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.