Preview

case study of shrm

Powerful Essays
Open Document
Open Document
2842 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
case study of shrm
Case study of strategic human resource management in Walmart stores

Introduction
Part 1: the analysis of corporate strategy and HR strategy at Wal-Mart.
Part 2: The analysis of HR policies at Walmart and its integration with Corporate Strategy.
Part 3: the role of the HR manager in this company?
Part 4: some advices to improve the employment practices at Walmart.
Conclusion

Introduction: Michael E. Porter (1980) in his famous book said there are three basic competitive strategies for a company, which are overall cost leadership; differentiation and focus strategy. Companies use these competitive strategies to achieve competitive advantage. In this case, Walmart Company is obviously taking the cost leadership strategy, that is to say, it aims to become the low-cost leader in the retail industry. Walmart maintains its competitive advantage through its satellite-based distribution system, and by keeping store location costs to a minimum by placing stores on low-cost land outside small to medium-sized towns, no matter in the US or in its abroad affiliations.
Part 1: the analysis of corporate strategy and HR strategy at Wal-Mart.
From this case material we could also see that Walmart purchased massive quantities of items from its suppliers to form scale economy, and with the efficient stock control system helping make its operating costs lower than those of its competitors. It also imported many goods from China, “the world factory” for its low cost. So in a word the company-level strategy of Walmart is low cost and low cost, with little differentiation strategy.
Managers engage in three levels of strategic planning (Gary Dessler, 2005): the corporate-level strategy; the business-level strategy and the function-level strategy. The functional strategy should serve the overall company strategy so the corporate strategy could be implemented more effectively and efficiently. As for Walmart, its corporate-level strategy and business-level strategy, as

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Local Business Bus/210

    • 319 Words
    • 2 Pages

    The first component of Wal-Mart is business commerce. Business commerce is when Wal-Mart exchange good and services with other businesses. For example, Wal-Mart has a hair salon service; I love to get my hair done every other week. Also, many Wal-Marts provide banking services and some fast food services. Wal-Mart has stock trades also. Another main component of Wal-Mart is business occupation. Business occupation is the acquired set of specialized skills and abilities that allows Wal-Mart to create valuable goods and services. When my husband started at Wal-Mart he had to undergo several trainings to ensure that he understands the business and also that he provides customers with excellent services. Wal-Mart provides thorough training to its employees so that they can keep the customers coming back. Customers always value great customer service. I think this is one way Wal-Mart remains ahead of its competitors. The last main component of Wal-Mart is business organization. Business organization is the system of task and authority relationship which coordinates and controls the interactions between people so that they work toward a common goal. Wal-Mart’s common goal is to provide low prices. They try to provide lower prices than their competitors. They are about saving their customers money. They have reduced the costs of their retail and other products in the store. There are many Wal-Marts around the world and they provide the same services in all of them. I love Wal-Mart and I agree that they have prices lower than many other retailers. I definitely agree with their slogan, it is so true. “Save money, Live better”.…

    • 319 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    As the world’s largest retailer, Walmart has set the bar in the cost leadership strategy following its motto “Every Day Low Price”. In order to be competitive, other retailers have to strive to differentiate or match their prices and they look at Walmart as a benchmark (Yanrong, 2013). Being the leader is not good enough though. Walmart must remain dissatisfied with their current results. Melanie Hicks writes, “when things go according to plan, Tennessee companies have, when they are market leaders, is out of complacency” (2010).…

    • 370 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    As for Wal-mart's business strategy, it is not wholly unique. Their strategy is to demand lower prices from their suppliers so that they can pass on those savings to the consumer. The supplies to comply and offer the largest cuts are often featured in higher supply within the store, suppliers who do not wish to lower their prices are simply not featured. Many companies including but not limited to K-Mart, Home Depot, and Lowes all practice this same formula. The difference is that Wal-mart is successfully pushing their products.…

    • 428 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    walmart case summary

    • 713 Words
    • 2 Pages

    Wal-Mart’s founder Sam Walton wanted to “bring big-city discounting to his corner of the rural American South,” offering low prices every day. The strategy was simple, sell cheap, so the company worked very hard to lower costs by buying directly from manufacturers and always increasing workers’ productivity. After Walton’s death, the company went on with an accelerated new technologies and globalization of its operations. From 1995-1999 Wal-Mart alone gained 25% of productivity of the US economy. Also, by 2004 it became the largest importer from China in the world (10% of all China’s exports.) With this huge market power, Wal-Mart was able to exert lots of power over its business partners and employees. They…

    • 713 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Strengths: Wal-Mart has great retail brand recognition. It values money saving ideas in all of their stores, and for the overall corporation. Wal-Mart is known for its convenience and a wide range of products all under one roof. In 2002 82% of all households in the US made a purchase at Wal-Mart. Half of all Americans visit a Wal-Mart at least once a month, and of those half one-third go once a week. Wal-Mart's core strategy is to be the low cost leader. Wal-Mart's competitive advantage is because they are the low cost leader. Wal-Mart commits to deliver quality products with the lowest possible price. Wal-Mart attains this in several ways; their strategy is to have multiple store formats for the different local environments,…

    • 2022 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    The purpose of this paper is to explain how internal and external factors affect the four functions of management in the Wal-Mart Corporation. For any organization to survive, irrespective of its size, it must develop and implement its own management concept. Management is the process of working with people and resources to accomplish organizational goals (Bateman & Snell, 2011). The four traditional functions of management include planning, organizing, leading, and controlling. The Wal-Mart Corporation has managed to use the internal and external factors of these functions to their advantage. With their strategic goal of seriously and rapidly expanding, the company currently employs over 2.2 million associates, owns 8,500 stores, and serves 200 million customers weekly(“www.corporate.walmart.com”, 2012).Their strategies have minimized competitors making this company the world’s largest retailer. The following paper will describe how the Wal-Mart Corporation has found a successful way to use the functions with internal and external factors influencing globalization, technology, innovation, ethics, and diversity in business.…

    • 1610 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    K-Mart Vs Walmart

    • 1378 Words
    • 6 Pages

    Like most people in America, I am sure you have heard of Wal-Mart and K-Mart. I am sure that you have a preference as well in terms of which store you shop at and why, but what is it that makes one more successful than the other? From budgeting and staffing to supply chain management, there is a lot of strategic planning that goes into making a business successful. Without the proper balance of costs and revenues a company cannot gain an advantage over their competitors or might not even be able to keep up in the competiveness of the ever-growing and ever-changing consumer market. It is helpful to know the efforts Wal-Mart has put into their business strategy plan in order to be successful, what they do on a daily basis to make them stand…

    • 1378 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Strategic Planning Paper

    • 2377 Words
    • 10 Pages

    Wal-Mart is a leader in providing goods and services at lower costs than competitors. The store started with a cost leadership initiative for running the business, and it has worked for the company for years. Wal-Mart has taken this initiative and maximized the plan where no one can directly compete. Wal-Mart analyzes the market and decides what the company can do to continue to thrive and beat out competitors, beating competitors by an aggressive price point is how the company addresses this.…

    • 2377 Words
    • 10 Pages
    Better Essays
  • Good Essays

    I believe in a strategic sense that Wal-Mart has chosen to make their stores the “one stop shop” for everything the common American household needs. To do this, they have developed strategically over the years by growing from their initial platform of “Wal-mart” (offering common retail merchandise at the lowest price available in a given area) to the stores they have today, which are all-inclusive supercenters that sell groceries, electronics, apparel, home improvement, pharmacy, automotive,…

    • 928 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Walmart Case study

    • 3766 Words
    • 16 Pages

    From a gallon of milk to a complete home makeover, Wal-Mart is the kind of store consumers (to include myself) go to buy all their home goods. What we don’t see are the management aspect of the operations, the issues stores, management, and executives go through on a daily basis. Wal-Mart has several challenges it goes through, from self-inflicting wounds to battling competitors for the lowest prices and consumer business. However its CEO’s both past and present have set the foundation and direction of where Wal-Mart is to be headed in the 21st century. With direction and orders in-hand, its top executives have developed initiatives addressing Wal-Mart's biggest issues, including health insurance coverage and employee compensation packages aimed at saving the company money, while taking care of its employees. With its aimed direction, Wal-Mart is continuously looking for strategies and public relations to bring more business. Recently, Wal-Mart came out with two new incentives, one to hire more veterans, the other to increase its purchase of American made products. The issues Wal-Mart faces are many, but it did not make it this far to fall into the ruins, with it’s upper management strategizing into the future the foundation was set for years to come.…

    • 3766 Words
    • 16 Pages
    Best Essays
  • Powerful Essays

    Research Paper

    • 6044 Words
    • 25 Pages

    In the competitive retail market today, Wal-Mart has developed an influential brand known by many consumers worldwide. Throughout the years, the large corporation has developed a very attractive slogan to the public while at the same time implementing discount stores that offer very low prices, which attracts the public even more. For this reason, in spite of the challenging impact of customer’s time due to the excessive checkout lines, to the limited available workers; Wal-Mart’s low costs of their products continues to flourish their business. In the market today, Wal-Mart remains #1 amongst the retail stores of the Fortune 500 companies! The company’s mission statement is “We work for you. We think of ourselves as buyers for our customers, and we apply our considerable strengths to get the best value for you. We’ve built Wal-Mart by acting on behalf of our customers, and that concept continues to propel us. We’re working hard to make our customers’ shopping easy” (Jones & George, 2011). With this mission statement in mind, Wal-Mart management has had to create and plan different…

    • 6044 Words
    • 25 Pages
    Powerful Essays
  • Powerful Essays

    The generic strategy Wal-Mart is using is the broad cost-leadership strategy and employing several drivers to achieve cost advantage over competitors. With its huge supercenters it is benefiting from the economies of scale by purchasing and reselling enormous amounts of goods. Besides, it is using location advantages for sourcing inputs by placing its logistics centers in the best possible locations and dealing with the suppliers from the countries with cheap labor and costs of goods. Finally, Wal-Mart is using its purchasing power to push suppliers to the lowest possible contract prices, because it purchases a lot and often becomes the biggest client of the supplier companies.…

    • 1346 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Wal-Mart Case

    • 2075 Words
    • 9 Pages

    Wal-Mart is a brand that is well known around the world, especially in the USA. It has gradually developed into the largest retailer in the world. Wal-Mart’s globalization efforts have been happening rapidly. But have they been successful in all aspects of their international expansion or not? This is the main thought that is going to be discussed in this essay. The questions I will be looking at are based on a case called “Wal-Mart takes on the world” from the book of International Business The Challenge of Global Competition eleventh edition – Ball, McCulloch, Geringer, Minor, and McNett. Questions are the following:…

    • 2075 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Walmart 's Case

    • 2090 Words
    • 9 Pages

    Wal-Mart, founded by Sam Walton in 1962, is the world’s largest public corporation. Wal-Mart, whose headquarters are located in Bentonville, Arkansas, was incorporated in 1969, and later in 1972, it was listed on the New York Stock Exchange. In 2006 Wal-Mart became the number one retailer in the United States and is currently the world’s largest private employer. Wal-Mart has more than 6,800 stores world-wide, in countries such as: Canada, China, Germany and Britain. Due to the rapid growth of the company, Wal-Mart decided to develop three types of retail stores: discount, super centers and neighborhood markets. These stores are all very popular in the United States and around the world. This business philosophy of owning various types of stores has allowed Wal-Mart to reach more people and sell a wider variety of products, which has enabled Wal-Mart to create a larger customer base. In the case presented in the textbook, Wal-Mart was trying to penetrate the markets in Argentina and Brazil by attempting to create a different shopping experience for consumers. However, because of the nature of the supermarket industry in Argentina and Brazil, Wal-Mart has not seen any profits and has faced many problems with implementing their “Everyday Low Price” strategy ("Wal-Mart history timeline," 2012).…

    • 2090 Words
    • 9 Pages
    Better Essays
  • Best Essays

    One of the reasons why Wal-Mart has been so successful and scale up its model across so many locations is the values and beliefs established by its founder and the customer centric culture that is replicated across locations. The company right from the time of its inception has a clear mission which is to save its customers money and enable them to live better. Below is an analysis of current Wal-Mart practices across various areas and how Wal-Mart has align then to perfectly with its mission statement…

    • 2188 Words
    • 9 Pages
    Best Essays