ERP report for Wal-Mart

ERP report for Wal-Mart Assignment 2020

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Wal-Mart is the world’s largest retail store chain and is one of the biggest corporations that specialises in the sales of different types of retail products. The retail store was formed in the year 1991, in Mexico City. This retail store, planned growth in the international market, and grabbed the business development opportunities.  The brand name for the retail store added value to the quality of the products, sold to the clients. Business strategy for this store is completely based on the lower price of different products and in setting out higher standards that takes care of the client requirements. This approach has successfully contributed towards the growth of the business development in the international market. Entry process adopted in the foreign market changed the regulatory framework and the customer preferences (Thompson & Coskuner-Balli, 2007).

The global expansion strategy for the retail store was successful due to the low priced goods and services to raise the standard of living for the people, across the world. Bottom line for Wal-Mart was based on the bigger and cheaper mode, where the retail store sold different types of products to the clients. The supply chain management system and the product handling process for the store were improved with the adoption of the best technology that was adopted by the management. With the improvement in the infrastructural value, the company had developed the ability to deal with various operational challenges that were associated with the improvement of the information handling process. This report, examines the current environmental factors and the transformational factors, and the future scope for the business growth. Different business model, adopted to increase the business performances and to evaluate the associated challenges were also analysed (Sadowski, M. & Buckingham, 2007).

With the ERP system, the supply chain management and the product handling process for the company is effectively handled by Wal-Mart. This report examines the need to develop the infrastructural facilities, development of new plans, and other tasks that would be required to deal with the ERP requirements. Implementation of the ERP plan for a company is quite expensive, and in majority of the cases it needs an effective implementation of the process to handle the complicated works.

Current work environment

Wal-Mart operates in a competitive and challenging work environment, and globalised work culture. Business goals are to analyse the interest of the clients, and provide the expected quality of services to the clients. Through the globalisation process, the cultural values, political challenges, social aspects, and economic conditions are examined, while expanding the business operations. The competition in the retail business environment is quite challenging, and it creates a major impact on the business growth plan decided by the management. In order to sustain the competitive work environment, the management plans to introduce new range of products to the clients, at the lowest price. This makes the store quite competitive for the company, and provides accurate services to the potential buyers. Wal-Mart has successfully ventured in the international market, and adopted effective marketing strategies to position the products and implement the growth plan. The product benefits and the associated marketing strategies are examined, while planning for the business venture in the foreign country.


The company has successfully expanded its operations to different parts of the world like India, China, Australia, the UK, and others. Wal-Mart has opened new centres or stores in different places, and has sold various types of products and services to the clients. The management has also picked new ideas from other nations, to expand the products successfully in the market. This made the product sales successful in different countries like Mexico, Canada, and other places. Demand for the low priced products in such markets are quite high, and this has improved the sales, for the products. With an effective supply chain management system and with advanced technology the company could successfully approach the customers and sell the products in the selected market.

Business model selected by Wal-Mart

Wal-Mart has major holdings in the US retail market industry and it has been successful due to the effective business model selected by the company. Through a competitive approach, the management ensures to highlight the positive factors about the services and not let the rivals know about the weaknesses about the management process. The retail business model has successfully enabled the management to approach the clients, and introduce the growth plan to increase the customer satisfaction level. This has improved the brand name and the value for the company, and has enabled the management to retain remarket position. Brand recognition and higher percentage of customer satisfaction are the major factors that contribute towards the sales of different produces to the clients (Kozinets et al., 2004).

The business model selected by the company concentrates on focus strategies, product differentiation method, and overall cost leadership aspects. Product uniqueness and sales are concentrated by the company, and this enables the managers to launch wide range of the services for the clients. The ability of the retail store to effectively use the firm resources to improve on the planning works and the task conduct are constantly reviewed by the management. The store has adopted the resource based value system that makes it quite competitive in different markets. Through the effective marketing strategies, the functionality and the effectiveness of the systems are evaluated and accurate process to improve on the business activities is implemented. With superior logistic services, the managers could easily handle the critical works and overcome the business related challenges. The adoption of advanced technology has increased the ability of the store to approach maximum number of clients from different markets (Frostenson et al., 2010).

SWOT analysis

Strengths Weakness
High brand value for selling low priced products to the clients Competition is quite high in the retail industry
Have launched different range of products and services to the buyers Policies and strategies are yet to be developed to meet the requirements of the clients, and this affects the sales projected by the company
The retail store has been successful in launching new services to cater the needs of the buyers Marketing aspects for the company is not strong and this has impacted the growth and the development of the company
There are more than 5000 stores across the world. Unlike the other retail stores, Wal-Mart is non-unionised firm
The store provides one stop solution to different client requirements. Issues like low wage rates and others have strongly affected the overall business performances of Wal-Mart
Wide range of the product colgomraion is being provided to the customers. The store doesn’t have any defined process for research and development process to improve the overall
Opportunities Threats
With the increase in the price for the products, the prices for the products can be controlled. In this process, the management can adopt the better process to increase the sales (Araujo, 2007). The competition in the retail market is quite high
Asian market is untapped and thus provides a wider market growth plan for the company. Need to introduce the right technology to cope with the related challenges involved with the retail sales.
Develop and introduce new processes to increase the overall business performances. Price variations have a major impact on the operational works.


Porter’s 5 forces analysis

  1. Threat of substitute good and services

The threat of substitution in the retail store is low; however it has a moderate impact on the sales. Wal-Mart specialises in the sales of different types of products and services, and this needs huge amount of business planning and implementation process. In the retail industry, the major concern is with the opening of the convenient store that would be used to approach the clients and sell the better products to the clients. Wal-Mart has more than 5000 stores located across the world. The store has placed the products effectively in the market, and this has made the market size relatively smaller as compared to the others. Wal-Mart specialises in the cost leadership generic strategy, which differentiates the products from the other stores that is located in the market. This allows the management to launch exclusively priced products for the clients. It also helps in increasing the sales, and in achieving the targeted sales for the company (Bäckström, 2011).

  1. Threat of entry of the new competitors

The threat to this aspect is low, as the companies require long term planning process and urge funds to make the investments. Time taken to build the brand name, and in approaching the clients are quite long, and this makes it not possible for a new store to enter in the existing market. The brand names like Wal-Mart, Tesco, and others have already captured the major portion of the market and have been successfully selling wide range of the products and services to the clients. Wal-Mart has set-up new stores by utilising extensive time and the available resources that would take care of the customer needs. However there is a possibility that the supply of the retail products in the existing industry might create an unforeseeable threat to the entry of the products in the new market.

  1. Intensity of the competitive rivalry

Direct competition increases the competitive rivalry in this industry. This structure is quite different from the local super-market and the multinational supermarket like Tesco and Aeon. Retailers compete against the pricing process and in promoting the products and services in the decided market. It assists in developing and implementing an accurate process that will be used to sell the right method to increase the brand name. Customer prefers a better quality product, and this increases the competition in the existing or the targeted new market (Blombäck & Wigren-Kristoferson, 2011).

  1. Bargaining power of the buyers

The buying power of the customers in the retail industry is quite high, and this is because of the different types of goods and services that are being provided by the retail stores. With wide range of the products and services, the companies or the retail stores attempt to provide the best possible services to the clients. This prevents the company from avoiding the clients to switch over the costs, which has a major impact on the operational works. Customs are cost conscious and prefer to choose the seller with better quality and services. Wal-Mart offers lower priced services to the clients, and this is one of the major product retention processes that are being adopted by the company. Buyers prefer to compare the price of the services, and choose the right option before investing in the product purchases.

  1. Suppliers bargaining power

Supplier’s power in this market is low, as suppliers are concerned about losing the clients and the contracts, to major retail stores. Wal-Mart has easily obtained the lowest priced goods from various suppliers, and this has improved the sales value and the brand value for the retail stores.

Originations IT infrastructure

IT infrastructure in Wal-Mart is quite well organised, and capable enough to take care of the client and the company requirements. A centralised information handling process is drafted and implemented by the company. It assists in dealing with various operational issues, including processing and retaining the relevant service related information. The biggest challenge for Wal-Mart is with handling the supply chain management system, where the product inflow and outflow needs to be clearly maintained by the managers. To deal with the existing competition in the retail stores, the managers ensure to make the best use of the artificial intelligence to market the products and services. With the help of the well-built information technology infrastructure, the company has been successful in handling different business related issues. It assists in improving the customer services, and in providing the best support to the clients. The company has adopted the ERP process to deal with various operational issues. It helped in dealing with different business related issues, including handling the customer related information in an accurate manner (Iles, 2007).

The design of the IT is being created to meet the business strategy of Wal-Mart. Operational goals of the company is to provide the best services to the clients, and increase the sales, to deal with varioyus operational and other associated issues.  Wal-Mart infrastructure is being designed to handle a slot of the customer database and in improving the operational works. With accurate customer database, it is possible to easily and effectively handle the critical works, including improving the decision-making process. The company ensures to use the best analytical tool that would asset the managers to communicate the relevance of the decisions made to handle the complex work related issues. While implementing the changes in the infrastructural factors, the internal and the external factors are examined, by the management. It assists in developing and implementing the changes within the IT structure to increase the business performances.

ERP review system

Enterprise resource planning is an integrated management system that allows the managers to collect, store, and handle big sized data. It is also possible to interpret the data and use it in the business decision-making process for the company. ERP system is an essential application that allows the company to integrate individual departmental functions into one software application process. This made it simple to track the flow of the work, done by different departments. With accurate information, the company could reduce the operational expenses and manually track the data and use the system effectively to improve the operational works (Akram, 2011).

Benefits of ERP system

  1. Complete visibility of the system or the processes that in being carried out in different departments. Senior management can easily make the relevant decisions, and improve on the operational works, and introduce the required changes within the operational system
  2. The workflow can be reviewed and the details of the tasks not competed can be determined. With such information, the management could implement exchanges that would be essential to take care of the production works.
  3. A single reporting process can be followed to examine the status and the statistical values on the real time basis. It is possible to determine the challenges faced by different departments and implement accurate changes within the system. The facts can be collected on a real time basis.
  4. It is also used for the business intelligence process, where the works and the tasks are clearly defined and it is executed in the right manner. With accurate information, the business houses can use the information and effectively make the relevant changes within the operational systems (Bernroider, 2008).
  5. Wal-Mart can effectively use the e-commerce integration process, which is the key element required to deal with the production related issues.


  1. Cost of the system is quiet high, and it needs a proper configuration and integration process. It is quite a complained process, where the management needs to introduce the changes required to deal with various challenges involved with the operational systems.
  2. Installing the ERP system is a time consuming process, and it needs an expended testing time.
  3. Little configuration is not effective in integrating the ERP system, as it can slow down the business process.
  4. Customisation of the process is again not possible due to the ineffectiveness of the system (Fryling, 2014).
  5. The training program is quite important, as the system needs export usage of the process. It is not easy to learn the process, as it includes complicated process, and needs a higher training time.

Justification of the ERP

The business objective of Wal-Mart is to provide the best services to the clients at the lowest price. For this, the managers need to collect the information about the client preferences and introduce the changes within the system. Collection of the data through the manual process is not possible, as it could impact the business activities and in the reliability of the facts that is being collected by the management. Wal-Mart can effectively use this system as the database system is rightly implemented on the back-end to the store. This allows the managers to collect and access the relevant information required for the installation of the ERP process. With this system, it is possible to track the system and handle the inventory management prices, and in indulging in the sale forecasting method, and in improving the business activities (Ehie, Madsen, 2005).

How the system can be used by Wal-Mart

The biggest challenge faced by Wal-Mart is with the product handling and in improving the supply chain management process. With an accurate process, the managers can use the database and improve the effectiveness of the services that will be used to develop the operational works and in increasing the quality of the works. There are different departments working in Wal-Mart like human resource, financial department, quality check, customer service and others. With the ERP system, the company can collaborate these departments and get accurate details about the services performed by the managers. Based on the analysis, the relevant changes within the system and in handling the customer services can be implemented (Skok et al., 2012).

With accurate and precise information about the products and services, the company could easily make the relevant changes within the operational system. It will also help in evaluating the existing competition with the rival groups and introduce the better changes that would be used to increase the business performances. The reliable information can be collected and it can be accessed by the management to deal with various operational challenges that could affect the overall business strategic plans (Musa, Usman¸ 2012).

Emerging technologies

  1. Big data analysis  –

Big data is required for improving the marketing strategies followed by the company. With accurate business information the company can collect the relevant information about the devices and effectively use the services to approach the customers. It can be integrated with the ERP system to analyse the relevance of the data and to use it effectively for accomplishing the business goals.

  1. Cloud ERP system

The cloud system offers the members with enough space to store the products and services. It assists in improving the business activities and in developing the right process to deal with various optional issues. With huge information, it is possible to collect and evaluate the information and use it for the benefit of the company (Davenport et al., 2004).

How will it impact the future

With these technologies it is possible for the management to effectively use the services, and integrate it with the operational system. The efficiency of the process enables the managers to collect and access the relevant information and use it in the right manner to deal with various operational works. Accurate details enable the members to collect and us the information to benefit the company. With such processes, it is possible to deal with various operational issues, including handling the needs of the clients (Zaglago et al., 2013).


Busies strategic management is properly integrated with the technology adopted by the management. With an effective system, the managers could develop and introduce new processes to collect information about the client preferences and in handling the complicated works associated with the business growth.



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