Role of Business Process-Free-Samples for Students-Myassignment

Question: Discuss about the Role of Business Process in initiating activities for the Company. Answer: Introduction In the competing world, it is important for organizations to create their business process in such a way that the organizations remain in advantage in the target market. An organization grows when all the forces present in the environment (internal as well as external) work together for the profitability of the company. Thus, it should be noted that the management of the company should introduce the resource and capabilities of the company in such a way that they produce output for the organization. Also an organization which is unable to use their resource properly can never earn competitive edge in the target market (Abdelkafi, Pero, 2018). The management needs to initiate their operations that they combine with the mission and vision of the company and optimally use the resources as well. The business process plays an important role in initiating activities for the company. An efficient business model properly identifies the issues present in the model and has the ability to rectify them as well. Further, the below mentioned report provides a brief view of the operational activities of the company Walmart and the inefficiencies in the process that hampers its growth in the target market. Further, the report also suggests the alternative measures with the use of which the organization can initiate positive changes in the organization for the purpose of growth in external market. The latter part evaluates the performance of the alternative business operation as well. More details of the task are discussed below: Company Background Walmart is a multinational organization that is based in the market off United States as a retail chain store. The company was originated in the year 1962 by Sam Walton; the company is now operating its business in total 50 states and earns revenue of $485.9 billion in the previous year. The company is deals with over 260 million customers every week, further, it has 11,695 stores working under 59 banners in total 28 countries and as e-commerce websites in 11 countries. The company has a large extended family of 2.3 million employees work with them. Further, the organization is also aiming to expand their business in many more countries namely, Canada, Brazil, Chile etc. Also the company has earned the identification in the market by working as a leader in retail sector of US industry. Walmart is a publically traded company which is a family owned business of Walton family. The heir of Walton family owns more than 50% of shares of Walmart holding company. The company was listed in th e year 1972 on New York stock exchange. The biggest competitions of Walmart in the market are Amazon, Aldi and Kmart (Walmart, 2018). Further, it should be noted that apart from earning so much reputation in the target, the company lacks in initiating various operations in the management. The organization is unable to manage and control many processes due to which they are unable to create adequate output from the resources. The company has efficient resources and well-qualified manpower as well that can multiply its growth in the global market. But they are lacking behind in many places. The company has great potential to grow in the external market by gain sustainable competitive edge in the target market. The vision statement of the company states that they want to be the best retailer in the hearts and minds of the consumers and employees. Further the mission statement suggests that want save the money of people so that they can live better. Business process used by Walmart Source: (Revenues and Profits, 2018) The above mentioned chart explains the process with which Walmart earns money in the market. The company used various attributes to earn optimum revenue in the business it worked in a negative way for the company. The company uses the cross docking techniques in the logistics for the purpose of unloading goods from trucks incoming directly into the outbound truck with less storage in between. Further, the Walmart U.S. is the largest segment of the company that that operates in six strategies merchandise units that are, Hardline, health, grocery, apparel, wellness, and home (Loeb, 2017). Under this process, the company provides both physical and digital access for their products to the customer. As physical access, they provide supercenters, discount stores and other small stores to the customers. Under digital access, they provide e-commerce services to customers using Pickup Today and Walmart Pickup. Further, the Walmart International segment of the company initiates its operations through wholly owned subsidiaries and joint ventures across the countries. The company operates 156 distribution facilities and e-commerce services in 10 countries to meet the demand of customers. The company uses services like click and collect that gives ease to the customers (Honrubia, 2017). Lastly, the Sams club segment of the company operates only as warehouse clubs for members and as samsclubs.com. This segment provides subscription services to business owners as well as individuals. The key elements of the business operations model of the company are mentioned below: Lead in price Invest to differentiate on access Gain competitiveness on assortment Deliver great experience The organization developed their model with an aim to satisfy the above mentioned aspect but they were unable to achieve competitiveness in the market through the current model in use (Gustafson, 2015). Performance measurement The sales margin of the company is constant decreasing as they are unable to match up to the operations initiated by other competitor companies. The biggest competitor of Walmart that is Amazon is constant leading in the market due to which the operations of the company have started to fail. Technology has become one of the biggest challenges for the company as they are growing slowly in this field and other organizations in the same market are running with a maximum speed. Further, the company is also unable to apply the key elements in their process. Low prices of products strategy is also failing as the organization is unable to adequately supply the products to the customers in the market (Gilling, Ulmer, 2016). Further, the company was unable to manage the inventory control as well, as it is important for an organization to maintain strict control on this process so as to reduce generation of waste in the company. The company many times faced crunch in inventory due to which they were unable to successfully deliver the products to the customers on time. This resulted as a lack in the business operations of the company. The company faced an issue in inventory recording (Jacobs, Chase, Lummus, 2014). Also, Walmart is unable to properly assemble the physical store with online store. Inefficient IT use in process made it difficult for the organization to handle the stock and supply them in the market. The employees faced difficulty in managing in the activities at physical store and at the same time deliver products at the door steps of customers. Lastly, the operations of the company dissatisfied the customers. IT has been used as a solution of supply chain logistic for the company but it created ineffectiveness in the company. As when the company purchased new product, the system automatically discharged the resupplied stock. The trucks that carry the products uses companys software to find routes, but the issue in supply of stock developed problem in initiating logistics for the company (Bolman, Deal, 2017). Supply Chain strategy In layman language, supply chain management refers to different activities that are organized in such a way so as to assemble different project of the company. Information, raw material, finished goods, costs etc., all such information is received through the supply chain management process of the company (Abdelkafi, Pero, 2018). Further, the supply chain management of the company Walmart is discussed below: Source: (Revenues and Profits, 2018) Information Flow This flow of the supply chain management process includes the flow of information and data that helps different process of the company in their daily activities. Information about purchase order, change request, feedback of performance, quotation request etc. are represented by the information flow. Information is one of the most important aspects because with the help of this, the top management initiates plans for the betterment of the company. Also it should be noted that information is required at every point in the company Walmart (Natto, 2014). As supply chain is the most important activity of Walmart, so there should be adequate supply of information in the company from top to bottom level of management. The company requires such information to quote effective price in the market and manage both the online and physical stores of the company. The information is not received properly at all departments in Walmart du to which inventory recording activity holds no accountability. Also the lower level of management does not receive adequate information on time due to which the decision of the company does on implement itself properly (Christopher, 2016). Cash Flow The company aims to maintain adequate cash balance to meet the contingent issues and flow in market for purchases as well. The management is efficient in maintain cash balance and allocating the amount to the customers and collect from them as well. Usually, the amount of product purchased by the customer is collected at the Walmart store itself but if the distribution process gains information about the replenishment of supply then issue is created in the process of supply (Albers, Wohlgezogen, Zajac, 2016). As the product is received to the store by the distributor and then funds are shifted. Through the invoice raised by the company, customers can check for the quality of the product and the prices quoted by the suppliers. As the shares of the company are decreasing in the market due to which the problem arises for management to supply the products at low cost in the market (LeCavalier, 2016). Product Flow The product flow of the Walmart includes the process of flow of goods from the manufacturers to the customers of the company. The product flow of the companies should be efficient then only the customer will gain optimum level of satisfaction from the organization. The company Walmart introduced their e-commerce website through which the flow of product became a typical process for the company. The organization aims to eliminate the work of intermediaries by supplying the products with the help of employees. As discussed above, the company uses the cross docking technique under which the customer directly picks up product from the manufacturers in the market. But the problem arises when the product is inefficient and the customers claim the company for the company. Due to lack of verification of product quality the company loses loyal customers from their hand (Ahire, Malhotra, Jensen, 2015). Return Flow Reverse or return flow is not an addition in the value of the company but it talks about the goods returned to the company. When the does not match up to the expectation of the customers or members, then the products are reversed. It should be noted that the company do not hold efficient reverse product process (Wall, et. al., 2017). Alternative Business design With the above mentioned analysis, the fact that appeared is that the basic problem of the whole business process of the company is the inefficient technology base that is hampering all the functions of the company. It should be noted that the company has all resources and capabilities to successfully attain the top most position in the market, but it is lacking behind because the management have not attained adequate technology to combine all the resource together and the objective of the company. Walmart is losing its shares in the market because they are facing cut throat competition with Amazon Company in the external market. Amazon again is a technological e-commerce company. So, it should be noted that now the business process of the company should be designed in such a way that technology is distributed at all level in the company. This will make the employee competent to showcase their talent and work effectively which will subsequently help the company to earn revenue in the target (Rodrigue, 2017). A well-defined Enterprise Resource Planning System should be adopted by the company which will help them to gain success in the target market and remove the barriers faced by them. The ERP system is best support to the company when it comes to manage business information, ensure optimal operational efficiency, and integrating various programs and process (O'Neill, Beauvais, Scholl, 2016). The ERP system will provide a qualified platform to all the people connected with the company to seek for information and initiate activities as well. This system will adequately solve all the problems faced by the company in the following ways: The inventory would be managed in such a way that the ERP system will optimize the inventory, and the sales machines would get attached to this system. So, every time when some product is sold then this system will automatically calculate the inventory left in warehouse, and if the balance is low then it notify the management regarding this (Lombardo, 2017). The online stores would get managed itself if the ERP system is introduced in it. This system will provide better technology to manage the online services of the company. Also, this process will develop the online website of the company which will help the customers to initiate sales easily. The ERP system will attach itself with the program used by the distributors who carry the products. So, every time sales are initiated it will notify them as well. Also it will direct the route to the employees and provide a track to the management. This system will tell the time to the management when the products will reach at the warehouse (Laudon, Laudon, 2016). Evaluation of new business design The new design business process successfully helped the company to achieve growth in the target market an overcome challenges as well. The below mentioned are the results of the evaluation of new business design of Walmart: The logistic supply chain managed itself with reduction in waste management activities. The employees now keep a regular track record of the products dispatched and arrival to the store. The ERP system efficiently managed the inflow and outflow of goods in the market. It increased the satisfaction level of customer by introducing new features in the online portal of the company (Miraz, Habib, Molla, 2016). Efficiency of the employees increased as they were introduced with new and efficient technology at workplace. Operational and overhead costs were reduced with automated workflow. IT issues of the company were fixed and the management attained flexibility. Conclusion Thus, in the limelight of above mentioned events, it should be noted that business model of an organization is the core element that helps them to achieve success in the target market. The business model should be formed in such a way that it should reflect the vision of the company and provide success accordingly. The above mentioned report explains the inefficiencies present in the business model of the Walmart Company. It explained the supply chain management process and performance evaluation as well. Further, it provides an alternative design function for the company with the help of which they can eliminate its inefficiencies and build sustainable path of growth for the company References Abdelkafi, N., Pero, M. 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