IntroductionWal-Mart has been successful over the last four decades and has become the world’s largest retailer due to the manner in which the different operational activities are carried out. The retail player has been growing both in US and other international market as integrating their supply chain and achieving operational efficiency has provided them an opportunity to tap a bigger market. Over the last few years Wal-Mart is facing issues regarding their growth and future development. This report looks to examine the different operational activities which were carried out by Wal-Mart and the manner in which it helped them to gain operational efficiency.
This is followed by identification of the different ethical and environmental issues which have been raised and the steps which needs to be taken to improve those. This will thereby help to reflect on the mechanism which Wal-Mart needs to adopt and the changes which have to be made in the working environment so that better efficiency is achieved. Value Chain AnalysisWal-Mart strategy is to be cost leader where they offer people products at lowest cost possible and the mission statement of the organization reflects the same.
The strategy of developing their operations and gaining efficiency in the supply chain is one where Wal-Mart has worked on a continuous basis and has been successful. Below is the value chain analysis for Wal-Mart which will help to analyze the manner in which different activities related to the operational aspect is carried out. This is a point of differentiation which has helped them to ensure that they are capable of gaining operational efficiency and ensuring that better results can be achieved (Chen, 2006). Support Activities: This are some of the operational activities which Wal-Mart looks to carry out apart from the primary activities which has helped them to gain operational efficiency and ensures better use of resources. General Administration: Wal-Mart uses unique practices to carry out their general activities.
The communication process takes place directly between the individual stores and the headquarters in Bentonville. People directly visit the local stores to gather information about customer demand, competitors strategy and other aspect which will help to ensure that the different activities are carried out in the best possible manner.
The process has helped to develop a positive relationship between the head office and local stores and has also ensured that operational efficiency is achieved (Chen, 2006). The process of carrying out operations in this method has helped to ensure that they are able to understand the customer demand and makes quickly, deal with the strategies that competitors have taken and ensure an advantage over others. The process has helped to add value and bring about a complete change in the manner different operational activities are carried out. Human Resource Management: Wal-Mart has managed the human resource issues associated with operational activities in a proper manner.
The interaction between the different associate partners of Wal-Mart along with Wal-Mart is done based on respect, communication and clear incentives. Apart from the salaries employees are provided with other incentives like health care plans, retirement schemes, profit incentives, and stock purchase plans. The organization provides greater autonomy to its employees and ensures a level playing field where every employee is provided an opportunity to be rewarded like promotions and so on (Chen, 2006).
The process has helped to add value to the process of carrying out activities and provides an opportunity through which the different activities are carried out in the most effective manner and has helped them to work towards their mission