Possible Points 100 Bus 109 Spring 2017 Reading Response

Possible Points 100bus 109 Spring 2017 Reading Response The Stra

According to The Strategist, what are the four key elements of a purpose? Pick a company from the following list: What is the company’s core business? Who are its main competitors? Where, geographically, does the company operate? If the company you chose disappeared today, how would the world be different tomorrow? Based on your answer, what do you think the purpose of the company is?

Paper For Above instruction

The concept of purpose within an organization, as outlined by Cynthia Montgomery in The Strategist, emphasizes the importance of formulating a clear, noble, and impactful guiding mission. Montgomery posits four key elements that constitute a compelling purpose for any organization. These elements aim to inspire stakeholders, define the company's identity, distinguish it from competitors, and foster economic value creation. This essay explores these core elements and applies them through an analysis of Walmart Inc., examining its core business, competitors, geographical reach, potential societal impact if it disappeared, and its underlying purpose.

The four key elements of a purpose

Montgomery emphasizes that a purposeful organization must possess four essential elements to be authentic and effective. Firstly, a purpose should be ennobling, meaning it should inspire and uplift those within and outside the organization, providing a sense of meaning and motivation. An ennobling purpose resonates on a moral or social level, fostering a commitment beyond profit motive, aligning with the organization's values and societal impact. For example, a company committed to sustainability or social good embodies this element.

Secondly, a purpose must "put a stake on the ground." This means that it should clearly define what the organization intends to be—its identity and core function—serving as a guiding principle that informs strategic decisions. It is not merely aspirational but a hardened declaration of the company's true role in the market and society. This element helps organizations remain focused and consistent over time.

The third element is that of distinctiveness: the purpose should set the organization apart and make it different from its competitors. This involves innovation or unique value propositions that give the organization a competitive advantage. Distinctiveness ensures that the company does not become just another player in the industry, but one with a unique and recognizable identity that adds value in a way that competitors cannot easily replicate.

Finally, a purpose should "set a stage for value creation and capture," meaning that it should inherently lead to economic outcomes. A meaningful purpose aligns with sustainable business practices, profitability, and growth, enabling the organization to create value for stakeholders while also capturing its fair share of that value. In essence, a purpose integrates social significance with economic viability.

Walmart’s core business

Walmart Inc. operates across diverse formats and regions, with its core business centered on retailing a broad range of goods at low prices. As of 2016, Walmart's operations were segmented into three main divisions. The first, Walmart US, is the largest segment, encompassing retail stores across all US states and Puerto Rico. It offers a wide array of merchandise including groceries, health and wellness products, apparel, and household goods. Second, Walmart International operates in 27 countries outside the US through retail, wholesale, and other formats, often as wholly owned subsidiaries or joint ventures. Third, Sam’s Club reflects Walmart’s membership-only warehouse club concept, supplying bulk goods and services to both individual consumers and business clients, with product categories extending from groceries to electronics and fuel.

Walmart’s extensive merchandise units and diverse retail formats, including hypermarkets, supermarkets, and warehouse clubs, underpin its competitive strategy. Its emphasis on cost leadership allows it to offer lower prices, attracting a vast customer base. The company's geographic reach and operational model enable it to efficiently serve varied markets and demographics.

The impact of Walmart’s disappearance

Had Walmart vanished today, the retail landscape and the broader economy would be significantly affected. Walmart’s absence would likely lead to immediate opportunism among competitors, who would expand to fill the void, intensifying competition and possibly leading to higher prices for consumers. A notable societal impact would be increased unemployment, as Walmart employs millions across its stores, distribution centers, and supply chains. This disruption could ripple globally, affecting suppliers, local economies, and consumer choices. Moreover, Walmart’s commitment to low-cost goods has contributed to increased affordability, particularly for lower-income households. Its disappearance would challenge affordability and potentially reduce access to essential goods for vulnerable populations.

The purpose of Walmart

Walmart’s core purpose, as inferred from its operations and strategic focus, is to help people save money and live better by providing accessible, affordable products. This purpose aligns with Montgomery’s definition of a noble, motivational, and distinct aim. Walmart aims to be close to its customers, ensuring convenience and value. Its emphasis on cost leadership and broad accessibility underscores its purpose of democratizing consumption, especially for economically disadvantaged groups. Additionally, Walmart’s focus extends to stakeholder satisfaction, including employees, suppliers, and communities, emphasizing a holistic approach aligned with its purpose of enhancing everyday life for its customers through affordability and convenience.

References

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