Application of Concepts to Organization Where I Have Worked Assignment | Online Assignment

Option #2: Application of Concepts to Organization Where I Have Worked Note: Make sure you read the Required Reading material to understand the assignment topics. Based on an organization where you have worked, apply the concepts of resource-based view and dynamic capabilities concept to that organization. Include definitions for both concept,s including sources and paraphrasing in your own words. Explain how these two concepts differ from each other and include any overlaps between these concepts. Describe how you think the organization used these concepts. Describe the benefits you believe the organization would gain from using these two strategic-choice processes. Complete this assignment by identifying the organization’s competitive advantage(s). Do you believe the organization is well positioned for long-term success, given your analysis? What recommendations do you have for this organization’s future success? Your paper should meet the following requirements: Be 4 to 6 pages in length. Be formatted according to the CSU-Global Guide to Writing & APA (Links to an external site.). Include at least five scholarly or peer-reviewed articles. The CSU-Global library (Links to an external site.) is a good place to find these resources. Include a title page, section headers, introduction, conclusion, and reference page. Submit for grading. Business Management and Administration Library Guide (link below) A library guide is available via the following link to serve as a great resource in this course for you. The guide provides a variety of pre-selected databases within the library designed to support this specific course. Be sure to use this link throughout the course to support your assignment and discussion board research efforts. Example Visual Presentation The link below provides added guidance for the development presentations. Sample PowerPoint and Prezi presentations are provided. Presentations in academia and in the business world require high-impact visuals and clearly summarized key points. Create detailed speaker’s notes to achieve the communication and decision-making outcomes you are hoping for. Your audiences will find charts, graphs, models, trend lines, and so forth. Condensing dates or ideas into simple, understandable graphics is very effective

Application of Concepts to Organization Where I Have Worked

Baylee Soper

MGT510 – Strategic Planning

Colorado State University – Global Campus

Dr. Gary Shelton

Application of Concepts to Organization Where I Have Worked

Walmart Incorporated (Walmart) is the largest retailer in the world. They employ over 2.3 million people globally and have more than 11,000 stores throughout 28 countries, along with ecommerce websites in more than ten countries. This company’s business strategy is well known and that is there, “everyday low prices.” This strategy is an example of cost leadership. Walmart is able to build a trusting relationship with their customers by promising low prices every day. This business strategy ensure prices will not be changed based on a sale promotion, most of the merchandise they have cost less at Walmart than any other retailer. Walmart wants their customers to have a great shopping experience, and for their customers to save their money so they can live a better life. This literature will further analyze Walmart’s business strategy as well as how their strategy was put into action.

Background

Walmart’s first store was opened in Arkansas by Sam Walton in 1945. Stores continued to open throughout the years, and in 1965 Walmart become incorporated in Delaware. This company operates under three different operations; Walmart U.S., Walmart International, and Sam’s Club. In 1983 in Midwest City, Oklahoma the first Sam’s Club was opened, adding to Sam Walton success (Our History, 2018). Now Sam’s Club has grown and has over 600 stores in the United States, and also has stores in Brazil, China, Mexico, and Puerto Rico. Sam Walton was able to open one store and turn it into an empire.

Strategy Formulation & Implementation

Strategy is important to any company’s survival. Strategy helps the company not only beat their competitors, but also keep their competitive advantage. Those working in strategic management must have the skilled to identify opportunities and threats for the company to utilize in order to be successful. Not only does a company need a good strategic management team, but also good managers. These leaders must be able to make smart decisions to further expand their company and improve performance. Specifically, Walmart focuses their strategy on getting raw materials at a low cost. By doing this the company is able to market and sell items at a low cost, while bettering their customer experience. Walmart also focuses on how they can consistently improve their strategic plan and use their resources better. This is because “if Walmart didn’t keep its prices low enough to compete with e-commerce giants like Amazon, then it could soon enough go the way of Borders bookshops, Sam Goody’s record stores, and other once ubiquitous retailers that saw their market share fade and then collapse as online sales grew even larger” (John, 2019). It is hard for any company to keep up with the demands of today. Walmart makes those same demands their goal; a competitive market, technology, the environment, and a customer’s wants.

Walmart needs to establish and preserve good working relationships with suppliers that are able to supply them with cheap materials to achieve this goal. In order for Walmart to maintain their low prices, they must also keep low supply costs. Ultimately, the suppliers determine the prices of the products, especially those sold at Sam’s Club and Walmart. If the suppliers were to raise their prices, then Walmart would have to do the same. This could cost the demand in their products to decrease. Hence why working relationships are a key aspect in Strategic Management.

Their rollback on prices is another great example of how their strategy plan is being implemented. Walmart promises that they will keep prices lower every day and not run any sales on products. To make those prices even lower they throw a rollback price on them, making them more appealing to their customers. This also helps move the product fast and allow for more products on the shelf. Walmart is a store that is frequently shopped by many people sometimes even several times a week, so keeping their shelves stocked with the right inventory is extremely important to this company survival.

The development of technology has a lot to do with the strategy formulation and how a strategy can be implemented. The advances in technology has helped stores provide better customer service, but also allowed for some improved in internal affairs as well. With the new systems and devices that have been created the store managers can now predict where their inventory levels will fall, they can predict the demand for certain products. Walmart has created a new system called RFID (Radio-frequency identification), which can see how much inventory is left on the shelf and pre order goods for the store when they are low. This new system has created a more efficient way of operating.

Even the customers can tell what technological advances have taken place in Walmart. Just five years after Amazon went live in 2000, Walmart created their first ecommerce. These sites were www.samsclub.com, and www.walmart.com. Since then, Walmart has acquired many other ecommerce in several different countries. In 2007, Walmart started their cite to store strategy, which meant customers could now purchase their goods online and pick them up at their local Walmart store. So now their customers have the luxury of ordering goods online and receiving them same day. This is an option that very few retailers can offer. Self-checkout at Walmart is yet another thing that has helped improve their customer satisfaction, no one likes to stand in long lines waiting for check out. Technology has really helped this company grow and be able to provide excellent customer service.

Strategic Plan Evaluated

Doug McMillion, President and CEO of Walmart meets with the investment community and releases a statement of how his company is doing. In 2017, McMillion told the public that, “We have good momentum in the business, we’re executing our strategy and moving with speed to win with the customer, who is more connected than ever and embracing tools that will save them both time and money” (Walmart, 2017). The company even evaluates how adding 1,000 online grocery locations, will help increase eCommerce sales by nearly 40%.

This report focuses on the financial framework that Walmart is based off. The company planned to spend $11 billion in capital expenditures in 2018 and 2019, which seems like a lot of money but remember in 2018 Walmart total revenue was $505.49 billion (Walmart Form 10-K, 2018). These capital expenditures will keep up with store remodels and the appearance of the stores.  Will help open more of those online grocery stores for customers. This is yet another advancement that Walmart has created allowing people to order their groceries online and have them ready for pick up or shipped to their house depending on the location. Walmart is also looking at opening another 255 stores internationally. Reviewing your company strategy with the investment community is not only a great thing to do, but it also allows the investment community to give feedback.

Innovation Strategies

Walmart is consistently using innovation in their strategies. Walmart has made a unique shopping experience for their customers, and they continue to do so through innovation. They took a shopping experience online and changed it completely. Ordering your groceries online is a great example of how they use innovation. Being able to order your groceries online you can look in your fridge and pantry and see exactly what you want. There is no more having to make a second trip to the store because you forgot something. Another example of innovation in this company is the self-checkout. We have all caught ourselves complaining about the long lines at Walmart with no cashiers working. The self-checkout now takes care of this and they have plenty of them, so there are no lines to those registers or very short ones. These are two great examples of how Walmart uses innovation in their business strategy.

Conclusion

Walmart is one of the largest retailers in the world. This is because they develop a strategy plan and they implement it throughout the company in its entirety. The three stages of strategic management are clearly separated in this company and defined well.  This company is consistently using innovation, to keep up with their competitors. They continue to use their low-cost strategy but implement technology advances that coincide with their low-cost strategy. Walmart’s main goal is to satisfy their customers all while affording them a unique shopping experience. For many years with their strategy planning, they have been able to accomplish that goal.

References

John, S. (2019, April 08). How Walmart keeps its prices so low. Retrieved July 24, 2019, from            https://www.businessinsider.com/walmart-low-price-strategy-tips-2019-4

Our History. (2018). Retrieved July 22, 2019, from https://corporate.samsclub.com/our-     story/history

Walmart Form 10-K. (2018, January 31). Retrieved July 22, 2019, from                                                      https://www.sec.gov/Archives/edgar/data/104169/000010416918000028/wmtform10-            kx1312018.htm

Walmart Highlights Progress on Strategic Initiatives and Outlines Plan to Win with Customers     and Shareholders at its Meeting for the Investment Community. (2017, October 10).    Retrieved July 23, 2019, from https://corporate.walmart.com/newsroom/2017/10/1     0/walmart-highlights-progress-on-strategic-initiatives-and-outlines-plan-to-win-with-c    ustomers-and-shareholders-at-itsmeeting-for-the-investment-community