Resource Management

Managing resources

Managing a firm’s resources is important in that, it ensures that the raw materials present are utilized well and that there is little wastage, if any, when manufacturing products, and making them available to customers. In the case of Wal-Mart, managing resources is greatly challenged by the approach the company has taken in its value chain especially when reaching its customers. To better manage resources, Wal-Mart can focus on ensuring that its primary activities are focused on adding value to the side of customers so as to ensure constant demand for its products and services. The company must therefore ensure that it better manages its inbound logistics. To achieve this, Wal-Mart can ensure that the raw materials sought out are suited to meeting the production needs. During the production process, care should be taken to ensure that as little wastage occurs and that quality is maintained. Once produced, the company should also keep track of the outbound logistic of its products as a way of assessing how products are doing in the market, the type of demand that exists for Wal-Mart products and services and what can be done to maintain supply. Lastly, the company ought to focus its efforts in marketing and sales to create more demand for its products and services and; in so doing; create flow in and out of the production department.

Resource Based Theory

While there are challenges experienced at Wal-Mart in relation to managing resources, they are challenges that can be overcome if the company engages in proper resource management and this can be achieved through the implementation of strategies that borrow from the resource based theory. The theory is based on the assumption that organizations that possess strategic resources are better suited to compete in the environment they operate in as they have the means as well as the ability to gain a competitive advantage over others in the market (Frue, 2018). While there are other companies in the market similar to Wal-Mart, the organization has an advantage as it is difficult to substitute; has an approach that is difficult to imitate and offers valuable products in terms of goods and services. These qualities make it a dominant player in the market and stands as a major competitor in the market.

SWOT Analysis

The resources at Wal-Mart can be better managed if the company better understood its SWOT analysis. As part of its strengths, Wal-Mart has a strong brand image that customers associate with the quality of its products and services. The company has a customer friendly approach that makes its products and services desirable. It has managed to reach the position of the most favorite brand in the United States and this is greatly influenced by its focus on customer service and satisfaction (Jurevicius, 2018). Another possible strength is the large market share and customer base the company enjoys. Due to its customer service approach, the large market share ensures that the demand for Wal-Mart goods and services are in constant demand and greatly reduces the chance of being substituted. Its low pricing strategy makes it difficult for its competitors and also discourages new entrants into its market.

The company has a weakness in that it is often referred to as a finance hungry corporation whose focus is said to be more dominance of the retail market. The poor supply chain management witnessed within the organization creates an image of a company determined to attain success even if at times it engages in actions that others may consider unethical (Handfield, 2013). Another weakness is the approach the company takes when handling employees. The drive to attain a larger market share is often done at the expense of the employees and this becomes a weakness especially because the employees are the major link between the company and its customers.

There are however opportunities that the company could exploit such as the growth in e-commerce. With the development in technological advancements, customers are seeking easier ways to access products and services; one of which is online purchases (Pratap, 2018). The company can exploit the online market and reach customers across geographical barriers thus increasing its market share. Another opportunity is the change in customer behavior such as the shift in shopping habits. The company can study the shift in customer preferences and come up with better ways to reach customers and outdo the competition.

Value Chain

Wal-Mart can reduce the competition it faces if it better manages its value chain. Since the value chain determines the frequency in which new products are produced and presented to customers, managing the value chain will reduce wastage and ensure that the supply is manufactured with respect to the demand that exists in the market (Ketchen & Short, 2015). The company must therefore carry out proper market research to identify areas that are risks and threaten the success of the company as well as using the strengths and opportunities that exist in the market. Better control of the value chain will reduce wastage and lead to the production of high quality products and services that are aimed at supplying the demand that exists in the market.

 

 

References

Frue K, (2018) “SWOT Analysis of Wal-Mart” retrieved from, https://pestleanalysis.com/swot-    analysis-of-walmart/

Handfield R, (2013) “Wal-Mart can’t manage their inventory” supply Chain Resource      Cooperative, retrieved from, https://scm.ncsu.edu/scm-articles/article/wal-mart-cant-       manage-their-inventory

Jurevicius O, (2018) “SWOT Analysis of Wal-Mart: 5 key strengths in 2018” Strategic    Management Insight, retrieved from, https://www.strategicmanagementinsight.com/swot-           analyses/walmart-swot-analysis.html

Ketchen D and Short J, (2018) “Mastering Strategic Management” Flat World

Prapat A, (2018) “Wal-Mart SWOT Analysis 2018” retrieved from,             https://www.cheshnotes.com/2018/11/walmart-swot-analysis-2018/