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Service organizations

The company has to improve store ambience, design, quality and product variety to appeal to the shoppers in terms of convenience and memorable shopping experience. The company has to reorient itself that value-creation opportunities are waiting in areas other than price too. It is a matter of change of strategic focus. Doz, Y. L. & Kosonen ( 2007, pp. 98-104) recommend that all the leaders at the top should be jointly responsible for results by each keeping track of the entire value chain though many activities fall outside the purview of an executive’s main domain.

For example, an executive in charge of logistics in Wal-Mart should better contribute his bit to the effective floor management or check-out counter management. The success of any new business model depends on how the senior executives coordinate with each other and help each other in the realization of the overarching mission. It should focus on innovations.

But, any innovation, be it a process innovation or an expansion project, ( Hansen, M. T. and Birkinshaw,J. , 2007 ,pp. 121- 130), must be monitored from end-to-end; in all the three phases of innovation- generation, conversion and diffusion- due focus should be maintained on all three by shunning excessive resource allotment to some at the cost of the other. Conclusion Wal-Mart is a colossal organization bogged down in many problems including slow growth, decreasing profitability, numerous lawsuits, general public resentment, poor store ambience, tyrannizing over suppliers, and frequent stock-outs on many items of merchandize. It is a price-focused organization with very few initiatives on quality, ambience, and customer service.

The company has to expand into new countries like China and India to take advantage of the growing per-capita income in these countries. Low-price strategy will bring attractive results in these once income-starved countries. It can also diversify into other businesses. In US too, it can launch different store formats to suit various income levels based on the understanding that price alone is not an exclusive area for value creation; t there are other area too such as quality, wider choice, ambience and customer service.

References

Mourik, V. J. (1999). The effective strategist: Key skills for all managers. Vermont, USA: Gower. Campbell, D, Stonehouse,G &Houston, B. ( 2004). Business strategy: An introduction. Burlington, MA: Elsevier Butterworth-Heinmann. Botten, N. & McManns, D. (1999). Competitive strategies for service organizations. Hampshire: Macmillan Press Ltd. Hansen, M. & Birkinshaw, J. (2007, June). The Innovation Value Chain. Harvard Business Review, 85 (6), 121-130 Bianco, A. et al (2007). Wal-Marts Midlife Crisis: Declining growth, increasing competition, and not an easy fix in site.

Business Week, New York, (p. 46) April 30, 2007. Issue 4032. Bianco, A. et al (2003). Is Wal-Mart Too Powerful? Business Week, New York. (p. 100) Oct 6, 2003. Issue. 3852. Nassar, D. (October12, 2007). Wal-Mart-watch. Overview of October 2007 Research Findings. Retrieved November 16, 2007. from http://walmartwatch. com/img/blog/wmw_poll_memo_11-12-07. pdf? Doz, Y. L. ,& Kosenen, M. ( 2007, June). The new deal at the top. Harvard Business Review, 85 (6), 98-104. Connelley, D. L. ( n. d. ). Strategy for the internal environment. Touro University International. PPT.

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