CASE 1 : WALMART PART ONE : INTRODUCTION TO MANAGEMENT

Question 1
Why innovative management is is important and how have Walmarts leaders
demonstrated innovation throughout the companys history?
Innovative management is one of management style in which a manager uses all of the
resources available to him and creates a working community where creativity and ingenuity
work hand in hand with practicality in order to find new solution for all problem.
Innovative management is important because it could be apply to products, services, design,
invention, development, process and systems in order to compete with the new economy. An
ordinary product could be tremendous by innovation while an ordinary workers could be
excellent.
Due to turbulent environmental forces that cause significant shifts and create a challenging
environment for organizations innovative management style is important to keep company
growing, changing and thriving in order to sustain profit and survive over the long run.
The dimensions of innovation that Wallmarts leaders have demonstrated among their
product, supply chains, customer experience, process, platform and marketing.

CUSTOMER
EXPERIENCE

MARKETING

PRODUCT

THE
DIMENSIONS
OF
INNOVATION
PLATFORM

PROCESSES

SUPPLY
CHAINS

1. The massive brand name and label product with unbeatable low price reached the
high volume purchasing.
2. Advance supply chain technology using radio frequency identification microchips
enable Walmart to replenish its stock three times faster than normal, ensure the
products are not out of stock and avoiding unnecessary distribution cost.
3. Customer can shopping all their needs at one convenient location.
4. Platform innovation offering derivative products efficiently and cost effectively,
which opens up new markets and increased profits
5. Creating a differentiation in interacting with prospective customers by using
innovative ways of marketing such as social networks, build an emotional connection
between customers and Walmart.

Question 2

Which management perspective of the past century influenced Sam Walton and Walmart?
Sam Walton and Walmart was influenced with management by walking around (MBWA) of
the past century from J.C. Penny. MBWA defines as unstructured approach to hand on where
direct participation by the managers in work related affairs of their subordinates.
It requires the managers to randomly walk around their work place to get a feel for what is
really going on rather than through the management response and analytics.
MBWA has never really gone out of fashion. The benefit that can be increase are as follows

APPROACHABILITY staff sees a manager as a person not just boss, they will be
more likely to tell you whats going on. Change to learn about issues before they
become problem.
TRUST trust you more. You will be naturally inclined to share more information
and that will break down barriers to communication.
BUSINESS KNOWLEDGE getting out and learned what happening on a daily basis
can give better understanding of function and process around you
ACCOUNTABILITY Interact daily will create aggrement with each other are much
more likely to be completed. Everyone is more motivated to follow through.
MORALE - People often feel better about their jobs and their organization when they
have opportunity to be heard.
PRODUCTIVITY Promote casual discussion so people will more likely to come to
share their ideas.

Question 3
What social, political and economic forces are shaping the practice of management at
Walmart in 21st century?
Social forces:In the 21st century the social forces include tradition, values and societys expectation of
business are shaping the practice of management at Walmart. They concern on more
humanitarian light under the campaign save money live better. The example on practice are
creating more new jobs and tackle world hunger.
Social issues can become political because of their effect on peoples behavior such as
consumer and employees or internal and external parties. For Walmart to survive the
management introduce or implemented initiative such as roll back prices for increasingly
cash-strapped global consumers and elevate working condition for global workers.
Political forces:Political forces directly affect the way organization operate where we can use the five basic
political strategies to cope with turbulence especially in Walmart practice. Negotiation,
lobbying, alliance, representation and socialization. Negotiation is the most important
strategies involves in shaping the Company.
Managerial Political Strategies

Political Strategies

Political - Legal Forces

Negotiation
Lobbying
Alliance
Representation
Socialization

Political Action
Committees (PACs)
Laws
Government
Labor unions
Others

Monitoring to the government policies Walmart plans to create industries benchmark for
sustainable business. The political activity may have impact on supplier function, customers
function and competitor function. Therefore knowledge of government strategies can help
Walmart to avoid unfavorable confrontation.

Economic Forces:
Economic is the discipline that focuses on understanding how people or company produce,
distribute and consume various product and services.This refer to the nature and direction of
the economy in which Walmart operates.Thomas Friedman the author of The world is Flat
describe the six of the most important management trends are shown in table below :New Age of Competition

OLD

NEW
Value added services

Low cost manufacturing

Outsourcing

Self reliance

Borderless competition

Made in USA

customer convenience

Local knowledge

Human capital, software,

Phy sical labor

knowledge management

Smoke - astack industries

Environmental stewardship

Particulary challenging economic and political condition include the fluctuation of inflation,
unemployment rate, taxes and interest rate and the environmental and safety regulation. To
reposition Walmart for the challenges of the 21st century former CEO H. Lee Scott Jr.
commenced a company wide makeover at the midpoint of his 10 years tenure.
The Walmart managers are shaping their practice in order to hold maximum potential for
people, profits and planet.

3P
PEOPLE

PROFIT

PLANET