Operational Planning for Wal-Mart
Operational Planning for Wal-Mart
Introduction
The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success.
The Definition of Operation Planning
Once plans have been developed, an organization must address how management will be accomplishing be those plans. This involves operational plans that must flow from strategy; specify resource, time issues, and commitment of human resources. Operational plans at the lower - levels of the organization, have a shorter time horizon, and are narrower in scope (Bateman, Snell 2003 p.113). A good example of this is Wal-Mart's main strategic goal. It is to provide quality merchandise at an affordable low cost to consumers. Its operational goals focus on efficient logistics requiring technology and inventory management systems to help reduce costs so it can be passed on to the customer. Operational plans are derived from a tactical plan and are aimed at achieving one or more operational goals (Bateman, Snell 2003 p.113).
Wal-Mart and
Introduction
The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success.
The Definition of Operation Planning
Once plans have been developed, an organization must address how management will be accomplishing be those plans. This involves operational plans that must flow from strategy; specify resource, time issues, and commitment of human resources. Operational plans at the lower - levels of the organization, have a shorter time horizon, and are narrower in scope (Bateman, Snell 2003 p.113). A good example of this is Wal-Mart's main strategic goal. It is to provide quality merchandise at an affordable low cost to consumers. Its operational goals focus on efficient logistics requiring technology and inventory management systems to help reduce costs so it can be passed on to the customer. Operational plans are derived from a tactical plan and are aimed at achieving one or more operational goals (Bateman, Snell 2003 p.113).
Wal-Mart and
References: Bateman, T. S., Snell, S. (2003). 'Management ', The New Competitive Landscape, Sixth Edition, The McGraw−HillCompanies Bolan, C. (2005). Is RFID 's tag too pricey? RFID tagging is revolutionizing supply chain management and data synchronization for suppliers and retailers (The Power of Packaging) (radio frequency identification equipment) (Cover Story). In Global Cosmetic Industry, 173, p24 (5). Retrieved October 07, 2006, from InfoTrac OneFile via Thomson Gale: http://find.galegroup.com/ips/infomark.do?&contentSet=IAC- Hoffman, W. (2006). Mixing it up: Wal-Mart 's latest strategy for delivering the goods promises to shake up other supply claims.(Wal-Mart Stores Inc.). In The Journal of Commerce, 7, p64A (3). Retrieved October 06, 2006, from Academic OneFile via Thomson Gale: http://find.galegroup.com/ips/infomark.do?&contentSet Hoffman, W. (2006). Straight from the source. (Wal-Mart Stores Inc.). In The Journal of Commerce, 7, p23 (1). Retrieved October 07, 2006, from Academic OneFile via Thomson Gale: http://find.galegroup.com/ips/infomark.do?&contentSet=IAC- St. Onge, A. (1996) New concepts in supply chain management. (direct store delivery and cross-docking)(includes sidebar article on supply postponement methods)(Column). In Modern Materials Handling, 51, p33 (1). Retrieved October 07, 2006, from InfoTrac OneFile via Thomson Gale: http://find.galegroup.com/ips/infomark.do?&contentSet=IAC Wal-Mart Stores, Inc. SWOT Analysis (2006). Datamonitor, Retrieved October 2, 2006 from EMBCOhost Direct database Wikipedia, (2006). History of Wal-Mart, Retrieved October 3, 2006 from http://en.wikipedia.org/wiki/History_of_Wal-Mart