Stakeholder Analysis of Wal-Mart

S sateh darkeneder Analysis of Wal-MartA dour-range strategic envisionning is so distinguished to an composition because if you fail to throw, falsify in your work quite a little be tough to handle and ultimately you argon grooming to fail. strategic mean is one of the merely ways a blow over watchfulness team eject externalize for economical, demographic, rivalrous, technological, and regulatory changes that affect the way your physical composition operates.The firm moldiness engage in strategic planning that intelligibly defines objectives and assesses both the internal and external situation to formulate schema, implement the outline, guess the get up, and make ad seriousments as necessary to stay on caterpillar tread. projection 1.A distinguish AN constitution OF YOUR CHOICE WHICH YOU WILL DISCUSS AS AN EXAMPLE IN THIS ASSIGNMENT AND GIVE YOUR REASONS FOR CHOOSING THIS ecesis.Wal-Mart de recrudesce be distributen as the musical arrangement of my cho ice to discuss through with(predicate) the various aspects of this assignment.Wal-Mart is the leader in retail industry with fiscal revenue of $244.52 billion in 2003 making it the worlds openhandedst great deal. microphone give outs that Wal-Mart as of 2002 had 1,283,000 employees growing at 11.2%. The to a higher place data explains that strategy of Wal-Mart is olympian which manages and operates over 4150 retail facilities glob bothy. The key components of Wal-Mart (The Value Chain), which hold erupts cheap prices than its opponents includes firm radical alike(p) frugal culture, no regional offices and pleasant environment to bailiwick. Managements take lots of visits and it is learnt in that location argon no rehearsals before either come across which is usually scheduled on e very(prenominal) Satur side accredited day. In any presidential term, human beings re bulgening is the key to maturation and Wal-Mart cost-efficiently manages its line of descents. Wa l-Mart terms its employees as associates. jitney al lowlyance is linked to the profit of memory board operated by him, within promotions, compensation quiped to associates depending on familys profits and in any case offered some incentives on their exercises. The surveyforce at Wal-Mart is non unionized as the company takes all the measures of their benefits and provides them training on related issues. Technology plays a vital component in development of the organization and Wal-Mart is wellhead equipped with technological innovations like POS, caudex performance track, real cartridge clip market research, satellite system and UPC. Wal-Mart procurement measures like hard-nosed negotiations, partnerships with some vendors, centralized buying, planning packets, etc. helps at thumping the cause of providing the goods and assistances on cheap prices. The different factors that addition the delimitation of profit for Wal-Mart atomic number 18 inbound logistics with frequent replenishment, automated DCs cross docking, beak to flight, EDI, hub and spoke system. Wal-Mart strategy of operation is innovative with big stores in weensy towns with monopoly in the market at low rental costs, local prices, coaxal elaborateness, merchandising in brand name, private labels, little space for inventory, store within store, etc. In relation to marketing and sales, merchandising is well-kept from locals, spent less on advertising and the prices ar fixed low and it depends on the store manager to fix the latitude of pricing. All the above factors combined together form the key components of Wal-Mart which not only increase the margin of profits through bulk sales but also boost the confidence of the guests with services like point of sale knowledge system and all(prenominal)day low prices. delegate 1.B WHO ARE THE MAJOR STAKEHOLDERS OF YOUR ORGANIZATION AND WHAT CONSIDERATIONS SHOULD BE MADE TO ENSURE THEIR (STAKEHOLDER) PARTICIPATION IN DEVELOPING o versight STRATEGYStakeholder Analysis of Wal-MartIn determining the public affairs strategy of Wal-Mart, there are many an(prenominal) groups and individuals who grant a empale in what Wal-Mart does. These stakeholders croup be divided into two groups the market and non-market stakeholders. The market stakeholders are those groups and individuals who father an economic stake in what the company does. The non-market stakeholders are those groups and individuals who be demand a non-economic stake or political stake in what die hard the company takes.Market Stakeholders1. The StockholdersThe initiatory group that has an economic stake in what Wal-Mart does is its shareholders. These are the people who real own shares of Wal-Mart and because are enkindle in get togethering a return on their investment. They hope the prize of their stock impart rise and they go out see dividends. According to the 2001 yearly Report, last year, Wal-Mart paid out $.24 per share in dividends (Annual Report 2001, 45).2. The Wal-Mart ExecutivesThe egest executives of Wal-Mart also lose an economic stake in the company just as the rule-governed stockholders do. Many of the top executives received stock options are part of their salary. Obviously, they demand their stock value to rise because a large part of their compensation comes from how well the Wal-Mart stock is doing.3. The EmployeesWhile some of the employees whitethorn have stock in the company, many of them have an economic stake in the company just because their job is their chief(a) source of income. They want Wal-Mart to do well because wherefore they go out keep their job and their source of income. Their financial compensation from Wal-Mart sustains them. Wal-Mart employs to a greater extent than 885,000 people nationwide (Reid, 1)4. The Communities where Wal-Mart is located apiece of the communities that have a Wal-Mart located in it has a stake in how well the company is doing. Many of these communi ties rely on Wal-Mart not only for jobs but also for a place to purchase many of their day to day necessities are a low price. Without Wal-Mart in these communities, there would be people without jobs and families paying higher prices for the goods that they need.5. ConsumersConsumers have a stake in how well Wal-Mart is doing. According to the 2001 Annual Report, Wal-Mart is the countrys largest grocery retailer (Annual Report 2001, 7) and therefore many people rely on Wal-Mart for their groceries.6. Non-profit OrganizationsMany non-profit organizations have an economic or market stake in how well Wal-Mart is doing. The Wal-Mart foundation provides many non-profit organizations with funding and if the company is not doing well, the Foundation is not going to do as well either. According the Wal-Mart Good Works Foundation, 97 per centum of their funding goes to non-profit organizations in the communities where their stores are located. The Wal-Mart Good Works Foundation provides f unding to programs that deal with community, education, environment and children. Therefore, if a Wal-Mart is located in a sure community, the non-profit organizations back look to the Wal-Mart foundation as a possible source of funding. (www.walmartfoundation.org)7. Other RetailersOther retailers have a stake in how well Wal-Mart is doing and how much they are expanding. If a Wal-Mart moves into a community, changes are the an opposite(prenominal) retailers in that community, especially if they are privately owned are going to overlook money and may even be forced to close-fitting down. Because Wal-Mart is the largest retailer in the United States and number 1 on the Fortune viosterol list, they have the ability to lower their prices and therefore tolerate force some otherwise retailers out of business because they cannot match Wal-Marts low prices.8. Online RetailersLike other retailers in communities where there is a Wal-Mart, online retailers also have a stake in how well Wal-Mart is doing. Wal-Mart totally vamp uped their website in 2000 in set up to make it a more profitable part of their retail empire. Wal-Mart, unlike many other e-tailers closed down their website in September 2000 in order to revamp their site. While Wal-Marts online sales only re inaugurate a small ingredient of their general sales, the website is a low cost way for Wal-Mart to deliver goods to consumer who lives in communities without Wal-Mart stores. (Business Week 11/6/00,2).9. Gasoline RetailersIn 1996, Wal-Mart made its prime(prenominal) partnership with the hit manoline industry. Today, Wal-Mart has contracts with companies such as Murphy Oil USA, Sunoco, and Tesoro Petroleum. Wal-Mart contracts with these companies and leases real estate on their lots in order for the company to offer muck upoline at Wal-Mart stores. some(prenominal) the oil companies who have contracts with Wal-Mart and local gas stations have a stake in this. The local gas stations often c annot compete with Wal-Mart in either price or convenience. Over the next year, the oil companies that contract with Wal-Mart plan to expand to offer cheap gasoline at more Wal-Mart locations. For example, Murphy plans to expand to 600 Wal-Mart sites by 2003 and the other gas retailers have similar plans. (Reid, 5)Non-Market Stakeholders1. Labor UnionsLabor unions have a political stake in Wal-Mart has a strict insurance close to not having their workers unionized. Wal-Mart takes the position that they are better able to take care of their employees and provide them with the best benefits and compensation plans. Wal-Mart does not want ruffle from unions. Recently, Wal-Mart was charged by the National Labor dealing Board with violating federal official law by keeping employees from holding elections and joining the United pabulum and Commercial Workers International Union. (NY Times, C2)2. International Retail StoresOne of Wal-Marts key insurance issues has been to move into the international retail market and open stores in other countries. Last year, Wal-Marts International Divisions sales increased by 41 share (Troy, 47). Currently, Wal-Mart has stores in Chine, Korea, the United Kingdom, Brazil, Argentina, Germany, Canada and Mexico (Thau, 9). Wal-Mart essential work closely with Public Relations firms in those countries in order to make sure there is no backlash against them mournful into other countries. They must also be thorough to follow the laws of each of those countries when they open new stores. Wal-Mart has been careful in moving into the international markets. They have acquired companies already well established in those countries and have made sure that 90 percent of their international products are topically sourced (Thau, 9).3. PoliticiansPoliticians have a non-market stake in Wal-Mart for some(prenominal)(prenominal) reasons. First of all, politicians may or may not want Wal-Mart opening in their district. On one hand, it may be goo d for the community. However, if it is a district with a large union presence, the politician may not want Wal-Mart is that area. Also, politicians may rely on Wal-Mart for campaign funding. Last cycle, Wal-Marts political action committee, Wal-Mart Stores Inc political action committee for Responsible Government contributed $752,500 to various committees and candidates during the 2001 cycle.TASK 1.C WHAT ARE THE expose CRITERIA THAT SHOULD BE CONSIDERED WHEN REVIEWING MANAGEMENT STRATEGY OPTIONS?Key Points to make inventning Effective1. The achievement of planning depends upon the effectiveness with which the forecast has been made. If the forecast is accurate, there is all(prenominal) scuttle that the plan will be success.2. Flexibility must be introduced in the plan whenever necessary so that the employees can work with sustained involvement and effort. The steering shall not use pressure tactical manoeuvre and force employees to work for the sake of attaining the daily o r weekly targets.3. All the members concerned with the organization must be involved in the task of preparing the plan. The receivepoints of the employees, who are actually going to perform the tasks, must be secured and their ideas may be bodied in the plans, if found suitable.4. The plan should not be prepared to counselling on the financial designs of the business alone. It must have something for the employees. There must be some provision in the plan to reward efficient workers. Some inducement is necessary in the plan to motivate the employees to work harder.5. The plan must be realistic. It should take into account the capabilities of both the managers and the employees. Both shall not be required to work beyond their capacity. In other words, the plan must not expect too much out of every person.6. The plan must be communicated effectively to all the subjugate staff. Their consent may also be obtained. The successful death penalty of the plan depends on the extent to w hich subordinates participate willingly in the performance of the tasks.7. A co-ordinated effort on the effort on the part of every discussion section is required for the success of the plan. To achieve this, the departments concerned shall work with proper disposition. special steps that can be followed to avoid obstacles in planning.(There should be no ambiguity in the objectives that are laid out. They must be soak up and achievable. employment of information should be put in place. Management culture System can be used.Managers should sport a dynamic observation tower and they should have that mindset of moving towards achieving the objectivesAll plans designed can have some amount of flexibility built into it.All resourcing required for the plan should be through upfront leaving on surprises at the end.The greatness of having a Cost-Benefit analysis cannot be ruled out. This must be done.TASK 1.D DESCRIBE A SITUATION WITH YOUR CHOSEN ORGANIZATION WHERE A authorisation S TRATEGY MIGHT BE DEVELOPED TO RESOLVE AN ISSUE. PRODUCE AN subdue STRATEGY AND INDICATE ITS RESOURCE REQUIREMENTS.A strategic aim of Wal-Mart is to expand. It has done so successfully. Looking at the facts and figures clearly shows the corporations dominance and power. Currently the corporation employs over 1.3 million employees, one million in the US alone. The company owns over 4000 stores worldwide. Over 1,200 units (stores) are in operation internationally. Domestically, Wal-Mart is the largest US retailer, employing more or less 1 million people. It has over 3,000 stores and outlets, and 77 dispersion centers. The company serves more than 100 million customers weekly in all 50 states, Puerto Rico, and several nations around the world. (www.walmart.com, Fact airplane Wal-Mart at a Glance, 2002).Internationally, the retailer operates in Mexico, Canada, Argentina, Brazil, China, Korea, Germany, and the United Kingdom. Its expansion strategy internationally has been war-ridd en and powerful. The latest expansion strategy is for the company to gain entry into a nation by corporate takeover of a national retailer. Once the company is bought, Wal-Mart converts the stores into Wal-Mart stores. threesome countries, all with no previous Wal-Mart stores, became part of the corporations international presence when domesticated retail chains were over taken. In 1994, Wal-Mart bought 122 Woolco stores in Canada today there are 196 units in Canada. In 1998 Wal-Mart bought the Wertkauf store with 21 units, now there are 94 Wal-Marts in Germany. In 1999, Wal-Mart acquired the ASDA chain with 229 units in the UK. Today, the UK has 252 Wal-Mart stores. (www.walmart.com, Fact Sheet on International doings, 2002) This particular strategy, of corporate takeover, puts the company at an favor when it enters into a new market. In one stroke, a large competitor is eliminated, and at once, Wal-Mart has real estate and employees, and a massive presence in its targeted loca tion. This is an effective use of the companys size and wealth, as few if any competitors are able to do this effectively. The company builds up brand familiarity, man retaining the old familiar outlets. Gradually, as the local Wal-Mart stores begin to make money, and local management assess their competition environment, the company begins to redesign the acquired stores to look like Wal-Marts, it then begins to build new and larger stores in that new market. Wal-Mart is now the largest retailer in Canada and the UK.TASK 2 DEVELOP VISION, MISSION, OBJECTIVES AND MEASURESTASK 2.A FOR YOUR CHOSEN ORGANIZATION, numerate THE DOWN ITS ETHICAL, CULTURAL, ENVIRONMENTAL, SOCIAL AND furrow OBJECTIVES. HOW ARE THESE INFLUENCED BY THE CURRENT BUSINESS AND ECONOMIC CLIMATEVisioningCreating shared understanding of future possibilitiesA strategic vision is usually thought to be solely future oriented.A vision provides an organization a forward looking, idealized image of itself.Moves away(p) the usual assumptions.Concentrates on the end goal, not the means to decease the goal. chase gain ownership by developing the means (action plan).An alternate view from the field of organizational learning expands this to shared vision, which also includes a present component.Vision is not a destination, but an intangible structure that surrounds us and guides our daily activities. From this perspective, a shared vision is a form of self-identity.This rendering of vision is a involveive belief in what the organization can become. In this way it is similar to a truly desired proclivity for the future. The difference, however, is in how we mold ourselves to adapt to the environment without expecting to be able to change the environment itself. Yes, there is an implicit assumption about the future. However, if the vision is sufficiently broad it will suffice for providing a framework for current decisions. Granted, all decisions are made in the present. Yet, to work toward someth ing grander than the present employs some probability of future outcomes upon which to make decisions, all other things being equal.Regarding feedback loops for control, such feedback can be employed for both corrective action and vision edict (interesting combination of words). If the feedback indicates a problem in the carrying out and nothing amiss in the expected vision then the strategy and/or tactics can be altered to get back on track toward the vision. And if there is an indication that the vision is no longer realistic there is no problem with a shift in vision to a more workable vision. Normal planning cycles earmark for such a step on an annual basis, which is probably too long for planning within a dynamic environment. But this gets back to the dynamics of the planning process itself. This approach to using feedback is similar to the use of a tracking ratio to serve as a warning system for a forecast that is no longer adequate to the current reality.ImplicationsWhat is unique about the organizations self-concept of itself? Something that would be missed if the organization were not to fulfill this vision.What issues might farm among different stakeholders as this vision is realized?Are organizational practices adjust with the vision? Are desired actions reinforced by performance prosody?Putting an organization mission vision in place requires functional at all levels of the organization. Often generation, the effort is only made at the top of the organization with the expectation that employee commitment will follow. Instead, limited compliance is accomplished, at best. It is recommended that a specific change program be put in place to develop a shared vision and common understanding of the groups mission.MissionThe mission is the ultimate purpose for wherefore the organization exists. indispensable components of a good mission statement includeBrief and substantially understood by everyone.What goods and services (beyond the basics)F or Whom market segmentation (geographic, sociological, financial, ethnically)How market strategy, distribution strategy.Present and future possibilities.Why basic reason the organization exists.classifiable competency.Driving Forces.Driving ForcesProducts and/or services offeredMarket servedTechnologylow-cost capabilityOperations capabilityMethod of distribution saleUse of resourcesProfit (return on resources)TASK 2.B DESCRIBE THE ROLES OF VISION AND MISSION financial statement OF YOUR CHOSEN ORGANIZATIONThe corporate mission can be give tongue to as followsAs Wal-Mart continues to grow into new areas and new sensitives, our success will perpetually be attributed to our culture. Whether you walk into a Wal-Mart store in your hometown or one across the country while youre on vacation, you can always be assured youre getting low prices and that genuine customer service youve come to expect from us. Youll feel at home in any department of any storethats our culture.The company has three Basic Beliefs or load philosophies Sam Walton built the company on. Those beliefs are (1) Respect for the Individual, (2) Service to Our Customers, and (3) to reach out for Excellence. Respecting the individual is a call for treating their employees well and pushing them to excel in what they do. The commitment to their customers is a goal whereby the stores respect a pricing school of thought to always sell items as low as they can while providing excellent customer service. The third belief is to strive for excellence, that is to expand the store, innovate, reach further in to new markets and to grow. (H. Lee Scott, 2002, www.walmart.com)Other beliefs include, exceeding customer expectations with aggressive hospitality such as using door greeters. The store also features patriotic display and themes in its US stores. Another goal for the company is to support efforts in the local community via charitable contributions. Wal-Mart identifies several affiliations with cha rities such as the United Way and the Childrens Miracle Network (www.walmartfoundation.org).The Sundown die hard is a corporate directive whereby all Wal-Mart employees, be they store associates, management, or corporate staff, must reasonably answer a customers or provider request or question within 24 hours. The Ten ft Rule states that store employees must greet, smile, and attend to a customer in a store when within 10 feet of them. Its a type of aggressive hospitality policy. Wal-Mart also compels its staff to engage in morning cheers where they quote company sayings.A final, yet important rule, which is a strong part of the corporate culture is Sam Waltons Pricing Philosophy which underlines the company strategy of selling items for less then their competitors, always. (www.wal-mart.com, corporate culture).TASK 2.C INDICATE HOW IT IS assertable FOR AN ORGANIZATION TO EVALUATE THE ACHIEVEMENT OF ITS OBJECTIVESImplementing Every company will have its own strategy but it is th e operation which puts in to practice. You cannot, after all, ghost a strategy you cannot even see it all you can see is how the operation behaves in practice. The implication of this role for the operations function is very significant.Support It must develop its resources to provide the capabilities which are needed to allow the organization to achieve its goals. Example If a manufacturer of personal computers has persistent to compete by being the first in the market with every available new product innovation, then its operations function inescapably to be capable of copying with the changes which constant innovation will bring. It must develop or purchase processes which are flexible, enough to manufacture story parts and products.Driving The third role of the operations part of the business is to drive strategy by giving it a long-term matched edge. The both short term and long term success can come directly from the operations functions. An operations function which is providing both long and short term advantage is driving business strategy by being the ultimate custodian of competiveness.Effective operations management Operation plays these roles within the organization can be judged by considering the organizational aims or aspirations function. The model traces the progression of the operations function from which it is largely negative role of stage 1 operations to it becoming the central element of competitive strategy in excellent stage 4 operations. coiffe 1 internal neutrality This is the poorest level of contribution by the operations function. The other functions regard it as holding them back from competing effectively. Even good organizations can be let down by their operations function and the resulting advancement can be damaging.Stage 2 External neutrality The first of breaking out of stage 1 is for the operations function to begin comparing itself with similar companies or organizations in the outside market. By winning the bes t ideas and norms of performance from the rest of its industry, it is trying to be externally neutral.Stage 3 Inernally supportive These operations have probably reached the first atom in their market. They may not be better than their competitors on every aspect of operations performance but they are broadly up with the best.Stage 4externally supportive The third stage is taken to be as the limit of the operations functions contribution.TASK 3 forge FOR capital punishment OF THE STRATEGYTASK 3.A DISCUSS HOW A TIMETABLE FOR STRATEGY IMPLEMENTATION CAN BE DETERMINED. INCLUDE A SAMPLE TIMETABLE, TO INCLUDE KEY MILESTONES AND THEIR TIMINGSAs an example, let us take the strategic planning and slaying of a university learning programs.Following is a sample table that gives lucubrate timeline in achieving a specific strategic goal that have been set.picTASK 3.B HOW MIGHT THE DISSEMINATION PROCESS BE USED TO HELP AN ORGANIZATION GAIN COMMITMENT TO ITS STRATEGY AND THE IMPLEMENTATION OF THISTen Elements of an Effective spreading PlanAfter you have developed your dissemination policy statements, you are ready to turn your attention to more specific dissemination planning. commemorate that your dissemination planning should start at the theme of your research activities, not at the end. While some details of the dissemination effort will be suggested in your original proposal and refined as you progress through your research, your dissemination plan goals and objectives should be clarified at the beginning of your research project in consultation with your NIDRR project officer. This approach will allow you to meet your dissemination challenge in a by the bye manner.1. Goals Determine and document the goals of your dissemination effort for your proposed project.2. Objectives Associate each goal with one or more objectives that clarifies what you are trying to accomplish through your dissemination activities.3. Users tie the scope and characteristics of the poten tial users that your dissemination activities are designed to reach for each of your objectives.4. Content Identify, at least, the basic elements of the projected sate you have to disseminate to each of the potential user groups identified.5. Source(s) Identify the primary source or sources that each potential user group is already tied into or most respects as an information source. trust ways to partner with these sources in your dissemination efforts.6. Medium Describe the medium or media through which the content of your message can best be best delivered to your potential users and hunt the capabilities and resources that will be required of potential users to entry the content for each medium to be used.7. Success Describe how you will know if your dissemination activities have been successful. If data is to be gathered, describe how, when, and who will gather it.8. Access Describe how you will promote access to your information and how you will archive information that ma y be pass along at a later date. Consider that most people will use your project-related information when they perceive a need for it not necessarily when you have completed your research project.9. Availability Identify strategies for promoting conscious(predicate)ness of the approachability of your research-based information and the availability of alternate available formats.10. Barriers Identify potential barriers that may interfere with the targeted users access or utilization of your information and develop actions to bowdlerise these barriers.The dissemination and implementation of the strategic plan is a great time to actualize organizational determine and improve internal processes. Once a strategic plan is established, the organization must keep a close watch on its progress or the plan and the goals will collect dust. It is usually not enough to meet a few times a year unless there are very few goals or the goals are basically to maintain the status quo. In general , it is best that those answerable plan a regular meeting schedule in order to maintain momentum and discuss issues as they arise. The processes around monitoring the implementation of the plan, disseminating the plan, developing the Action Plan, and so forth should be designed with the organizations determine as guiding principles. If possible, they should also incorporate solutions to any other organizational culture issues that were discussed during the strategic planning process. If solutions were not generated, the implementation processes should at least be designed with these issues in mind, with the intention of finding solutions at a point in the near future.A good strategic plan must involve an examination of your organizations values and internal process challenges (every organization has them). Often a strategic plan will expose problems that were hidden. This is a good thing. But only if you take control of them. The Action Plan must include steps to address mismatche d organizational values and culture, starting with the implementation process.TASK 3.C DESCRIBE THE IMPORTANCE OF MONITORING AND rating OF A NEW STRATEGY. OUTLINE HOW THIS MIGHT BE ACHIEVEDMany strategic plans end up collecting dust on a shelf. monitor and evaluating the planning activities and status of implementation of the plan is for many organizations as important as identifying strategic issues and goals. One advantage of monitoring and evaluation is to picture that the organization is following the direction established during strategic planning phase. argument that plans are guidelines. They arent rules. Its alright to deviate from a plan. But planners should be aware of the reason for the deviations and update the plan to reflect the new direction.Responsibilities for supervise and paygradeThe strategic plan document should restrict who is responsible for the overall implementation of the plan, and also who is responsible for achieving each goal and objective.The doc ument should also specify who is responsible to monitor the implementation of the plan and made decisions based on the results. For example, the board might expect the chief executive to regularly report to the full board about the status of implementation, including progress toward each of the overall strategic goals. In turn, the chief executive might expect regular status reports from middle managers regarding the status toward their achieving the goals and objectives assigned to them.Key Questions While Monitoring and Evaluating Status of Implementation of the Plan1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and communicate the progress. If not, then consider the following questions.2. lead the goals be achieved according to the timelines specified in the plan? If not, then why?3. Should the deadlines for completion be changed (be careful about making these changes know why efforts are behind schedule before times are changed)?4. Do personnel have adequate res