Selection Of A Firm Introduction Business Plan Incorporates

Selection Of A Firmintroductiona Business Plan Incorporates A Compan

Selection of a Firm Introduction A business plan incorporates a company's concerns regarding vital resource issues. Typically, a company formulates its business strategy based on the resources at its disposal and the long-term results it hopes to attain. Therefore, the majority of businesses formulate their strategies with the objective of increasing their performance and keeping pace with the market's competition. The objective of this research is to identify an organization, discuss its nature, organizational structure as well as its business strategy. The selected organization for this paper is Walmart Inc.

Walmart Stores Inc. is a well-known company that operates numerous locations across the globe including the United States, Mexico, Japan, United Kingdom, India, and Canada. Nature of the Organization Walmart is an international retail firm that was founded in the United States and maintains its headquarters in that country. Walmart is involved in the operation of many different hypermarkets, including food stores and discount departments, in a variety of nations all over the world. It is classified as a retail corporation in terms of its business operations. Sam Walton started the business in 1962, and since then he has been successful in growing it to be worth many millions of dollars.

The company is a multinational discount retail chain. A stock split of the organization took place in May of 1972, and in 1981 Walmart expanded its activities to include the southern region of the United States (Pope & Pope, 2015). In 1993, under the leadership of Bobby Martin as president, Walmart established its international business. Subsequently, the corporation expanded into multiple states, which led to a rise in sales. Walmart has a significant client base as a result of the low prices of the goods and services they provide, such as sports and recreation, electronics, delivery and pickup for household goods, and health insurance (Burbach, 2021).

The management established two competing online stores, Walmart.com and Jet.com, which gave clients the option to buy goods from the nearby store, increasing their client base and providing them a greater chance in the market than their rivals. Organization Chart for Walmart

Chief Executive Officer (CEO): The position of chief executive officer (CEO) is the most senior executive position in a company and is responsible for managing all aspects of the business. The chief executive also provides assistance in the selection of candidates for various higher positions and provides input into the organization's most important policy decisions. There are two assistant CEOs: one responsible for administration and the other for finances.

Assistant CEO in charge of Finance: Controls the company budgetary matters and has the authority to make important financial choices and monitor financial activities within the business and from its numerous international subsidiaries.

Assistant CEO in charge of Administration: Helps the CEO in his tasks and, in his absence, can operate in his full authority, including key organizational decision-making, the hiring of higher positions, and the oversight of all administrative concerns in the institution's branches.

Human Resource Managers: Responsible for the well-being and performance of employees, recruiting and terminating staff based on their performance, reviewing employee compensation, fostering positive working conditions, and rewarding high-performing staff to boost morale.

Marketing Managers: Conduct market research, analyze competitor pricing and customer preferences, and help promote products via various media, including social media, to increase sales.

Regional Managers: Oversee store performance in different countries, help formulate regional policies, assess employee performance, monitor sales, and manage supply orders.

Management Trainee: Provide training and induction services to new hires and staff promoted within the organization, with each region having its own training program.

Customer Service Supervisor: Ensures effective store operation and customer service, oversees cashiers, shelf stackers, and sales staff, and manages stock information for orders.

Staff (Cashiers, Stockers, Sales Staff): Interact directly with consumers to assist with purchases, ensuring quality service during transactions.

Business Strategy of Walmart

Walmart employs two main generic strategies to maintain its competitive advantage: cost leadership and differentiation. These strategies enable Walmart to attract and retain a large customer base, ensuring sustained growth and market dominance.

Cost Leadership: As articulated by Michael Porter, cost leadership focuses on minimizing expenses to offer the lowest prices in the market (Bruijl & Gerard, 2018). Walmart’s ability to maintain low prices is grounded in its operational efficiencies, economies of scale, and technological innovation. By automating processes, optimizing supply chains, and controlling human resource costs, Walmart reduces its operational expenses. Such cost reductions allow Walmart to sell products at lower prices than competitors, thus attracting price-sensitive consumers and gaining market share (Ferguson, 2018).

Differentiation Strategy: Walmart’s differentiation strategy emphasizes providing unique value propositions that competitors cannot easily replicate (Ferguson, 2018). Walmart achieves differentiation by offering a wide variety of products, innovative online shopping experiences through Walmart.com and Jet.com, and excellent customer service. Its focus on integrating brick-and-mortar stores with online platforms allows it to serve diverse customer preferences and increase convenience, enhancing customer loyalty and satisfaction (Pope & Pope, 2015). Moreover, Walmart’s ability to adjust prices when suppliers increase costs exemplifies its flexible approach to differentiation, ensuring that customers perceive its offerings as superior (Burbach, 2021).

By effectively combining cost leadership and differentiation, Walmart maintains a competitive edge that supports its extensive global presence and robust financial performance. The company's strategic focus on operational efficiency and customer-centric innovation facilitates its sustained growth in the highly competitive retail sector.

Ethics and Integrity

In addition to strategic positioning, Walmart emphasizes building a culture of ethics and integrity. Implementing international ethical standards is crucial for fostering trust, transparency, and responsible business conduct across its global operations. This involves establishing consistent policies on ethical behavior, promoting ethical decision-making through training, and enforcing compliance to prevent misconduct (Bruijl & Gerard, 2018). Embedding ethics into everyday business practices enhances Walmart’s reputation, supports stakeholder relationships, and ensures long-term sustainability.

Conclusion

This research identified Walmart as a prominent retail organization with a broad international footprint. Walmart’s hierarchical organizational structure, led by a chief executive officer overseeing various management functions, supports its expansive operations. Its core strategies—cost leadership and differentiation—enable it to maintain competitive advantage by offering low prices and unique value propositions to consumers. To sustain its growth, Walmart must also continue emphasizing ethics and integrity, fostering a culture of honesty and trust across all levels. By integrating strategic innovation with ethical practices, Walmart is positioned to continue its leadership in the global retail market and adapt to evolving consumer expectations and technological trends.

References

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