Menu

Wal Mart Stores Inc Case Study Help

CASE STUDY

Home >> Ivey >> Wal Mart Stores Inc >>

Wal Mart Stores Inc Case Study Analysis

Background and Facts

Wal Mart Stores Inc a workplace materials store for little and moderate sized services has actually just recently been involved in preparing for a merger with its rival Residence Deport, which has actually affected efficiency degrees in departmentswith the elderly supervisor associated with lawful problems put forth by the government Trade Payment. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With challenges in the form of a prospective social modification and also reduced staff member morale, the organization requires a full reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising division of Wal Mart Stores Inc is enhancing unpredictability in the workplace leading to different difficulties for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting tactical choices considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Provided the reality that the store has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to affect performance or critical goals. Federal Profession Payment's antitrust match against the merging took up beneficial time of the company's senior management recommending that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Economic factors such as the development of small businesses in the international circumstance recommend that Wal Mart Stores Inc is prospering in a setting where there is prospective growth of services. In addition to this, truth that store customers are mainly seeking office products for office recommends that the market has a climbing fad of entrepreneurs and online organisations.

Social factors: Social fads in the economic climate show that customers are looking for comfort along with appealing prices. Market research demonstrates how the client for Wal Mart Stores Inc does not have understanding regarding finding remedies which can provide a combination of benefit and affordable.

Technological factors: Technology plays an essential duty in Wal Mart Stores Inc's company approach specifically as the company is piloting Innovation centers which would certainly supply modern technology sales and assistance in the form of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Habits problems can be seen in Wal Mart Stores Inc's case as highlighted in this area.

Worries about social change: There is concern concerning a cultural modification that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the employee already revealing discontent over this potential step. This anticipated modification has created stress and anxiety in the office which has actually been combined with the previous stress of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the demanding setting of a busy organization. Not just does this lead to trouble in discovering the right individuals, it puts tension on new hires as can not endure the rate and pressure that the organization anticipates them to bear.

Twin Reporting Lines: Newbies find this business society troublesome and also tough to handle particularly as dotted line partnerships are suggested to be weak in general and unbiased setting as well as efficiency evaluation is still done by the strong line supervisor. This means that beginners can shed quality concerning their respective duties and also goals specifically as dotted line coverage does not maintain them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been speculated that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis may have been capable and also appropriate for the job yet the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Anxiety and instability can be identified as two major worries that Lewis would be dealing with specifically as the merging has currently be terminated as well as 2 senior execs of the advertising division would be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a social modification but would also need to prove herself in her new duty.

Incompatible Monitoring Design of Leader: Lewis's management design as well as its incompatibility with the advertising division's function can likewise be seen as an OB obstacle particularly as she has been used to taking care of concerns in the procedures division where personnel are educated to focus on processes and get them. The advertising and marketing division on the various other hand can be seen as a team of people that are used to being supported by Krasnow that focused more on output than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, advertising and marketing, merchandizing and operations specifically over the allotment of the advertising mix can be identified as one more OB concern. The marketing division does not share the exact same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations departments do not agree over the advertising mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be recognized as an additional OB problem which could require further focus. The fact that the advertising and marketing areas in the advertising division are separated is protecting against both departments from getting from each other's experience and know-how. Assimilation of marketing with retailing and also operations would come to be more difficult if the marketing division itself is disintegrated which can be another possible OB concern.

Wal Mart Stores Inc Analysis

Various theories have actually been utilized to clarify the scenarios to obtain more clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors believe that juniors are passive as well as lazy, have little ambition as well as withstand change. The situation at Wal Mart Stores Inc is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment rather demanding which might at some point lead to a higher disposition of the administration towards Theory X. Even while examining Lewis's management style, theory X might have been suitable in the procedures division to some level yet the Advertising division would require dependence on Theory Y in order to obtain the creative thinking and creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's worry regarding bringing harmony in between the advertising and also marketing department is concerned, this would initially lead to clash as gone over by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising and marketing and also marketing division's job, there might be the very same first detach which could lead to the second phase of 'storming' where the teams challenge one an additional.

When people are provided with change, they get in stage one and so there may be feelings like sadness, unpredictability, aggravation, anger, anxiety, rejection and disorientation.The circumstance at the advertising department of Wal Mart Stores Inc is similar so Lewis can obtain comfortable with the idea that it is not phenomenal habits. It is during this phase that Lewis will have to provide support to the department so that they can locate a feeling of direction. It can be seen how Krasnow has actually already made this transition easier by making Lewis get entailed in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'security requires as being a reduced level need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure and out of risk' is at the second degree of requirements. Prior to a worker can be made to establish psychologically, he needs to have his 'Physiological 'as well as 'Safety' requires satisfied.

SWOT Analysis for Wal Mart Stores Inc Case Study



Ramification of Analysis.

The OB analysis has considered numerous theories to understand just how to cope with the existing scenario at hand. The complying with 3 alternatives have been suggested to aid Lewis handle the business challenges in the advertising division. Each of these alternatives has been recommended for reducing the transition needed to bring the marketing department according to the needs of the marketplace and for making the social adjustment that would adhere to once the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Production functions. Integration of Marketing with Procedures.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The internal advertising and marketing agency of Wal Mart Stores Inc is currently stamina for the company in terms of saving up on overheads associated with marketing and promo. Because no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the marketing feature, this is a beneficial chance for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business marketing along with company and also retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The advantage of this strategy is that it will certainly incorporate the two features while minimizing the requirement for hiring an added source for marketing. Lewis would certainly be heading the marketing division as well as in any case her substitute would be required for the present function that she is performing. The negative aspect of this option is that outside hiring might bring about animosity from interior employees that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Given the affordable stress as well as top quality work required from the ad agency, it is advised that Lewis ought to allow the manufacturing system to be a different feature from the marketing device. Given that most advertising agencies had these 2 functions as different units, it makes even more sense to adhere to the norm. In addition to this, both features may have the ability to focus on their core triggers much more effectively. Nonetheless, the disadvantage of this approach would be that additional costs would need to be borne for establishing separate production features. Along with this, a production head may need to be hired which can increase expenses for the company.

Combination of Advertising And Marketing with Procedures: Because Lewis is already caring for the marketing as well as procedures departments simultaneously; it makes sense to incorporate the two functions because she has been effectively taking care of both ends. The fact that both departments currently have significant differences over appropriation of resources suggests that this assimilation might be able to produce consistency specifically as Lewis would be heading both ends.However there are numerous drawbacks of this relocation especially as it would put way too much burden over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring design for the advertising and marketing division recommends that these 2 departments would certainly be culturally varied. Lewis may not be able to use one kind of management design to both divisions which can result in ineffectiveness in either one of the two functions.

Referral.



An examination of the 3 options indicates that assimilation of advertising and marketing as well as procedures would not be a viable relocation due to the vast distinctions between the 2 divisions in spite of the reality that presently Lewis is handling both. While splitting up of the manufacturing function might have been a desirable move for the advertising and marketing department, the fact that it would certainly mean placing a 3rd function under Lewis's wing indicates this need to be stayed clear of.

Activity Strategy.
Recommendation
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

Judith Shapiro will be hired to take Lewis's location as SVP of marketing and advertising.

Production function will certainly continue to be part of marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

An autonomous leadership style with employee empowerment will certainly be made use of in advertising and marketing department.

Open door policy and emphasis on cross departmental communication will be targeted at removing discord.

Backup strategy.

If the integration does not work out as intended, a backup plan would adhere to which would separate the production function from the advertising feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. In that case the production feature will definitely be divided by putting it under an SVP manufacturing.