- Scan Question
- + Post
- Get Coins
Wal-Mart Stores Inc.
The case of Wal-Mart is used to better understand the balanced scorecard and how it works. Wal-Mart is a successful firm that has been in existence for a long time. Wal-Mart Stores Inc. is arguably the world's largest and most influential retailer. What makes it even more odd and overt is the plethora of scandals it has become embroiled in, including lawsuits filed against it, media outrage over some of its policies, and government agencies examining some of its rules, to name a few.
The company grew out of the novelty of two brothers (Sam Walton and his brother) opening Franchise Ben Franklin variety stores in 1945, and it rose to fame and business prominence almost immediately. Its track record attests to the company's might and business savvy.
The corporation presently runs over 4150 retail locations throughout the world and is the largest retailer in Canada, the United Kingdom, and Mexico. The following are the products and services offered by the company:
Beauty and health aids
Garden and lawn
Jewelry and shoes
It also runs a thriving pharmaceutical company, picture processing businesses, and tyre and lube express. The firm's founders outlined three strategy goals on which the company continues to operate today: "offer exceptional service to the consumer, respect individual employees and customers, and always strive for perfection." Its company aim is to sell the highest-quality products and brand names at the lowest possible price. The corporation has been subjected to unending criticism and lawsuits as a result of its plan to retain the lowest cost of brand names and products, as it utilises means to accomplish the goals that are at times controversial.
Wal-Mart Stores Inc.'s business model gives it a competitive advantage in its industry and allows for better integration in its specialised market. The current model is Purchasing/cost effectiveness with subsidiaries, which is aimed to include elements from other models, such as starting construction with contracts in place.
The company acquires corporations of interest and franchises with those whose business goals and models align with its own and are deemed to be economically significant.
The above subsidiaries are included in the company's corporate governance to assist it stay afloat in the market and get a competitive advantage over its key competitors.
This culture is well captured in the company's mission, vision, and strategy, which guide all of its operations.
“To continue to enhance the quality of our products and extend our capabilities to raise our efficiency, consequently elevating a higher level of customer service provision we offer to heighten the standard of excellence that creates our corporate culture,” says the company.
To be a global organisation that provides the greatest services and goods to our clients at the lowest possible cost while providing the most value for their money.
The slogan informs the strategy statement: "Provide exceptional service to the consumer, respect individual employees and consumers, and continually strive for perfection."
The balanced scorecard provides an in-depth review of the Walmart New Division's strategic objectives. It is vital to remember that a good strategic plan must account for the impacts that are always felt from many viewpoints in the business's operating environment. There are four distinct viewpoints that are assessed for all of the stated strategic viewpoints in this balanced scorecard. To begin, the financial perspective will address concerns pertaining to profitability as well as the organization's competitive standing. Second, the shareholder value viewpoint is concerned with the overall customer experience.
Furthermore, the internal operations perspective is concerned with the process of increasing the organization's operational effectiveness. Finally, the learning and growth approach is centred on strengthening the organization's image through creating deeper ties with employees and society in general. The Walmart New Division is using a strategic approach that is built in such a way that it will establish a strategic approach that is meant to create rapid growth, and each of the four views must be examined separately.
Through Walmart's new division, the common goal of any firm is to increase the wealth of its stakeholders while also providing some of the highest quality services to its customers. For the Walmart New division to continue to grow, the division's focus should be on increasing its market share in the markets it serves. The division intends to open new outlets in various places in order to improve and streamline its offerings for clients. Additionally, by promoting both locally and digitally, the company will be able to build stronger brand recognition, which will aid in the process of generating more leads higher organizational revenues.
In the broad scheme of things, the process of creating a positive experience plays a crucial role in the overall strategic plans. Because the majority of the division's clients will be the company's regular customers, organisational sales will rise as a result of the division's efficiency and effectiveness, as consumers will suggest the division to others. For the objective of acquiring new consumers, the division will offer a discount to all new customers while providing an incentive to existing consumers in order to inform other groups of people about the new division and the organization's efficiency through the division. It's also worth noting that increasing client loyalty is one of the most essential goals in terms of customer value. It's worth noting that a crucial social media communication channel will be used to promote the division and its operations, allowing for quick connection among all clients. The other goals will be to improve client satisfaction, loyalty, and retention.
New divisions are expected to come up with new ways to improve internal processes in order to provide the capital required to sustain the division's long-term growth. The New Division of Walmart has made a promise to improve the return on assets ratio. All of the equipment in the organisation and division is meant to be running at full capacity in order for the company to stay profitable. As a result, a thorough examination of the organization's assets will be conducted. Walmart is a worldwide food business leader, and it will find one of the best and most efficient ways to serve its customers. As the division of the firm grows, the processes established will allow the company to position its rates lower than its competitors that provide similar services. The new division's other goals will be to increase efficiency, streamline installation procedures, and reduce the number of go-backs.
Learning and growth
One of the strategic plan's key goals is to build a mutually beneficial relationship with clients. In the first three months, Walmart New Division will implement a new reward system that will reward employees who blend well with robotic machines. The program's major goal is to encourage employees to learn how to operate with the new robotic system and to stay with the company for as long as feasible. The goal of this programme is to provide employees with promotion chances by allowing them to learn about the new division's operations and robotic system, as well as allowing them to contribute to the strategic plan's achievement. It will also be critical to improve management skill levels, reduce turnover, and utilise the organization's technological resources.
Communication is one of the most crucial aspects of any firm since it allows management to send whatever message they want to its stakeholders. Furthermore, communication is critical in choosing the channel of communication that a corporation should use to promote its new division among its target clients in the market. As a result, Walmart should employ the following communication strategy and channels in order to reach its target demographic.
Walmart will hire a lot of people to engage in face-to-face interactions with customers, informing them about the new division that the company will launch. Additionally, the company will use public service announcements, such as television and radio, to ensure that their message reaches their target clients at the appropriate moment. The organisation also intends to leverage Internet-based capabilities such as the organization's social media platforms and websites to communicate any information that they would like to share with their consumers and other associated stakeholders. use of News media, press releases and articles will also be employed in the process of making the organization communicate effectively to its target population in the market.
In order for the company to communicate effectively with its target demographic in the market, news media, press releases, and articles will be used.
It's also worth noting that the company will use brochures and newsletters, as well as videos and meetings, to convey the proper information to the target clients in the market they'll be serving. In the process of communicating to stakeholders what should be adopted and ensuring that all stakeholders understand the value of the new division to the target consumption, the business will use employee and customer opinion surveys consumers and to the existing consumers.
Risk and mitigation plans
To ensure that the division is not harmed by any risks that it may face, it is critical to implement the appropriate risk and mitigation plans that will be used to avoid any hazards from occurring. It is vital to highlight that the organisation may utilise the use of a suitable anti-virus to secure the system from any external incursion. On the other hand, if the system is hacked, a manual backup strategy is critical, as it will ensure that the organization's and division's functions continue uninterrupted.
Consideration of ethical implications of objectives for your new division
The new division's operations will be carried out while taking into account the ethical implications of each organization's goals. One of the ethical implications is the impact of each operation on the environment, as well as the relationship that the company will have with its customers.