In this Assignment, you will analyze how your selected organization practices a worldly mindset
hairston23
richardhairston1-gm504-01_unit_1_mission_assignment.pptxWalmart Company
Walmart Mission Statement
Richard K. Hairston
GM 504-01: Organizational Excellence and Change
Kaplan University
For
Dr. Barbara- Leigh Tonelli
6/6/2017
Mission statement
Walmart’s Mission Statement.
The strategic decision of Walmart Company is a direct manifestation of the company’s mission.
“Saving people money so they can live better.” (Ferguson, 2017).
The mission statement is also synonymous to the company’s slogan
“Save money. Live better.”
Individuals can afford to live better lives by purchasing Walmart products that are relatively cheaper
Consequently, they are still able to save some money.
Walmart’s Mission Statement.
The strategic decision of Walmart Company is a direct manifestation of the company’s mission. The mission of Walmart Company illustrates that “Saving people money so they can live better.” (Ferguson, 2017). Ferguson continues to illustrate that, the mission statement is also synonymous to the company’s slogan of the company “Save money. Live better.” With this regard, individuals can still afford to live better lives by purchasing Walmart products that are relatively cheaper and still be able to save some money. this component of saving individuals’ money has been continuously achieved by the company. In this regard, the consumers of Walmart products save their money through the low selling prices
2
Mission ideals
The mission ideals.
Business corporate strategy drawn from the mission statement.
Walmart employs the use of cost leadership strategy and differentiation.
They are able to offer a wide range of products and services.
This offers people lowly priced products
This consequently improves the lives of people.
The mission ideals have been stated in a way that makes them to be easily evaluated. In this regard, this is evident from the business corporate strategy drawn from the mission statement. Walmart employs the use of cost leadership strategy and differentiation. In this way, they are able to offer a wide range of products and services that are of better quality (improving the lives of people) and at a lower cost (saving more money). This are ideals that can be evaluated through cross margin analysis with what the competitors offer. Walmart Supply Chain has been successful in lowering the costs by helping the company in the implementation of the strategy of the cost of leadership.
3
Mission ideals cont.…
The mission statement also incorporates the element of cost.
Walmart has several value chain activities of cost leadership.
Their management layers have been reduced.
This lowers their overhead costs.
Employ use of just in time inventory.
Inbound logistics that lowers cost.
Hence capability of supplying cheaper products as illustrated in mission.
The mission statement also states the ideals over which the business can be evaluated in that, according to Wei et al, it incorporates the element of cost. In this regard, Walmart has several value chain activities of cost leadership. Their management layers have been reduced so that they can lower their overhead costs of the competitors who have several layers. By employing the use of just in time inventory, Walmart has inbound logistics that are highly effective by creating some fuel efficiency in all their trucks, higher number of pellets on a load and costs are lowered through large block purchases. Their ability to lower the costs make them supply products from their warehouses to the customers at a cheaper cost as illustrated in the mission statement.
4
Defining the business
The mission statement defines the business in which the organization wants to be.
It provides the purpose of the company based on its founder “Sam Walton”.
This involves lowering the individuals cost of living.
There is development of procedures and processes that are very unique.
The sum total forms the basis of the corporate culture
The culture defines its major businesses across the world.
This culture involves delivering customer services
improving performance and saving people’s money (Walmart.com)
The mission statement defines the business in which the organization wants to be in in that, it provides the purpose of the company based on its founder “Sam Walton”. This involves working together with different stakeholders so as to lower the individuals cost of living. This is the only way that can offer the world an opportunity of realizing the essence of saving and having the kind of life that is much better. The mission statement is fulfilled by Walmart through the development of several policies, procedures and processes that are very unique. The sum total forms the basis of the corporate culture of Walmart stores which defines its major businesses across the world. this culture involves delivering customer services that are super, improving performance with an aim of saving people’s money (Walmart.com)
5
Uniqueness of Walmart Products and services
There is some uniqueness in their products.
They have employed differentiation.
This makes them different from the competitors.
They have a wide range of products that competitors do not have.
Bargaining power with suppliers
This gives Walmart an added advantage.
Substitute products are not able enter the market.
There is some uniqueness in their products in that, they have employed differentiation which makes them different from the competitors. They have a wide range of products that competitors do not have. Since the competitors are not able to provide this kind of products, they prevent their competitors from supplying the same kind of products and therefore, high barriers to the entry of new products. Consequently, this gives Walmart an added advantage since substitute products are not able enter the market. The company also employs the bargaining power with its major suppliers and they play much of their strengths by employing the logistics of transportation and communication other than the initial strategy of retailing and this is unique to Walmart (International Strategic Management, 2012)
6
Relevance of mission statement to stakeholders
The investors are the first priority of Walmart Company.
The company lowers costs to increase the profits that are beneficial to the investors
The second stakeholders prioritized by Walmart are the customers
Lowly priced goods to customers.
Thirdly, the employees are paid fair wages.
This is to ensure they afford better living
Suppliers sell their products to Walmart at prices that are acceptable.
The mission statement has relevance to the stakeholders of Walmart Company. The main stakeholders of Walmart includes the investors, the customers, employees and the suppliers. The mission statement has the element of cost. The investors are the first priority of Walmart Company. The company is involved in lowering the costs of operation in order to increase the profits that are beneficial to the investors of Walmart. The second stakeholders prioritized by Walmart are the customers and the company provides goods and services at lower prices in order to facilitate better lives. Third, the covers the employees in that, the company pays the employees are paid fair wages so that they can afford better living. Lastly prioritized are the suppliers and are addressed by the mission statement in that, they sell their products to Walmart at prices that are acceptable (Meyer, 2017).
7
The mission statement exciting, challenging and inspiring
The mission statement is exciting
This is because it focuses on making the world a better place
It focuses on improving the lives of the people.
The mission is challenging as the company gains very small from its products
This is because of the low prices offered on products.
by offering the low prices.
The mission statement is inspiring in that it is simple and makes a value.
It focuses on a global picture.
The mission statement is exciting, challenging, and inspiring.
It is exciting because it focuses on making the world a better place by improving the lives of the people through the provision of cheap products and services. Consequently, it covers the important interests of the various stakeholders.
The mission is challenging in that According to Peterson (2015), the company gains very small by offering the low prices. This means that as the mission statement’s low price and making individual lives better has a negative effect on the sales of the company too. The mission statement is inspiring in that, it is simple and makes a value that is unique from other companies in the same market and focuses on a global picture of making lives better.
8
Recommendation for improvement
Walmart mission statement partially addresses the interests of the employees and suppliers
These stakeholder interests are never satisfied.
There is need to satisfy the interests of these two stakeholders.
This can be achieved through the implementation of changers.
For instance, increase in wages for the employees across the board.
Consequently, the relation with the suppliers
This is by focusing on the suppliers in the middle rather than paying much focus on the excessively low prices.
Walmart Company’s mission statement effectively addresses the needs of the investors and the customers but partially addresses the needs of employees and suppliers (50 percent). In these regard, the interest of these two important stakeholders are never fully satisfied. In order to be able to satisfy these stakeholders, there is need for the implementation of some changes. For instance, the company can consider a considerable increase in wages for the employees across the board. Consequently, the relation with the suppliers can be enhance by focusing on the suppliers in the middle rather than paying much focus on the excessively low prices. Even though this will lead to a small increase in the prices of the products, it is significant in that it will improve the standing of the company especially in the management of stakeholders and corporate citizen.
9
References
Ferguson, E. (2017). Walmart’s Vision, Mission, Generic & Intensive Strategies. Business management.
International Strategic Management. (2012). Walmart - Chapter 5 - Corporate-Level Strategy.
Wei, L., Wang, S., Zhang, J., & Ao, Y. Strategic Analysis For Walmart.
Walmart.com. Opportunity and Advancements. Retrieved on 2017 5 June from http://corporate.walmart.com/our-story/working-at-walmart.
Meyer, P. (2017). Walmart’s Stakeholders: Analysis & Recommendations. Business Management. Retrieved on 2017 5, June from http://panmore.com/walmart-
Peterson (2015). Wal-Mart CEO reveals the company's 8 biggest problems. Retrieved on 2017 5, June from http://www.businessinsider.com/wal-marts-ceo-reveals-8-main-
