Final Project Summative Assignment

¶ … 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 the three divisions mentioned above, respectively.

It is important to note that Walmart's flat organizational structure benefits it in some way; particularly when it comes to the facilitation of communication between the three key management levels. 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. (2009) pointing out that as a matter of fact, the retailer has not so long ago been accused of sabotaging unionization attempts by, amongst other things, engaging in the intimidation of those who advocate for unionization.

Customer Needs/Expectations when Venturing into New Markets

As a multinational corporation keen on extending its business operations across the world, Walmart has in the past set up operations in regions it considers lucrative for business purposes. It should, however, be noted that although the retailer has been successful in some of its global ventures, it has not performed very well in others. This is particularly the case in China, Germany, and South Korea where the company was forced to pull out as a result of failing to take into account the needs and expectations of customers in the said markets. According to Gandolfi and Stratch (2009), the company, as various studies have indicated, was forced to pull out of South Korea due to its failure to embrace and internalize the shopping preferences of shoppers in this particular market. Its business model remained stiff even as it sought to explore a non-traditional market.

As the author points out, while South Koreans were in favor of catchy and aesthetically-pleasing displays, the retailer chose to stick with its American theme. Further, fresh foods are preferred to dried foods in South Korea. Walmart choose to stock the latter. In this case, it is clear that Walmart did not have sound understanding of the preferences as well as expectations of the local markets. This could have come about as a result of the company's inability to initiate meaningful contact with locals before setting up operations. The company, in my opinion, could have made use of its significant social media presence to do 'ground-tests' in an attempt to understand the needs and preferences of South Korean shoppers.

The Proposed Solution

Employee Relations

It is clear from the 'problems identified section' that there are issues that cloud the relationship between lower level employees of Walmart and the firm's top managers. In seeking to propose workable solutions to this problem, Herzberg's two-factor motivation theory will be utilized. The theory, according to Schermerhon Jr. (2010), proposes that employee productivity at the workplace is impacted upon by two key factors -- i.e. hygiene factors and motivator factors. Both of these factors need to be provided in an organizational setting so as to guarantee a productive workforce. Walmart could make use of social media technologies in an attempt to achieve a productive workforce, while at the same time enhancing the overall employee engagement at the workplace.

Employee Blogs

These are key when it comes to the setting up or establishment of platforms that could be used by employees to air their opinions, and make their viewpoints known without the fear of being victimized. Through these blogs, Walmart's employees can give their views and opinions on a myriad of issues affecting their performance at the workplace -- i.e. on what they think of the company's compensation and rewards policy, employment policy, promotion practices, etc. These would give a good picture of what the company ought to do to make employees more appreciated and valued. In this case, other employees would offer their views on the various posts made by their colleagues, thus encouraging a vibrant atmosphere where ideas can be shared, solutions offered by more experienced employees, etc. The information Walmart sources from such blogs could be used in the design and formulation of future employment terms, compensation policies, and hence lead to the establishment of a better and more motivated workforce.

Wikis

This is yet another in-house tool that Walmart could make use of to enhance its employer-employee relations. In essence, wikis permit employees to collaborate with their colleagues at the workplace as well as managers. In that regard, they are critical in the enhancement of healthy and mutually beneficial working relations between employees. By design, wikis allow employees to make contributions regardless of rank, meaning that top managers and lower cadre employees are placed on the same level - further contributing towards the nurturing of healthy working relations.

Intranets and Discussion Groups

According to Haneberg (2012), these are key when it comes to the provision of a platform for workers to come to terms with an organization's decisions. For instance, with regard to Walmart, the retailer's human resource manager could offer some explanations on such a platform as to why the company does not condone unions. In this case, discussions can be held in an attempt to come up with various approaches to address the welfare of employees without necessarily resorting to unions.

Customer needs

An organization grappling with the issue of diverse cultures could, according to Adler and Gundersen (2008), react in three ways. This is what is referred to as Adler's model of cultural diversity. The first approach, the parochial approach, advocates that organizations be blind to cultural differences existing across different markets. This is exactly the approach Walmart took in South Korea. The second approach, referred to as the ethnocentric approach, advises that organization's do little to deal with cultural differences. The reasoning here is that the culture of the incoming organization is superior to that of the host market. The last approach, the synergistic approach, recognizes that cultural differences exist across markets, and as such makes the relevant adjustments to blend in (Adler and Gundersen, 2008). Walmart would benefit immensely if it were to embrace the synergistic approach, whereby it makes use of its social media platforms to gain a 'feel' of the target market. By increasing or enhancing user engagement, the company would obtain valuable information to guide its entry strategy. Like Dell, Walmart should run several regional pages on both its Facebook page and personal blog.

Implementation Plan

With regard to the proposed technology, the very first thing to be taken into consideration is cost. The cost in this case is, however, largely dependent on whether the new system is integrated with existing systems or whether it is stand alone. The fixed costs in this case could be system upgrade/maintenance and support costs. If need be, employees may be trained and equipped with skills on how to make optimal use of the new system. The relevance of identifying the training needs of employees cannot, therefore, be overstated.

There is also the need to come up with or develop clear timelines with regard to the implementation phase. The first two months will focus on policy rollout, training and social site monitoring; while the third month will largely be devoted to the introduction of the technology to the internal community as well as collection of feedback so as to identify execution gaps. The last two months (i.e. the fourth and fifth months) will focus on the identification of member trends and tracking participation. The very last month could be devoted to evaluation as the company seeks to identify what works, what does not, and what needs to be done to guarantee the success of the system. To ensure that the implementation phase does not experience any major setback, there is need to not only communicate the changes taking place to the relevant stakeholders, but also come up with approaches towards the management of resistance to change.

Policy

In essence, the solutions proposed above would have an impact on Walmart's employees motivation levels and in the final analysis, contribute towards the enhancement of overall productivity. It should, however, be noted that the solutions proposed above could also mean that employees spend work hours online engaging and chatting with other contributors on non-work-related issues -- effectively wasting working hours. The organization can protect against this by developing a well formulated social media policy that guides and shapes employee's social media use at the workplace.

The company also needs to ensure that its social media engagements with customers are fruitful. On that front, it needs to have in place well-developed rules and guidelines that all contributors ought to make use of when posting content on any of its virtual engagement platforms. Such rules should also be specifically integrated into the social media policy -- in which case the conduct of Walmart's employees as they relate with outsiders is well defined. For instance, the policy can make it clear that whenever employees make responses to queries posted by customers and addressed directly to the company, they should issue a disclaimer clearly stating that the views presented therein are purely their own and do not, therefore, reflect the official stand of the company (Keyes, 2013). Customers should, on the other hand, be reminded to keep their posts relevant to the topic and to engage in a civil and reasonable way with other contributors.

Discussion

There are definitely some benefits and drawbacks associated with the solutions proposed. The benefits, however, outweigh the drawbacks. This section evaluates the said drawbacks and benefits of the formulated solution. To begin with, the organization stands to reap some benefits from the proposed social media technologies. One of the most prominent benefits is that the said technologies provide a platform for the organization's employees to share internal expertise, information, as well as knowledge -- all of which is done in a convenient manner. In essence, online discussion settings allow employees to exchange ideas and viewpoints amongst themselves and with the top managers. This promotes a vibrant workplace and motivates the workforce; while at the same time further enhancing the decision making process as well as knowledge base of the organization.

In every organizational setting, there is need to enhance opportunities for collaboration (Jenkins, Ford, and Green, 2013). Wikis are extremely relevant on this front as they enable employees to share their expertise and knowhow with those who are particular new to the organization. As has ben pointed out elsewhere in this text, wikis level the playing field by allowing employees to contribute regardless of their position. This fosters healthy and vibrant relations between managers and lower level employees -- a move that helps in the creation of a motivated and highly productive work setting. Lastly, it is important to note that cultural awareness amongst employees has been encouraged on many fronts in the recent past. According to Flynn (2012), employees ought to be culturally aware so that they can function as a team in a cohesive environment. Many organizations provide their employees with training on the need to appreciate and foster diversity so as to make them culturally competent. By interacting with people from different regions via the company's Facebook and blog platforms, employee cultural sensitivity levels could be enhanced -- effectively making Walmart a better company that is not only responsive to the needs of clients from all over the world, but also tailors its products to appeal to a cross-section of buyers.

Customers also stand to benefit immensely from the proposed technologies. In this case, customers, regardless of their geographical location, can have their opinions heard and taken into consideration. Customers feel appreciated and valued when their contributions are embraced. If Walmart had sought and been responsive to the views of South Korean customers, it would not have had to pull out of a potentially lucrative market -- barely a year after setting up operations. A customer who has his viewpoints taken into consideration becomes part and parcel of the success story of an enterprise. Customers could also benefit by being constantly in the know about the company. Some of the information that they could gain access to via the company's social media sites includes the company's upcoming product offerings and promotions, new product launches, as well as new product listings.

Thanks to the adoption of the social media technologies, the company may also get an opportunity to present itself as a responsible business formation that not only values diversity, but also respect the cultures of other people. This is more so the case given that as has been pointed out elsewhere in this text, the organization could run several regional pages on both its Facebook page and personal blog. Through the resulting engagements, the company's customers -- both potential and existing - are likely to view it as a worthy enterprise -- effectively boosting the retailer's positive image. Just as is the case with setting up businesses in foreign markets, there are also costs associated with withdrawals from the said markets once they prove difficult to penetrate. The technologies adopted help minimize or totally eliminate pullout costs.