Innovation

Innovation at Walmart
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Innovation at Walmart
Background and History
1.1 Company History
The history of Walmart presents an enormous amount progress witnessed by the company for the last ten years. Much can be said about the concern for the making of numerous products with increased innovation for customer satisfaction. The result is the visionary leadership of Sam Walton, whose focus was on the provision of quality goods to customers. The aspect of providing quality goods helps to ensure that the community can access goods at minimal costs. The 10-year history starts with the period where a generic prescription program for drugs was introduced. The period has also witnessed the launch of a store service site which has been enabling customers to make online purchases.
In the year 2009, Walmart penetrated the Chilean market through the acquisition of a huge stake in Distribucion y Servicio (D&S S.A) (Iacovone, Javorcik, Keller & Tybout, 2009). With such a move, the company managed to exceed annual sales of $400 billion (Iacovone, Javorcik, Keller & Tybout, 2009). In the year 2010, the first store was opened in India. It was a joint venture with Bharti Walmart. Other acquisitions made include Massmart (South Africa), Yihaodian, and Bharti Walmart Private Limited (McKnight & Linnenluecke, 2016).
1.2 The Current State of Walmart
The current state of Walmart is a situation explained by the presence of six stores offering different products to consumers.

These stores include Supercenters, Walmart Express stores, Discount store, convenience store/gas station, among others. The presence of huge stores presents the company with an opportunity for meeting all customer requirements, making it possible to access almost every product required in the daily life of an individual. The aspect of numerous acquisitions made by Walmart has created an opportunity for the company to diversify its risks, making it possible to increase the market share from a global perspective.
1.3 The Problem Statement
The role of this business plan is to fill the existing research gap in the analysis of major shortcomings of Walmart company. There is the problem of inadequate integration of digital services with physical stores. An example is a case where the company is expected to expand its service with the goals or to allow its clients to purchase goods online. There is the compromise of store design and layout on the side of the consumer leading wastage of time. There is the need to introduce a combination of appropriate design, lighting, store temperature, and design for the proper functioning of stores.
1.4 Symptoms and Causes
There is a problem of falling price of products at Walmart, largely contributed by the case of warm temperatures which have lowered the demand level of seasonal items. The sense of urgency needs to be created in ensuring that people are involved in the realization of an element of change. There is an issue of a leadership crisis, especially in the area of bribery and corruption engulfing Walmart (Morgeson, 2005). A case is a scenario where the company paid bribes so that it could build its stores in Mexico. Such allegations portray the company in a bad light, damaging its reputation.

1.5 Major Change Agents
Major change can be initiated at Walmart by concentrating on the reduction of greenhouse gas implications brought about by its business model. Such an approach can be made possible through the inclusion of sustainable products which are certified by the responsible body that looks at the aspect of Fair Trade. Another area of change is the concentration of an environmental strategy which ensures that no damage is present to the ecosystem.
1.6 SWOT Analysis
Strengths: Walmart has an efficient system of information technology is supporting its logistics system. A huge focus is placed on training people making them deliver exceptional service. There is a case of global expansion through the establishment of joint ventures, like in the case of Bharti in India.
Weaknesses: There is the problem of increased competition creating a challenge in sales revenues. An example is increased competition faced in stores located in North America like Dollar General and Family Dollar. There is the problem of mismanagement owing to the large nature of the business conducted by the company.
Opportunities: There are numerous opportunities presented by the formation of strategic alliances of the company. There are increased opportunities for growth of the company through expanding markets in the consumer segments.
Threats: There is a threat of stiff competition presented by other large companies offering similar goods. The company is exposed to cases of political problems in the region of operations.
Change Readiness and Preparedness
3.1 Stakeholder Analysis Pyramid
The role of this analysis is to identify areas of participation of different stakeholders in accepting the process of change. It enables an opportunity for making sure that all interests of the organization have been considered. Through impact assessment, there is the provision of information about the process of reacting to change.
3.2 Resistance to Change
Different stakeholders may resist to the process of change introduced by the company. An example is a case where change drivers, advocates, among other stakeholders are the main forces behind this resistance. The drivers of change are those individuals who work at the strategic level, their responsibility being the facilitation of the entire change process. Resistance occurs when these drivers are not willing to introduce change in the workplace (Westermann-Behaylo, Van Buren & Berman, 2016). Strategies for overcoming that problem may include the involvement of these drivers at the initial stages of change. Once they are involved in the change process, it becomes very hard for them to abandon the course.
Advocates is another group of stakeholders. These may create an impact in trying to facilitate the process of change to occur, by encouraging or influencing others. Overcoming this resistance can be obtained by training them first so that they become encouraged as they encourage other players.
Active participation is another element of change which impacts the process of change through the role they play in the organization. These individuals are involved through active participation in achieving goals of the company. They may resist change when they fail to participate actively in that process (Meyer, 2016). Overcoming that resistance can be obtained by taking them through the change process separately so that they feel accommodated in becoming the central role in facilitating the change process. On the other hand, there are those ‘willingness’ stakeholders who have no direct impact on the process of change. Overcoming resistance can be enhanced by their direct involvement in change through increased participation to assist in change.
3.3 Evaluating The Readiness for Change
Appropriate tools must be used to evaluate the readiness for a change. An example is the involvement of a team tasked with change management. Such a team is responsible for introducing appropriate strategies which are used to develop implementations towards change. The team can present various departments in making sure that all areas of change are evaluated. Excellent communication skills must be present on all team players to facilitate the process of making a change.
Team development can be sought to provide an understanding of issues of business that can motivate all stakeholders. As a norm, there must be a combination of implementation strategies used to evaluate change. These includes the involvement of a resistance plan, business systems plan, training plan, action plan, and communication plan. Data used to evaluate change can be obtained from communication with various stakeholders involved in the change process. Analysis of data may take the form of using various statistical tools to evaluate relevant information.

References
Iacovone, L., Javorcik, B., Keller, W., & Tybout, J. (2009). Walmart in Mexico: The impact of FDI on innovation and industry productivity. University of Colorado, 1-43.
McKnight, B., & Linnenluecke, M. K. (2016). How Firm Responses to Natural Disasters Strengthen Community Resilience A Stakeholder-Based Perspective. Organization & Environment, 1086026616629794.
Meyer, P. (2016). Walmart’s Stakeholders: Analysis & Recommendations – Panmore Institute. Panmore Institute. Retrieved 28 November 2016, from HYPERLINK “http://panmore.com/walmart-stakeholders-analysis-recommendations” http://panmore.com/walmart-stakeholders-analysis-recommendations
Morgeson, F. P. (2005). The external leadership of self-managing teams: intervening in the context of novel and disruptive events. Journal of Applied Psychology, 90(3), 497.
Westermann-Behaylo, M. K., Van Buren, H. J., & Berman, S. L. (2016). Stakeholder Capability Enhancement as a Path to Promote Human Dignity and Cooperative Advantage. Business Ethics Quarterly, 26(4), 529-555.