Essays on Environmental Turbulence - Walmart Case Study

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The paper "Environmental Turbulence - Walmart" is a great example of a business case study.   The advancements experienced within the context of technology have undoubtedly been significant, unprecedented, and with great impacts on virtually all business sectors. Indeed, the various emergent technologies have, in effect, altered the approaches that companies use to compete within their industries. They have also altered the company-customer interaction and engagement as well as the nature of the operations within the particular companies. These digital transformations and associated automation have ensued in a technology disruption whose effects have either been positive or negative depending on an industry’ s reaction to this form of environmental turbulence.

The Indian IT sector has, for instance, faced negative impacts from this disruption due to its insistence to maintain its traditional model of operation. Indeed, while IT companies across the world embrace machine advancements such as machine learning, and data analytics to predict customer needs and responses to services, Indian IT companies have maintained a model where they wait for the customers to tell them these needs. In essence, the Indian IT sector has lagged in the aspect of transforming its business operations with technology.

In essence, the modern technological advancements have resulted in a turbulent business environment that largely features discontinues change. The degree of change within the technology sector has been significant hence great environmental turbulence. As such, this level of turbulence has also brought with it greater threats and opportunities to companies. Walmart is one of the example companies that have positively been affected by the technology changes similar to the Indian IT companies. In particular, Walmart has made use of several technological innovations to tremendously impact on the company’ s operational strategy of low pricing by eliminating inventory, purchase, and distribution overhead costs.

Walmart is a retail company rather than a technology one, but it has embraced technological advances as a key enabler of its commercial strategies. In this advancing technology context, companies currently face difficulty predicting future occurrences from past occurrences. Indeed, this type of change features spontaneity and unexpectedness. As such, there needs to be understanding with regards to environmental turbulence. Indeed, turbulence is a significant model for understanding the constraints influencing organizational performance and behavior.

A particular level of turbulence exists in all organizational environments. Accordingly, the concept of environmental turbulence references the level of change that occurs within a particular industry or its environment. In essence, the greater the degree of change, the higher the level of turbulence. Continuously, the higher the turbulence levels, the greater the risks or opportunities that a company typically experiences. Three dimensions are indicative of environmental turbulence. They include dynamism, complexity, and unpredictability. Dynamisms references the degree to which the competition in a company’ s environment is impacted on by dynamic change.

Researchers and critics note that the dynamisms concept brings together at least three environmental change elements. For one, dynamisms involves the ‘ frequency’ elements that vary from rarely in a static environment too often in a more dynamic environment. The construal of high frequency is dependent on the periods of occurrence of the external events.

References

Banjo, S. (2013). Walmart's E-Stumble with Amazon. The Wall Street Journal.

Boyne, G. A., & Meier, K. J. (2009). Environmental Turbulence, Organizational Stability, and Public Service Performance. Administration & Society, 40(8), 799-824.

Fernandez, S., & Rainey, H. (2006). Managing successful organizational change in the public sector. Public Administration Review, 66, 168-176.

Forte, M., Hoffman, J., Lamont, B., & Brockman, E. (2000). Organizational form and environment: An analysis of between-form and within-form responses to environmental. Strategic Management Journal, 21, 753-773.

Leonard-Barton, D., & Kraus, W. A. (1985). Implementing New Technology. Havard Business Review. Retrieved from https://hbr.org/1985/11/implementing-new-technology

Stonebraker, P. W., & Liao, J. (2004). Environmental turbulence, strategic orientation: Modeling supply chain integration. International Journal of Operations & Production Management, 24(10), 1037-1054.

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