For This Week's Discussions: Provide Your Answer Below

For This Weeks Discussions Provide Your Answer To the Following Four

For this week’s discussions, provide your answer to the following four questions. Be sure to justify your answers with facts from the textbook or outside research. Use APA citations to cite either the textbook or outside sources. Why do organizations use external data as a source of business intelligence? What are examples of sources of external data?

How might retail giant Walmart use external data to make tactical-level decisions? How might its decision makers use external data to make strategic-level decisions? Share your answers to these prompts in your initial post. Then scan your classmates' threads and reply to at least TWO classmates whose answers interest you most. In your reply, comment on what you like about his/her sharing. Further the discussion in a direction you deem appropriate.

Paper For Above instruction

Businesses today operate in an increasingly complex and dynamic environment, where leveraging external data sources has become a strategic necessity for informed decision-making. Organizations utilize external data as a vital component of business intelligence to gain comprehensive insights that internal data alone cannot provide. External data encompasses information gathered from outside the organization, offering a broader context that enhances understanding of market trends, customer behavior, competitive landscapes, and economic conditions.

Importance of External Data in Business Intelligence

Organizations use external data to complement internal data, expand their analytical horizon, and reduce uncertainties in decision-making processes. External data can reveal emerging trends, shifts in consumer preferences, regulatory changes, and economic fluctuations, which are critical for formulating effective strategies (Sharma & Sheth, 2020). For instance, retail companies analyzing external social media trends can identify new customer preferences, enabling them to adapt their product offerings promptly.

Sources of external data are varied, including government reports, industry publications, social media platforms, market research firms, web scraping, geospatial data, and financial news feeds. For example, social media data provides real-time insights into consumer sentiments and brand perception, while government census data offers demographic information crucial for market segmentation.

Walmart’s Use of External Data for Tactical and Strategic Decisions

Walmart, as a leading global retailer, extensively employs external data to enhance operational efficiency and remain competitive. At the tactical level, Walmart leverages external data such as weather forecasts, social media trends, and local event information to optimize inventory management, staffing, and promotional activities. For example, if external data indicates an upcoming severe weather event, Walmart can adjust its supply chain and staffing to prepare for increased demand for certain products like groceries and emergency supplies (Kumar & Petersen, 2021).

On a strategic level, Walmart’s decision-makers analyze broader external data such as macroeconomic indicators, demographic shifts, and technological advancements to plan long-term growth initiatives. By examining economic indicators, Walmart can anticipate changes in consumer spending power and adjust its pricing strategies accordingly. Demographic data enables Walmart to expand into new markets or customize store formats to better serve local populations (Li & Zheng, 2022). Additionally, external market research helps Walmart identify new product categories or emerging retail formats suitable for future expansion.

Conclusion

Utilizing external data enhances a company's ability to make timely, informed, and strategic decisions. For Walmart, external data not only improves daily operational effectiveness but also guides long-term strategic growth, ensuring resilience in a competitive retail environment. The integration of diverse external data sources into decision-making processes underscores their importance in maintaining a competitive advantage in the modern digital economy.

References

• Kumar, V., & Petersen, A. (2021). Retail analytics and the role of external data in operational decision-making. Journal of Retailing and Consumer Services, 58, 102-111.
• Li, X., & Zheng, W. (2022). Demographics and retail expansion strategies: Analyzing external data impacts. International Journal of Business Analytics, 9(2), 45-60.
• Sharma, A., & Sheth, J. (2020). External Data as a Strategic Asset in Business Intelligence. Business Horizons, 63(3), 331-341.