Wal-Mart Organization for Groceries and Kitchen- myassignmenthelp

Question: Discuss about theWal-Mart Organization for Groceries and Kitchen Equipment. Answer: Retail shops have been in existence for a long time. They bring to the market what the consumers require and sell the products in smaller quantities as compared to selling in bulk. Wal-Mart is one of the biggest retail shops which sell its products both in-store and online. It operates a chain of big discount stores and makes a good return on capital due to its sales. Wal-Mart stores deal with a wide range of products trying to attend to most of the consumer's demands. Electronics, furniture, food staff, beddings, clothes, groceries and kitchen equipment are among the products sold by Wal-Mart stores. Wal-Mart operates under a slogan of Save Money. Live Better. This is displayed in their shopping bags and store receipts. As history shows, it has been enjoying continuous growth and success worldwide as they continue to attract a considerable number of new customers all over. This success can be attributed to the good organizational structure adopted by Wal-Mart (Brea, Casadesus, and Grifell, 2015, p.22-31). The organizational structure interrelates with the organization beliefs to uphold the essential competitive benefit of this retail store. Wal-Mart incorporates the interests of the external stakeholders and understands that they play a vital role in the growth of the organization (Brem and Viardot, 2015, p.17-27). The external stakeholders include the customers, suppliers and the lenders. Wal-Mart strategy of keeping their prices low, offering quality and affordable products are the major reasons why they have many customers. As its obviously known, consumers tend to incline towards retailers who offer low prices. Wal-Mart stores ensure that its key stakeholders (the customers) Customers are contented with the services they offer, and this brings a win-win situation for both Wal-Mart and the customers. Suppliers are the least prioritized stakeholder. They have to ensure that they supply quality products to Wal-Mart. By doing this, they create an opportunity to do business with Wal-Mart and continue to enjoy their profits. The supplier tends to benefit from the slightest increase in the prices of the product. Similarly, as the demand increases, they have a chance to supply a larger quantity. They always hope the business continues so that they can enjoy the benefits. Lenders are also considered as external stakeholder since the business owes them and have a duty to repay. Lenders help the organizations to continue with its operations by offering financial support when the organization is facing operational constraints. The level of competitiveness in an organization is seen where Wal-Mart is able to carry its business more effectively and efficiently as compared to its competitors. Porters theory of five forces assists to know the intensity of the competition and desire of the market. It helps to spot the strongholds of the business as well as the weak areas. There is the supplier power which depends on the number of people who can supply the same product, whether the product stands out, the required quantity, the power of the supplier and the expense involved in changing from one supplier to another. This helps to determine how the suppliers can influence the fluctuating nature of the products prices. The buyers power is determined by the demand for the product in the market. Where a business has a small number of influential buyers, they can command their terms. On the contrary, where there are a lot of competitors offering homogeneous products and services, the market becomes flooded and less appealing. This creates a competitive rivalry in the industry. The next force in Porters theory is the threat of substitute goods (Banker, Mashruwala and Tripathy, 2014, p.672-696). This gives the consumer an option of using the other product in case of changes in pricing. It negatively affects the power of suppliers making the markets less attractive. Wal-Mart may experience threats of new entrants to the markets. Exceptional industries are those with strong and long-lasting barriers like patents, government policies, and others. New entry will be attracted to the industry where markets prove to be profitable. Trading guidelines, tax policies, and regulations portray the government as an additional force for many businesses. These five forces aid the organizations to realize the market dynamics hence influencing profitability in a given industry. Thus, Wal-Mart can make decisions about suppliers, consumers, and business strategies. It has been seen from the past few years that Wal-Mart has incorporated its physical stores into online shops. Consumers can receive what they have ordered via an online platform at their stores bringing convenience to their customers. The new competitors (new entrants) are putting pressure on Wal-Mart, and it has to develop new strategies to respond to the challenge of product delivery. Customers anticipation regarding the products has become demanding. They expect high quality, openness and faster delivery and the goods must meet their expectations. Wal-Mart has no choice other than to continuously meet the consumers expectations to maintain its market share. Strategic human resource management (SHRM) aims to make explicit decisions relating to both Wal-Mart and its employees. Wal-Mart business is growing and increasing internationally. This means that more workforce is required to serve the customers efficiently (Chadwick, Super, and Kwon, 2015 p.315-343). SHRM arrangements take the situation by predicting future labour demand, using statistics to plan on the growth in financial situation and growth of the business. Considering the unpredictable market behaviors like competitors, market disparities, and other factors, Wal-Mart business needs to change their strategic plan. This may end up affecting SHRM plans, and they have to put such issues into consideration in their long-term strategies. With the continuous creativity and innovation in new technology, Wal-Mart is challenged to incorporate the new trend while creating an SHRM plan. According to Cascio (2015, pp.463-477), skilled employees have to be recruited, or the existing ones hav e to be undertaken for some training to adapt to the new changes in technology. The high level of competition in business can be felt by all businesses in the world. This emanates from being a strong challenge as companies/organizations have to restructure their strategies to respond to the competition. Wal-Mart SHRM plans involve controlling the cost of labour by avoiding time wasting and training employees on digital skills to be adopted in the place of work and make a substantial difference. Wal-Mart has been able to maintain consistency in their way of doing business and still realize good profits as well as maintaining customer satisfaction. Their strategy of low pricing has made it safe for them to survive in the market for a long period beside growing internationally. Reference list Banker, R., Mashruwala, R. and Tripathy, A., (2014) Does a differentiation strategy lead to more sustainable financial performance than a cost leadership strategy?Management the decision,52(5), pp.872-896. Brem, A. and Viardot, ., (2015) Adoption of innovation: Balancing internal and external stakeholders in the marketing of innovation. InAdoption of Innovation. Springer, Cham. Brea?Sols, H., Casadesus?Masanell, R. and Grifell?Tatj, E., (2015) Business model evaluation: Quantifying Walmart's sources of advantage.Strategic Entrepreneurship Journal,9(1), pp.12-33. Chadwick, C., Super, J.F. and Kwon, K., (2015) Resource orchestration in practice: CEO emphasis on SHRM, commitment?based HR systems, and firm performance.StrategicManagement Journal,36(3), pp.360-376. Cascio, W.F., (2015) Strategic HRM: Too important for an insular approach.Human Resource Management,54(3), pp.423-426.