MGT 230 Week 2 Learning Team Assignment Internal and External Factors Paper
MGT 230 Week 2 Learning Team Assignment Internal and External Factors Paper fin571
Popular in Department
This 9 page Study Guide was uploaded by an elite notetaker on Tuesday November 10, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 25 views.
Reviews for MGT 230 Week 2 Learning Team Assignment Internal and External Factors Paper
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/10/15
WalMart 1 WalMart: Factors affecting the four functions of management. MGT/230 University of Phoenix WalMart 2 Abstract WalMart, sometimes defined as the giant of retail is one of the largest companies in the world. It has grown to not only be a staple in America, however in the past few years growing out internationally, touching base in countries such as Japan and China. Factors have been considered, the four functions having an effect on the overall goal. This paper shows just how and where that has happened. WalMart 3 WalMart is a place everyone in this country knows about. We rely on it for a onestopshop for all of our needs. Over the years, WalMart has changed the outlook of Americans in how we shop and what we expect from a retail store for all of our needs. Through the four functions, WalMart has looked through globalization, technology, innovation, diversity and ethics to grow itself into what it is now; a worldwide powerhouse. WalMart Corporation has its managers follow the four functions of management to an excellent degree of productivity. The company’s planning function has established methods of interacting with suppliers to provide customers with low prices. WalMart’s organizing function has charted specific standards so each store has products customers want, the jobs emphasize customer satisfaction, and all uphold the same principles of work habits. This company has a consistent way of leading its people to display products quickly and in abundance so consumers can pay lower prices. The controlling function of the products availability has also given WalMart’s competitive advantage in maintaining goods that result in profits. WalMart has had its successes and failures in the global market. The countries’ with similar business opportunities have shared in the success of operation. In Japan and China, WalMart has adjusted its business strategies to boost customer appeal (Matusitz & Forrester, 2009). The success that WalMart has had in Japanese and Chinese markets is through its ability to meet and cater to local expectations. WalMart has had failure in WalMart 4 countries that have barriers such as government control over the market and government regulations on big developments (Christopherson, 2007). This illustrates the importance of the four functions of management when endeavoring to enter a foreign market with different controls and external factors. If WalMart had the chance to thrive in stricter countries the other functions of management would incorporate rigid standards of protocol so it would attain competitive advantage. Organizing, leading, and controlling would each have to hold fast to the laws and regulations of the country, and this was management’s downfall in the German market of not bending to that country’s strict laws. Sam Walton, the founder of WalMart did not embrace technology. “He was quoted in the 1992 memoir, Made in America, “A computer is notand will never bea substitute for getting out in your stores and learning what’s going on.” (Wailgum, 2007). The first store opened in Rogers, Ark in 1962 and the first inventory control system was later installed in 1975. “Though WalMart is respected for its ITdriven supply chain processes, the company has fallen behind in the online home market”(Wailgum, 2007). Mr. Walton’s philosophy served as an internal factor that affected the four functions of management. Although the founder felt people were more valuable than machines, Wal Mart installed several computing systems over the next 20 years ranging from system networks to barcode systems to “completing the largest private satellite communication system in the United States” (Wailgum, 2007). An external factor affecting the four functions of management was the fact that technology was practically nonexistent when WalMart was founded. Today, WalMart 5 competition with Amazon.com, Target, and social networking technology affects how planning is initiated. (Wailgum, 2007). As technology is in constant change, WalMart should have vast strategic, tactical and operational analysis. In 2006 WalMart IT revamped Walmart.com in an attempt to compete with its competitors to provide a convenient shopping experience for its customers and raise revenue for the company. A challenge is finding the right products to offer online vs. products sold in the store, as the customer base is different. Higher end products are offered online as the store shoppers are lower income (Wailgum, 2007). WalMart’s innovation plan is what has made it successful throughout the world and externally enabled the store to expand globally. Not only has their low prices beat competitors, but also encouraged WalMart’s competitors to advertise better savings for consumers. Then WalMart created a deal that nobody could beat and that was price matching. WalMart will take any advertisement from their competition and match their prices so consumers do not have to go to several different stores for the best prices on groceries. This saves time, money, and car expenses driving around looking for the best deal in town. WalMart has created a simpler way of shopping which in the end has created more business for them to expand. Internally WalMart provides opportunities to everyone. Anyone who applies has just as much of a fair chance. One could be fresh out of high school or even have a GED and have just as much consideration as a person with a master’s degree. They will both receive the same exact treatment when applying and when hired. Additionally, each WalMart 6 individual receives just as much consideration for promotion. No single person is ever excluded from WalMart and will always receive equal benefits and consideration. Diversity is incredibly important for a company which not only chooses to expand across regions of the country, but also expand internationally. For example, WalMart in Japan has several more bicycle racks than we would normally see in America due to the space limitation in Japan, which requires more people to transport via bicycle over auto. In America, frozen fish is the norm while Japan finds fresh fish to be the only option as they are a coastal country. Regardless of what preferences countries have, organization is of the upmost importance when expanding. “Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals” (Bateman, T. S., & Snell, S. A. 2011). Information is required to allow for diversity to not be an issue in this company. WalMart takes special consideration to ensure the local ethnicities are represented in everything from the food on display, choice foods in the deli section and even in the music played inside the store. Simple things like those can be the difference between customers choosing another store over WalMart, which in WalMart's case, simply will not do. “The values that set us apart from othersrespect for the individual, service to our customers and striving for excellence rest on the foundation of personal integrity and responsibility.” (Duke, 2008). WalMart strives for excellence in ethics from everyone: employees, managers, uppermanagement as well as their customers and even third parties. WalMart utilizes the four functions of management very well while discussing their ethics. WalMart 7 Their plan is to follow their 3 Basic Beliefs which is stated above in Mike Duke, CEO’s message. WalMart is well organized to achieve their goals within ethics. They have an open door policy for their customers and employees to feel free about reporting any unethical behavior without worry of recourse. “Never retaliate against anyone for raising an ethics issue...” (WalMart, 2008). WalMart also has local Ethics Committees and Global Ethics Offices with many different ways of reporting to them while remaining anonymous. These Offices and Committee’s take every concern very seriously and will fully investigate concerns of unethical practices. Employees are highly encouraged to report unethical behavior to their managers, but if the employee does believe their manager is involved then the employee should go to the next highest level of management that they do not believe is involved. Managers are set to lead the way of ethical behavior for their employees. All managers are asked to take a drug test before entering into management. By encouraging their customers and third party companies to also act responsibly, they can monitor and control their ethics at WalMart. WalMart set goal years ago and has not only achieved it, but also continue to push it forward. With technology, diversity, ethics, globalization and innovation taken into consideration and implemented using the four functions of management, WalMart will continue to be a retail giant and only expand. They will continue to adapt as we have seen recently. This company will continue to be a staple not only in America, but also international countries WalMart has both already expanded into, as well as those it intends to do so. WalMart 8 References 1. Bateman, T. S., & Snell, S. A. (2011). Management: Leading & collaborating in a competitiv w (9th ed.). New York, NY: McGrawHill Irwin. 2. Christopherson, S. (2007). Barriers to 'US Style' Lean Retailing: The Case of Wal Mart's Failure in Germany. Journal of Economic Geography, 7(4), 451469. Retrieved from EBSCOhost. Retrieved May 6, 2011 3. Duke, M. (2008). Walmart Statement of Ethics. Walmart. Retrieved from http://ethics.walmartstores.com/ 4. Matusitz, J., & Forrester, M. (2009). Successful Globalization Practices: The Case of Seiyu in Japan. Journal of Transnational Management, 14(2), 155176. doi:10.1080/15475770903028696 Retrieved May 6, 2011 5. Wailgum, T. (2007). How WalMart lost its IT mojo. Retrieved from http://www.cio.com/article/143451/How_Wal_Mart_Lost_Its_Technology_Edge WalMart 9 6. Walmart. (2008). Walmart Statement of Ethics. Retrieved from http://ethics.walmartstores.com/
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'