Final Project Summative Assignment Essay

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¶ … Operating in over 27 countries, Walmart is one of America's largest retailers. The retailer is also billed as the world's largest enterprise -- on the basis of revenue. Since its establishment in 1965, Walmart has spread its tentacles across the world and is today regarded the world's largest private employer. Additionally, the retailer was last year ranked position 20 in the world's most valuable brands listing. Research indicates that there are two issues that impact on the productivity as well as competitiveness of the retailer. The two problems are: workers' rights and customer needs when exploring or expanding to foreign markets. In seeking to address these concerns, a number of well-thought-out solutions will be proposed. It is important to note that Walmart has in the past been criticized by civil rights organizations as well as labor unions for a number of worker rights violations. This is particularly the case with regard to work hour and wage violations. The company has, as a matter of fact, been taken to court by its employees for worker's rights violations. In essence, lawsuits and payback actions divert the company from its business course and demotivate employees -- leading to productivity issues. Is there a way the company could ensure that the needs and concerns of employees are addressed in good time? Can Walmart make use of social media to foster better relations with its employees?

Additionally, the retailer has in the past been forced to pull out of some key foreign markets due to its failure to embrace a business model responsive to the realities of the said foreign markets, i.e. the expectations as well as needs of customers in such markets. Some of the pullouts that have been prominently reported include, but they are not limited to, China, Germany, and South Korea. Failure by the company to adopt an effective communication strategy in the market it ventures into could have brought about the said failures. It is important to note that Walmart has in place a number of social media platforms, from where it frequently interacts with its customers worldwide. Is the company, however, making optimal use of these social media platforms? There is need to discuss how social media can be utilized to address productivity problems at Walmart.

The Organization

As I have already pointed out in the introductory section, Walmart is the world's largest retailer. Currently, the company has approximately 11,000 stores spread over 27 countries -- with the U.S. being the retailer's headquarter. Established in 1965, the retailer was initially family owned -- with Sam Walton, the retailer's founder, being the family patriarch. Over the years, the company has outlived its 'family-enterprise' reputation to become one of the largest companies in the world. Today, the company is seen as one of the world's most valuable brands -- and was, as a matter of fact, ranked the 20th most valuable brands for the year 2015 (Forbes, 2015). In essence, Walmart is a low cost retailer; with its winning strategy being the provision of goods and services at a price that other retailers would find it hard to match. Last year, the company reported $485.65 billion in sales revenues. Walmart, as is posted on its website aspires to avail to its global clientele everyday low prices in an attempt to improve the quality of life of its customers -- i.e. enable clients to live better (Walmart Annual Report, 2014). It is important to note that the retailer's customer focus and commitment was formulated by its founder, Sam Walton. Today, it continues to inform the retailer's official and business focus. Sample this statement:

If we work together, we'll lower the cost of living for everyone ... We'll give the world an opportunity to see what its 'like to save and have a better life (Walmart Inc., 'Our Story section', 2016).

It is for its pocket friendly prices that the company continues to be favored by price sensitive clients from all over the world, particularly in America. It is important to note that when it comes to the retailer's core business, the company has its operations spread across three key segments. These include: Walmart U.S., Sam's Club, and Walmart International (Walmart Inc., 2016). Essentially, Walmart has in place what could be referred to as a flat organizational structure. This structure has minimal positions between the top management and lower tier managers. The core divisions that the company runs at the moment are the U.S. division, the International division, and Sam's club division. The company's current chief executive officer is Doug McMilon, and is deputized by Greg Foran, David Cheesewright, and Rosalind Brewer for each of...

...

In this case, reporting levels are reduced significantly. Communication technologies also come in handy in the facilitation of communication. Division managers, who are located in the company's headquarters, find it easy to communicate with district managers via communicational technologies, which also facilitate their (division managers') coordination efforts as they seek to monitor divisions under their responsibility (Brunn, 2006). Walmart's individual stores are under the control and management of general managers who are, on the basis of store size, assisted by other officers -- including assistant managers and co-managers. The reduction of reporting levels, thanks to the flat organizational structure, also enhances employee access to higher level managers -- effectively boosting organization-wide communication. It should also be noted that the company maintains an open door policy that is meant to enhance the access lower level employees have to top managers.
In seeking to further analyze the organization's background and business model, it would also be appropriate to review Walmart's organizational culture. According to the Walmart Diversity Report (2014), four components form the basis of the retailer's organizational culture. These are: service to customers, respect for the individual, strive for excellence, and action with integrity. Although the company's organization culture is seen as being well-defined and articulated, it may not be necessarily as effective when it comes to the enhancement of collaboration as well as communication between associates and managers. This is particularly the case given that the retailer's managers have been accused of not always being available for consultation. An example would come in handy: as Brunn (2006) points out, one associate of Walmart was told off by her supervisor when she raised concern over her huge workload and missed work and lunch breaks. The supervisor in this case retorted that if the reporting employee could not get the job done, then the retailer could easily replace her with someone who would be happy to take over her job and related benefits (Brunn, 2006).

On the social networking and social media front, it is important to note that Walmart has significant presence in a number of social media platforms including, but not limited to, Foursquare, YouTube, Flickr, Twitter, and Facebook (Walmart Inc., 'Policies Section', 2016). As is noted under the said Policies Section, the company has a following of more than 26 million fans on Facebook. The company, in line with social theory, makes use of the said platforms to not only engage customers and other partners, but also for marketing purposes. For instance, on its Facebook page, the company has a feedback tab that permits customers to post complaints and ideas. There is, however, one main problem with the retailer's social media strategy. Instead of focusing on both external and internal engagements, it tends to lean more towards external engagements with stakeholders at the expense of internal communication, networking, collaboration, and engagements.

The Problem/Issue

As it has already been pointed out elsewhere in this text, two issues that have a negative impact on Walmart's productivity as well as competitiveness can be identified. These issues have got to do with the rights of workers and customer needs (with the focus being on the retailer's entry to foreign markets).

The Rights of Workers

Walmart has come under intense pressure in the past from a number of civil rights organizations and labor unions as a result of a significantly high number of workplace violations -- including, but not limited to, working hour and wage violations. According to Brunn (2006), the company was at some point forced to award 83 of its employees pay back after a court ruled in the favor of workers. The workers, according to the author, had worked off the clock after being forced to do so by the company, which nevertheless did not pay them for their services. The company has also been accused of discrimination on the basis of sex. This, according to Farrell at al. (2009), is more so the case given that the retailer's top management tier is made up of only 10% of women -- despite there being more women than men on Walmart's total associates payroll. Reports have also in the past indicated that the company is not sufficiently tolerant to employee unions -- with Farrell et al.…

Sources Used in Documents:

References

Adler, N. & Gundersen, A. (2008). International Dimensions of Organizational Behavior (5th ed.). Mason, OH: Thomson Learning Inc.

Blanchard, O. (2011). Social Media ROI: Managing and Measuring Social Media Efforts in your Organization. Boston, MA: Que Publishers.

Borrego, E. & Johnson, R.G. (2011). Cultural Competence for Public Managers: Managing Diversity in Today's World. Boca Raton, FL: CRC Press

Brunn, S. D. (2006). Walmart World: The World's Biggest Corporation in the Global Economy. New York, NY: Taylor & Francis.
Forbes. (2015). #20 Walmart Stores. Forbes Magazine. Retrieved from http://www.forbes.com/companies/wal-mart-stores/
Walmart Inc. 'Walmart Policies Section'. (2016). Walmart Policies and Guidelines. Walmart Inc. Retrieved from http://corporate.walmart.com/policies
Walmart Diversity Report. (2014). 2014 Diversity and Inclusion Report. Walmart Inc. Retrieved from http://cdn.corporate.walmart.com/04/50/c9c4367040029f6b2a4aca089d2c/diversity-inclusion.pdf


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