily cheap pricing strategy: The firm has implemented a policy of "daily cheap pricing" in all of its locations throughout the nation, offering clients a wide selection of necessities at much lower prices than those offered by competitors. Given the decline in market share over the previous few years, the firm has cut down on the number of its suppliers while maintaining the few that are essential to continuing to provide a quality product and service to its clientele (Sammut-Bonnici & Channon, 2014). This aids the firm by cutting costs to a manageable level, which in turn generates profit. The corporation is changing to integrated marketing from conventional marketing in order to retain clients and implement a technology advertising campaign, and it has chosen measures to preserve the advertisement expenditures (Li et al., 2016).

Focus on limiting the products: As per the external market situation and the competition using Potter's five-dimensional model. For this reason, Walmart have decreased the number of items we provide to consumers and the number of vendors. In addition, Walmart initiates acquisition with third-parties and extends invitations to sell through Walmart (Tanwar, 2013). As a result, the firm will be able to increase its market share and get an edge over its rivals throughout the nation.
Focus on in store experience: The organisation has a plan in place to improve consumers' in-store experiences, and they also care about how they feel about the company's online service. To improve their online shopping experience, the firm has started using environmentally friendly packaging. Since the firm implemented these revolutionary changes in its supply chain management, customers can expect their orders to be fulfilled more rapidly and they will get superior service (Rich Lehrfeld, 2022).

Strategic Impact

As a result of both internal and external factors, the company has developed initiatives to enhance customer satisfaction, successfully compete in the market advantage, and innovate across all product categories in the country. The elements that impact the organization's ability to implement new plans are Pricing, product range, distribution channels, and consumer convenience all play a role in determining how the firm approaches its business decisions (Burbach, 2021). 
Due to these circumstances, the corporation has implemented new policies and procedures, including a new pricing strategy that involves lowering product prices. As an additional step toward a more streamlined business process and a more satisfying customer experience, you should work to enhance the performance of the supply chain (Pandey et al., 2021).

Strategic Course of Action
 

Figure 1: Strategic business model

Walmart must adopt a certain tactical approach if it hopes to improve its results inside the retail industry and win over the public's hearts and minds. Walmart's low-price strategy is intended to help consumers save money, which is consistent with their stated goal. The goal of strategic management in business is to identify and capitalise on possibilities in the current market while also positioning the company for future success (Spieth, et al., 2014). Walmart should adopt a focus approach in which it zeroes in on a certain area or locale, and then works to outperform rivals by providing superior service to its target demographic (Zott & Amit,  2013).

Maintaining the organization's transformation calls for a cost-efficient plan that is both well-executed and successful. The online shop's primary goal should be to boost revenue by increasing the variety of goods and services it offers. The company has to implement the proper shareholder management plan and adhere to all regulations concerning environmental scanning and awareness (Saebi & Foss, 2015). 

Differentiation of products via technological incorporation and the pursuit of client delight should be a central focus. Wal-Mart’s HR leadership has to take smart action while minimising potential negative outcomes (Weinstein et al., 2021). According to Weinstein et al., (2013), a company's top priority should be to boost its human operations by identifying and nurturing its employees' unique skills and abilities through a combination of a competitive salary, additional compensation in the form of bonuses and other incentives, and other forms of recognition. The strategy's fundamental goal should be preserving the motto "saving money while improving people's lives.

Statement of The Strategic Goals

Walmart's business model is predicated on offering cheap pricing all the time, which helps customers save money and raises their living standards. Walmart is able to get an edge over its competitors and win consumers' favour due to the high quality of its products and services. Walmart's strategic objectives may be included via the development of a competitive advantage and the implementation of a cost leadership plan. According to Nuseir and Madanat (2017), Walmart's primary goal is to ensure that its consumers are satisfied, hence the company should place a premium on developing innovative new items by adapting its conventional offerings and using its employees' wide range of expertise. Walmart should monitor all strategic activities all the way through from strategy formulation to assessment (Smith & Crawford, 2017).
 

Figure 2: Managing business

The company should encourage its customers to communicate with the company's management so that the consumers may provide feedback and have input into the company's strategic decisions. With the help of more advanced technical tools, the company may improve the efficiency of its operations by strengthening its incoming logistics and stock management. Walmart has to find a productive and effective middle ground between sales and advertising through social media if it wants to reach a wide audience. As a bonus, this would also improve the brand's interaction with the company and its constituents (Wheelen et al., 2017). It is necessary, say Hunger, 2020 to invest in the company's internal infrastructure in order to adapt to the new environment and the new strategic approach. Walmart has to improve its ability to anticipate consumer needs by investing more in technology-based operations, supply chain optimization, and effective human resource management.

Conclusion

At the end of the day, it's safe to say that Walmart is a well-known retail hypermarket that offers its clients affordable prices on high-quality goods because of the intense rivalry amongst businesses in the sector. As a result, the corporation has implemented strategic management in order to better deal with the increased risk associated with its operations. Supply chain management in the nation has been enhanced by the corporation to boost e-commerce business operations and the overall consumer experience. To keep prospective clients and gain an edge over other businesses, the corporation has also reduced product prices.
The full range of potential dangers and opportunities facing walmart position are now out in the open. In the retail industry as a whole, the rate of change is highest in the technology and home goods subsectors. The effects of strategic choices may take a little longer to materialize, making this a particularly challenging time for industries that held back on inventory. Companies must now include, or at least maintain, the likelihood of probable outcomes in their risk analysis statements.

Recommendation

Invest in improving their multi-channel capabilities and expanding their online storefront. Despite this, it has become a widely held opinion within the company. Customers and stores alike must work quickly to fully embrace this multi-channel approach to retail. The company should reconsider whether or not it can succeed as an online-only shop and whether or not it requires brick-and-mortar locations. Walmart is able to rely on and enhance its distribution channels, the company's primary source of value creation, since the brands and products they sell in-store were well and featured in their own branded stores.

Locate product gaps and seek to fill them by adding items that support wellness, culture, families, and the home. Researching the appropriate product composition from the perspectives of the local population and the company's investors is essential to the success of this approach (Wheelen et al., 2017). Profitability must be maximised by keeping a tight rein on logistics costs in order to compete with e-commerce giants like Amazon.

Re-conceive the brand in a manner that benefits society and the environment without sacrificing your current clientele's needs. Combining the benefits of telecommuting with those of online purchasing may cut an individual's carbon footprint by as much as 46 percent, but this advantage is not being exploited to win customers' favour (Smith & Crawford, 2017).

References

About Walmart, (2022)[Online] [Accessed through] https://www.walmart.com/ [Accessed on 25th November, 2022]

Burbach, C. (2021). Walmart Strategic Analysis. https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1373&context=honorstheses 
Indigo digital, (2022) [Online] [Accessed through]  https://www.indigo9digital.com/blog/4-secrets-to-walmarts-ecommerce-sucess [Accessed on 25th November, 2022]

Li, B., Zhu, M., Jiang, Y., & Li, Z. (2016). Pricing policies of a competitive dual-channel green supply chain. Journal of Cleaner Production, 112, 2029-2042. https://www.sciencedirect.com/science/article/pii/S0959652615005570 

NNE D’INNOCENZIO, (2021) [Online] [Accessed through]  https://www.pennlive.com/nation-world/2022/05/walmarts-profits-suffer-as-inflation-supply-chain-issues-hit.html Accessed on 25th November, 2022]

Pandey, Rudresh & D, Dillip & Jayant, Jigyasa & Vashishth, Kajal & Nikhil, Nikhil & Qi, Tin & Kee, Daisy & Mei, Tan & Xin, Roselin & Qhi, Looi. (2021). Factors Influencing Organization Success: A Case Study of Walmart. International Journal of Tourism and Hospitality in Asia Pasific. 4. 112-123. 10.32535/ijthap.v4i2.1059. http://www.ejournal.aibpmjournals.com/index.php/IJTHAP/article/download/1059/1018 

Rich Lehrfeld, (2022) [Online] [Accessed through]  https://corporate.walmart.com/newsroom/2022/03/30/walmart-connect-building-meaningful-shopping-experiences-between-suppliers-our-customers [Accessed on 25th November, 2022]

Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions. European Management Journal, 33(3), 201-213. https://openaccess.nhh.no/nhh-xmlui/bitstream/handle/11250/298636/Saebi_Business.pdf?sequence=3&isAllowed=y 

Sammut-Bonnici, T., & Channon, D. F. (2014). Pricing strategy. https://www.um.edu.mt/library/oar/bitstream/123456789/21817/1/sammut-bonnici%20pricing%20strategy.pdf 

Smith, C., & Crawford, R. J. (2017). Walmart: Love, Earth®. In Case Studies in Sustainability Management (pp. 46-76). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781351287722-11/walmart-love-earth%C2%AE-craig-smith-robert-crawford 

Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art and future challenges for the field. R&d Management, 44(3), 237-247. https://www.researchgate.net/profile/Dirk-Schneckenberg-2/publication/262455389_Business_Model_Innovation_-_State_of_the_Art_and_Future_Challenges_for_the_Field/links/5a57a88245851529a2edbc21/Business-Model-Innovation-State-of-the-Art-and-Future-Challenges-for-the-Field.pdf 

Steve Banker, (2022) [Online] [Accessed through]  https://www.forbes.com/sites/stevebanker/2022/08/17/walmarts-supply-chain-woes/?sh=7ecac20e13d0 [Accessed on 25th November, 2022]

Tanwar, R. (2013). Porter’s generic competitive strategies. Journal of business and management, 15(1), 11-17.

Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management and business policy (Vol. 55). Boston: pearson. https://www.academia.edu/download/56442363/strategic-management-business-policy-globalization-innovation-sustainability-14th-edition-wheelen-solutions-manual.pdf 

Zott, C., & Amit, R. (2013). The business model: A theoretically anchored robust construct for strategic analysis. Strategic organization, 11(4), 403-411. https://repository.upenn.edu/cgi/viewcontent.cgi?article=1103&context=mgmt_papers