Evaluating Wal-Mart using the Baldrige Criterion

Organizations need to focus on quality development to remain competitive in the global markets. To survive in the global markets, organizations have adopted different criteria. Organizations in the U.S have adopted the Baldrige criterion for prosperity and sustainability in the capital markets. Baldrige is performance excellence criteria that guide an organization to run all its activities and achieve its desired results (Mellat-Parast, 2015). The criterion is organized into seven categories: leadership, strategic planning,  customer focus, knowledge measurement and analysis, workforce focus,  process management and results (Mellat-Parast, 2015). Many organizations in the U.S continue to adopt this criterion, including Walmart Organization. Walmart is a competitive retail industry in the U.S and globally. Thus this writeup will evaluate Walmart organization using the seven Baldrige criterion.

Leadership

Walmart’s leadership has contributed greatly to its success. It has a hierarchical functional organizational structure. Its senior executives exercise command and authority from its headquarters to all the district managers across all stores, who translate to the store employees (Radeef, 2017). This system of leadership allows all the corporate managers to influence the organization responsibly. The organization has communication and network links that enable the organization’s senior leaders to control all retail shops from its headquarters effectively. Additionally, the organization has a functional-based system that allows employees to perform certain company functions in different departments (Radeef, 2017). These exemplary leadership systems have allowed the organization to remain competitive in the global market.

Strategic Planning

Walmart has a set of strategic initiatives that have allowed it to remain the industry leader. The company’s strategic initiatives allow its customers to save money and live better (Kumari & Tewari, 2018). The company has adopted this action plan to fulfil their customers’ needs and wants and allow them to visit their stores often. To achieve its strategic plan of saving money, the company uses a price leadership initiative. Through this initiative,  the company offers low prices on consumers goods, making goods affordable to many customers(Kumari & Tewari, 2018). Additionally, the company has focused on product differentiation to achieve a product with distinctive designs to satisfy their customers (Kumari & Tewari, 2018). To achieve its strategic plan, the company analyses its consumers’ needs and efficiently fulfils them. It also aims at achieving a market share on all new products and leads in price and value. These strategic functions have allowed the company to remain competitive globally.

Customer Focus

Walmart is customers focused. It has concentrated on building and upholding strong, lasting relations with its customers. Throughout history, Walmart has focused on offering low prices to its customers, thus building a  strong customer base (Ceesay, 2020). To achieve customer focus, the company make decisions on how they can serve their customers better. Additionally, the company has service and pick-up points that allow their target customers to acquire their products quickly (Radeef, 2017). Seemingly, the company has integrated technologies in their retail stalls that have enabled their customers to shop virtually without physical visitation of their shops. The company has also injected a customer retention program to build good brand’s images with customers (Radeef, 2017). This program is based on respect for customers and the provision of good quality products to their customers. Building a brand image has allowed the company to achieve customer’s focus.

Knowledge Measurement and Analysis

Walmart maximizes its knowledge measurement and analysis to support its strategic processes and manage performance. The company measures and analyses data to enhance the shopping experience. Walmart has incorporated a Total Quality Management system (TQM) to reduce the cost of products, deliver quality products and serve their customers quickly. Walmart uses TQM to learn about their customer’s behaviours and offer quality hospitality services (Mujtaba & Maxwell, 2007). Additionally, the company uses its data and knowledge to manage supply chain processes. For Example, the company can utilize the data available from previous purchase to contact suppliers who offer quality products at a lower price (Mujtaba & Maxwell, 2007). Also, the company uses data to improve its store checkouts. The company predict the demands of certain goods using the data available thus plan early. Through data analysis, the company can predict customer preferences and shopping patterns and utilize them in decision-making.

Workforce Focus

Walmart has a well-established workforce. The company empowers and involves its employees in different operations. The company has a well-established human resource management system that coordinates and direct employees in their operations(Radeef, 2017). The program has a software system that checks the trends and changes in the workforce and acts accordingly (Radeef, 2017). It checks on employees needs that may affect the company’s overall performance and growth. Moreover, it coordinates training programs for employees to equip them with the necessary operations skills for performance (Radeef, 2017). A well -established human resource system has enabled the company to perform effectively.

Process Management

Walmart also focuses on process management. Process management comprises different company processes, such as innovation, management, and operation (Radeef, 2017). To achieve these processes, the company uses different departments. For Example, the information department is responsible for innovative processes that comprise information and communication technologies. This department has allowed the company to develop code scanning to control inventories (Radeef, 2017).  Additionally, the logistic department carries out its operational processes such as controlling the trucks transporting goods in different distribution centres. Also, to achieve management processes, the company uses departmental managers to coordinate their departments’ activities, including brand development of local and national product (Radeef, 2017). The various departments with the organization allow the company to manage and improve its fundamental processes.

Results

 Walmart has achieved its overall results and success through its performance in different business areas. In terms of customers satisfaction, the company focuses on analyzing customers preferences and works towards achieving them. Also, it provides quality products at an affordable price. In terms of finance, the company analyses its finances using the revenue growth strategy and the production strategy (Radeef, 2017). Following these strategies, the company satisfies shareholders expectations. Furthermore, it has achieved its marketplace share results through its low-pricing strategy, allowing the company to acquire many customers(Kumari & Tewari, 2018). Besides, the company human resource has allowed the company to develop a strong workforce to achieve its goals. Lastly, the company’s leadership has enabled the company to oversee all key activities within the organization and effectively. These operations in different departmental areas have enabled the organization to achieve overall success.

In conclusion, Baldrige criteria are a performance excellence framework that allows organizations to effectively run their activities and achieve organizational goals. The criterion is organized into seven categories that are useful in an organization’s evaluation. Walmart is one of the organizations that satisfy this criterion. For instance, the company has portrayed a hierarchical leadership system that allowed the company to oversee overall performance. In terms of customer focus, the company aims to achieve customer satisfaction by offering quality products at a low price. Different organizations should evaluate themselves using the Baldrige criterion.

References

Ceesay, L. (2020). Building A High Customer Experience Management Organization: Towards Customer-Centricity. Journal Of Marketing And Consumer Research. doi: 10.7176/jmcr/71-02

Kumari, E., & Tewari, V. (2018). Strategic Management Of Walmart. Research Journal Of Social Sciences. doi: 10.22587/rjss.2018.11.1.6

Mellat-Parast, M. (2015). A longitudinal assessment of the linkages among the Baldrige criteria using independent reviewers’ scores. International Journal Of Production Economics, 164, 24-34. doi: 10.1016/j.ijpe.2015.02.027

Mujtaba, B., & Maxwell, S. (2007). Wal-Mart In The Global Retail Market: Its Growth And Challenges. Journal Of Business Case Studies (JBCS), 3(2), 1-10. doi: 10.19030/jbcs.v3i2.4837

Radeef, A. (2017). NFLUENCING ORGANISATIONAL STRATEGY (WAL-MART: CASE STUDY) I. Research Gate, 10. doi: 10.13140/RG.2.2.29974.57922