Walmart Business Analysis

For the final group project we chose to complete a management analysis on Wal-Mart. Covered in this paper are the issues of productivity, hiring practices, corporate social responsibility and culture, diversity and affirmative action, the use of information technology, leadership, teamwork, and managing ethics.

Productivity is very important to any successful business. Wal-Mart has increased its productivity through many different advances. Business analysts have long admired Wal-Mart's logistics management, even though the public recognizes them for their low discounted prices. Wal-Mart has always been resourceful at moving and stocking goods, building its stores as branches around distribution center hubs. But, instead of simply maximizing efficiency at the warehouse, for example, Wal-Mart began to analyze costs over the entire shipping process, including how quickly goods can be moved onto shelves once they arrive at the store. Just one example of these analyses found, that by not completely filling a pallet with goods can save so much time in stocking the store, that what seems "inefficient" at the warehouse is more productive over all. Through the analyses they have put into place the RFID, a new system of tracking merchandise. The RFID begins at the registers, when customers go through the checkout lines, the RFID immediately takes that point-of-sale data on their purchases combined with the RFID-generated data to create a list of what is available to produce a pick list. The use of this technology has enable associates to change the process in which inventory is tracked. The scanners automatically send the input and output data directly to suppliers, vendors and the distribution warehouses. This system allows for fewer mi...

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...usands of stores," (Business Week, November 2005).

Leadership in an organization is very crucial to its functioning effectively. Some of the fastest growing companies today are built on leadership innovation. Wal-Mart uses the Visionary Leadership approach. This form of leadership increases efficiency by moving decision-making responsibility to the frontline. Efficiency is then achieved with limited supervision. In turn, it gives workers the opportunity to develop quality decision making skills, benefiting the company. On the other hand, this lack of supervision and guidance could lead to workers making poor decisions that could ultimately cost the company.