International Business Communication of Wal-Mart Stores - Case Study Example

Intеrnatiоnаl Business Соmmuniсаtiоn of Wal-Mart Stores Inc. Name Institution Table of content 1.0 Introduction Error: Reference source not found 1.1 Strengths, weaknesses and suitability of different international organisational structures for different types of business Error: Reference source not found 1.1.2Matrix structure 4 1.1.2 Hierarchical structure 6 1.2 Influence of organisational behaviour on an international organisation’s structures, culture and performance 6 2.1 Features if an international communications strategy 7 2.2 Apply business writing conventions for a range of international 9 2.3 Explain methods of internal and external international business communications Error: Reference source not found 2.4 Use of spreadsheets and databases for international business purposes Error: Reference source not found 3.1 Explain the difference between global e-commerce and e-business 13 3.2 Advantages, disadvantages and use of international social networking and internet media for business purposes 14 3.3 Explain how to use digital tools for international marketing purposes………………………………………………………………………………….Error: Reference source not found6 4.0 Recommendations and Conclusion………………………………………………… Error: Reference source not found7 References………………………………………………………………………………….18 Wal-Mart Stores Inc. Strengths, weaknesses and suitability of different international organizational structures for different types of business Wal-Mart Stores Inc. is a renowned American multinational retailer corporation operating chains of large discount warehouse and departmental stores. It is currently the biggest private employer in the world with slightly over 2 Million employees. Sam Walton founded wal-Mart in 1962. It was incorporated in 1969 and began to publicly trade in the New York Stock Exchange in the year 1972. Wal-Mart’s headquarters are based in Bentonville in Arkansas State. It has eminently expanded over the years. Currently, Wal-Mart runs 8,416 stores situated in 15 different countries. With the view of understanding the entire environment of Wal-Mart, it is important to critically analyze its strengths, weaknesses, opportunities, and threats (Gareth, 2009). As evidenced by its incredible success, Wal-Mart has abundance of strength. For instance, Wal-Mart offers a wide variety of merchandise at very competitive prices. Due to their large purchases, they receive exorbitant discounts from their suppliers and this is passed down to the customers. Strength of Wal-Mart is that, they manufacture their own brands and supply goods from local suppliers to retailers. Wal-Mart’s large size and high purchasing power is also strength on its own. It has an incredible team of executives who form its leadership. This has equipped Wal-Mart with a management of high caliber. The company spends its resources carefully with aim of maximizing their margins (Bustillo, 2011). About weaknesses, Wal-Mart, being a large multinational company, has a large pool of employees. Managing such employees is never an easy task. It therefore posses a major challenge to Wal-Mart’s management. Quality of goods sold is another major concern. Owing to its low prices, customers sometimes question about the quality of the goods. Customer satisfaction is therefore not guaranteed. As with opportunities, Wal-Mart has been able to expand into other countries and formed partnerships with other companies. However, there are still some markets that are yet to be reached by Wal-Mart. Another opportunity is that of taking over some overseas companies such as ASDA in the United Kingdom. With the escalated trend of Internet shopping, Wal-Mart has the opportunity to develop strategies that will enhance home delivery of goods whose orders are placed via the Internet. Another opportunity is that of creating convenience stores. This could enable Wal-Mart to overcome local restrictions as well as travel costs. The most prevalent threat facing Wal-Mart is competition. Local as well as international competition has posed a major threat to Wal-Mart. In addition, Wal-Mart has been vulnerable to attacks regarding ethical issues. In this purview, they have been accused of providing low pay and poor working conditions to its workers. Environmental issues also threaten Wal-Mart’s success. Matrix structure In determining Walmart’s suitability, it is considerable to use it 2012 reward metrics. Wal-Mart management announced in 2012 that it was going to disburse close to one million dollars in benefits and bonuses to its workers within United States of America. This shows a monetary reward that the company is able to give its employees in order to motivate them to work hard as the company continues to come up with new products for its customers. In addition to total monetary reward system, Wal-Mart has come up with a unique social responsibility culture. Such sense of giving back to the community has been weakened by employee turnover rate. This reward system is effective since the company helps community directly without dishing out money (Oldharm, 1980). As a none-monetary reward system, it shows the company’s strength and hope for further development. In addition, the sense of community and culture is essential to Wal-Mart’s success since it is vital in the creation of wealth by the company, which in turn improves the competitiveness of the business and maximizes the value of creation of wealth to the community. With the growing public awareness and desire for socially responsible businesses, it is significant to note that Wal-Mart consider planning for more future none-monetary reward mechanism. The company has established award system for its employees in that, employees get awards for their work such as cost reductions and profit maximization. The introduction of award system is aimed at enhancing performance under the correct and right conditions. The Company spends its resources carefully with the aim of maximizing their margins while reducing costs. The company focuses on strategies such as everyday low prices that helped it stay ahead of its competitor. More so, the company’s retailer opened new small stores, which helped it overcome its competitors such as Amazon.com and dollar stores. It faced tough competition from these companies but it managed to make profits. The function of Wal-Mart’s reward system is to attract, motivate, and retain skilled and experienced employees. Wal-Mart’s reward is effective since it guarantees fair treatment of all employees. Wal-Mart also utilizes the differentiation strategy in its business operations. Its strategy of using solar panels as compared to other sources of energy is a differentiation strategy that is cost effective and environmental friendly. Another form of differentiation strategy employed by Wal-Mart is the use of satellite communication system, which enables Wal-Mart make its products available to customers irrespective of the distance from the store possessing the product. The general strategy that Wal-Mart has been employing in its operations is the low-cost, high volume strategy that targets its businesses at the global level. Because Wal-Mart has numerous stores in many countries, it therefore successfully undertakes this strategy of lowering its prices and producing in bulk so as to cover the costs by a considerable amount. It does this to increase its market share. It also manages this because it has lower operating expenses as compared to industry level. This control strategy aims at ensuring reduced costs, high volume production, and improved quality. Hierarchical structure In order to remain competitive in its operations, Wal-Mart is a demonstration of strategic structure through the efforts it takes to enhance, environmental friendless. It implemented the use of solar panels as a source of energy in order to avoid sources of energy that are environmentally unfriendly. It also takes up proper waste management by implementing strategies to recycle paper products. This is seen through its efforts in the Go Green initiative. Apart from environmental friendliness, it seeks for ways to lower its costs in operations and instead use the saved monies in technological advancement. Influence of organizational behavior on an international organization’s structures, culture and performance With reference to behavior, Wal-Mart has values and beliefs, which were established through its management and employee relation. The culture is based on various policies and rules. The Open door policy for instance, is an established culture by which Wal-Mart’s management values open communication as a way of having a better understanding of the Customers’ and global society’ needs and coming up with an improved way of meeting these needs. Grass Roots Process on the other hand is a belief that ideas and concerns emanating from the associates and customers are very important and are dealt with in a serious way. Teamwork is another well-established culture in Wal-Mart stores to mention but a few. These cultures and values define Wal-Mart’s strengths to large extents (Jacobsen, 2011). Wal-Mart’s mission statement is: “To help people save money so they can live better.” A mission statement usually defines an organization’s purpose. A good mission statement delineates why the organization is in business and how it conducts its business. It also addresses what the organization intends to do for their customers. Basing on these criteria, Wal-Mart’s mission statement could be said to be commendable as it tends to capture most of these concepts. It is also apparent that Wal-Mart has enhanced their competitive advantage by adhering to this mission. This is also Wal-Mart’s distinct strength. Regarding company image, Wal-Mart believes in its mission of helping its customers globally to save money and help them live better. In this regards, Wal-Mart endeavors to deliver on this promise. The stores operate with integrity of a high caliber. It has established ameliorate values and culture, which perpetuate the achievement of their mission. This way, Wal-Mart has continued to bring palpable differences in the lives of its members, associates, as well as customers. Features of international communication strategy Communications strategy in Walmart is the branch of a more wholesome point of view called communication management. Communication management is the managerial science discipline that incorporates deliberate procedures including communication channels of Walmart Company Limited. The significance of communication strategy in Walmart just as in other business environment is evident, particularly in the current era of information technology. As companies turn out to be more perplexing and the quest for competitive advantage turns out to be more exceptional, the information value has been enhanced fundamentally. The company has been replacing its discount stores with supercenters. In this supercenters, Wal-Mart added grocery products and other new services to its existing traditional merchandise offerings. The company tried to expand internationally by offering the everyday low prices strategy. More so, it opened more formats and ventured into e-commerce opportunities. In its push to making extra competitive advantage and add to corporate worth creation, a chief information office (CIO) of Walmart has numerous key applications to consider. The point of these strategic applications is to find and execute a communication strategy that will bolster the organization's business goals for its client's workforce, and accomplices. Not very many organizations have the capacity to accumulate and rouse the best individuals to tackle issues, distinguish and speak assembling issues with the right individuals or build up a constant correspondence channel to determine issues. Walmart has communication managers, whose obligations are to plan the structure of organizational communications, characterize standards and norms of communications, figure objectives of the communication movement, control and monitor information flow, sort out communication training. Among the many internal strengths that Wal-Mart has is the brand name. The company has a strong brand name that makes its products and services popular. Eventually, this increases the company’s popularity and therefore giving it great competitive advantage against its competitors. Wal-Mart also strives to be ahead of its competitors by incorporating satellite communication between cash register, distribution centers, and stores. This is something that makes it easy for customers in different areas purchase products from stores in different regions meeting the customers’ needs at the immediate point of demand. The customers do not require to travel physically to particular stores that have the product needed since the items are easily purchased and shipped to the customer’s destination via satellite communications between the different departments of the entire corporation. Wal-Mart uses the cost leadership strategy in which it fights to be the lowest cost producer in the industry but marinating the greatest quality of its products. In this strategy, Wal-Mart sets its prices quite lower than the average industry prices in order to win greater market share. The firm makes all efforts to improve process efficiencies. Being a multinational corporation, it targets the broad market so as to cover its costs. This cost leadership strategy is very effective at the global level of operations. The aim of communication strategy is to come up with effectiveness in business management performances. However, in Walmart there are various types of communication. Each of these communication strategies has their own ways of contributing to the operational aspect of Walmart and they are: Organizational Communication Managerial Communication Human Relations and Team Building Writing of report Sales Communication International communication Communication Technology and Electronic Communication. The above Walmart communication strategies do contribute to enhance corporate developments by communicating the vision, philosophy, information and organizational messages and other important upcoming issues in the company. The goals of Walmart’s communication are to create integrity, dispense message, keeping communication channel to save time, and enhance operational effectiveness. Apply business writing conventions for a range of international Business writing is supposed to be direct and should not be too formal. Walmart knows the importance of refraining from using pronouns that are personal. It clearly uses the corporal words such as our, we as it believes in collective responsibility for success. The language used in In Walmart is simple and polite to avoid misinterpretations. This is due to the fact that the organization is operating in diverse earthly regions with varied cultures. In Walmart communication problems are dealt with in that there is adherence to cultures guidelines. Its letters are concise. 2.3 Explain methods of internal and external international business communications Walmart international business has two major types of communication, which are: Internal and external communication. Internal communication is a type of communication that takes place within or across an organization. Notwithstanding the usual face-to-face, phone, fax or mail; present day companies use the innovation to convey information internally. Innovation may be utilized for messages or a linked internal system of communication, for example, the intranet that is a web framework outlined singularly for utilization by those working for Walmart. Conversely, external communication takes place between the company and those outside the company. As most modern companies have done, Walmart has designed technological frameworks with the goal that it can communicate with clients and also carry out e-Commerce. On the other hand, its clients can speak with different organizations through the web or comparable frameworks and embrace e-Business (Bustillo, 2011). Combined internal and external communication types permit different areas of the local, national, and global group to connect, liaise and conduct business. In internal communications, methods such as, group briefings, notification, reports, memos, face-to-face communications and messages are used. For external communication, it depends majorly on social networking. Techniques, for example, fax, direct sends, letters, video, phone calls, adverts and websites are generally utilized. 2.4 Use of spreadsheets and databases for international business purposes Spreadsheets are utilized for various purposes in business connections. Generally, spreadsheets store information sets, however they likewise give a scope of utilities to oversee and process the information sets. This makes them especially valuable to organizations. Through present and client characterized equations, spreadsheets can perform scientific, factual, budgetary and hierarchical changes on sets of information. Spreadsheets help to present information in organized ways and to advise future planning choices. Organizations use spreadsheets in ways that are suited to their own services, yet these uses have a tendency to fall into a couple general classifications. The main role of a spreadsheet is to store information in an organized manner. Information values are entered into cells in a worksheet. These Data values can be organized by use of different categories of information sorts, including numerical and printed sorts. The cells in a worksheet can allude to different cells, using the area of a cell inside of the columns and segments in the sheet. Individual parts of a worksheet can be contained inside of tables, with a solitary worksheet possibly holding a scope of data sets. Spreadsheet projects, for example, Excel give formats to normal business tasks, for example, costs recording. When a spreadsheet has some data values in it, Walmart always perform different investigative tasks on this data. This incorporates numerical capacities, for example, including or tallying qualities. By entering a recipe or browsing one of numerous preset capacities, one can examine the information sets. This permits Walmart's clients to sort information, channel it, and process it. For financials, it, it can be utilized to calculate benefits and losses. Generally, spreadsheet formulas and functions permit Walmart to do execution estimations for some parts of the business. Spreadsheet applications, for example, Excel incorporate instruments for data visualization. The individual in control can take a current information set in a spreadsheet and present it in diagram like a chart, with different sorts of graph and charts to choose from. The subsequent graphs let business managers in understanding the data by showing it in graphical ways. These diagrams can likewise be utilized as a part of corporate settings, for example, inside of presentations. It can also be physically controlled in all parts of a diagram presentation, including graph sort, naming and hues. Print spreadsheet tables and graphs can be printed and be used in reports and other publications. Spreadsheets facilitate future planning in two ways. First, having the capacity to break down and envision information gives an understanding into how well the Walmart is currently performing, highlighting zones for improvement or reevaluation. Second, a spreadsheet can be used to compute the potential impacts of changes to the plan of action. Explain the difference between global e-commerce and e-business While several individuals use e-business and e-commerce reciprocally, they are not the same, and the distinctions matter to organizations in today's economy. The "e" is another way to say "electronic" or "electronic system," and both words apply to business that uses electronic systems to direct their trade and different business exercises (Sowell, 2000). According to the U.S. Registration Bureau, E-commerce is "any transaction process done over a PC interceded system that includes the exchange of possession or rights to use merchandise and services. The transactions are not obliged to have a value and incorporate both deals and things like free downloads. E-business incorporates transactions made on the web, Intranet, Extranet, World Wide Web, via email and even by fax. E-business is more extensive than e-trade; including the transaction based e-commerce business and the individuals who run customarily yet cater to online exercises too. An e-business can run any segment of its internal processes online, including inventory management, risk management, fund, HR. For a business to be e-commerce and e-business, it must sell items online and handle other organization exercises or extra deal offline. About technology, Wal-Mart invests handsomely in technological development and innovation (Galbraith, 2001). For instance, Wal-Mart has distinctively adopted satellite technology, which is geared towards improving its supply chain as well as inventory processes. This new technology enhances quick and real time updating of its database. Inventory tracking technology was also developed which helps in tracking movement of goods with the purpose of determining any missing items or the level of goods. Advantages, disadvantages and use of international social networking and internet media for business purposes Concerning the benefits and faults of international social networking and Internet media for Walmart Company, these distinctions rise up out of the way that they are rivalries for any business and in this way, there are confinements going with certain online networking applications. The well-known and broadly utilized social systems, for example, Facebook, tweeter, Instagram are without advantages and disadvantages. Firstly, organizations can communicate and get criticism through communication with general society and along these lines, make backhanded publicizing and enhance general showcasing methodologies. As per Gareth (2009), person to person communication permits web clients to mingle, gives an open door for people in general to express their perspective with respect to the nature of items and services of Walmart, enhance or fabricate client relationship and empower clients to pick up consciousness of a brand through web publicizing. In addition, the formation of an online groups and discussion will draw interested individuals' attention, expanded exposer with a little effort, in the meantime distinguish and draws in potential clients. Gareth (2009) highlights that the criticism and reactions got from clients are fundamental for working together examination with a specific end goal to comprehend client conduct and current pattern to verify that an organization is not obsolete. Data got through online study can give a genuine and reasonable key statistical surveying for future planning and choice making. In this manner, it will be an advantageous stage to host occasions and get-togethers in addition, if clients like our 'upgrades', they will tend to share and spread it to their family and companions Furthermore, organizations can save marketing, advertising, publicizing and enrollment costs as a large portion of the person-to-person communication sites are normally free. If not, it is still considered generally modest when contrasted with other customary media like TV, radio, or daily newspaper. Furthermore, it is far compass where Walmart can access to worldwide business with prompt impact. In addition, it is generally simple to utilize, as it does not require legitimate strategies, and durable as posted data can stay online for a drawn out stretch of time unless somebody uproots it. (Finch, 2011) clarifies that invested individuals or customers can seek an item or administration offered by an organization effectively by surfing the related sites. Furthermore, if an organization is confronting any test or issue, the organization can undoubtedly look for counsel from specialists by means of long-range interpersonal communication sites and most helpfully, the guidance is ordinarily free. Kotler, 2004) recommends that it could likewise be a brilliant enrollment instrument where organization can publicize employment positions to a more extensive group of onlookers. This permits them to find all the more about competitors' experience before choosing whether to seek after their application. In addition, web-promoting crusade can keep up a controlled spending plan, raise an organization deceivability and ubiquity, draws in consideration of potential clients There are sure disadvantages of utilizing long-range interpersonal communication sites. For example, absence of control, straightforwardly influences organization's notoriety, obliges profound data innovation learning, expends a ton of time, could be unsafe, symptoms may happen, and needs high duty for the individual in control. As per Kotler (2004) each message, remark and input that are being posted online are not completely controlled or managed by the organization. What's more, it may be difficult to pull in focused on crowds on the grounds that they may utilize diverse social sites. Gereth (2009) cautions that negative remarks and grievances got from clients or customers and also posting disputable assessments can discolor an organization's notoriety for being numerous web clients can view and spread it all around. Along these lines, the organizations need to convey overwhelming obligation as every online activities ought to be taken care of warily and must be checked consistently to maintain a strategic distance from issues. In addition, making gatherings or occasion pages are not simple as it obliges great PC aptitudes, data innovation encounters and profound learning and seeing on long-range interpersonal communication. Cumming and Worley (2004) clarify that using face to face communication sites may devours much time as organizations need to stay dynamic to stay in contact with its customary clients. Next, web fraudsters will have the chance to run unlawful exercises by utilizing organization points of interest. Then, data posted online can be ill used or abused by contenders. Thus, people's contact numbers and email addresses that are being put online may prompt stalking and online badgering. Cumming and Worley (2004) additionally caution that interpersonal interaction can be completely addictive to workers, which can bring about genuine mistakes in work furthermore decrease productivity and efficiency in term of time spent. Explain how to use digital tools for international marketing purposes Apparently, despite the many strength and opportunities in Wal-Mart, it is vulnerable to a number of threats and weakness. There are however many recommendations, which could help the company to improve thus enabling it to continue expanding, maintain its good name and reduce social-related backlash. Therefore, to make good use of digital tools for international marketing purposes, companies and Walmart included ought to make full utilization of the broad scope of advantages of which can be gained by using social networking sites. However, they must stay reasonable and cautious all the time particularly in selecting the things to be posted as a small oversight in presenting can lead on a critical defeat of the company. Digital tools can give significantly more capacities when compared to convention sorts of media like billboards, in term of draw out the use length of time, save cost and expand benefit. So, clients must think unmistakably, utilize it carefully and cautiously. Recommendations and Conclusion In conclusion, as expansive exertion and asset speculation are needed, the individual responsible for long-range informal communication must be very dedicated and dependable. Interpersonal organizations must be redesigned reliably and as often as possible to keep the enthusiasm of the focused on gatherings of people, yet in the meantime, dependably remember that unessential posts could likewise kill devotees and customers as it is exceptionally irritating and aggravating. References Argris, C. (2010). Organizational Traps: Leadership, Culture, Organizational Design. New York: Oxford University Press. Burton, O. (2011). Organizational Design. Cambridge: Cambridge University Press. Bustillo, M. (2011). Wal-Mart Tries to Recapture Mr. Sam’s Winning Formula. The Wall Street Journal, February 22. Cummings, T.G & Worley, C.G. (2004). Organizational development and change. Sydney: South-Western College. Galbraith, J. R. (2001). Designing Organizations: An Executive Guide to Strategy, Structure, and Process Revised. Washington, DC. Pfeiffer. Gareth, J. (2009). Organizational Theory, Design, and Change, 6th Ed. New York: Prentice Hall. Finch, R. (2011, April 9). What are total rewards. WorldatWork. Retrieved February 18, 2013, from http://www.worldatwork.org/waw/aboutus/html/aboutus-whatis.html Galbraith, J. R. (2001). Designing Organizations: An Executive Guide to Strategy, Structure, and Process Revised. Washington, DC. Pfeiffer. Gareth, J. (2009). Organizational Theory, Design, and Change, 6th Ed. New York: Prentice Hall. Grashaw, K. (2011). How can the design of the organization's structure and culture give some subunits more power than others? New York: Kindle Books. Halliman, C.(2009). Business Intelligence Using Smart Techniques: Environmental Scanning Using Text Mining and Competitor Analysis Using Scenarios and Manual Simulation. New York: Kindle Books. Helpsout.com (2013, June 12).Communications strategies that can Drastically Improve Sales. Arizona: Arizona State University Harford T.(2005). The Undercover Economist. New Jersey: Pearson Jacobsen, J. (2011). Sustainable Business and Industry: Designing and Operating for Social and Environmental Responsibility. London: Quality Press. Kotler, P & Lee, N. (2004). Corporate social responsibility: Doing the most good for your Company and your cause. New York, NY: Wiley Kaplan, R., S., & Norton, D., P.(2007, July). Using the Balanced Scorecard as a Strategic Management System. Retrieved from: hbr.org/2007/07/using-the-balanced-scorecard-as-a- strategic-management-sytem/ar/1 Kotler, P. & Armstrong, G., (2008). Principles of Marketing. 12th Edition, New Jersey; Pearson. Miles, R. (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford Business Books. Oldham, G. R. (1980). Work design in organizational context. Research in organizational behavior, 2(2), 44-56. Sowell T. (2000). Basic Economics. New York: Oxford Press. Read More