group members

Welcome Dr. Rohaya and our dear viewers ,

Thank you so much for taking the time to check out our blog. First of all, I wish to congratulate and thank the members of my group because it has successfully completed the task assigned to us. Members of our group consisted of six students. 

1. Amirah Amani bt. Ulul Azmi 
2. Nurdiana Natasha bt. Azizan 
3. Muhamad Zufar b. Zaharudin
4. Noor Adilla bt. Sukeri 
5. Nur Nazihah Raihana bt. Narzere 
6. Noor Maizatul Sukma bt. Shukri

EXTREME group members

INTRODUCTION OF WALMART

Wal-Mart's history is one of innovation, leadership and success. Wal-Mart was founded by Sam Walton in 1962, it was incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. It started with a single store in Rogers, Arkansas in 1962 and has grown to what is now the world's largest and arguably, the most emulated retailer. Some researchers refer to Wal-Mart as the industry trendsetter. Today, this retailing pioneer has annual revenues of over $100 billion, 3,000 stores and more than 750,000 employees worldwide. Wal-Mart operates each store, from the products it stocks, to the front-end equipment that helps speed checkout, with the same philosophy: provide everyday low prices and superior customer service. Lower prices also eliminate the expense of frequent sales promotions and sales are more predictable. Wal-Mart has invested heavily in its unique cross-docking inventory system. Cross docking has enabled Wal-Mart to achieve economies of scale which reduce its costs of sales. With this system, goods are continuously delivered to stores within 48 hours and often without having to stock them. This allows Wal-Mart to replenish the shelves 4 times faster than its competition. Wal-Mart's ability to replenish theirs shelves four times faster than its competition is just another advantage they have over competition. Wal-Mart leverages its buying power through purchasing in bulks and distributing the goods on it' own. Wal-Mart guarantees everyday low prices and considers them the one stop shop. 

Wal-Mart operates in Mexico as Walmex, in the UK as ASDA, and in Japan as Seiyu. It has wholly owned operations in Argentina, Brazil, Canada, and Puertorico. Wal-Mart's investments outside North America have had mixed results: its operations in South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. Consumers can also shop Wal-Mart through their easily accessable website on the internet by visiting http://www.walmart.com 

STUDY CASE PART 1

1.      Why is innovative management important and how have Walmart leaders demonstrated innovation throughout the company`s history?

Innovative management is most important because of time always change on day by day. Old management styles that used to be efficient and effective before no longer apply in today’s changing world. It is, because of these changing times, human behaviourS in any organization also must change. The used to be timid and push-driven workers, have now turned into liberated, open-minded and outspoken employees that are free to plug in their opinions whether their managers seek them. In the Walmart Case, there have two major scenarios that they faced. They, could solved the problem in these issues with two innovative management strategies to hurdle and eventually rise above these challenges. Firstly, Scenario was the turbulent times economic landscape where employment was bankruptcy of organizations and institutions was commonplace. Walmart’s countermeasure was a direct answer to the issue an economist strategy to an economic problem. As the case implied, it launched “recession-defying retail formula unbeatable low prices”. Any economic or business literate person can readily predict Walmart’s sound strategies to achieve this impossible mission feat, in an upside down economic predicament.  That is economies of scale high volume purchasing “ultra-efficient logistics and advance supply chain technology”.  Walmart create a harmonized dichotomy of the economic world. They have defied gravity and proven that indeed, despite the challenges of the times. There are always new ways of doing things. The Second Scenario, in 1960  Sam Walton founder of Wal-Mart  achieve  a higher sales volumes by keeping sales price lower than his competitors by reducing his profit margin. He relied on them to give customers the great shopping experience that would keep them coming back. In trade mark Sam Walton “If we work together we all can lower the cost of living for everyone. So can giving the world on opportunity to see what it’s like to save and have a better life.” In order to gain the highest profit in retail business, Wal-Mart’s leader had used innovation.

2.      Which management perspective of the pass century influenced Sam Walton and      Walmart?

Sam Walton used classical perspective which emphasized on development of large complex organizations demand a new perspective on coordination and control. It is scientific management, Sam Walton introduced ‘profit sharing plan’. It was a plan for Wal-Mart employees to improve their work in organization for achieve a single goal in an effective and efficient through planning, organizing, leading, and controlling organizational resources. By 2015, Walmart  plans to add 500,000 new jobs to the economy, tackle world hunger, create industry benchmarks for sustainable business, elevate working conditions for global workers and roll back price for increasingly cash-strapped global consumers. In the example ,form the first moment Walmart opened as a single store in Rogers, Arkansas the retail giant has borne the stamp of Walton`s industriousness and ambition. The company now boasts hundreds of millions of customers worldwide who save money by shopping for all their needs at one convenient location. Walmart with fresh initiatives that cast the company in a greener, more humanitarian light. The changes culminated in the acclaimed ``Save Money”. Live better campaign a campaign that has expanded under the leadership of CEO Mike Duke . If management pursues its ambitious, forward-looking agenda with the same drive and determination that animated founder Sam Walton, Walmart may be on the cusp of a new business revolution one that holds maximum potential for people, profit and the planet.

                                                             

3.      What sosial , political and economy forces are shaping the practice of management at  Walmart in the twenty-first century?

Based on political, economic and social in the twenty-first century has given various effect on the management of Walmart. For example in the case from economy at Walmart has slowed expansion in China, Brazil and Mexico. It is losing money in Brazil and making only a slim profit in China. In Mexico there are allegations that Walmart paid bribes to get permits to open new stores. Walmart may also have been involved in money laundering and tax evasion in Mexico. The economic impact felt by local businesses when a large firm such as Wal-Mart opens a location in the area. The Wal-Mart effect usually manifests itself by forcing smaller retail firms out of business and reducing wages for competitors' employees. Many local businesses oppose the introduction of Walmart into their territories for this reason.

                       

STUDY CASE PART 2

1. Which market strategy is Walmart primarily using to enter foreign markets, and why has management chosen this approach?

Walmart’s international stores operate under a different banner, reflecting the web of acquisitions and joint ventures for Walmart uses to enter foreign markets.

The selection of merchandise offered in China supercenter is oriented to the unique tastes of Walmart’s 7 million weekly Chinese shoppers and a handwash laundry which is sold due to the scarcity of washing machines in China.

In 1993, Walmart launch their business globally and targeted the emeging market such as China so that it is easier for Walmart to expand its operation faster.

Moreover, Walmart entry to China was also possible by the economic reforms that introduced in late 1980s under Chinese leader, Deng Xiao Ping. This communist-led government era make a modest concessions to capitalism and Western-businesses.

 There were also some celebrities who have achieved Western-style fame and lucrative sponsorships with American Businesses such as Jackie Chan, Karate Kid martial-arts actor, pro basketball star, Yao Ming and many more.

                     

                                                      

2. What challenges do Walmart China managers encounter in the international business environment?

Walmart faced adventure when rollout teams built a supercenter in Shenzhen, a city just North of Hong Kong which become Walmart’s greatest competitor at China.

They also faced problem in running a multinational operation in an ethical and sustainable way. For examples, in 2010, Google exited China overthe country’s strict censorship policy and poor record on human rights. Years before, The Gap caused a firestorm of critism by unintentionally sourcing products made by child laborers in India.

So Walmart learning the mistakes done by other company and managers at Walmart have developed a a program to ensure the ethical procurements of goods.

Executives of Walmart also say that policing at workplace and ecological footprints of thousands of international vendors may be herculean task but however it is really a necessary one.

                                                              

3. Which of the Walmart’s sustainability initiatives do you believe will have greatest impact on China? Explain.

Walmart hold on a primary objective which is “save people money andt hey can live a little better”. Their intention in every market where they not only to deliver products at a great value, but also to ensure all of the products they sell are made in an ethical and sustainable way.

Walmart have developed an Ethical Standards Program to audit suupliers and ensure the ethical procurement of goods. The program is in place to do what is right for factory workers and the environment. This will not only bring sustainable and positive change to working conditiom, it will also help to build ladders to a better life.

STUDY CASE PART 3

1   1. How does managerial planning for project impact take place at different levels within the    organization?

The types of planning that managers engage in will depend on their level in the organization and on the size and type of the organization. Generally there are four major types of planning such as strategic, tactical, contingency, and managerial. Managerial planning is the implementing of the strategic plan. It is the combining of resources to fulfil the overall objectives and missions of the organization. Besides, managerial planning focuses on the activity of a specific unit and involves what needs to be done, by whom, when, and at what cost. Managerial planning is usually considered as microlevel planning. Furthermore, its also helps in combining resources to fulfil the overall objectives of the extension organization. The planning process begins with the creation of a philosophy that consists of statements describing the values, beliefs, and attitudes of the organization. Its mission statement is a proclamation of its purpose or reason for being. After the philosophy and mission statements have been established, various goals and objectives are defined. Goals are usually general statements that project what is to be accomplished in the future. An objective is a concrete statement describing a specific action. Policies are predetermined guides to decision making. They establish boundaries or limits within which action may be taken. There are two ways that the managers are related to policy formation. Firstly, as managers, they should play a crucial role in implementing organizational policies that have been established by higher management in organizations. Second, they must create policies within their departments as guides for their own work groups. Procedures outline the series of steps to be followed when carrying out a designed policy or taking a particular course of action. To provide final and definite instruction, rules are used.

                                                   

2    2. Using the concepts of strategic management and core competence, explain why Walmart is scaling back on "cheap chic" fashion apparel in its remodeled next-generation stores.

Core competence is a deep proficiency that enables a company to deliver unique value to their customers. In addition, it also embodies an organization’s collective learning, particularly of how to coordinate diverse production skills and integrate multiple technologies. It can creates sustainable competitive advantage for a company such as Walmart and also helps it branch into a wide variety of related markets. Walmart is scaling back on "cheap chic" fashion apparel in its remodeled next-generation stores because its profit margins can be more than twice those of other categories. As an example is a household goods. Walmart's sales have been sluggish amid economic uncertainty and a skittish consumer. While the chain already is the second-largest apparel retailer in Canada, their customers are confused by Walmart's array of private labels, including the branded apparels such as 725, Bum and Penmans. Now Walmart is investing heavily in George, dropping its other apparel labels to focus almost solely on that line, which last year made up just 25 per cent of its clothing offerings. Canadians proved that regardless of income, they also want fast fashion. In the other hands, Walmart needs to develop this opportunity or otherwise they tend to lose more customers to others.

                                                  

3. What started the decision-making process that led to the overhaul of Walmart's U.S. stores? What common errors in decision-making could thwart the success of Project Impact?

The decision-making process that led to the overhaul of Walmart's U.S. stores are create a constructive environment. To create a constructive environment for successful decision making, we must establish the objective and define what we want to achieve. Besides, generate good alternatives. When we generate alternatives, we force ourself to dig deeper and look at the problem from different angles. To develop good alternatives, we must generate an ideas, considering different perspectives an organizing ideas. Then, explore the alternatives. When we are satisfied that we have a good selection of realistic alternatives, then we will need to evaluate the feasibility, risks, and implications of each choice. Moreover, check our decisions. This is where we look at the decision we are about to make dispassionately, to make sure that your process has been thorough, and to ensure that common errors haven't crept into the decision-making process. Thus, we can all now see the catastrophic consequences that over-confidence, groupthink, and other decision-making errors have wrought on the world economy. Lastly, communicate our decision and move to action. Once we have made our decision, it's important to explain it to those affected by it, and involved in implementing it. In addition, we must talk about why we chose the alternative we did. The more information we provide about risks and projected benefits, the more likely people are to support the decision. The common errors in decision-making could thwart the success of Project Impact are being too dependent on “expert” information. Some people rely too much on the experts when in fact not all of them are truly experts. If ever they are, they are still prone to mistakes and can even have their own set of biases. Instead of getting information from just one source, try widening the search and sources. Furthermore, too much overconfidence. If we feel very confident of the decision we are about to make, try to humble the overconfident attitude and still remain open to possible options or other information. Next, underestimating the information taken from others. A little respect for receiving unsolicited and volunteered information or suggestions is healthy in the decision making process.

STUDY CASE PART 4

1. Walmart prefer to recruit new store managers from its large pool of hourly associates because by doing so Walmart could take advantages from hourly associates which have more experiences working with Walmart than new workers. Moreover, they might have been trained for a while and Walmart could save a lot of money to train a new worker from basic. Those associates maybe just require far less training because of their experiences working with Walmart. Besides, it’s a way to increase employees’ productivity by rewarding their determination and loyalty with Walmart by promoting to manager with higher wage.

                                                         

2. Walmart employee diversity benefits the organization itself by maximizes productivity, creativity and loyalty among employees while giving the needs of Walmart’s customers. By using this business strategy, Walmart’s employees would have different perspective that can help provide a holistic view of the market and what customer’s needs. It is important to have to understand their customer’s needs and know how to serve them. This could prevent miscommunication based on differences and creating a better working relationship and working environment. Besides, it could increase employee commitment and motivation by creating an environment where all employees feel included. Lastly, diversity in a company allows for flexibility within an organization which ensuring Walmart to stay competitive in the global economy with other competitors.

                                                                 

3.  Federal laws that govern the main legal issue raised in Dukes vs Walmart is Federal Rules of Civil Procedure, Rule 23Rule 23(b)(2) that provides for class-actions where the defendant's actions make injunctive relief appropriate can also be used to file a class-action that demands monetary damages.

STUDY CASE PART 5

     1.  What personality traits does Walmart look for in a job candidate? How might wrong perceptions lead managers to hire the wrong people?

      Walmart looking for who extroverted and loves dealing with customers. An individual’s personality has an influence on work-related attitudes and behaviors. If manager hire the wrong people to work in his company, its will bring a bad reputation for the whole company. Other than that, his employees does not have commitment, creativity, productivity, satisfaction and motivation.

2. How would you characterize the leadership of Walmart founder Sam Walton?

       Leader attitudes and behaviours play a critical role in shaping employees. Sam Walton is the one who passionate with his work. He also was a brilliant and ruthless businessman. He worked very hard to keep his expenses low as possible, and as his business grew, he was able to buy even more merchandise at even lower prices. He believed that the best results in business were found through generosity with employees. Profit sharing has always been a benefit for Walmart employees.

                                                      

3. What tools does Walmart use to motivate employees? How might a lack motivation affect associates and how should managers respond?

            Firstly, workers are taught to take social responsibility successes and proud to be a part of family company. There are many tool types that manager can used to motivated workers such as empowerment, motivation, training and coaching. For instance, manager emphasize that performance will result in monetary reward such as bonuses or child care. These rewards meet a psychological or personality need of employees, such as feelings of validation or pride in a job well done. Common problems in company is wages. Example, the worker might compare the pay levels of friends and colleagues in similar jobs. A workers who deeply dissatisfied will lack of interest on his work and others. Manager Managers need to listen to employees and address their concerns for the work environment to be genuinely collaborative.