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CASE 2: WALMART PART 3: PLANNING
Question 1
How does manager ial plann ing for project impact take place at
dif ferent levels within the
organization?Planning is a significant management function of
every structure. It is the process of determining
in advance what should be accomplished, when, by whom, how, and
at what cost. Simply saying,
planning is the process of determining the organization's goals
and objectives and making theprovisions for their achievement. It
involves choosing an option of action from available
alternatives. Managerial planning is the practicing the
strategic plan; it combines resources to
achieve the overall objectives and missions of the organization.
Managerial planning focuses onthe activity of a specific unit and
involves what needs to be done, by whom, when, and at what
cost. In different levels of organization, when the top
management decides a decision, the orders
will communicate according to structure hierarchy. Each level of
manpower will obliged by
different type of task, which is from strategic, tactical and
operational. This applies to every
project, as well as Project Impact. When vice chairman decides
to commence the project, hisorder will pass down accordingly
(Waldron, Vsanthakumar, & Arulraj, 1999).
Question 2
Using the concepts of strategic management and core competence,
explain why Walmart is
scaling back on cheap chic fashion apparel in its remodeled
next-generation stores?
Strategic management can simply refer to a set of decisions and
actions used to formulate and
execute strategies that can provide a competitively bond between
an organization and its
environment to achieve organizational goals in the end; and core
competence is something theorganization in advantage than its
competitor. By these concepts, Walmart is scaling back on
cheap chic apparel due to be 15 percent reduction of
stock-keeping units. This decision can leads
to Walmart store be more selective about products to carry and
higher volume of sales henceWalmart and its environment can bond
more competitively. By this, Walmart can own greater
market share and enforce its position among retail industries.
Walmart also possessing another
advantage than its competitors which is Walmarts retail price is
lower than any retail store inU.S. As the economy depressed, more
consumers were visiting to Walmart due to its cheaper
merchandise. As a result, Walmart could gain more potential user
and turn them into loyal
customers.
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Question 3
What star ted the decision-maki ng process that led to the
overhaul of Walmart U.S. stores?
What common errors in decision-making could thwart the success
of project impact?
Situation is where economy crisis depressed in U.S. can actually
tell to lead the overhaul of
Walmart stores in U.S. Be specific, a strategic plan called as
Project Impact which is derivedafter the crisis stated that, a
nationwide remodeling and refurbish efforts targeted to enhance
Walmart shopping experience and to double sales. At last, this
golden opportunity set off the
vice chairman of Walmart stores, Eduardo Castro- Wright took
charge of the obligation. Despitein this, Walmarts management
concluded that better atmospherics could evolve price-level
conscious into loyal Walmart customers. Common errors in
decision making could be ability
type bias. Sometimes the condition in such the upper management
was culpable of an
overconfidence bias. This is when upper management has a higher
confidence of theircapabilities and successes than their actual
skills and experience will support. Overconfidence
will disguise someones view and perspective hence lead to
decision error. Another common
error will be information type bias. It occurs when biases and
distort relate to how management
analysed information. For instance like anchoring bias in their
decision making when managersrely too heavily on the piece of
information in making their final decisions. Another is
confirmation bias which managers only using data and information
that only support theirdecision. They failed to oversee the whole
piece of surrounding (Lombardo, 2010).
Reference:Lombardo, J. (2010). Common Biases and Judgment Errors
in Decision Making. Education
Portal. Retrieved from
http://education-portal.com/academy/lesson/common-biases-and-
judgment-errors-in-decision-making.html#lesson
M. W. Waldron, J. Vsanthakumar, and S. Arulraj. (1999).
Improving the organization andmanagement of extension. FAO
Corporate Document Repository. Retrieved from
http://www.fao.org/docrep/w5830e/w5830e0f.htm
