Innovation at Walmart

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, and 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.
2.1
Wal-Mart Company needs to use the strategy of Implemental change management. This would enable the company to get into other areas within the international business. The change management of Wal-Mart Company needs to involve them or rather adopt the changes of new technology and how the new customer service system works. Wal-Mart needs to have an effective change management, which is one of the core factors Wal-Mart needs to be able to transform the company process, technologies and the employees. We need to be able to upgrade the performance of employees and ensure that the business environment would continue to change repeatedly.
2.2
What we expect from Wal-Mart is that the company is supposed to change the environment they work in globally, so that their company can upgrade to a higher level rapidly. The changes would have an effect on the Changes in leadership styles, one of the key steps in their leadership styles in the setting and the communication of the company within. If we were able to understand how the company’s goals would be achieved and having all leadership styles in the change management in solving the company’s problem and implementations.
This implemented change that is applied to Wal-Mart also had an effect on their Division. Walmart CEO of the U.S. division, Greg Foran, has pledged to do the shopping at Wal-Mart to be more appealing, and this is a very important task that has been recovering in the recent months. Foran who took over the business about two years ago in the U.S. said: “we have recently undertaken some important activities to simplify our organization and empower our stores, our associates in our stores to make a decision.”
Retailers found out that the workers who work in various departments, who interact with customers in a day-to-day activity feel they had less of influence in the management of the stores. We also need to strengthen the managing system, by increasing the payroll of employees that has done good work, and who can ensure better in store services for future purposes.
2.3
The company would have issues in worrying about the time on when this implementation of change programs and how many years it would be implemented; those are issues we worry about. So we have to find a way to motivate them and tell them that the initiatives would take a long time but that doesn’t mean they shouldn’t accept this new change, it’s a risk they must be willing to take because the possibilities would benefit the company in a huge impact. Doing this would enable opportunities, and helping them remember their objectives, profit of interest the company would profit from.
2.4
Wal-Mart is currently using the theory E which focuses on the building of stakeholder’s value or the economic value. While, theory O, the purpose is on developing the human capability if the organization is to implement some changes in their strategy and learn from past downfalls and successes. This change relies on a high level of commitment in which change would occur rapidly. What Walmart needs to make use of is that of theory O. As we know what theory O states; the company requires all their employees to commit to improving the elements like that of the customer care and try to emphasize on a low to high-level approach. If there were recognitions of respect to the employees at the lower departments, and given a chance to respect their points of view. They might be willing to accept new changes from either their discussion or any place these changes are coming from, as long as it is for the best of the company.
2.5
Walmart makes use of adaptive change in many aspects. Though the company has been a leader in the retail industry, its excellent performance did not blind the perception about the changing world. The firm acknowledges the fact that its survival and future performance will all depend on the ability to adapt well to every changing environment that they encounter. The company has made positive progress but with the use of Adaptive change the company would be even more successful in the future, and this would convince employees in the acceptance of new change, a requirement adaptive company in the current prevailing economic strategies is bound to the changes.
2.6
Using Kotter change theory, Wal-Mart needs to create a sense of urgency to their employees, because in other for the need of change, they really need to be in the acceptance stage of that new change. This may help them get the initial change of motivation to get things moving. We also feel like Wal-Mart need to create a sense of Vision for Change, there’s probably different ideas and solution we could use to turn around Wal-Mart. We have to link these concepts to an overall vision so people can easily remember them and understand what the company needs to do.
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. Walmart’s stakeholders encompass all groups and individuals who affect the business either directly or indirectly and have an influence on change takes place within the organization. They utilize their personal interest to push the firm for change and other crucial operations that are aimed at strategic direction of the organization. Stakeholder analysis is, therefore, pivotal in guiding how decisions are made with the aim of instigating the process of change to achieve a satisfactory leadership system.
Walmart’s stakeholder’s groups can be grouped into investors, customers, employees, suppliers and the community based on their shared interest and the level of priority. Walmart has given its investors the highest priority and thus placing them in the active level of participation. They are directly impacted by any process of change, and they will be forced what they do to realize the necessary changes. Investors are primarily interested in the profits made by the Company and will, therefore, push for higher dividends per share. However, investors also aim at minimizing the operational costs which denote higher profits. This classifies them as the most crucial group in decision making, especially when handling issues to do with strategic changes.
Customers fall under the driving level of participation. Walmart has assigned them the second priority due to their interest in the growth of the business. They are satisfied with quality goods sold at an affordable price. Walmart customers are directly affected by the process of change especially when the price and quality of goods are changed. If the change is meant to improve the quality of the goods at an affordable price, customers have a responsibility of leading the implementation of the change. Walmart employees, on the other hand, fall under the advocate level of participation. Their priority level falls third, and they have an influence on how the managerial team makes decisions. However, once they are assured of job security and increased wages, employees will assume the role of facilitating the process of change through encouragement, support, and ability to impact the whole process.
The least prioritized stakeholders are suppliers who focus on how they can sell their products to Walmart in a profitable way. Suppliers fit in the driving level of participation who always hopes that the company can sell their products at a higher price to realize a significant increase in the supplier cost on their side. Suppliers will always take part in processes of change that will lead to significant benefits on the supplier’s side. The external community may be categorized based on their willingness and the ability of participation. The community is not impacted directly by the process of change, but they may provide some assistance based on their level of understanding and whether they are ready to be informed on the activities of the Company.

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). Customer satisfaction is crucial in determining their flexibility towards changes. When customers are dissatisfied, they will be reluctant to participate in any activity aimed at changing how the process of change takes place. According to a 2nd February 2016 post by Alexandra Klaussner, Walmart was ranked last regarding customer satisfaction alongside other departmental and discount stores such as Nordstrom which was ranked best. 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 are another group of stakeholders, and they encompass all Walmart employees. These may create an impact in trying to facilitate the process of change to occur, by encouraging or influencing others. According to a 30th January 2016, Forbes Magazine post by Panos Mourdoukoutas (2016), the managerial system adopted by Walmart is failing the customers. The managerial part of employees has been blamed by of using an outdated management style that failed to establish a smooth communication line between customers and the management. The link between employees and customers is pivotal in the process of change and any attempt to break the communication channel would be a resistance to change. This problem can be mitigated through training of employees so that they become encouraged as they encourage other players. This is why Mourdoukoutas advocates a 24-hour shutdown of the Walmart Stores to necessitate training sessions for all employees.
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). Mourdoukoutas (2016) points out that the investor demand in Walmart has become less predictable meaning that they are defiant in investing. This is due to the fierce competition that Walmart is facing from online retailers such as Amazon. Withdrawal of investors would be the biggest blow to Walmart considering their reputation in the US retail industry. 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. Walmart has a team of five executive officers who assume the roles of President and CEO in various departmental and discount stores. The five-member team includes Doug McMillon, Greg Foran, David Cheesewright, Rosalind Brewer and Marc Lore (“Leadership,” 2016). The team has been on the forefront advocating for necessary managerial changes that are pivotal in realizing the Company goals and objectives. Each member of the executive team and board of directors has definite roles and responsibilities that are aligned towards the realization of the change plan. A change management plan may encompass laying off some workers and giving various departments an opportunity to make 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. A February company statement by Doug McMillon claimed that Walmart will eliminate all the zone manager positions in all of its retail stores (Christine, 2014). However, all these works will be redeployed to other departments within the organization in the quest to ensure job security among its employees. Doug claimed that the move was aimed at a sustainable and long-term comprehensive approach to implementation of the outlined organizational changes. Reorganizational of the store operational structure is pivotal in ensuring a smooth and efficient communication channel between various Walmart Stakeholders. This 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.
4.1 Action Plan
Describe of the Step Parties Responsible Time-Frame (Dates)
Survey’s Staff 1,3
Direct information (Email) Management 1,2
Educating Employees 2,3,4
4.2 Communication Plan
Date Once per year Ones per year
Audience Demographics Attitudes
Key Message Content Mood
Reason for the Communication Having a communication plan makes communication efforts to be more efficient, effective and last for a long period of time. A plan helps your communication to be targeted accurately. It helps you define out a structure that would help you determine who exactly you need to reach and how to reach them.
4.3 Training Plan
A. The stakeholders of Wal-Mart influence the direction that the company needs to take, and their actions have an effect on the company either directly or indirectly.
B. Blended training for Employees, Leadership training for the management and web-based training for customers.
C. Employees
D. Managements
E. 1,2,3,4 months
4.4 Business System Plans
The firm must be willing to be able to manage the new innovations so they could easily adapt quickly to the unexpected changes in the marketing system.
A modern business firm must know how they will operate when they come in contact with a challenging environment with rapid change in environmental, political and technological changes.
4.5 Risk Assessment and Management
Risk Type Who is Impacted/Departments Customers, Suppliers, etc? Steps to Reduce Risk
Human right Departments The right for workers to organize labor
Health care Employees Reduction of the expense of health care.
Low wages Departments Forcing employees to work through breaks or off the clock.
Conclusion
Wal-Mart is one of the number one retailers that is known in the United States. They also operate in many countries internationally; they are moving into another country almost every year. Overall Walmart is expanding as a retailer, and also in various departments like the groceries, gas stations, electronics, etc. Wal-Mart is going to have to try harder to maintain their good reputation. In other for Wal-Mart to stay at the top, they have to start doing better with their stakeholders and make sure they guard their reputation well.
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 http://panmore.com/walmart-stakeholders-analysis-recommendationsMorgeson, 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.
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