An Example of Successful Change Essay

IntroductionWhy is Wal-Mart so Successful? Is it Good Strategy or Good Strategy Implementation? In 1962, when Sam Walton opened the beginning(a) Wal-Mart store in Rogers, Arkansas, no one could have ever predicted the enormous success this small-town merchant would have. Sam Waltons talent for give the axe retailing non only made Wal-Mart the worlds largest retailer, but also the worlds number one retailer in gross revenue. Sam Walton has made indisputable changes that help Wal-Mart to achieve its success today. His change techniques involve changing people, engineering, and product. Indeed, Wal-Mart was named Retailer of the Decade by Discount Store News in 1989, and on several(prenominal) occasions has been included in Fortunes list of the 10 most admired corporations.Changing PeopleWal-Mart is successful not only because it makes fathom strategic management decisions, but also for its innovative implementation of those strategic decisions. In order to become a superstore, Wal -Mart decided to change the skill aim of its workforce. Waltons greatest accomplishment was his ability to empower, enrich, and train his employees. He believed in listening to employees and challenging them to come up with ideas and suggestions to make the company better. At all(prenominal) of the Wal-Mart stores, signs ar displayed which read, Our People Make the Difference. Associates regularly make suggestions for cutting costs through their Yes We Can Sam program. The sum of the savings generated by the associates actually remunerative for the construction of a new store in Texas. One of Wal-Marts goals was to provide its employees with the appropriate tools to do their jobs efficiently. The technology was not used as a means of replacing existing employees, but to provide them with a means to succeed in the retail market (Thompson and Strickland 93).Changing ProductWal-Mart stores operate tally to their Everyday Low Price philosophy. They provide customers access to quali ty goods, to make these goods available when and where customers want them, to develop a cost structure that enables competitive pricing, and to produce and maintain a reputation for absolute trustworthiness (Evan, Shulman, and Stalk, 55). Through Sam Waltons Buy America policy, Wal-Mart encourages its buyers and merchandise managers to stock stores with American-made products. In a 1993 yearbook report management stated the program demonstrates a long-standing Wal-Mart commitment to our customers that we will buy American-made products whenever we can if those products deliver the same quality and affordability as their foreign-made counterparts (Thompson & Strickland 68). With a human body of product and low cost, Wal-Mart has attracted more consumers.Changing TechnologyWal-Mart has invested heavily in its unique cross-docking inventory system. loanblend docking has enabled Wal-Mart to achieve economies of scale which reduces its costs of sales. With this system, goods are con tinuously delivered to stores within 48 hours and often without having to inventory them. Lower prices also eliminate the expense of frequent sales promotions and sales are more predictable. Cross docking gives the individual managers more control at the store level. A company owned transportation system also assists Wal-Mart in shipping goods from storage warehouse to store in less than 48 hours. This allows Wal-Mart to replenish the shelves 4 times faster than its competition. Wal-Mart owns the largest and most sophisticated computer system in the private sector. It uses a massively parallel processor computer system to track stock and movement which keeps it abreast of fast changes in the market (Daugherty 24). Information related to sales and inventory is disseminated via its advanced satellite communications system.ConclusionSam Walton, a draw with an innovative vision, started his own company and made it into the leader in discount retailing that it is today. Through hissavv y, and sometimes unusual, business practices, he and his associates led the company forward for thirty years. Today the company is still growing steadily. Wal-Mart executives continue to believe on many of the traditional goals and philosophies that Sams legacy left behind, while simultaneously keeping one step ahead of the ever-changing technology and methods of todays fast-paced business environment. The future also looks bright for Wal-Mart, especially if it is able to continue its customer-driven culture, it should remain a retail industry leader well into the next century.