Analyzing Wal-Mart's Saudi Arabia Essay: Management And Stakeholder Analysis.

1. To establish the Wal-Mart Stores Inc.  in Kingdom of Saudi Arabia, you have to write the:  
a. Introduction about Wal-Mart Stores Inc.  business.
b. Product and type of services.
c. Business statement.
d. Business vision.
e.  Business objective.

2. Identify and describe the four managerial functions that can be applied in Wal-Mart Stores Inc. in Saudi Arabia.

3. Identify the probable stakeholder for Wal-Mart Stores Inc. KSA.

4. Explain the different types of planning for the different levels of management in Wal-Mart Stores Inc. KSA. Include the typical time frame for which each plan is created.

5. Discuss the components of the acronym SMART in goal setting of Wal-Mart Stores Inc. KSA. 

6. Identify the strategic management process of Wal-Mart Stores Inc. KSA

Introduction and company background

Walmart Inc has occupied a recognizable place as one of the most prestigious multinational retail supermarket of US. This particular organization is constituted with 4,150 stores all over the country. In United States, this particular organization is constituted with 2,300,000 employees from various professional skills and backgrounds (Walmart.com 2017). The primary products based on which Walmart has received international image and recognition include family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes and so many. While starting their entire business process the primary mission of the organization was to draw the attention of large number of customers from different geographical boundaries and attitudes. Customers are from various psychological backgrounds and attitudes. The business experts of Walmart have decided to render product variety within the organization to drag the attention of international customers.

The primary objectives based on which Walmart is running their entire business process in the market include:

• To fulfill the needs and demands of both low cot customers as well as premium customers
• To provide equal attention to the customers of different geographical boundaries
• To expand the entire business process in multinational countries

As per the report of Fortune Global 500 of 2016, Walmart has received the recognition of largest company in terms of revenue having approximate US$480 billion annual income. Around 2.3 million employees are intimately associated within the service process. As per the business strategy and belief of Walmart service innovation is highly needed for fulfilling the current needs and demands of the customers. A per the business strategy of this specific organization workforce strength leaves a major positive influence on the overall success of business (Armstrong et al. 2015). As already emphasized, the market demand of products of Walmart is high. Therefore, in order to maintain an effective balance between the customers’ needs and demands the business managers have recruited large number of employees within the services.

As a result, the customers do not have to wait for a long time in order to receive the services. This very specific study has focused to make an in-depth overview on how Walmart would expand their business wings in the market of Saudi Arabia. Saudi Arabia is a desert country, which is encompassed with Arabian Peninsula. Therefore, in order to launch the business wings in the market of Saudi Arabia the business experts of Walmart should render several changes in marketing principles. Therefore, this specific study would like to highlight on how the managerial function should be in the market of Saudi Arabia so that both the internal as well as external stakeholders can show their interest in being associated with the company.  

Managerial Function

In order to control the entire business process the role of managers in every single department is highly significant. In Walmart, the role of managers in four particular departments especially is undeniable. Inventory manager, Operation manager, Finance manager and Human resource manager of Walmart has to plan a significant role in achieving the success of business. Based on the external environmental factors of Saudi Arabia the managers of Walmart tend to make effective strategy and policy (Solomon 2014). The roles of the managers in four specific departments are as follows:

Every retail chain should have its own warehouse to stock the merchandise to be used when the existing stock replenishes. The role of inventory manager is to control the entire balance between demand and supply of products. While entering into the market of Walmart, the CEO should recruit an efficient inventory manager so that customers do not have to wait for a long time while receiving the services. In addition, employees working on the store may get provoked to steal the merchandise. In this situation, the inventory managers play a major role in keeping a constant track on overall stock of merchandise.

The primary role of an efficient operation manager is to oversee the entire production of goods as well as provision of services. From manufacturing the products to its delivery to the customers’ destination the operation manager has to keep constant update on how the service providers are successfully able to draw the attention of customers (Gracia-Marco et al. 2012). In addition, an efficient operation manager always keeps a track about customers’ feedback. Walmart while entering in the new market of Saudi Arabia should hire an efficient operation manager who will maintain a balance on product and services.

Finance manager is the concerned person who wants to keep a constant control over the profit and loss. Walmart as per the report of Fortune 500 list of 2016 has received the recognition of Word’s largest retail chain. This specific organization while intending to spread their entire process of business in the market of Saudi Arabia should focus on appointing an efficient finance manager.  This individual would maintain a constant database on how the profitability level of the company is going on currently based on which the business experts would like to implement innovative business models. While entering the new business process in the market of Saudi Arabia the finance managers have to estimate a budget for business promotion and campaign in order to make awareness among the people (Ennew, Waite and Waite 2013). The economic strength of Walmart is high. Therefore, the business experts do not have to face difficulties in making an efficient promotional campaign. The finance managers tend to maintain overall data record on the overall revenue growth of the company as well.

Probable stakeholder for Wal-mart store

The primary role of human resource managers is to recruit the employees as per their skills and competency level. Planning an effective training and development session for the employees in order to develop their professional skill is one of the major responsibilities of human resource managers. The economic strength of Walmart is high in range. Therefore, human resource managers after hiring the employees in Saudi Arabia do not have to struggle in providing an effective training and development session for enhancing their professional skill as well as technological competency (Mohammadian and Habibi 2012). In addition, human resource managers play an important role in measuring the overall performance level of the employees. Based on their level of performance the organization decides to give reward and recognition to every individual employee.  

In order to identify the probable stakeholders in the Walmart stores the business experts tend to follow some of the major steps:

Before making an effective stakeholder analysis, the business experts of Walmart, Saudi Arabia should identify the primary stakeholders. The key stakeholders who are intimately associated within the business process of Walmart include creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions as well as customers.

As per the business value and ethics of Walmart, both the customers and the employees are considered as one of the most important and prioritized stakeholders for rendering the business success. Therefore, while entering into the new market of Saudi Arabia the business experts of Walmart would have to focus on identifying their target customers. After hiring the employees within business process the organizational managers would like to focus on the needs and expectations of employees so that they can perform well towards the services.   

After prioritizing the two key stakeholders the organizational managers of Walmart, Saudi Arabia would like to make an in-depth research on how to fulfill the needs and demands of the stakeholders. The success of a particular business organization is highly dependent on the stakeholders’ feedback (Papasolomou and Melanthiou 2012). Walmart in order to fulfill the needs and demands of Saudi Arabian customers has implemented low cost pricing strategy so that customers can afford the products as well as services. In addition, the organizational managers like to implement agile work environment at the workplace so that employees get motivated to perform well towards the services.

Visual merchandise is one of the most effective strategies that the business experts of a retail chain tend to use for drawing the attention of customers randomly. In order to draw the attention of customers instantly the business experts of retail sectors tend to decorate and display the floor for grabbing customers’ attention. One of the most positive aspects of Walmart is that the organization is endowed with varieties of products (Sokro 2012). Therefore, after entering into the market of Saudi Arabia Walmart business experts would have to face innumerable difficulties in grabbing customers’ attention. However, visual merchandise is the only way based on which the business experts can draw the attention of Saudi Arabian customers effectively.

After launching the business in the market of Saudi Arabia, the human resource managers may have to face innumerable challenges in hiring the employees. People having good academic backgrounds and skills may not show their interest in being associated with this specific organization.  However, in order to draw the attention of employees Walmart Saudi Arabia decides to implement reward and recognition policy (Truong and Hall 2013). This specific reward and recognition policy would motivate the employees for performing well towards the services. On the other hand, the business experts can measure the performance level of every individual employee categorically.

As per the business promotional strategy of Walmart, it is undeniable that the marketing executives primarily focus on direct marketing strategy rather than social media marketing. Before entering into the market of Saudi Arabia, the marketing executives can maintain their promotional campaign in different geographical boundaries. As a result, people do not have to face difficulties in getting an overview about the products and services of Walmart. Therefore, the marketing executives can use the popularity of social media platform as well so that business experts can draw the attention of international customers (Clayson and Haley 2013). In addition, with the help of social media the service providers can get immediate feedback of the customers as well.             

Before expanding the business, the executives of Walmart should make an effective SMART objective based on which the company can achieve business goal.

Table 1: SMART Objective

(Source: Zarantonello and Schmitt 2013)

After making an in-depth environmental analysis of Saudi Arabia, it can be stated that the income status of the inhabitants of Saudi Arabia is average in range. In this situation, the business experts of Walmart have decided to use low cost strategy so that people having average cost of income can afford the products as well as services. In order to hire the people of various cultural backgrounds Walmart has implemented diverse management strategy. On one hand, both male and female employees have received equal respect and dignity within the organization. On the other, people of every cultural background get equal opportunity for being the part of organizational services (Manickam and Sriram 2013). The human resource managers of Saudi Arabia have provided more importance on the skills and competency level of the employees rather than their cultural backgrounds.

Walmart has been a very famous organization in the retail stores. They have been expanding in various countries and continents universally They are currently expanding in the Middle East in Saudi Arabia. They will need to build a strong organizational culture so that they can gain the trust of the native people (Ahmad et al. 2013). They value their customers and they are committed to their customers and stakeholders widely. They can aim to appoint their workers form that region only that will be cost-effective for them and the local people will be largely benefitted by this. The establishment of Walmart in Saudi Arabia will enrich the local economy.

Walmart can very effectively attempt to take the local resources as their source of logistics support. These things will be very much useful for them. The crucial functions that are needed to serve the customers can be taken from the local regions. They can perform their CSR activities in the regions in Saudi Arabia which are still not that much developed. The hierarchy of Walmart will surely try to fetch the attention of the stakeholders and the local people towards them by providing several new products to their customers. Walmart has been one of those best organizations who have constantly focused on environmental sustainability. They have to maximize the energy efficiency and cut down the waste productions in their functioning areas. They have to introduce new eco-friendly tools so they can minimize the waste products (Mihart 2012).

Walmart always focuses on providing their customers a special experience whenever they are making transactions with them. The associates of Walmart are always engaged to provide the things to their customers that can change the world. They behave with their customers very politely that is a display of good behavior. The workers of Walmart always work hand in hand to make their corporate strategies a reality. The managers of the organization always converse and communicate with the customers, take their feedback and try to improve the conditions. They positively try to work on these things that can really change the world. They will have to promote the new products to the people of Saudi Arabia. They can try to promote some literacy campaigns in the undeveloped regions of the country (Farrell and Gordon 2012). This will build a sense of faith in the minds of the common people of Saudi Arabia. These kinds of organizational cultures will make the venture of Walmart into Saudi Arabia a successful one.

Conclusion:

In order to run the entire process of business the role of business manager in every single department is undeniable. People belonging to different geographical boundaries and attitudes would like to purchase the products and services of a business organization only when they will get immediate response from the service providers along with maintaining the superior quality of products. Saudi Arabia is a desert country where the inhabitants are not very much advanced in technology. Walmart would have to face innumerable difficulties in expanding their entire process of business without making an in-depth consumer behavior in this very specific country. Therefore, the role of a CEO of Walmart, Saudi Arabia would be making an in-depth research and development process for stakeholder analysis.

The business experts have to set up the organizational culture based on the psychological and cultural background of target customers. In the market of Saudi Arabia, the customers are not very much efficient in communication skill. As a result, the business experts would have to render multi-lingual flexibility so that they can interact with every individual employee effectively. In addition, the products that Walmart has rendered within the business process are possessed with variety of designs. Customers of Saudi Arabia can get attracted on product variety as well as service quality.   

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