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Walmart operations management
Analysis of walmarts finances
Analysis of walmarts finances
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Operational Planning
I. Introduction
Operational planning is setting up procedures and processes at the lower level of the company in order to meet the overall goal of the company. There are different factors for each company that affects the operational plan and how it is laid out. The operational plan can also greatly influence the success of a company. There is a direct correlation between the operational plan and a company's strengths and weaknesses. The operational plan must also take into consideration the various opportunities open to the company as well as current trends and threats in the market. All of these factors are very apparent in the way Wal-Mart has set up its operational plan.
II. Factors that Influence Operational Planning
There are many factors that go into the day to day operational planning at Wal-Mart. Wal-Mart's goal is to provide quality goods at low prices to its customers. This goal is reflected in its operational plan. There are four key factors that influence Wal-Mart's operational plan and they are the customer, finance, the processes, and adaptability. The customer is the driving force at Wal-Mart. As its goal states, the customer is the primary importance to the company above all other things. Finance is also very important. In order to provide low cost quality items, Wal-Mart must keep its overhead low and ensure that it really does pay less for items to be sold. Wal-Mart has many different processes which help it attain its goals. Whether it be the process of motivating its employees or the process used to collect data on market trends. Finally, Wal-Mart's operational plan is adaptable. It must be in order to adapt to changes in the market, customer likes and dislikes, or ch...
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...ooks at adaptability, the customer, finances, and various processes to improve the company. These factors lead to Wal-Mart's many strengths and few weaknesses. Because Wal-Mart's operational plan is as effective as it is, the company is able to take advantage of opportunities and is aware of the various threats and trends of the market it dominates.
References
T.S. Bateman & S.A. Snell. (2004). Management: The New Competitive Landscape (6th ed.). McGraw-Hill/Irwin. New York, NY.
Wal-Mart and GE Consumer Finance Plan to Issue a New Credit Card By Discover. 2005. Retrieved on January 21, 2005 from http://www.walmartstores.com/wmstore/wmstores/Mainnews.jsp?BV_SessionID=@@@@0416297765.1106457350@@@@&BV_EngineID=cccgadcmjgijhdmcfkfcfkjdgoodglh.0&pagetype=news&template=NewsArticle.jsp&categoryOID=-8300&contentOID=14432&catID=-8248&prevPage=NewsShelf.jsp&year=2005
Wal-Mart has to implement a number of changes to correct the problems it has created. Attention must be paid to ensure the employee is treated fairly. Other ways must be sought to maintain profit levels and make the stockholders happy.
Their ability to distribute the cut rate from their operating proficiencies in supply chain management and cash flow, permits them to offers items at discounted rate and a lower price than their competitors. For Costco the meaning of being the low-cost provider while also differentiating from the competitors is ambiguous at best. Costco’s CEO, Jim Sinegal, is certain that low priced, and the high value merchandises are exactly what is needed maintain and achieve a staying power in the industry. Costco also entices their customers with low prices on designated set apart products available only at their stores. Within these designated products, Costco provides a limited selection of nationwide brand-named merchandises in some wide categories. Their approach comprises of selling a limited number of items, keep their costs down, maintain a high volume, compensate employees well, ensure that customers buy their memberships, and target upscale small-business owners through their business only
There are several key competitive edges that keep Wal-Mart successfully maintaining its leading position in the industry. First of all, Wal-Mart’ multiple store formats allows Wal-Mart to extend their customer base. Since Wal-Mart opened its first store in Rogers, Arkansas, July 2 1962, it has extended its store number from 9 stores to a total 4,906 throughout the four types of store: (Discount stores, Supercenters, Sam’s club, and neighborhood markets) Wal-Mart is able to embrace more customers to fulfill all kinds of demand such as live supplies, groceries, pharmaceuticals, and entertainments. As a result, Wal-Mart’s sales and profit increase significantly. Backward expansion strategy is another key for its success. Unlike other retail stores, Wal-Mart opens its stores in small town first before entering into metropolitan area.
Robbins, S. P., & Coulter. M. (2014). Management (12th ed.). Retrieved from: Colorado Technical University eBook Collection database.
Robbins, S. P., & Coulter, M. (2007). Management (9th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
... and each division to have a different manger to work both for his store and for the company. They can increase there overseas branches by having a different strategic plans. They can even divide the products into different categories such as very high or low end products. Need to use new technologies with different approaches so that can ready to use new technologies with in a short span of time. The main generic strategy is to have over all cost leadership by which the Wal-Mart can control the cost. The supply and distribution system has to be more effective in present one so that they can save both time and money while doing distribution of there products from ware house to the stores.
Robbins, S. P., & Coulter, M. (2009). Management (10th ed.). Upper Saddle River, NJ: Pearson
Jones, G. R., & George, J. M. (2011). Contemporary management. (7 ed.). New York, NY: McGraw-Hill.
Wal-Mart follows a lower cost competitive strategy and cost leadership. For Wal-Mart, strategic thinking is the process of continuously redefining its objectives. Competitive advantage over its competitors both actual and potential and management of risk to levels regarded as acceptable by the corporation’s main stakeholders.
Wal-mart has a reputation for caring for its customers, of course their employees, and for the prospective public. So Wal-Mart can be an industrial leader for the world of shoppers with an eye for lower affordable prices, company decision makers would continue it's systematic strategies that it's founder and president established years ago. Sam Walton believed in three guiding principles in his strategy planning they were to provide the customer with good value and service, to have a good relationship with its associates, and to be involved with the community.
Bateman, T.S., & Snell, S.A. (2011).Management: Leading and collaborating in a competitive world (9thed). New York, NY: McGraw-Hill Irwin.
Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.
Robbins, S.P., & Coulter, M. (2009). Management (10th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
In every organization, different operational functions exist to ensure the smooth learning of the organization. In order for an individual to have the knowhow on how to operate the functions delegated to them they must have implicit knowledge on the functionalities themselves. Understanding markets, customers and the company goals has always proven to be a core starting point for individuals who ply their trade in the organization. The essence of the skills is evident in globalization, cooperate social responsibility and risk management issues. In operations management, the basic principles of operations should be followed to ensure that the profitability of the organization ensures the operation of the organization is
Operational planning is what drives strategic planning goals to a success. On a day to day basis, operational plans are being communicated and decisions are being made. Operational planning is important because it leads to the goals and visions of the organization and by doing that, operational plans must be made daily to keep the organization competitive in the market. Friend & Zehle (2004) discuss operational plans central to the allocation of resources, it uses inputs to scale operations in order to deliver information about all stages of the primary value chain activies and the support of those activities. Without operational plans, an organization would have no way to reach its goals that were set. The market is changing constantly and operational plans help keep organizations making effective