Business Strategy Assignment Sample

IntroductionTo Business Strategy Assignment

Business strategy consists of various methods or plans to achieve the organizational goal, vision and mission of the company. For the following assessment, Wal-Mart from the retail industry has been chosen. Walmart was founded in 1962 and headquartered in Bentonville, Arkansas, United States and provides services including hypermarkets, department stores and grocery stores. Moreover a description of how core capabilities help the company to develop and maintain the business strategy.

At the same time, it will also explain the strategic approach that drives the organization's core capabilities while discussing what is working and which is not working with appropriate models. While stating the reason for the strategic processes are not working. Nevertheless, some solutions or changes that are needed will be mentioned with theories and concepts. Further, the study will also describe how the business plan will respond to risks associated with the solution as well. Lastly detailed information on recommendations to manage the changes.

Description of the Organisation

The organization is Walmart an American company that is part of the retail industry. The retail industry works as a mediator between the company and the customer and provides all the services related to the end product. With the help of the retail industry, the company cannot just sell the product but also promote it while using different marketing strategy as well. The retail industry includes various kinds of stores like departmental, grocery, hyper marker and others as well (Har, et. al, 2022). Many companies are part of the industry like Walmart. The company is a global company that has stores all around the world. Some famous stores at Walmart are grocery and hypermarkets that sell products wholesale. The customers of the company include all age ranges of the customer because Walmart provides all the necessities to the people. Moreover, the company provides much merchandise at low prices because of the wholesale.

Walmart has more than 10,000 stores all around the world that maintain the same price and is the second largest retailer in the world after Tesco. The company provides the product with the best price and quality services to the customer while adopting the new changes. The changes include online shopping for the customer to experience the best quality services in the future as well (Naseri, R.N.N., 2021). Walmart is a very trustworthy company in the retail industry as well. The company has loyal customers all around the world because of its prices and services. Walmart offered all kinds of products like lifestyle, health or wellness, groceries and other necessities as well. Moreover because of the low price company target customer who look for a pocket-friendly option (Akram, et. al, 2021). At the same time with the wholesale process and good warehousing, the company can also provide the products at lower prices. The Walmart warehouse is very much known for its technological advancement.

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Core capabilities

As a global company, Walmart has many core capabilities that make it different and make it a market position in the industry. Some major core capabilities are like:

• Culture: The Company has a diverse culture because of the stores all around the world and the global presence in the market. Moreover, that is why Walmart has culture as one of its core capabilities. Nevertheless, the employees of the company are hardworking, passionate and motivated to work for the organization together to provide quality services to the customers (Ghosh, et. al, 2022). The company culture encourages the employees to suggest creative ideas to change for the better and improve the service as well.
• Low cost: The Company has all type of customer but because of the uncertainty in the economy Walmart target middle-class people. Moreover because of the high range of products purchased and sold the company also can provide products at lower or discounted prices (Hamdan, et. al, 2020). At the same time the customers who are looking for the lower price or pocket-friendly products Walmart become one of the options. Further, the company is looking forward to working in small towns and cities to target customers and make a diverse work environment.
• Supply chain: The supply chain management of the company is very well managed because of the wide range of stores spread all across the world. The supply chain has the biggest role in minimizing the cost of the product as well (Frederico, et. al, 2019). Moreover, the company focuses on the supply chain to provide the product at the right place at the right time. Walmart supply chain is affected by the pandemic a lot just like other companies. So the company now is working on making the supply chain flexible enough to go through future changes or problems.

Evaluation of the strategic business approach

Evaluating the strategy that is being used for the organization is essential by which the management determines the success rate of the implication. To evaluate the business approach some factors need to overview and some of them are:

A strategic business approach that drives the organization's core capabilities

The strategic business approach drives the organization's core capabilities because it directly affects the company. The company uses a strategic business approach to help the company to make a competitive advantage. So some major strategic business approaches with different perspectives are like:

• Commercial perspective: The strategic business approach should be aligned with the commercial goals of the company to drive the core capabilities. Moreover, the company needs to invest in the resources that are needed for the achievement of commercial success (Dutta and Goswami, 2021). Nevertheless, by different commercial techniques, the company can also gain competitive advantages. So it is very important to drive the core capabilities with the commercial to make competitive advantages.
• Customer perspective: According to the customer perspective the company should make a strategy to meet the needs and demands of the customer. Moreover, the core capabilities should be customer-oriented to achieve a competitive advantage in the market. Like Walmart, one of the core capabilities is Low price which help the company to target and attract more customer toward the company. The core capabilities also help to increase the loyalty of the customers and retain them.
• Market perspective: the core capabilities help the company to make a market position for the company in the industry. Moreover, the company needs to focus on the strategic approach that makes the core capabilities evolve with the customer trend at the same time (Albayati, Kim and Rho, 2020). The market position helps the company to attract investor and shareholders toward the company.
• Societal perspective: The organization has an impact on the environment and society a lot because the company does not work in isolation. So the core capabilities should align with the social and environmental factors with values at the same time.

What is working and what is not working

After the analysis of core capabilities with the social, market, customer and commercial perspective some factors are working and some of them are not working. Moreover Walmart is a global company but it needs lot of improvement and reorganization some of them are like.

The factors that are working

In the context of commercials, The Company has applied cost leadership in the organization very effectively to make the supply chain smooth. Moreover, to provide the product at low cost the company works on the supply chain to manage the price. Nevertheless company also makes an effort to global expansion so the commercial reach can have a high range as well. In the context of customers, Walmart has inventory management as one of their core capabilities so the company can supply a wide variety of products.

Nevertheless, the company provides products at low prices with the help of logistics and inventory management. Moreover, Walmart also investing in E-commerce so that customers can have an online delivery system because of changing preferences in the customer trend. Further as per the perspective of society the company Walmart has provided a lot of job opportunities and takes initiative toward environmental safety and welfare (Neebe, 2020). Moreover for enhancing the sustainability in the company Walmart is working on renewable energy and reducing the bad impact on the environment as well.

The factors that are not working

Some core capabilities not working from a different perspective according to the commercial the online competition for the company is increasing day by day. There are many online competitions from big companies like Amazon at the same time balancing both online and offline retail can be challenging for the company. Moreover the company a lot on the Low pricing of the product which can also impact the profit margin of the organization. At the same time is it very important to balance the profit margin and cost of the company.

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When it comes to the customer perspective the company may have a hard time providing personalized customer services to the customer because of the large retail chain. According to the market perspective, the company has many international challenges in the industry. Well for the social practices, the company has recently faced some criticism for the labour practices. Nevertheless solving these issues is important for the company to maintain its reputation and positive environment in the company.

The strategic processes and activities that are or are not working well

Strategic processes and activities are highlighted in the above-mentioned topic with a description. Moreover, there is some reason that some activities are working and some of them need attention:

• Supply chain: as the company has a well-managed supply chain and logistics management some core capabilities are working for the company like customer satisfaction. The customer is getting the product at the right time which increases Customer retention and loyalty toward the organization. The supply chain is also essential for the company because of the long retail chain
• Inventory management: Walmart is known for its inventory management the company has warehouses with technological advancement. Moreover because of this Walmart can provide the product at a low cost (Lin, 2019). At the same time, it is also helping the company with global expansion because of price and technology.
• Digitalization: Walmart is working toward providing customers with online services as well as traditional retail. The company is investing in the digital platform so it can remain sustainable in the market in the future as well. Moreover adopting digital technology can become a competitive advantage for the company to sustain in the intense competition in the industry.
• Competition: Walmart is a global company which is why there are many national and international competitions the organization has to face. Moreover, the company is also now entering into the online retail market in which Amazon has a good position already. Nevertheless the company will face challenges while balancing both markets because of the intense competition.
• Social issues: Walmart is recently facing some issues regarding labour practices and product quality that are impacting the reputation of the company in the market. Moreover not addressing those issues can impact the local business and customer preference a lot.
• Technological advancement: Even though Walmart is working toward adopting the technological and digital tools in the company. Moreover, as a large retail chain, it is not easy to implement all over the world it will take time and effort.

From the VRIO matrix, some core capabilities have been highlighted like the Supply chain, inventory, Cost leadership and inventory (Walmart VRIO/VRIN Analysis, Value Chain Analysis (Resource-Based View), 2019). Those core capabilities not only create value for the company but are also costly to imitate and rare at the same time the organization can use them to build a competitive advantage in the market as well.

Porter value chain model

Porter's value chain is a process by which an organization creates a market image and value with the help of primary support activity. Moreover, the Porter values chain helps to highlight the market value of Walmart:

• Primary activity: Primary activity consists of five services of the company like inbound and outbound logistics. Walmart has proficiency in logistic that help them to supply the product according to the requirement and demand. Moreover, operation and services are also part of the primary activities (Walmart Value Chain Analysis, 2019.). In which the company offers a low-cost product to the customer and has large-scale wholesale to achieve the goal. Lastly, the sales and marketing in this company focus on low-cost products and promote a wide range of services in the market.
• Support activity: It consists of four different activities that support the company in daily operations and achieving its goals. The activity includes Infrastructure and technological advancement in which the company has a wide variety of stores and warehouses while the use of data analytics to forecast the demand (Nunan and Di Domenico, 2019). Moreover, human resource management and procurement are essential activities for the company. So Walmart trains and develops the workforce at the same time outbound services whenever needed.

Recommend solutions and changes

As some problem that is not working toward the driver of core capabilities are highlighted some solution and changes are recommended to the company.

Solutions or changes that are needed

Solutions and some changes can help the company to work toward the core capabilities and make values and potion in the market. Some of the solutions or changes that are required like: Analyse and evaluating online retail to provide quality services with innovative ideas to build a competitive advantage. At the same time, Walmart can collaborate with Amazon to explore new markets and strategies and provide better services together (Prajapati and Nakum, 2019). At the same time, it will reduce the impact of intense competition in the market.

Moreover, diverse the product range while merging and acquiring to keep up with the changing preferences of customers like working with organic products as well. Nevertheless, improving the data analytics to analyse customer behaviour and forecast the demand in the market. This implication will retain and attract customers. Further, the company should work on making good relations with society by providing transparent information to the public and with other welfare programs. Moreover, the company should also prioritize employee engagement and job satisfaction to increase productivity and reputation.

Reason for selecting this solution and supporting the recommendation with theories

The solution chosen that is also recommended to the company is very essential step the organization should take to achieve its goals and vision. Some theories and models that can be used at the same time support the recommendation as well. Some of the models are like the company can use resource-based view theory that helps the company to build a competitive advantage (Mantha, et. al, 2020). With this theory, both companies can identify the resources that they can use to gain a market position in the industry. Moreover, to make an online presence for online retail the company can use an approach called digital marketing funnel.

The company can use various online platforms to spread awareness and market the services to promote the brand. Nevertheless, to improve public relations companies can apply the Two-way symmetrical model. The model will help the company to encourage open communication resolve any conflict and create good relations with the public. Further, the stakeholder theory will help the company to focus on employee welfare. Well, the theory helps the company to improve and welfare of everyone including shareholders, customer and employees. Further the company can provide career development, work life balance and safe environment as well.

Risks associated with solution

The solutions and models that can be used to implement the recommendation help the company grow in the market but are associated with the risk as well. Moreover, the solution that was recommended was to enter the new market of the online retail industry. At the same time, the joint venture will help the company to increase its resources and competitive advantages. Nevertheless when two competitors work together there is the possibility of clashes between them (Ali, et. al, 2021). Nevertheless, if the company starts the digital market funnel to aware people of the new ventures it will attract the customer and build loyalty and trust between them. Moreover, there is a risk if the marketing strategy is not up to mark and can fail to attract the customer.

Further Walmart is facing the issue regarding Labour practices that have affected its relations with the public. Open communication, transparency in information and conflict resolution will help the company to build its reputation among the local business. Moreover, if the existing conflict is not solved then the relationship will get worse. Lastly, the employee's welfare like work-life balance, career development and a safe environment to work will increase job satisfaction among the workers. Moreover, the extra events for the employee can affect the operation of the organization.

Recommended approach to managing the change

To manage the changes and risks that are associated with the recommendation there is a model that the company can apply to achieve the overall goal. Many models can be used but the ADKAR Model will be the most effective one when it comes to changes in the organization (ADKAR Model: What Is It and How To Use It?, 2019). The model helps the management to recognize the need and requirement of the company and also provide a structured map of the solution to guide them with each step. Walmart can use this model for each problem the company may face during the changes. Some of them were the risk of conflict, not proficient in the online market strategy and minimizing the productivity in the organization. With the help of the model, the management will be able to overcome the risk and help the company to adopt the changes.

Conclusion

The study has concluded the overall description of the retail industry and at the same time overview of Walmart which is the second-largest retailer in the market. Moreover, some core capabilities are being used to develop and maintain the business strategy. At the same, the drivers of core capabilities have been highlighted from commercial, customer and market perspectives. Nevertheless an evaluation of what factors are working and what are not working for the company with reasons and activities to describe why they are not working. Further theories and models to support the reason have been described. Lastly some solutions and changes also have been recommended to the company with theory to highlight and manage the risk as well.

References

Books and Journals

• Akram, U., Fülöp, M.T., Tiron-Tudor, A., Topor, D.I. and C?pu?neanu, S., 2021. Impact of digitalization on customers' well-being in the pandemic period: Challenges and opportunities for the retail industry. International Journal of Environmental Research and Public Health, 18(14), p.7533.
• Albayati, H., Kim, S.K. and Rho, J.J., 2020. Accepting financial transactions using blockchain technology and cryptocurrency: A customer perspective approach. Technology in Society, 62, p.101320.
• Ali, T., Khalid, S., Shahzad, K. and Larimo, J., 2021. Managing international joint ventures to improve performance: The role of structural and social mechanisms. International Business Review, 30(3), p.101791.
• Dutta, L. and Goswami, B., 2021. A discussion on the preservation and the expansion of Assamese culture: A commercial perspective. International Journal of Management, 12(2).
• Frederico, G.F., Garza-Reyes, J.A., Anosike, A. and Kumar, V., 2019. Supply Chain 4.0: concepts, maturity and research agenda. Supply Chain Management: An International Journal, 25(2), pp.262-282.
• Ghosh, S., Hughes, M., Hodgkinson, I. and Hughes, P., 2022. Digital transformation of industrial businesses: A dynamic capability approach. Technovation, 113, p.102414.
• Hamdan, M.K., El Talla, S.A., Al Shobaki, M.J. and Abu-Naser, S.S., 2020. The Effect of Choosing Strategic Goals and Core Capabilities on the Creative Behavior of Organizations. International Journal of Academic Information Systems Research (IJAISR), 4(4), pp.56-75.
• Har, L.L., Rashid, U.K., Te Chuan, L., Sen, S.C. and Xia, L.Y., 2022. Revolution of retail industry: from perspective of retail 1.0 to 4.0. Procedia Computer Science, 200, pp.1615-1625.
• Lin, R., 2019. The importance of successful inventory management to enterprises: A case study of Wal-Mart. In 2019 International Conference on Management, Finance and Social Sciences Research (MFSSR 2019). London: Francis Academic Press.
• Mantha, A., Arora, Y., Gupta, S., Kanumala, P., Liu, Z., Guo, S. and Achan, K., 2020, May. A large-scale deep architecture for personalized grocery basket recommendations. In ICASSP 2020-2020 IEEE International Conference on Acoustics, Speech and Signal Processing (ICASSP) (pp. 3807-3811). IEEE.
• Naseri, R.N.N., 2021. Issues And Challenges Of Online Shoppingactivities On The Impact Of Corona Pandemic: A Study On Malaysia Retail Industry. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10), pp.7682-7686.
• Neebe, K., 2020. Sustainability at Walmart: Success over the long haul. Journal of Applied Corporate Finance, 32(2), pp.64-71.
• Nunan, D. and Di Domenico, M., 2019. Older consumers, digital marketing, and public policy: A review and research agenda. Journal of Public Policy & Marketing, 38(4), pp.469-483.
• Prajapati, M. and Nakum, D., 2019. Merger and acquisition in e-commerce sector. A Global Journal of Interdisciplinary Studies, 2(4), pp.41-45.

Online

• ADKAR Model: What Is It and How To Use It? 2019, Online. Available through: < https://whatfix.com/blog/adkar-model-what-is-it-and-how-to-use-it/ >
• Walmart Value Chain Analysis, 2019. Online. Available through: < https://www.edrawmax.com/article/walmart-value-chain-analysis.html>
• Walmart VRIO/VRIN Analysis, Value Chain Analysis (Resource-Based View). 2019. Online. Available Through: https://www.rancord.org/walmart-vrio-analysis-competitive-advantages-core-competencies#:~:text=This%20VRIO%20analysis%20includes%20the,minimized%20inventory%20bottlenecks%20and%20costs.