Running head: FOCUS AREAS FOR IMPROVEMENT

Focus Areas for Improvement

Martha Garcia

South Texas College

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Abstract

This paper focuses on three areas in which principles can be applied to increase profit and when

combined they have an inviting culture, provide consumers with great value and great customer

service all which can be applied to Walmart. Pertaining to innovation and innovative techniques

principles are explored, such as Kaizen and Tuckman’s model. In regard to leadership and

management; total quality management, strategic management process, and SWOT analysis are

considered to improve this area of focus. The last area of focus is planning in which strategic

planning, tactical planning, and operational planning are examined to provide the desired

performing results. This paper then provides a plan that will increase profits by 19% within a

three-year period.

Keywords: innovation, management, operational plans

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Focus Areas for Improvement

Groceries, clothes, toys, electronics, furniture, auto parts, and cosmetics are just a few of

the many items that Walmart carries. With this amount of variety, it is not a wonder why it is

ranked as one of the top retail stores in the world. Sam Walton, “inspired by the early success of

his dime store, and driven to bring even greater opportunity and value to his customers, Sam

opened the first Walmart in 1962 at the age of 44 in Rogers, Arkansas” (Our history, 2019).

With his leadership Walton was able to lead Walmart from a small-town store to the global retail

organization that it is today. Just as in any organization it is still expected to continue to grow

into a more improved organization and produce greater profit. As a leader of Walmart, I plan to

focus on pursuing innovation, providing good leadership and management, and oversee planning

so that we can continue to meet our goals; which in turn will increase our profit by 19% within a

three-year span.

Innovation

Innovated organizations in today’s world is a necessity in order to be able to compete

within their industry; therefore, Walmart must be an innovative organization to continue being

one of the top retailers in the world. Innovation is the process of creating something that adds

value to a product or service; and in relation to businesses, “business innovation involves

developing new products or improving existing technologies, processes, designs and marketing

to solve problems, increase efficiency, reach new customers, and ultimately increase profits”

(Ward, 2019). As technology advances, businesses also need to keep up with these advances,

because they can be beneficial for the company. For example, Walmart became an innovated

organization when they reassessed their way of checking out consumers, by adding automated
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self-checkouts. “Automated self-checkout is appearing in more and more retail stores, with

Walmart this year installing 10,000 self-service kiosks in hundreds of stores” (Thibodeau, 2013).

Another time Walmart proved itself as being an innovated organization was when they

began their online store, selling as an ecommerce market also known as an online marketplace.

When they opened their store on the internet, they also opened a new door which allowed them

to offer their consumers a more convenient way to shop. It also allowed them to expand their

market and compete with online retailers like Amazon. As a leader of Walmart, I plan to

continue to drive innovation into the organization because it will allow us to continue to compete

with other giant retailers both in stores and online. Innovation initiatives come in many forms,

whether it be a more convenient way for consumers to get their groceries without physically

going into the store like Walmart Grocery or more convenient way costumers can check out.

Innovation allows organizations to keep up with the latest trends, which consumers find

appealing and allows the organization to continue to produce profit.

With the need for organizations to be innovative time and time again, they call for the

organization to incorporate what the Japanese term Kaizen. Rouse defines Kaizen (n.d.) as an

approach to creating continuous improvement based on the idea that small, ongoing positive

changes can reap major improvements”. Both cooperation and commitment from those

imposing Kaizen are necessary for the company to continually be successful in its attempts for

change. Walmart needs to maintain ongoing trends so that it can continue to compete with

retailers in both storefronts and online thus, it needs incorporate Kaizen. Continuous

improvement needs to be a norm within an organization and Walmart is no exception. This will

allow consumers to continue to be content with their shopping experiences, which in turn will

bring more capital into the company. Improvement can come in several forms, rather big or
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small. For example, when Walmart added the option of having groceries delivered to customer’s

vehicles or when they added their online store.

Being an innovative organization allows a company to continually add measures of

improvement whether it be to their operating systems, they way they serve their consumers, or

the way they handle their employees. Any change can cause either a positive or negative effect

within the organization. With innovation also comes the risk of failure but all innovative

organizations accept the risk. In fact, they welcome it, because they know that running the risk

can cause a much greater benefit than not running it at all.

When implementing innovation in a business such as Walmart, Tuckman’s model can be

applied to make sure that the innovation team can see the changes become successful. “In 1965,

Bruce Tuckman presented a paper outlining this model saying that four phases were necessary

for a team to develop and grow: 1) Forming, 2) Storming, 3) Norming and 4) Performing”

(Elsey, 2019). In the forming stage the team gets to know each other and is faced with the

challenging task of producing the needed change. In this stage the team assigns roles, and

everyone is trying to get to know each other. The following stage is storming in which ideas

being to erupt, unfortunately many teams get stuck in this stage. For it faces the usual problems

that teams face, such as conflict between teammates or between teammates and leaders.

Once a team can push through the storming stage the team can move into the norming

stage in which plans come together. Teams agree on timelines and assign jobs for executing the

plan, it is in this stage that trust forms. This when team members begin to rely on each other and

assist one another. The last stage is performing, where teams can execute plans because the team

is able to work harmoniously in accomplishing goals. Tuckman’s model can be a strong

approach Walmart can implement in relation to working with teams. This model can be
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instigated in stores or departments allowing leaders to see if teams are progressing or if they need

assistance moving from one stage to another. Whenever assistance is needed, leaders and

managers can step in to help them along.

As part of my action plan for Walmart’s growth, I plan to implement continuous

innovation for this organization. Walmart needs Kaizen in order to continue to grow as one of

the giant retailers. Innovation will allow the business to find more cost-effective ways to

continue to provide its consumers with both quality products and service, while at the same time

bringing in higher revenue. It is leaders and managers who are responsible for overseeing

innovation teams, making sure that they are moving forward. Innovation is key for Walmart’s

future, by continuing to be an innovative organization we can expect an increase in profit.

Leadership and Management

Leaders and managers are the ones responsible for the organizations, they lead their team

so that together they can reach success for the business, while making sure that it is performing

adequately and producing profit. In continuing with Sam Walton’s vision for Walmart of

providing great value and service we can continue to do this by applying total quality

management and having good leadership and management. “Total Quality Management (TQM)

is an approach that seeks to improve quality and performance which will meet or exceed

customer expectations” (Murray, 2019). This approach follows Walton’s belief that leaders and

followers should and can collaborate harmoniously to provide lower cost products as well as

providing quality service. The TQM approach fits into Walmart’s environment because it also

promotes innovation and applications which promote company growth. Under TQM leaders

equip their employees with the necessary tools and trainings in order to promote quality and
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continue to ensure business improvement. This principle is information based, technology

driven, and empowers employees.

In addition to total quality management another principle to follow is quality

management also known as ERP. In ERP employees are empowered to have accountability, thus

assisting in completing tasks. ERP is put into use under team performance, not only holding

individuals accountable but teams as well. While applying these principles it could be argued

that it is too expensive, but the results are worth their applications.

Leaders and management should have a full grasp on how the organization stands in all

areas, it needs to be aware of its strengths and weaknesses. So that the business can take

advantage of presented opportunities and reassess their strategies when possible threats arise. An

advantage for the company would be to have this data presented in a form of a SWOT analysis.

A SWOT analysis is a tool that allows decision makers to visually view the company’s strengths,

weaknesses, opportunities, and threats. “The primary objective of a SWOT analysis is to help

organizations develop a full awareness of all the factors involved in making a business decision”

(Schooley, 2019). A SWOT analysis should be developed before making any business decision

so that with the data decision makers can make the best possible decision, one that benefits the

organization. Analyses can also be developed so leaders can have a general understanding of

where the organization stands midway through plans. By creating a SWOT analysis, it will

allow decision makers at Walmart to make informed decisions because we will have data which

supports the decision we reach.

As part of Walmart’s leaders and management we need to approach our management

through strategic management process, so that together with our employees we can execute our

plans with great success. According to Clayton (2019), strategic management process is a
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philosophical approach rather than just a set of rules, where management must strategically think

then apply the thought to a process which works best when all understand the strategy. The

process entails five stages beginning with goal setting, in which the vision and objectives of the

organization are clarified. Followed by the analysis where data is gathered that can impact the

strategy. The next stage is strategy formulation which encompasses SWOT analysis and

knowing the resources it will take to implement the strategy, blending into the next stage. The

last stage is strategy evaluation which requires feedback from the strategy followed by any

reassessment needed.

This process helps management and employees to be on the same page when it comes to

strategies. Both parties need to be working towards achieving the same goal, which is ultimately

the success of the business through the strategy that is being implemented. Following this

approach when strategizing will be of great advantage for the leadership and management team

at Walmart; it will allow the team to be clear on the goals they wish to reach.

As part of the leadership and management that make up Walmart, we see the necessity to

implement these strategic principles. So that with them we can deliver both quality products and

service to our consumers, while increasing our profit. These principles will help the Walmart

team to see through plans and strategies, deliver above satisfactory level service to consumers,

provide a great working culture, and increase the businesses revenue. It is important to be a

good leader and manager and I intend to follow in Sam Walton’s footsteps by serving before

leading. Accomplishing this by implementing these approaches into our management team and

setting a culture where we are all associates. Working in a type of atmosphere where we can

collaborate in working towards the same goals and objectives will keep the peace and help us

reach higher rates of profit.

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Planning

Leadership and management are responsible for initiating and overseeing organizational

plans; by implementing strategic, tactical, and operational plans effectively Walmart can

efficiently meet our goals from short term to long term. Planning can be seen in a hierarchal

approach where the top leaders of the organization establish strategic plans which deal with the

direction in which the organization wants to pursue. This type of planning involves setting the

vision and mission statements of the company. As for Walmart these were long established by

Sam Walton and continue as such, they are to deliver great value and great service to our

consumers.

The next level of plans that will help us achieve our objectives at a lower level through

mid-management, are tactical plans. Tactical planning is handled by middle level management

which sets top level management goals, they usually have a span of one to three years. These

plans are usually set by departments, therefore not all departments will be working towards the

same tactical plans.

The bottom or the lowest level of planning is operational planning which cover day to

day operation, such as scheduling, procedures, policies, and budgets. These plans are usually

done by lower management and or team leaders. It is through these major planning techniques

that Walmart functions daily which we will continue implementing. As a leader of Walmart, I

plan to continue to oversee how these plans are carried out, making sure that they are brining

Walmart success. Giving room for modifications where they are not functioning properly.

It is important to evaluate our plans and strategies, at Walmart we rely heavily on

feedback control, to measure our performance through consumer feedback. One way we get
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feedback is directly though our consumers by surveys. These surveys allow our team to see how

we are performing. Giving us the opportunity to see if we are performing to the standards are

hoped to attain or if we need to make any adjustments to our strategies. The graph below shows

some of the areas in which we survey our consumers.

Consumer Surveys
500
400
300
200
100
0
Purchase Pick up Experience Shipping length App Accessibility
Satisfaction

Satisfied Unsatisfied Unknown

Figure 1

Areas of Consumer Surveys

Course of Action

As a leader of Walmart who plans to increase its profit within a three-year span, I plan to

do so by focusing on continual innovation, maintaining good leadership and management, and

evaluating our planning. By focusing in these three areas I have projected a 19% increase in our

profit within the three-year span as seen in Figure 2. This is possible by approaching a

combination of these three areas; having good leadership and management to oversee the

company’s planning which continually implements innovation allowing the room for the

company to continue to grow. Through performance evaluation we can to have control in these

areas, always seeking to obtain the best results and when not attained making the necessary
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modifications to set the organization back on the track to success. In collaboration with

employees we can strive to deliver quality products at low costs and with great customer service

thus, increasing our profit. This tactical plan will continue to bring consumers back because we

would be able to deliver the products they are seeking at the right prices with the right service.

As we work to satisfy our consumers, we would also provide our employees with a culture that

invites their opinions and one that empowers them. Afterall, our employees are more than just

workers at Walmart they are seen as associates and together we work to provide our consumers

with our best prices and service.

Projected Growth

Year 3

Year 2

Year 1

0% 5% 10% 15% 20%

Year 1 Year 2 Year 3

Figure 2

Projected Profit in percentage

Conclusion

Walmart is an international retailer who sells products in storefronts and online, the giant

that was founded and continues to function under the belief that we can provide our consumers

with great value and great customer service. Sam Walton believed in treating employees as

associates, through empowerment and the innovative culture we can make it a reality. Walmart
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requires a team of leaders and management who work collectively with its followers to achieve

their goals and objectives in harmony. This team of leaders and management must have an

ongoing culture that invites innovation who seeks to produce better service. When implementing

innovation, leaders and managers must oversee the planning aspect of these initiatives and

measure their performance to reach the desired results. The focus of innovation, leadership and

management, and planning are the areas that can provide Walmart with the needed tools to

expand its horizons and continue to incorporate the principles on which it was founded on.
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References

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2019, from https://smallbusiness.chron.com/five-stages-strategic-management-process-

18785.html

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To Get Your New Group or Team Performing Beautifully! | The Launchpad - The

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history

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continuous-improvement
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self-service-checkout-tech.html

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