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

VIETNAM NATIONAL UNIVERSITYINTERNATIONAL 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 1-31.1 Company Profile 1-21.2 Overview ……… ….….….….….…… 2-32 Business Model canvas and explanation 3-82.1 Introduction about Walmart’s Business Model ……….3-72.2 Walmart’s Business Model ……… ……… ……… 72.3 Walmart’s Organization Structure ……… ……… ……… 8

Part II Functional areas involves in services activities 9-12

1 Walmart’s functional areas 9-112 Diagram for core business processes 12

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

1 Walmart’s Information systems introduction 12-142 Key features are match with/support Walmart’s business processes 14-15

Part IV Conclusion and recommendation 16-17

1 Conclusion 162 Recommendation 16-173 References 17

Information systems is a formal, technical system that are almost used byorganizations to collect, store and process information for work These systems canbe 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 allvariety of groceries and many more materials The company uses the mostimportant system which is the bar code system.

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

The company has a very necessary requirement of the bar code system becauseit helps to monitor its sale Detailed information is gathered from the bar codes andthen 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 background1 Introduction

Sam Walton, a retailer who at the time operated a modest franchised varietystore, 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 acquirebenefits through volume In sharp contrast, other retailers did not alter their retailprices when suppliers offered a discount Walmart maintained its steady expansionby controlling payroll costs, opposing unions, and hiring as few employees aspossible Technology was also important; The company began using computers toconnect stores and warehouses in 1970, resulting in a reduction in inventory andimproved efficiency.

Walmart Stores, Inc (Walmart) is a global retailer that operates both offlineand online There are three parts to it: The Walmart US section Second, theWalmart International division, which has locations in 26 nations, and third, theSam's Club division In 2011; Walmart International contributed 28% of net sales,while the US segment contributed 60% In China, Brazil, Canada, Japan, theUnited Kingdom, Mexico, and Argentina, Walmart has wholly owned subsidiaries.The business is organized into six product categories: staple, diversion, wellbeingand health and clothing and home, across a wide assortment of stores includingsupercenters, 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 awide range of goods and services at everyday low prices It conducts businessthrough the following divisions: Sam's Club, Walmart International, and WalmartUnited States Under the Walmart, Walmart, and Walmart Neighborhood Marketbrands, as well as walmart.com and other e-commerce brands, the Walmart U.S.

segment operates as a merchandiser of consumer goods The Walmart Globalportion oversees supercenters, general stores, hypermarkets, stockroom clubs, andmoney and convey beyond the US Warehouse clubs that only accept members andsamsclubs.com make up the Sam's Club segment Bentonville, Arkansas is home tothe headquarters of the business, which was established in 1945 by Samuel MooreWalton 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 livebetter.” 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 Livebetter.” Based on this statement, it is clear that Walmart’s business strategies

involve using price as a selling point to attract target consumers The significanceof such a selling point is exhibited in many of the company’s strategies Forexample, 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 pricesas a way to achieve competitiveness.

b) Walmart’s Vision statement

Walmart Inc.’s corporate vision is to “Be THE destination for customers tosave 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 ofconsumers and employees.” The change in the corporate vision reflects strategic

changes that Walmart implements in response to changes in the competitivelandscape 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 — helpingpeople live better and renew the planet while building thriving, resilientcommunities” To Walmart, it means that working to create opportunity, build amore sustainable future, advance diversity, equity and inclusion andbring communities closer together

2 Business Model canvas and explanation2.1 Introduction about Walmart’s Business Model

- Investors

- 2.3million associates- Subsidiaries- Provides- Suppliers- Vendors- Farmers- Manufacturers- Brands- Distributors- Logistic partners- Financial institutions-Online commerceacquisitions to competeagainst Amazon (Jet.com,Hayneedle.com,

Shoebuy.com, ModCloth.comand Moosejaw)

- Walmart acquired Kosmixto develop software foranalyzing real-time datastreams

- Asda brand in UK- Collaborations with NGOsand 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 anddevelopments

- R&D

- An unwavering commitmentto saving people money - Everyday low prices on abroad assortment

- One-stop shopping – itprovides a wide range ofproducts and services in oneplace which saves time ofcustomers

- Innovative solutions for apersonalizedshoppingexperience

- Product reviews andcomments

- Financial Services- Photo Services

- Sam’s Club (high-qualitybulk groceries, consumablesand general merchandise,specialty services, includingtravel, auto buying,pharmacy, optical, hearingaid centers, tire and batterycenters and a portfolio ofbusiness operations supportservices)

CUSTOMER REALTIONSCUSTOMER SEGMENTSKEY 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 fromStore and Same DayDelivery)

- FREE Walmart Grocerypickup

- Pickup Discount- Reorder your favorites- Online Shopping- Tips and ideas

- Walmart Pay (a fast, easyand secure way for customersto pay with their smartphonesin Walmart stores)

- Self Service

- Automation (Pickupmachines)

- Customers service- Rewards

- Real rime order tracking- Convenience- Campaigns

- With focus on sensitive customers andpeople looking for one-pointshopping

(microenterprises,smallbusiness owners, families andentrepreneurs)

- More than 260 millioncustomers every week- 100 million unique visitorsa month

- 2.3 million employeesworldwide

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

- Walmart internationaloperations (more than 6,200retail units, operating under67 banners in 27 countriesoutside the United States)- Logistic network (Walmart’s150+ distribution centers anda fleet of 6,100 tractors,61,000 trailers and more than7,800 drivers)

- About 40 percent ofproducts sold in Walmart areprivate label store brands- Walmart collects andanalyzes a large amount ofconsumer data, the big datasets are mined for use inpredictive analytics- Partnerships and alliances- Supply chain excellence- Improving service throughtechnology

- Walmart Labs

- Supercenter- Discount store- Neighborhood Market- Online shop – Walmart.com- Online fulfilment centers- Pickup machines- Mobile apps

- Presence

- Infrastructureanddistributionnetwork(distribution centers + aprivate fleet of trucks and askilled staff of truck drivers)- Cost of goods

- Distribution and logistics

- Retail Sales- Online Sales

- Commissions on financialservices

- 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 650clubs in the U.S., 100internationalclubs,SamsClub.com and mobileapplications).MannyWalmart technology projectsare coded in the open andavailable through theWalmart Labs GitHubrepository as Open Sourcesoftware under the OSIapproved Apache V2.0license

- Stores maintenance- Inventory management- Advertising- Customer Q&A- Taxes

- Salaries – Full-time hourlywage is $13.39

- Product Care Plans and ourTrade-in Program revenue

- Walmart’s Customer Segments

Walmart’s customer segmentation is mainly accomplished due to its primarylow-price strategy Therefore, its customers tend to be people who are looking forlow-cost but good quality products, whether they are low-income people or justlooking 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 inthe 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 bestservice 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, itsdistribution, and storage system, its virtual infrastructure, with the e-commercestore and the mobile app, and, of course, its human resources.

- Walmart’s Key Activities

Walmart’s key activities include, first, buying and delivering goods, whilecontrolling the costs involved In addition, the company invests in customerservice, inventory control, and distribution management.

- Walmart’s Key Partners

Walmart’s key partners are certainly its suppliers, as they are the ones thatallow the company’s value proposition to be delivered, by guaranteeing low-costproducts 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 11,000stores (including supercenters) worldwide However, its operations involve afinancial discipline that allows reducing such costs to the maximum, so that thesesavings 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-onlywarehouse club—along with Walmart+—that will generate over $572 billion in netsales in 2022 Discounts and unlimited free shipping from its stores are included inthis subscription service, which will be available in 2021.

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

Walmart is able to offer everyday low prices to their customers because theyare 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 theend.

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

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

Additionally, in order to obtain the best price for each product, they placemultiple 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 CEODoug McMillon is the only employee without a direct superior Directives are sentfrom top-level management to regional managers, district managers, middlemanagers, store managers, and store team members when required.

II Functional areas involve in services activities 1 Walmart’s functional areas.

It doesn't matter how big or how small a business is—it needs to performimportant tasks in order to function regularly Managing customers, purchasingstock or inventory, paying bills through accurate account ledgers, and otheressential parts that make up the functional areas of a business are all examples ofthis The role of organizational leaders, who constantly study the functional areasand seek ways to communicate these components to their managers in order fortheir leadership to be effective, is consistent with the significance of understandingthe functional areas This section examines Walmart's functional areas and explainshow functional areas represent Walmart's organizational structure Walmart is amultibillion-dollar international business that employs over two million peopleworldwide and is the retail market leader Walmart must structure theirorganization in a way that enables the effective and efficient achievement of theirorganizational goals if they are to maintain their position as the market leader andcontinue expanding globally.

A) Primary Activities in Walmart Value Chain

Inbound Logistics:

One of the strategies that Walmart is always looking for is having the lesspossible amount of links in the supply chains, as well as creating strategicpartnerships with vendors To press suppliers with sustained and massive purchasesand thus obtain better prices is one of the tactics to keep its cost leadership.Distribution centers and cross-docking are key to keeping stores replenished and