Midterm Examination Course Title Business Information Systems And Processes Topic Walmart’s Information Systems And Processes.pdf

VIETNAM NATIONAL UNIVERSITY INTERNATIONAL SCHOOL ----o0o----MIDTERM EXAMINATION Course Title: Business Information Systems and Processes Topic: Walmart’s information systems and process

VIETNAM NATIONAL UNIVERSITY INTERNATIONAL SCHOOL

o0o MIDTERM EXAMINATION

Course Title: Business Information Systems and Processes

Topic: Walmart’s information systems and processes

Prepared by:

Lương Minh Đức - 21070636

Class code: INS203707 Lecturer: Dr Nguyễn Phương Anh

Hanoi March 28, th , 2023

TABLE OF CONTENTS

Part I Walmart background 1-8

1 Introduction 1-3 1.1 Company Profile 1-2 1.2 Overview ……… ….….….….….…… 2-3

2 Business Model canvas and explanation 3-8 2.1 Introduction about Walmart’s Business Model ……….3-7 2.2 Walmart’s Business Model ……… ……… ……… 7 2.3 Walmart’s Organization Structure ……… ……… ……… 8

Part II Functional areas involves in services activities 9-12

1 Walmart’s functional areas 9-11

2 Diagram for core business processes 12

Part III Information Systems Are Being Used ………12-15

1 Walmart’s Information systems introduction 12-14

2 Key features are match with/support Walmart’s business processes 14-15

Part IV Conclusion and recommendation 16-17

1 Conclusion 16

2 Recommendation 16-17

3 References 17

Information systems is a formal, technical system that are almost used by organizations to collect, store and process information for work These systems can

be laptops, software, and so on

Nowadays almost all companies are using Information systems Some of the

most famous companies are Amazon, Walmart, and Netflix These companies

use the information system in their daily operations

Walmart operates all over the world with its retail stores It deals in almost all variety of groceries and many more materials The company uses the most important system which is the bar code system

The company uses this bar code system in their stores to organize the data in a proper and meaningful manner This system is used by scanning the bar code and recording the information so required

The company has a very necessary requirement of the bar code system because

it helps to monitor its sale Detailed information is gathered from the bar codes and then it is used to analyze the sales

KEY WORDS

Information system; Walmart; Processes; inventory management system; information technology; supply chain management; bar codes

I Walmart background

1 Introduction

Sam Walton, a retailer who at the time operated a modest franchised variety store, founded Walmart in 1962 A clear vision was the foundation of the business; pass on the reserve funds from purchasing in mass on to the client and acquire benefits through volume In sharp contrast, other retailers did not alter their retail prices when suppliers offered a discount Walmart maintained its steady expansion

by controlling payroll costs, opposing unions, and hiring as few employees as possible Technology was also important; The company began using computers to connect stores and warehouses in 1970, resulting in a reduction in inventory and improved efficiency

Walmart Stores, Inc (Walmart) is a global retailer that operates both offline and online There are three parts to it: The Walmart US section Second, the Walmart International division, which has locations in 26 nations, and third, the Sam's Club division In 2011; Walmart International contributed 28% of net sales, while the US segment contributed 60% In China, Brazil, Canada, Japan, the United Kingdom, Mexico, and Argentina, Walmart has wholly owned subsidiaries The business is organized into six product categories: staple, diversion, wellbeing and health and clothing and home, across a wide assortment of stores including supercenters, bargain retailers and neighborhood focuses or more modest settings (Reuters, 2012)

1.1 Company profile

Walmart, Inc operates wholesale and retail businesses The business sells a wide range of goods and services at everyday low prices It conducts business through the following divisions: Sam's Club, Walmart International, and Walmart United States Under the Walmart, Walmart, and Walmart Neighborhood Market brands, as well as walmart.com and other e-commerce brands, the Walmart U.S

segment operates as a merchandiser of consumer goods The Walmart Global portion oversees supercenters, general stores, hypermarkets, stockroom clubs, and money and convey beyond the US Warehouse clubs that only accept members and samsclubs.com make up the Sam's Club segment Bentonville, Arkansas is home to the headquarters of the business, which was established in 1945 by Samuel Moore Walton and James Lawrence Walton

1.2 Overview

a) Walmart’s Mission statement

Walmart Inc.’s corporate mission is “to save people money so they can live better.” This statement reflects the ideals of the company’s founder, Sam Walton.

Strategic decisions in the business are a direct manifestation of this mission

statement, which is synonymous to the company’s slogan, “Save money Live better.” Based on this statement, it is clear that Walmart’s business strategies

involve using price as a selling point to attract target consumers The significance

of such a selling point is exhibited in many of the company’s strategies For example, Walmart Inc.’s marketing mix or 4P involves low prices as a strategy Other areas of the company are determined by the need to minimize selling prices

as a way to achieve competitiveness

b) Walmart’s Vision statement

Walmart Inc.’s corporate vision is to “Be THE destination for customers to save money, no matter how they want to shop.” This vision was officially

articulated in the company’s 2017 investment community meeting The company’s

previous vision statement was “To be the best retailer in the hearts and minds of consumers and employees.” The change in the corporate vision reflects strategic

changes that Walmart implements in response to changes in the competitive landscape and the overall condition of the retail industry

c) Walmart’s goal and objectives

Walmart Ins.’s corporate objectives are to “build a better world — helping people live better and renew the planet while building thriving, resilient communities” To Walmart, it means that working to create opportunity, build a more sustainable future, advance diversity, equity and inclusion and bring communities closer together

2 Business Model canvas and explanation

2.1 Introduction about Walmart’s Business Model

- Investors

- 2.3million associates

- Subsidiaries

- Provides

- Suppliers

- Vendors

- Farmers

- Manufacturers

- Brands

- Distributors

- Logistic partners

- Financial institutions

- Online commerce

acquisitions to compete

against Amazon (Jet.com,

Hayneedle.com,

Shoebuy.com, ModCloth.com

and Moosejaw)

- Walmart acquired Kosmix

to develop software for

analyzing real-time data

streams

- Asda brand in UK

- Collaborations with NGOs

and government leaders

- Procurement

- Logistics

- Distribution

- Supply chain practices

- Pricing

- Negotiation with vendors

- Customer data processing

- Payment processing

- Marketing

- Campaigns

- E-commerce operation

- Human resources

- New digital projects and developments

- R&D

- An unwavering commitment

to saving people money

- Everyday low prices on a broad assortment

- One-stop shopping – it provides a wide range of products and services in one place which saves time of customers

- Innovative solutions for a personalized shopping experience

- Product reviews and comments

- Online product recommendation and personalization

- Financial Services

- Photo Services

- Sam’s Club (high-quality bulk groceries, consumables and general merchandise, specialty services, including travel, auto buying, pharmacy, optical, hearing aid centers, tire and battery centers and a portfolio of business operations support services)

CUSTOMER REALTIONS CUSTOMER SEGMENTS KEY RESOURCES

- Free 2-day shipping on - Massive market - To sell more for less

millions of items

- No membership fees

- Benefit for members

- 5 different shipping options

(Home free, Site to Store,

Pick up Today, Ship from

Store and Same Day

Delivery)

- FREE Walmart Grocery

pickup

- Pickup Discount

- Reorder your favorites

- Online Shopping

- Tips and ideas

- Walmart Pay (a fast, easy

and secure way for customers

to pay with their smartphones

in Walmart stores)

- Self Service

- Automation (Pickup

machines)

- Customers service

- Rewards

- Real rime order tracking

- Convenience

- Campaigns

- With focus on price-sensitive customers and people looking for one-point shopping

(microenterprises, small business owners, families and entrepreneurs)

philosophy

- More than 260 million customers every week

- 100 million unique visitors

a month

- 2.3 million employees worldwide

- 11.695 store under 59 banners in 28 countries and e-commerce websites in 11 countries

- Walmart international operations (more than 6,200 retail units, operating under

67 banners in 27 countries outside the United States)

- Logistic network (Walmart’s 150+ distribution centers and

a fleet of 6,100 tractors, 61,000 trailers and more than 7,800 drivers)

- About 40 percent of products sold in Walmart are private label store brands

- Walmart collects and analyzes a large amount of consumer data, the big data sets are mined for use in predictive analytics

- Partnerships and alliances

- Supply chain excellence

- Improving service through technology

- Walmart Labs

- Supercenter

- Discount store

- Neighborhood Market

- Online shop – Walmart.com

- Online fulfilment centers

- Pickup machines

- Mobile apps

- Presence

- Infrastructure and distribution network (distribution centers + a private fleet of trucks and a skilled staff of truck drivers)

- Cost of goods

- Distribution and logistics

- Retail Sales

- Online Sales

- Commissions on financial services

- Commission on affiliates

- Advertising fees

- Photo services

- Box Subscription Programs

- Walmart Pay

- App store

- Google Play

- Gift cards

- Credit cards

- Media

- Social networks

- Newsroom

- Event & Webcasts

- Blog

- Walmart Community

- Affiliate Program

- Walmart Foundation

- WalmartOne.com

- Walmart Museum

- Sam’s Club (more than 650

clubs in the U.S., 100

international clubs,

SamsClub.com and mobile

applications) Manny

Walmart technology projects

are coded in the open and

available through the

Walmart Labs GitHub

repository as Open Source

software under the OSI

approved Apache V2.0

license

- Stores maintenance

- Inventory management

- Advertising

- Customer Q&A

- Taxes

- Salaries – Full-time hourly wage is $13.39

revenue

- Product Care Plans and our Trade-in Program revenue

- Walmart’s Customer Segments

Walmart’s customer segmentation is mainly accomplished due to its primary low-price strategy Therefore, its customers tend to be people who are looking for low-cost but good quality products, whether they are low-income people or just looking for the best cost-benefit

- Walmart’s Value Propositions

The value proposition of Walmart is a reflection of its business policy: Providing its customers with a wide variety of products, at the lowest price and in the most convenient way possible

- Walmart’s Channels

Walmart’s channels are widely known: the brick-and-mortar stores themselves, their website, their mobile app, social and mass media

- Walmart’s Customer Relationships

Walmart’s customer relationship is also entirely based on its value proposition

— cheap, good and varied merchandise, easily accessible, and with the best service For this, the processes are as automated and simplified as possible

- Walmart’s Revenue Streams

+) Services

+) Retail Sales

- Walmart’s Key Resources

Walmart’s biggest key resources are its own brick-and-mortar stores, its distribution, and storage system, its virtual infrastructure, with the e-commerce store and the mobile app, and, of course, its human resources

- Walmart’s Key Activities

Walmart’s key activities include, first, buying and delivering goods, while controlling the costs involved In addition, the company invests in customer service, inventory control, and distribution management

- Walmart’s Key Partners

Walmart’s key partners are certainly its suppliers, as they are the ones that allow the company’s value proposition to be delivered, by guaranteeing low-cost products and services, as well as access to different parts of the world

- Walmart’s Cost Structure

Walmart’s cost structure is certainly not “lean”, as it has more than 11,000 stores (including supercenters) worldwide However, its operations involve a financial discipline that allows reducing such costs to the maximum, so that these savings can be passed on to the final customer

2.2 Walmart’s Business Model

Walmart operates a distinct Omni business model with three primary units— Walmart U.S., Walmart International, and Sam's Club—a membership-only warehouse club—along with Walmart+—that will generate over $572 billion in net sales in 2022 Discounts and unlimited free shipping from its stores are included in this subscription service, which will be available in 2021

Using strategies like economies of scale, everyday low prices (EDLP), price leadership, international expansion, and e-commerce, Walmart's business model is built on offering products and services at low prices

Walmart is able to offer everyday low prices to their customers because they are able to keep costs low while still making a profit through these strategies Walmart became the world's largest retailer as a result of these efforts in the end

In addition, Walmart's outlet planning ensures that their stores are in all major cities, making it simple for customers to access their products

Last but not least, Walmart's purchasing strategy involves obtaining the best prices by purchasing directly from manufacturing facilities

Additionally, in order to obtain the best price for each product, they place multiple bulk orders

2.3 Walmart’s Organization Structure

Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches Walmart utilizes the hierarchical structure which means that current CEO Doug McMillon is the only employee without a direct superior Directives are sent from top-level management to regional managers, district managers, middle managers, store managers, and store team members when required