Planning

Walmart Part Three

Planning is one of the most important elements in business management. Good planning ensures that an organization is able to compete and survive in the market. It is thus all management activities such as organizing, controlling and leadership is closely linked with planning activities. Without planning activities, it is not triggered an organization. After years of putting in yellow happy face, Walmart stores are getting an extreme makeover. Walmart customers who've witnessed the big reveal at the grand reopening across the country, the changes are dramatic.

The unveiling of Walmart’s next generation stores is part of the strategic plan “Project Impact”. The nationwide remodelling effort aims to improve the Walmart shopping experience and increase sale was announced in 2008. 70% of U.S stores will undergo by the end of 2014 and the reaming renovations will wrap up in 2014 as according to the project rollout schedule. Project Impact was an idea of the recent financial crisis in U.S. U.S economy sagged , higher income consumers began shopping Walmart to take advantage of low price. Castro-Wright’s team slashed 15% of store inventory, lowered shelves for an open line of vision and shuffled departments for easier shopping. With fewer products in stores, Walmart must be more selective about which product to carry and more committed to selling in higher volume. Walmart also loading up on hot gadgets and the home entertainment section is adding 3D TVs.  Project Impacts keys in ten important words, “Save Money, Live Better”, “Win, Play, Show” and “Fast, Friendly, Clean”. Walmart’s planner are seeking to boost store efficiency by connecting in-store merchandising with back-end logistics.

In conclusion, the managers of Walmart must be alert to the environment of business  to achieve the goal of company. Besides, they also must follow the process in decision making to make sure that decision will incur the benefit to company. Walmart management should also be made systematic and strategic planning to ensure that their companies are able to compete in the business world. This is so because the strategic planning and rational will always ensure that employees are on track in achieving organizational goals.

Study Case

1. How does managerial planning for Project Impact take place at different levels within the organization?

Planning encompasses defining the organization's objectives or goals, establishing an overall strategy for achieving these goals, and developing a comprehensive hierarchy of plan to integrate and coordinate activities. (Stephen P. Robbins., 1994, Page. 187) in the organization planning activities undertaken by the management of the company. A plan is a blueprint for goal achievement and specifies the necessary resource allocated, schedules, tasks and other actions. (Richard L. Daft, 2012, Page. 186) Goals and plans which consists of four stages, namely the mission statement, strategic goals or plans (senior management), tactical goals or plans (middle management) and operational goals or plans (lower management ).

Project Impact, a state of the US economy deteriorating, while high-income consumers are increasingly causing costumer start shopping at Walmart result of the low prices offered. Environment that is constantly changing causes Walmart management decided to revamp to create a favourable business climate. Matter to binding consumer loyalty to Walmart. The goal of Project Impact is to create a better environment and economic transformation that emphasizes customer loyalty.

Castro-Wright, Executive Vice Chairman of Walmart, senior management was setting a strategic goal or plan to increase consumer loyalty. He got the idea to renovate stores in the United States by expanding lanes, reducing fixtures, improve signage and add natural light. It is to create a more customer friendly. These three initiatives are called "Save Money, Live Better", "Win, Play, Show" and "Fast, Friendly, Clean" to make sure they can archive that goal.

Next step is recognize the tactical set goals or plans managed by middle management. Research results Castro-Wright, "Customers on average spend 21 minutes in the store and we need to make it easier for customers during the period". Castro-Wright's team slashed 15% of store inventory, lowered for an open line of vision, and shuffled departments for easier shopping.

Lower management also plays as important role. They need to determine the action steps that need to be taken to achieve operational goals and to support tactical plans. For this case the Impact Project, the changes made are put in the middle Receptionist pharmacy stores. This is to maximize the demand for prescription drugs for $ 4, the needs of retail has moved backwards, encouraging customers to find items on their way to the hall and closet shelves this review is centrally located, gesturing match head with a target and get rid of it at Walmart promotions Super lane, "Action Alley".

2. Using the concept of strategic management and core competence, explain why Walmart is scaling back on "cheap chic" fashion apparel in its next-generation remodelled stores.

Strategic action plans define the steps by which the company intends to attain strategic goals. (Richard L. Daft, 2012, Page. 190) From the aspect of strategic management for "cheap chic" fashion apparel, Walmart tried to boost sales of goods. With fewer products in store, Walmart must be more selective about which products to carry and more committed to selling in higher volume. To increase store sales using fewer stock items, Walmart is loading up on hot gadgets and home entertainment section also is adding. But many product lines, such Walmart's flagging "cheap chip" designer apparel, are getting the axe.

Core competence is a business activity that an organization does particularly well in comparison to competitors. (Richard L. Daft, 2012, Page. 661) Efficiency is a key competitive advantage in the aspect of the competition in the business world. This is so because the company obtained an expertise that competitors do not have. In this case (cheap chic), Walmart performance decreases. This problem is caused Walmart does not provide the products (cheap chic fashion apparel) better than other competitors.

3. What started the decision-making process that led to the overhaul of Walmart's US stores? What common errors in decision-making could thwart the success of Project Impact?

Decision making is the process of identifying problems and opportunities and then resolving them. (Richard L. Daft, 2012, Page. 238) In this case, Castro-Wright as vice chairman of Walmart stores make decision to cut in the merchandise might be the answer for this question. This problem is caused her concern to ensure customers easy to find items in stores through merchandise. This item has been reducing customers choice to buy something at Walmart. The effect of the action, has caused customers will find other stores that offer many options and purchase goods from Walmart.

In this Project Impacts case, common errors in decision-making that could thwart the success of this project are being influenced by initial impressions, overconfidence, and seeing what you want to see.

The initial response also affects the decision-making process. For example in the case of Walmart is the result of their research found that the average consumer only spent 21 minutes to shopping and to facilitate their search for the goods, they had cut the items in the store but the matter has led to a reduction in choice of goods in shops.

There are too confident in making decisions. If too confident in the decision-making process will also be lethal. Few managers are confident in predicting uncertain situation that ultimately leads to failure. For example, Project Impact is an idea that was born as a result of the financial crisis and the US economic situation is not stabilized and declined. More customers, especially in the higher income start shopping at Walmart. Walmart assumed the management of such conditions will prevail. Market conditions is a matter that cannot be predicted.

Finally, errors occur frequently make decisions is to look at what you want to see. In the case of Walmart, the Castro-Wright, would like to take the opportunity associated with current economic issues in the United States. He thought that things happen is the opportunity to refuse to be responsible for the planning and initiatives to improve the Walmart shopping experience and increase sales. But things did not go according to plan coldness. This is so because these initiatives will only limit the choice of products and are engaging in risky trade-offs for at Walmart merchandising strategy.