Walmart case study

Prepare an in-depth analysis of four case studies during the semester. Here are some guidelines:

· This is an individual assessment, which is a part from your course score. It requires effort and critical thinking

· Answer all the questions listed below for each case.

· The ‘answers’ to the questions are best formulated by reviewing the case and the reading materials up and including the current week in the course.

· The questions are worded to help you apply the readings to the case, so don’t limit yourself to the case’s terminology and perspective. The best analysis will abstract the case content by applying the reading materials to draw broader lessons about the material

Case Study 3 : Walmart

1. How IT and IS may be used to help the company operate and achieve its objectives. (1 Mark)

1. Discuss the challenges faced by the CIO - which are the most important and why? (1 Mark)

1. What role does information technology play in the business? How is it helping Walmart refine its business strategies? (1 Mark)

1. Summarize the main purposes of information systems in organizations (1 Mark)

Due Dates

Case Study

Date of release

Due date of submission from the students

3rd

End of 9th Week

End of 11th Week

Case Study 3 : Walmart

With the advent of science and technology, technological innovations have become a pre-requisite to achieve operational and strategic excellence. Organizations by using state-of-the-art systems, are striving for their best to achieve sustainable and long-term competitive advantage. It has become sine qua non to use modern tools for the effective achievement of goals and objectives. Its importance can also be observed from the increased spending on Research & Development in order to pace up with the todays dynamic business environment.

Wal-Mart, founded by Sam Walton in 1962, is the world's largest retailer that employs about 2.1 million associates worldwide, in more than 8,400 stores, including 8, discount stores, 3,100 combination discount and grocery stores. Wal-Mart is serving its customers and members more than 200 million times per week at more than 8,613 retail units under 55 different banners in 15 countries. Wal-Mart has ranked first among retailers in Fortune Magazine's 2010 Most Admired Companies survey with fiscal year 2010 sales of $405 billion. Sam Walton's belief was to build an empire by providing value to its customers and empowering employees, also known as associates. The way the Wal-Mart operates is so fascinating and impressive that Jack Welch, CEO of General Electric once said: "Many of our management teams spent time there observing the speed, the bias for action, the utter customer fixation that drives Wal-Mart."

The use of high-tech Information technology has always been an essential ingredient for Wal-Mart's growth. Since its inception, it has used the IT systems well enough for the Inventory, administrative, customers and suppliers management.

Wal-Mart's investment in technology started with the computerized accounting systems and since then the continuous adoption of latest technologies has made Wal-Mart a market leader in the whole retail industry.

Wal-Mart developed a well-equipped computerized Point of Sale (POS) system capable of identifying each unit sold, creation of accurate sales receipt and storing all the information item-by-item for sales analysis and inventory reordering purposes. It helped company to avoid overstocking of merchandize through effective information usage and also assisted them in investing in only those merchandize that were profitable. It has also helped them figure out best selling products and prospective products that customers want. Analysts say that it is Wal-Mart's Point of Sale system that has helped them achieve the world's largest market share and revenues in retail industry.

Wal-Mart, in 2004, was the first in retail industry to adopt electronic radio frequency identification (RFID) tags for inventory distribution management. RFID technology, which is still being used, helps them keep track of inventory movement across its supply chain. Wal-Mart was trailing K-Mart in 1980's but with the adoption of latest technologies, it has now become the trend setter in retail industry all over the world.

Wal-Mart is currently working on a project to make best out of wireless technology. In near future, they have plans to develop a remote system that would allow customers to just walk into their store and use their own devices (Phones or PDA's) to get whatever they want. i.e. they might go online to their website, while at the store, and find things for themselves or just compare the products' prices etc.

Customer service, best shopping environment and experience, one-stop shopping, best value products, customer convenience of online shopping, good customer relations are the blessings that Wal-Mart provides using cutting-edge technology. Latest wireless system at their stores, online web-retailing, vast width and hierarchy of product items, and stores at multiple remote sites are the benefits customers of Wal-Mart cherish.

Wal-Mart is considered to be a trend setter in retail industry and it's all due to its inclination towards achieving impossible through modern technology. For example, Wal-Mart once tried to develop three experimental stores in McKinney, Aurora and Las Vegas that were equipped with latest technologies or concepts like wind turbines, photovoltaic solar panels, bio-fuel-capable boilers and water-cooled refrigerators. Irrespective of the criticism it had on environmental issues, Wal-Mart's initiative was considered to be a positive step towards change and innovation and it provided them with an opportunity to become the biggest seller of organic milk and the biggest buyer of organic cotton in the world, as well as reducing packaging and energy costs. It has been quoted in 2006's annual report of Wal-Mart that in order to compete against upscale and appealing store, such as 'Target', they have launched a new Supercenter concept in Plano, Texas. The new store had wood floors, wider aisles, a sushi bar, a coffee shop with free Wi-Fi Internet access, and more expensive beers, wines and other electronics goods.