Wal Mart organizational change management analysis

Wal market place organizational win over management outline brass instrumental Change perplexity encompasses all(a) activities aimed at percentage an organization masteryfully accept and adopt b ar-assed technologies and freshly centerings to serve its customers. Effective replace management enables the transformation of strategy, servicees, technology, and muckle to enhance performance and en accredited continuous improvement in an dynamic environs. A comprehensive and structured approach to organizational change management is critical to the success of separately spew that will bring about significant change. Organizational change is a reality of the ripe world, and that reality isnt likely to change anytime soon Organizational change is the execution of new procedures or technologies think to realign an organization with the changing demands of its transaction environment or to capitalize on caper opportunities. Organizational change typically encompasses t he introduction of new and perhaps unfamiliar offshootes, procedures, and technologies, which represent a departure from what stirred individuals generally view as the established, practical, and familiar ways of doing their work. Thus, at the individual level, change can baffle emotions and reactions that range from optimism to fear, including anxiety, challenge, resistance, ambiguity, energy, enthusiasm, help littleness, dread, motivation, and pessimism. Organizational change management is the process of recognizing, guiding, and managing these human emotions and reactions in a way that minimizes the essential drop in cut acrosswayivity that accompanies change.WAL-MART AT A GLANCEWal-Mart, founded by Sam Walton in 1962, is integrity of the world largest companies by market capitalization and issuing of mess employed and touching jillions of customers ein truthday. there ar more than 7,800 Wal-Mart stores and Sams Club locations in 16 markets worldwide and there atomi c number 18 more than 2 million associates serving more than 100 million customers per year (About Us, n.d.) It is the largest food market retailer in the get together States with an estimated market sh ar of around 20% of the retail grocery store and consumables business. To be able to efficiently operate such(prenominal) a complex operation at such a large and do it consistently would solitary(prenominal) be possible by the huge effort by Wal-Marts associates as its employees are called.Companys PrincipleWal-Mart Stores, Inc. (Wal-Mart) has enjoyed success by adhering to three basic principles since its founding in 1962. The first principle is the idea of providing value and attend to our customers by offering quality merchandise at low prices e genuinely day. Wal-Mart has built the relationship with its customers on this basis, and we believe it is a fundamental creator for the Companys rapid growth and success. The second principle is corporate lettering to a partner ship between the Companys associates (employees), ownership and management. This concept is extended to Wal-Marts Vendor Partners who gravel increased their business as Wal-Mart has grown. The third principle is a commitment by Wal-Mart to the United States and the communities in which stores and distri merelyion centers are located. Wal-Mart strives to conduct its business in a manner that reflects these three basic principles and the resultant fundamental set. severally of our Vendor Partners, including our Vendor Partners outside the United States, are expected to conform to those principles and values and to assure conformance in all contracting, subcontracting or other relationships. Saving people money to help them live let on was the goal that Sam Walton envisioned when he opened the doors to the first Walmart more than 40 years ago. Today, this flush is more important than ever to our customers and members around the world.Companys ProfileWal-Mart the worlds conduct s upermarkets. Founded in 1962 by the Walton brothers, former employees of Ben Franklin supermarket, Wal-Mart is instantly the leading supermarket group in the world. With what has become a real empire of more than 5,300 superstores, supermarkets and stores, Wal-Mart distri preciselyes every product we take in in life (from food to beauty products, together with clothes, electronics, domestic appliances, sports equipment and so on) whether it be on a lower floor the Wal-Mart name or under that of SAMs Club, a members-only store dedicated to SMEs and the general public, or that of ASDA in dandy Britain. Not to mention its on- blood sales returns. Originally aiming to set up stores in medium-sized towns in the United States, Wal-Mart has since taken on the inter guinea pig market, from Mexico, Brazil, and Canada to massive Britain, as well as Japan with the 2002 take-over of Seyu, the fifth-placed Japanese supermarket chain, without forgetting europium with the Great-Britain and the Germany.Companys MissionThrough careful search, I have established that Wal-Mart does non officially have a mission statement. In retrospect, the mission statement is its slogan, Always low prices, always The CEO of the caller has verbalize that people are non concerned with their mission statement as much as they are their prices.Companys StructureSometimes I find myself reading through the court documents for lawsuits filed against Wal-Mart. Usually those documents are modify with a bunch of garbage posing as factual randomness. Occasionally, though, both(prenominal) interesting information is found. under is a description of Wal-Marts operating structure which was published in a court document in 2003. The only advantage to reading the text here is that I removed all of the legal cross references and footnotes to make the text readable. The following should be taken with a grain of salt in that this information was produced from an anti-Wal-Mart lawsuit and does not c ome from the companys official filings.There are a total of 41 regions 35 Wal-Mart regions and six Sams Club regions. Each region is supervised by a Regional Vice chairperson (RVP), who is based in Bentonville and travels for three weeks out of each month to the region. Because the regional management is based in Bentonville, Wal-Mart has an unusually high concentration of executives and managers based in the Home Office. Each region, in turn, contains approximately 11 districts each district contains approximately six to eight stores. Each district is run by a District Manager, who lives in the field. The highest level hourly manager at Wal-Mart is Support Manager. The next step up is to management trainee, a four-to-five month program which prepares employees for slips as Assistant Managers. The first salaried management position is Assistant Manager. Each store has several Assistant Managers, varying with the size of the store. The next level is Co-Manager, a position used onl y in larger stores. The top store position is Store Manager, called global Manager in Sams Clubs. The stores contain 40-50 different departments.Companys VisionSAFETY EYEWEAR PROGRAMAn estimated 1,000 eye injuries occur in American workplaces every day, caused by employees not wearing eye protection or wearing the revile kind of eye protection for the job. Flying particles, flying or falling objects, or objects swinging from a fixed or attached position (like tree limbs, ropes, chains or tools) are just some of the hazards that lead to accidents.Most people dont realize that an eye can be destroyed in a fraction of a second. The smartest and most effective safeguard against these risks is always wearing fit eye protection. galore(postnominal) workplaces today are required by OSHA to ensure their employees wear safety glasses meeting the new ANSI Z87.1-2003 standard for personal protective eyewear.OPTI- DIRECT VISION PROGRAMDiscover a simple, cost-effective way for your company to provide vision benefits for your employees without the complexities of an insurance vision plan. The Opti-Direct program can mean an average nest egg of more than $70 per year, per employee in comparison to a traditional vision insurance plan.Companys CharacteristicsWal-Mart is almost for certain not an example of pure competition. Pure competition is characterized by a very large number of sellers each with an almost infinitesimally small market share selling a non-differentiated product. Wal-Marts market share is colossal (as you stated) and they differentiate their product through targeting measures that include everyday low prices, convenient hours, and so forth There can be tough competition in every market structure (except monopoly) but that does not mean that the market meets the definition of pure competition.Company ProductsWal-Mart Stores, Inc., like most large retail and grocery chains, offers store brands, commonly referred to as business firm brands or generi c brands, which are low-priced alternatives to name brand products. Wal-Mart has numerous store brands, each catering to a different consumer need or desire. Almost all products offered under Wal-Mart brands are private give chase products, and can be found in almost every category at Wal-Mart.Major NamesSams cream Sams excerpt originally introduced as Sams American Choice in 1991, is premium retail brand in food and selected hard goods. Named for Sam Walton, founder of Wal-Mart, Sams Choice forms the premium tier of Wal-Marts twain-tiered core corporate grocery branding strategy that also includes the larger Great Value brand of discount-priced staple items. Most Sams Choice beverage products (excluding Grapette and Orangette) are manufactured for Wal-Mart by Cott Beverages. new(prenominal) products in the line, including cookies, snack items, frozen meals, and similar grocery items are made by a frame of agricultural and food manufacturers.Great Value Great Value was launche d in 1993 and forms the second tier, or national brand equivalent (NBE), of Wal-Marts grocery branding strategy. Products offered at Walmart through the Great Value brand are claimed to be as good as national brand offerings, but are typically sell at a lower price because of minimal trade and advertising expense. As a house or generic brand, the Great Value line does not consist of goods produced by Wal-Mart, but is a labeling system for items manufactured and packaged by a number of agricultural and food corporations, such as ConAgra, which, in addition to releasing products under its own brands and for Wal-Mart, also manufactures and brands foodstuffs for a variety of other supermarket chains. As Wal-Marts most extensively developed retail brand, covering hundreds of household consumable items, the Great Value line includes sliced bread, frozen vegetables, frozen dinners, canned foods, light bulbs, trash bags, and many other traditional grocery store products. The wide range of items marketed under the Great Value banner makes it Wal-Marts top-selling retail brand. The new design also includes over 80 new items including thin crust pizza, fat free caramel eddy ice cream, strawberry yogurt, organic cage-free eggs, double stuffed sandwich cookies, and teriyaki beef jerky. Walmart changed the formulas for 750 items including breakfast cereal, cookies, yogurt, laundry detergent, and paper towels. The new brand was tested by over 2,700 people.1 Other retailers are following suit with their private label packaging as well.MARKETING ENVIRONMENTThe Wal-Mart and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company. There are six major forcesDemographic environsDemography is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. It is of major interest to marketers because it involves people and people make up markets. Demogra phic trends are constantly changing.Economic EnvironmentThe economic environment of Wal-Mart are those factors that affect consumer purchasing power and spending chassissNatural EnvironmentThe natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. During the past two decades environmental concerns have steadily grown. Some trend analysts labeled the specific areas of concern wereShortages of raw materials. Staples such as air, water, and wood products have been disadvantageously damaged and non-renewable such as oil, coal, and various minerals have been seriously depleted during industrial expansion.Increased pollution is a worldwide problem. Industrial damage to the environment is very seriousGovernment intervention in natural resource management has caused environmental concerns to be more practical and necessary in business and industry. Leadership, not punishment, seems to be the best policy for long- term results. alternatively of opposing regulation, marketers should help develop solutions to the material and energy problems facing the world.Technological EnvironmentThe technological environment includes forces that create new technologies, creating new product and market opportunities.Political EnvironmentThe political environment includes laws, authorities agencies, and pressure groups that influence and limit various organizations and individuals in a given society. Various forms of legislation limit business.Marketing Strategy of Wal-MartWal-Marts marketing strategies are based upon a set of two main objectives that have guided the firm through their growth years. The customer is featured in the first objective Customers would be provided what they want, when they want it, all at a value. Team spirit was emphasized in the second objective, Treating each other as we would hope to be treated acknowledging our total dependency on our associate partners to amaze our success . I agree with Wal-Marts two main objectives. The customer objective includes giving the customer what they want at a reasonable value. The second objective covers the foundation of the company its employees. Employees are the basis for success of the company and drive the day-to-day operations. Wal-Marts employees, feeling like associate partners, gives them a feeling of empowerment and pride that drives the companys culture. Wal-Mart has launched booming marketing strategies that considered factors like social and environmental causes..CHANGE PROCESS IN THE ORGANIZATIONChange is a complex process, and also included with a time of anxiety and uncertainty for the workforce. Organizations need to clearly formulate the merits of change and present a clear process for achieving change, if they are to win the commitment and enthusiasm of people. wide-cut involvement in and communication of the change project can assist with employee understanding of the what and how of change.ORGANIZ ATION flavour CYCLEBefore planning a management strategy is important to carry out organizational life cycle to identified in which stages the organization are. After analyzing it if identified that Wal-Mart are in gain of structure phase because it ensuresManagers seek ways to streamline any excess bureaucracy that has cropped up during the previous phase.Decisionmaking becomes de-centralised, allowing individual departments to get organised along specific product/services lines or projects. Often the need at this phase is to revitalise the organisation.InnovationFig 1 The Organizational Life Cycle of Wal-Mart byplay PROCESS TRANSFORMATION MODEL tune process modeling is a technology aimed at poser business processes and analyzing them with the objective of using the analyses to drive process transformations. Business process modeling tools have fundamental capabilities such as simulation that helps business analysts to understand and quantify the impact of different process tran sformations on process Key Performance Indicators (KPIs). Even though business process modeling is widely used, analytic capabilities such as simulation are used to a much lesser degree because ontogenesis and running simulation models and interpreting their results is seen as a complicated activity by a volume of business analysts. As a result, many business analysts consider such tools as only suitable for experts in the field and are hampered in unlocking the full potential of business process modelling for identifying and assessing business process transformation options. Hence, there is a need for researching approaches that enable business analysts to use quantitative analysis methods easily towards the overall objective of business process transformation..Business process transformation is the fundamental rethinking and free radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, serv ice, and speedBusiness process Transformation is a top-down approach.It is not about projects carried out in isolation to seek a specific activity.Business process transformation is about looking at entire processes, sooner than at specific activities or functions.It also needs to be customer-centric and look at the chain of activities leading to the customer output (whether that is service or product).Wal-marts mission statement Wal-mart mission is to enhance and integrate our supplier diversity programs into all of our procurement practices and to be an advocate for minority- and women-owned businesses.To give ordinary folk the chance to secure the same thing as rich peopleBEHAVIOURS THAT NEEDED FOR ACHIEVE THE MISSION AND AIM optimise resource capacitiesThis pattern results in potential reduction of operating costs, by reducing resource capacities in different roles.Optimize resource scheduling policiesThis pattern results in potential improvement in service and reduction in c ost, by refining the scheduling policies governing the allocation of resources to different activities.Combine rolesThis pattern results in potential reduction in operational costs, by creating new roles in the process, by aggregating five-fold existing roles.Change branching opportunityThis pattern results in potential operational improvements, by modifying the probability that a specific branch is chosen by a token. The change in probability whitethorn in turn be realized by different means, such as employing improved technologies for managing flows, etc.Introduce business integration solutions, IT (InformationTechnology) systemsThis pattern results in potential improvement in operating costs, by automating the process using business integration and other information technologySTAKE HOLDER epitomeThe purpose of stakeholder analysis is to inform the Project Board and Project Manager who should contribute to the project, where barriers might be and the actions that need to be ta ken before detailed project planning.Key stakeholders of Wal-MartA Key stakeholder is a stakeholder whose interest in the project must be recognised if the project is to be successful. In particular, those who may be positively or negatively affected during the project or upon successful completion of the projectShareholdersThe management role of the BPLEmployeesPhysicians / DoctorsRelated banksParticipantsThe retailerThe distributorSupplierThe non report stakeholderA Non-key stakeholder is a stakeholder who does not need to be recognised in order for the project to be successful, but will be identified as s result of the process of identifying all stakeholdersPressure groupTaxation authorityThe Standard testing InstituteLocal communityPolitical influencesInternational policySYSTEM modellingThe 7-S-ModelThe 7-S-Model is better known as McKinsey 7-S. This is because the two persons who developed thismodel, Tom Peters and Robert Waterman, have been consultants at McKinsey Co at tha t time. Thypublished their 7-S-Model in their article Structure Is Not Organization (1980) and in their books TheArt of Japanese direction (1981) and In Search of Excellence (1982).The model starts on the premise that an organization is not just Structure, but consists of sevenelementsStrategyActions a company plans in response to or anticipation of changes in its immaterial environment.StructureBasis for specialization and co-ordination influenced primarily by strategy and by organization size and diversity. Systems statuesque and informal procedures that sustentation the strategy and structure.Style / CultureThe culture of the organization, consisting of two components Organizational Culture the superior values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life.StaffThe people/human resource management processes used to develop managers, socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employeesSkillsThe distinctive competences what the company does best, ways of expanding or shifting competencesSuper ordinate goalsThese represent the aspirations of the organisation, the beliefs, the principles and aims which should pull it towards success. A dual-lane view of this within the organisation is a powerful competitive advantage for an organisation to developResourcesRecourses needed for achieving the new marketsEstablished a new plant for productionEnsure better qualitySet up new marketing channel specially for the world-wide marketsNew management and trained staffFinancePolitical supportMarketing environmentIMPLEMENTATIONImplementing the ChangeA practical understanding of how people and organizations respond to change. This is reliable by a exporters to understanding how change unfolds helps reduce the amount of unproductive behavior that may fall out the implementation of a new practiced solution by reducing the amount of uncertainty entangled in change. Reduced uncertainty alleviates surprises and better equips people to focus time and energy on the technical solution.The manner in which change unfolds can be broadly grouped into seven key concept areas. These areas areNature. The impact of change on the individual.Process. The typical flow of change.Roles. The positions that are central to change.Resistance. The reactions that accompany change.Commitment. The process by which individuals and organizations align with change.Culture. The organizations past and present ways of doing things and the influence of these behaviours on the change.Synergy. The impact of teamwork on the change. do Good DecisionsDecisions are the alignment of an organizations current and plan changes with the resources available for implementing the initiatives.For an organization to be successful in implementing change, it must ensure that the demands created by its change i nitiatives do not exceed the organizations electrical condenser for executing the changes. When change demands exceed the organizations capacity for change, key resources become overwhelmed by the number of changes competing for their time. The result is an increase in impaired behavior that detracts energy from the implementation effort and, in many cases, impedes its process.Ensuring adequate capacity for existing and planned change demands generally involvesInventorying current and planned changes and evaluating them to determine their potential value, impact, and resource requirements.Prioritizing changes according to this evaluation.determine current capacity to implement changes.Trimming current and planned changes as necessary according to capacity limits.Developing and implementing strategies to increase overall change capacity to expand organizational adaptability.Structured Implementation computer architecture The structured plan for achieving the desired goals through i mplementation of the perceived change solution.Following a structured, even so flexible, implementation framework reduces errors and oversights and allows a team to proactively address issues that are routinely associated with the failure of organizational changes. such(prenominal) a structured framework consists of seven phases which, when applied as a system, facilitate successful implementation of an initiative.The seven phases areClarification. Development of a comprehensive vision and measurable outcomes that are wholly shared by key leaders.Announcement. Development and execution of a detailed communication plan.Diagnosis. Assessment of critical risks and key levers associated with the change.Planning. Development of comprehensive strategies to mitigate risks and use levers identified in the diagnosis phase.Execution. Implementation of developed strategies.Monitoring. uninterrupted assessment and augmentation of an implementation sequence.Evaluation. Assessment of a complete implementation sequence, and documentation and transfer of key learnings.RecommendationsI feel that Wal-Marts most challenging issue involves the publics resentment. Wal-Mart has wiped out numerous retail establishments (too many to count) and will put out to do so unless stopped. So far, some big box opponents have stopped Wal-Mart from specific expansions but Wal-Mart is definitely fighting back. From Wal-Marts point of view, I think more focus should be spent on global expansion. If specific areas are so against having a Wal-Mart that they pass laws to stop Wal-Mart from building in their area, I think Wal-Mart should stay away. For example, Wal-Mart would have a terrible time expanding into Oakland. I would assume that with the laws that were passed, a grand deal of negative press also took place. The time and effort to get a Wal-Mart built in Oakland may not be worth the trouble. This is one of the reasons I feel Wal-Mart should focus on international expansion. There were 1 ,355 international Wal-Marts in 2004. I definitely feel that expanding this number sounds like it could be very lucrative.Another issue facing Wal-Mart is the federal lawsuit regarding sex discrimination. From the numbers quoted in the case study, it sounds as though Wal-Mart is clearly discriminating against females. This is somewhat surprising but will hopefully be fixed. Wal-Mart is very thorough in their strategy, maybe they need to be more thorough and/or detailed in their compensation and incentive policies. Wal-Mart definitely needs to end the discrimination. In order to avoid future discrimination, observe of wages and salaries should be established. This is especially true for upper management employees, where females are paid significantly less than males in similar positions.Last, I feel that the compensation and benefits offered to Wal-Mart employees are somewhat of an issue. If only about 60 percent of employees have health coverage (compared to 72 percent in the retai l industry as a whole), I think their benefit package needs to be revaluated. The case study claims that the reason many employees did not sign up for health coverage is because they obtained it through a member of their household. Im sure that is the case for some, but not all. Furthermore, Wal-Mart does not pay any health care costs for retirees. I feel that both examples are methods Wal-Mart uses to cut costs and both need to be reconsidered.CONCLUSIONManagement change in the organization is the key to adopting with new technologies. Though it a complex and continuous process but every organization should practice this new techniques to manage and operate he organization successfully.