Book Creator

MIS

by Siddhi Jana

Pages 4 and 5 of 16

Introduction to the company

Sam Walton founded the Wal-Mart Company, one of the biggest retailers in the world, in 1962. Walton started it to offer things at lower costs so that people may save money and utilize it to better their lives. As a result, the business began as a little bargain shop.
Wal-Mart was dedicated to meeting the demands of its clients by providing them with friendly service and affordable products. The business has remained true to its original promise to look out for its clients.
In 1972, the company's shares debuted on the New York Stock Exchange (McKeefery 3). Currently, Walmart employs 2.1 million people throughout its more than 9600 retail locations, dispersed throughout several nations.
TECHNOLOGY USED IN WALMART(RFID)

Typically used to identify and track tags attached to items, radio-frequency identification (RFID) employs wireless electromagnetic fields to transfer data. The tags hold data that has been electronically saved. The tag may be implanted in the monitored item, unlike a standard barcode, which has to be in the reader's line of sight.
There are several sectors that employ RFID tags. For example, RFID tags are used to track the movement of pharmaceuticals and vehicles through the supply chain. RFID tags are occasionally implanted in animals, including livestock, pets, and even people, to enable tracking and identification.
RFID tags can be attached to money, clothes, valuables, or even implanted into humans, which raises severe privacy issues about the prospect of accessing personally-linked information without permission.
POS IN WALMART
In addition to their own unique point-of-sale system, Walmart has also created a mobile point-of-sale system (mPOS) for their garden centres. This system has a "Check Out With Me" programme in which shop employees are given a Bluetooth printer and cellular payment device.

The new Walmart mobile POS system is designed to let garden centre staff assist clients outside rather than requiring them to walk back inside the shop. The "Check Out With Me" initiative provides Walmart staff with gadgets that make it simple for them to collect payments and produce receipts.
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Use of MIS in Walmart

The business has made significant technological
investments and uses cutting-edge information systems. For instance, the
company funded a $4 million effort in 1991 to develop an IT system known as the
"retail connection system." A substantial portion of its suppliers
has utilized this technique to examine retail goods sales and replenish
inventory. It has set up a transaction processing system that collects, stores,
modifies and retrieves data related to store transactions.
 

It uses Electronic Data Interchange (EDI) to avoid
using intermediaries when buying necessary raw materials. Using this technique,
vendors can duplicate purchase orders and other sales data related to goods
that have been sold.


As a result, Walmart can use this resource for
forecasting, planning, shipping requests, and stock replenishment. Finally, it
uses a Decision Support System (DSS) to improve organizational control,
decision-making quality, productivity, and interpersonal interactions. Walmart
is one of the most prosperous merchants in the corporate sector due to the
technology it has access to.
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COMPETITIVE ANALYSIS OF WALMART
The company's tagline, "Save people money so they may live better," is reflected in Walmart's business approach. The company's objective is to deliver competitive pricing every day, a wide selection of goods, the greatest shopping experience for customers, and to be a partner and resource in its communities.

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Walmart Business Strategy and Revenue Model


Walmart makes significant investments in technology and innovation to meet these objectives. For instance, it is exploring driverless trucks for food delivery and deploying robots to assist with order fulfilment at its warehouses. In order to provide clients with new goods and services, the business is also growing its internet presence and forming alliances with other businesses.
Competitive analysis:
Strength-
Walmart has a sizable North American client base and offers staff benefits that are among the best in the country.
The business gives loyal consumers fantastic discounts on a variety of goods. Along with the regular, repeat consumers, these promotions also draw in a lot of new ones. For the majority of its items, the firm offers the consumer fair prices. It is one of the key reasons the business was able to succeed in the cutthroat industry.
The corporation handles the supply with an effective personnel. The rise of Walmart is considerably aided by this efficiency.
Walmart has more than 11,000 shops in 28 countries and serves a global market. Consequently, the business increases the country's GDP.

Weakness -
Even though Walmart has built locations in 28 nations, several of those nations still account for the majority of its sales. Expanding is necessary in the present competitive retail sector, hence Walmart's limited expansion is one of its limitations.
Walmart must maintain large inventory, which might dilute its market position. That could have an impact on the product's quality and consumer happiness. Additionally, there are not many size alternatives available to the customers, which causes them to shop at other stores.

The retail industry is quite cutthroat. The retail market is now set up to accept new businesses with superior business strategies. It can be a weakness for the current retail businesses.
Opportunities -
The firm may attempt to grow by accessing foreign markets. They will expand as a result of the expansion in various nations.
In order to build brand recognition and motivate its full-time staff to put in extra effort, the business must raise full-time employee salaries. To increase their worth, the corporation can collaborate with a number of nonprofits.
The business must make an effort to enhance local residents' perceptions. This action will aid the business in growing its local clientele.

Walmart needs to employ its research division to raise the calibre of its goods. Some clients are prepared to spend a lot on high-quality goods. They will attract more clients if they can deliver superb quality.

Threats-
For a while, the post-COVID-19 economy will have a negative impact on growth, which poses a danger to most businesses. Along with this, the tariff charges are also impeding businesses from advancing.

Employee unions are progressively gaining the ability to speak out about pay, treatment, and working conditions. Rising disputes and issues might arise between the union and the power structure or among the partners. It could pose a risk to a business' expansion.

Walmart is threatened by fierce competition from a wide range of other online retail websites like Amazon. To overcome the difficulty of the intensely competitive market, the corporation must eliminate its vulnerabilities.
Managing security issues -

In order to provide confidentiality, integrity, and availability, Walmart's Information Security department (InfoSec) supports the CISO and works to ensure that information and information systems are protected from unauthorised access, use, disclosure, disruption, alteration, and destruction.
Every year, Walmart compares its cybersecurity policies to external standards including NIST-CSF, PCI, HIPAA, and SOX. In FY2022, external auditors examined their information technology infrastructure and information security management systems as part of our most recent external evaluation. Walmart regularly tests various cybersecurity features internally, including incident response and catastrophe recovery. Their vulnerability testing programme consists of four main components: vulnerability scanning, penetration testing, testing as part of our software development life cycle, and testing. Walmart employs a variety of approaches, including simulations of assaults using tabletop exercises, incident response testing, and vulnerability analysis. They test their technical recovery and incident response processes at least twice a year.
New features added:
Two augmented reality (AR) capabilities have been added by Walmart to its app: one lets users see furniture and other home goods in their homes before purchasing them, while the other lets users use it in-store to check important product details.
Haptic feedback, which lets users feel vibrations as they move 3D models around their homes and stops them from dragging objects beyond of room borders, will be a part of the new feature. Additionally, the tool has accessibility features including gesture controls and voice-based tutorials and descriptions to aid ensure users with impairments.
Customers and employees will be able to filter goods using the new in-store AR capability by pointing their mobile device camera at shop shelves.
Performance during COVID

The firms in healthcare, education, and retail led the ranks in Forbes' newly issued America's Best Employers By State 2021 list, accounting for 41% of the listings, up from 38% last year, despite being among the most impacted by the epidemic. For instance, revenues in the retail sector fell by a record 16.4% in April 2020, and 2.1 million workers lost their employment.

This trend was resisted by Walmart, which was recognised as a top employer in 27 states: Consumer demand for grocery pickup and delivery drove a 74% increase in e-commerce sales during this time, which resulted in the hiring of more than 235,000 retail employees.
The S&P 500 has plunged 25% during the coronavirus market turbulence, yet Walmart's stock is up 2%.

The big-box retailer, a traditional defensive consumer staple stock, is gaining from the fact that millions of Americans are storing up on goods in preparation for the unknowable future.

Walmart is not a short-term investment for Credit Suisse. The company predicted that as consumers become more accustomed to new shopping options like online grocery delivery and curbside pickup, this unpleasant time will hasten "structural shifts in consumer buying" for five or more years.
PRE-COVID
Net sales of Walmart US grew from $318.5 Billions in FY2018 to $331.7 Billions in FY-2019.
Grocery merchandise segment in Walmart US delivered strong performance.
Net sales of Walmart International grew from $118.1 Billion to $120.8 Billion.
Consolidated Net sales of Sam’s club declined from 59.2 Billions to 57.8 Billions.
Walmart International achieved total revenues of $122.1 billions and net sales of $120.8 Billions in FY 2019.
Ecommerce sales rose 21% at Sam’s club.
POST COVID
The percentage growth in online sales was nearly double the retail giant’s 8.7% growth in overall (online and offline) Q3 revenue. During Q3, which ended Oct. 31, online sales grew 24% compared with two years earlier, Walmart reported without providing specific figures.
Walmart's revenue globally for the fiscal year that ended January 31, 2022, was around 573 billion dollars. The retailer's revenue climbed by over 7% from the previous year. One of the most well-known and valuable brands in the world is Walmart, formerly known as Wal-Mart Stores, Inc. The business runs local markets, supercenters, and discount retailers all around the world.
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