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Walmart 15

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175 views

Walmart 15

Uploaded by

Arsalan chhipa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Contents

1. Introduction Walmart.............................................................................................................................2
Walmart’s Vision Statement....................................................................................................................2
Walmart’s Mission Statement.................................................................................................................2
2. Critically examine current and seminal theories, concepts and models related to strategic change
management (A1)..........................................................................................................................................2
3. Critically discuss the role of leaders and managers as agents for change(A2)......................................4
4. Analyse types and styles of organisational change (A3).......................................................................6
5. Critically discuss how change context affects change choices for the selected organisation (A4).....10
6. Discuss change from an organisational culture perspective (B1)........................................................14
Walmart’s Organizational Structure...................................................................................................15
Walmart’s Organizational Culture......................................................................................................16
7. Discuss change from a power and politics perspective (B2)...............................................................17
8. Discuss change from an organisational learning perspective (B3)......................................................18
9. Analyse the internal and external environments which influence organisational change (C1)...........21
Industry Environment.......................................................................................................................22
Competitor..........................................................................................................................................22
Internal Environment........................................................................................................................22
Stakeholders of Wal-Mart.................................................................................................................23
SWOT.................................................................................................................................................24
Review of Present Situation.................................................................................................................24
Recommendations..............................................................................................................................24
10. Discuss, in consultation with others, how change transition is designed by strategic leaders and
managers (C2)..............................................................................................................................................25
11. Critically evaluate ways in which strategic management enabled the conditions for organisational
change in a given context (C3)....................................................................................................................26
12. Evaluate the importance of employee engagement to organisational change (C4).........................32
13. List of references.............................................................................................................................34
1. Introduction Walmart
Walmart Inc (Walmart) is a retailer that operates grocery stores, supermarkets, hypermarkets, department
and discount stores, and neighborhood markets. The company’s stores offer grocery and consumables,
health and wellness, technology, office and entertainment, hardlines, apparel and home categories at
everyday low prices. It also operates warehouse clubs (including Sam's Clubs). Walmart markets products
under various private labels and licensed brand names including Equate, Bonobos, Mainstays, George,
Onn, Parent’s Choice, Time and Tru, Wonder Nation and No Boundaries. The company offers fuel, gift
cards and financial services and other related products including money orders, prepaid cards, wire
transfers, money transfers, check cashing and bill payments. It merchandises products through various e-
commerce portals. The company operates wholesale, retail and other units, and eCommerce websites,
across the US, Canada, Africa, Central America, China, Chile, Mexico and India. Walmart is
headquartered in Bentonville, Arkansas, the US.

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.

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.
2. Critically examine current and seminal theories, concepts and models related to strategic
change management (A1)
Walmart’s organizational structure is hierarchical and functional. The company’s organizational
structure is made up of two features, hierarchy and function-based. Hierarchy is the vertical line
of command and authority. Every employee, except the CEO, has a superior. Directives from the
top levels of management are implemented by middle managers down to the rank-and-file
employees in their stores. Function-based organization feature involves a group of employees
fulfilling certain functions, for example, human resource management, information technology,
marketing and the likes.

Organizational change affects a host of systems within a business structure. An organizational


change in Walmart would among other things affect the management structure and the
company’s workforce. Walmart’s organizational restructuring will see the number of regional
managers reduce from 44 to 36. Departmental leadership will also in effect be restructured with
an aim to increase the company’s competitiveness in the retail sector. A huge labor workforce
will also have to be released during the restructuring of the retail company.

Force Field Analysis

The need to maintain competitiveness and its status as the largest retail company in the world
forces Walmart to change its organizational structure. A change in the structure of the
organization will cause a restructuring of the company’s management structure for example
integration of leadership teams and reduction of the company’s labor workforce. The
restructuring will also lead to the creation of new positions.

Leavitt’s Model

The Leavitt’s model of organizational development proposes that particular variables within an
organization are responsible for development and functioning of an organization and they are
interdependent. These variables include task variables, structure variables, technological
variables, and human variables. The advancement of technology has caused increased
competitiveness in the retail sector and has thus prompted Walmart to change its organizational
structure to keep abreast with its competitors.

Likert Organization System Analysis


Likert described four systems of management within an organization and proposed that an
organization’s management system determined the organizational development of a company.
Likert’s framework proposes that a management system could be a participative group,
consultative, benevolent-authoritative or exploitative-authoritative. The organizational
dimensions addressed include motivation, communication, interaction, decision making and goal
setting. Walmart’s operations are aimed at achieving a set of goals mainly to save people money
so that they can lead better lives. Walmart’s management has in the past been criticized for
lacking in employee motivation skills and poor communication and interaction between the
employees and their managers.

Open Systems Theory

The theory proposes that organizations are social systems which are dependent on the
environment they exist for inputs. This could be said so in the case of Walmart. Walmart owes its
success largely to its employees. The environment is flooded with overpriced commodities and
this augers well with Walmart’s objective to save people money to help them lead better lives.

The Burke-Litwin Model of Organizational change

The model proposes that organization development interventions directed towards structure,
management practices, and systems result in a transactional change whereas interventions
directed towards mission and strategy, leadership, and organization culture result in
transformational change.

Walmart should focus on restructuring their organization in a way that will promote both
transactional and transformational changes. Management practices within the organization
should be directed at improving customer relations and growing their customer base worldwide.
Walmart in its bid to keep abreast with its competitors should also direct effort towards strategy
and leadership which have previously been faulted for declining sales growth.
3. Critically discuss the role of leaders and managers as agents for change(A2)
A change agent, or agent of change, is someone who promotes and enables change to happen
within any group or organization.

In business, a change agent is an individual who promotes and supports a new way of doing
something within the company, whether it's the use of a new process, the adoption of a new
management structure or the transformation of an old business model to a new one.

A change agent is sometimes also called an agent of change or change advocate. Champion and
change agent are sometimes used interchangeably, as well; however, some see differences
between the roles each one plays in supporting change, with a change agent having more
responsibilities and accountability than a champion for ensuring that change happens
successfully.

Change agents' roles and responsibilities

To achieve those objectives, a change agent generally assumes a number of responsibilities --


responsibilities that should start once leadership decides to undertake an initiative. That way, a
change agent can contribute to the initiative's implementation strategy and decision-making
process.

In addition, by assigning a change agent at the start of the initiative, the change agent's
objectives, responsibilities and metrics for success can be incorporated into the project plan.

The specific tasks that can fall to an agent of change include:

 explaining why change is taking place and who will be affected;


 advocating for the change initiative;
 disseminating information;
 highlighting potential benefits and drawbacks of proposed initiatives;
 anticipating and evaluating areas of potential dispute or disruption;
 developing strategies to counteract those potential areas of dispute or disruption;
 obtaining feedback to share with leadership and conveying responses back;
 serving as a point person who is available to hear others' concerns, ideas and questions;
 advising stakeholders, as well as the impacted individuals;
 mediating points of contention; and
 tracking and managing objectives of the project established for the change agent

John Menzer, president and CEO of Wal-Mart International, and Mike Duke, president and
CEO of Wal-Mart Stores, U.S.A., have been promoted to vice chairman positions within the
company. Menzer will take responsibility for major functions of the U.S. business, and Duke
will take over leadership of Wal-Mart International, the company’s fastest-growing division.

Eduardo Castro-Wright, executive vice president and chief operating officer of Wal-Mart
Stores, U.S.A., has been named president and CEO of Wal-Mart Stores, U.S.A., reporting to
Menzer. Pat Curran, senior vice president and a divisional manager for Wal-Mart Stores,
U.S.A., has been promoted to executive vice president for store operations, reporting to
Castro-Wright.

Lee Scott, Wal-Mart president and CEO, said the shift in responsibilities for Menzer and
Duke would benefit both the U.S. and international businesses.

“John will continue to accelerate changes in the largest segment of our business,” Scott said.
“During the last six years, he transformed Wal-Mart International into a well-organized, fast-
growing and profitable business. Prior to that, as Wal-Mart’s corporate chief financial
officer, John established a solid track record as a business strategist who delivers results.”

In addition to his responsibility for Wal-Mart Stores, U.S.A., Menzer will head the divisions
responsible for real estate, logistics, information services, benefits, global procurement,
financial services, store planning and strategic planning.
4. Analyse types and styles of organisational change (A3)
Change process in the organization

Change is a complex process, and also included with a time of anxiety and uncertainty for the
workforce. Organizations need to clearly articulate the merits of change and present a clear
process for achieving change, if they are to win the commitment and enthusiasm of people. Wide
involvement in and communication of the change project can assist with employee understanding
of the ‘what’ and ‘how’ of change.

1. Strategic transformational change

All changes will affect some aspects of a company, but not all changes are transformational.

Minor modifications to existing tools or policies will influence but not completely redefine a
business. Big changes, on the other hand, transform companies. Whether that transformation is
positive or disastrous depends on the strategy used to make it.

Here are 3 examples of strategic transformational change

1. Updating your mission as you grow: When companies first launch, the initial focus is often on
lead generation and getting clients through the door. However, once the company has an
established customer base, the focus could shift to upselling, for example. When the main
mission changes, the company mission needs to evolve as well.

2. Introducing new technology: Technology is designed to make our lives easier, but learning
curves can make technology-related changes tricky to implement. People generally prefer to
stick with what they know

When you introduce new technology, you need to have a solid plan for the transition. People
want to know why the technology is necessary, what makes it better than previous solutions, and
how you are going to support them during the transition.

For example, if you plan to switch from an outdated CRM to Salesforce, start by justifying the
change. Explain that Salesforce will allow the team to manage leads while also engaging with
current customers. Be sure to point out key benefits, like keeping marketing, customer relations,
and detailed analytics all in once place.
2. People-centric organizational change

While all changes affect people, people-centric types of organizational change include instituting
new parental leave policies or bringing on new hires.

Even if you think employees will be excited by the change, an empathetic approach is key
because emotional reactions are common. In fact, many change management models, such as the
Kübler-Ross Change Curve and Satir Change Model, focus specifically on managing emotional
reactions to change.

Here are 3 examples of people-centric change

1. New hires:

Bringing on new team members requires onboarding and training, which can affect both the new
hires and the established employees. Start with communication. Explain the reason for hiring
new people.

Are they going to lighten the workload? Will they fill in skills gaps? How will they integrate
with the current team?

2. Changes to roles and responsibilities:

Job descriptions can evolve over time. Changes to an employee’s responsibilities may require
additional training and restructuring of teams. Of course, shaking up routines is a delicate
process. It’s essential to have a strategy for change implementation and communication.

People like purposeful change. Communicating the value of the change is essential. If you are
adding a responsibility to someone’s role, such as delivering monthly email marketing reports,
the employee will be more likely to receive the news well if she understands why.

Consider the following options for announcing the new responsibility:

Option A: “Starting next month, the marketing team will be required to use Oracle to create
monthly reports on email marketing efforts.”

Option B: “Oracle’s built-in analytics simplify the process of monitoring email marketing efforts
and running reports. Harnessing those analytics will allow us to create detailed reports for clients
and offer them more value. Starting next month, the marketing team will be in charge of creating
and delivering reports to clients.

3. Structural change

Structural changes involve major shifts in the management hierarchy, team organization, and the
responsibilities attributed to different departments, employees, or teams. These changes often
overlap with people-centric changes as they directly affect most, if not all, employees.

Here are 3 examples of structural change

1. Mergers and acquisitions:

Mergers and acquisitions are the most common cause of structural change. Eliminating role
redundancies, redefining goals, clearly defining new roles and responsibilities, and training on
technology are all important parts of managing change during mergers and acquisitions.

Lewin’s Change Management Model works well for mergers and acquisitions because it focuses
on creating a new status quo. It has three steps: unfreeze, change, refreeze.

After you unfreeze the current processes, you move onto change. This step should be gradual.
This is when strategy is so crucial. Difficult changes, such as eliminating redundancies, require
continuous and open communication.

Encourage feedback and listen as much as you talk. Once the changes are in place, you
“refreeze” or solidify the change as the new status quo.

2. The creation of new teams or departments:

Structural change can also apply to smaller adjustments, such as creating a new team. If you
notice that some employees have more of a knack for analytics, you might decide to create a
separate team dedicated to reporting. The necessary shifting of personnel and duties could create
some tension

Justify the change with clear reasoning and explain the benefits. Highlight the positives. It’s not
about taking away responsibilities – it’s about playing to each individual’s strengths.

4. Remedial change
Remedial changes are reactionary. This type of change occurs when a problem is identified, and
a solution needs to be implemented. As these changes are designed to address an issue; they call
for immediate action.

Reactionary change may not be ideal, but it’s inevitable. The benefit of the remedial change is
that judging its success is quick and simple.

Here are 3 examples of remedial change

1. Dealing with a loss of talent:

When someone in a key position at the company decides to leave, you must adapt quickly. Your
team will have questions.

Will someone move into the role, or is the company searching for new candidates? Who will
take over the responsibilities immediately? How will this affect day-to-day operations?

Unexpected changes in personnel are difficult to prepare for. If you are blindsided, take some
time to put together a statement. Announcing an employee’s departure before you have answers
to the inevitable questions is a recipe for disaster.

Your employees will look to you for guidance. Make sure you are ready to provide it.

2. Addressing customer communication issues:

There is a huge difference between simply handling communication with customers and having
an effective communication strategy. If what you’re doing isn’t working, you need to adapt
quickly.

Gaming company Activision realized that each time they released a game, customers had a lot of
questions and feedback. Agents were prepared for a surge of incoming calls, but Activision
realized that their customers preferred to go straight to social media. They had to change their
process
5. Critically discuss how change context affects change choices for the selected organisation
(A4)
According to Forbes Global 2000 for the year 2010, Wal-Mart, which runs discount department
stores and chain of warehouse stores in various places around the world, was ranked the world’s
biggest corporation by revenue. The American public multinational corporation has been able to
achieve this because of the commendable interconnectedness of the environment regarding
change management issues with its different stakeholders.

There are various levels of the change process that are interconnected at Wal-Mart: the macro
and the micro level. The responsibilities of the high-level personnel are found on the macro level
and they are endowed with the task of leading, exemplifying, and supporting any change
initiatives actively. Therefore, after developing a clear vision, the company’s management then
communicates it to the target groups accordingly.

In order to prove to the various stakeholders about the importance of the changes, the
management also considers various environment influences, such as the need of the consumers.
On the micro level, the employees are interconnected in the change process by ensuring that they
are adequately involved, they have the ability to assume the new changes, and are capable of
identifying with the new situation.

At times, even in big organizations, the management finds it hard to implement essential changes
in the organization’s structure. The ‘resistance to change’ scenario normally results when people
do not want to embrace change wholeheartedly or may take a long time before accepting the
changes (Beerel, 2009).

However, at Wal-Mart, appropriate initiatives have been adopted to eliminate the so-called
resistance to change by ensuring that the survival anxiety (driving force to change) is greater
than the learning anxiety (restraining force to change). In addition, the learning anxiety is usually
lowered instead of increasing the survival anxiety. At Wal-Mart, reducing the learning anxiety is
achieved by increasing the individuals sense of psychological safety by means of various
interventions.

These are having a realistic vision for the future, offering formal training, encouraging
participative management, getting feedback on the progress of the changes, having positive role
models, having support groups, and enacting consistent systems and structures within the
organization (Cameron and Green, 2007, p.50).

Individual change at Wal-Mart can be explained in terms of behavioral, cognitive,


psychodynamic, and humanistic approaches. In terms of behavioral approach, change is usually
effected by the use of programs aimed at changing unpleasant behaviors through spotting
intolerable behaviors that can impede change initiatives and replacing them with beneficial types
of behavior that are not resistant to change.

Organization development interventions should be directed at different levels within the


organization. There are three basic approaches to organizational development. Structural,
technical, and behavioral changes are the three basic approaches to organizational change and
development.

Structural changes are aimed at the organization’s hierarchy and may involve adding or
removing layers to the organization’s hierarchy, downsizing of an organization’s taskforce or
decentralization or centralization of an organization’s operations. Structural changes at Walmart
would help in the development and restructuring of the organization.

Organization development is not restricted to the top people within an organization. Technical
changes in machinery, methods, automation and job design would enhance productivity within
an organization. Technical changes in Walmart’s operation in the face of restructuring will
enhance the organization’s productivity.

In terms of cognitive approach, change is usually effected by trying to eliminate thoughts and
emotions that can impede the process of enacting change at the organization. This is achieved by
giving effective educational material that informs the employees of the importance of embracing
change.

At times, the company effects change by instituting initiatives that focuses on both the thoughts
and eliminating unwanted behaviors. This form of realizing change is called cognitive-behavioral
approach. In terms of psychodynamic approach, the objective is to expose the unconscious
content of an individual’s psyche so as to lighten psychic tension that may make him or her to
refuse to embrace any changes that are to be implemented by the company’s management.
This type of approach depends on the interpersonal relationship between the employee and the
manager and it tends to be more eclectic than others are since it uses a variety of techniques.
Humanistic approach to individual change at Wal-Mart tends to encourage individuals to
understand themselves and grow personally without outside interference. The humanistic
approach concentrated on “conscious thoughts, the present, personal growth, and self-
fulfillment” (Santrock, 2005, para.4).

One of the most essential ways of realizing results in change management is through working in
teams. It is important to note that no single individual can be able to see all the aspects of the
change process. However, team members are able to see more of those different aspects and
suggest the most appropriate way forward.

Thus, Wal-Mart has strived to have such teams with certain key attributes. These are the ability
to give feedback on the progress of change management in the organization since the teams
usually know more about the organization’s culture, ability to help in developing and reviewing
data concerning change management, and ability to sustain the momentum of any change
initiative undertaken at the company.

These attributes often have an important impact on the teams’ capacity for effective change since
they enable the members to have a range of energy, participation and decision-making ability that
are important for achieving the goals and objectives of the company (Paton & McCalman, 2007).
Since the start of Wal-Mart in 1962, it has realized the dramatic effect of teamwork in managing
change in the company.

That is why almost every employee within the company is a member of team. In addition, to
avoid failed delivery and strategic failure in implementing changes within the retail company, the
members are advised to know their team working strengths and weaknesses so that they can
conveniently cooperate with one another.

There are different models of organizational change that have been applied to various change
initiatives at Wal-Mart. The company’s management mainly undertakes organizational change
through both conceptual and process approach. Conceptual perspective centers on the precursors
and the outcomes of change.
It focuses on the content and magnitude of strategic efforts that are to be realized. More so, it put
more weight on the cognitive means implicated in effecting the intended consequences. Some of
the models of change that fall in this category are the three levels of change conceptualized by
Golembiewski, Billingsley, and Yeager, and first, second, and third order of change proposed by
Bartunek and Moch.

Process models of change “designate the sequence of events necessary to effect organizational
change, focusing more on the essential steps of implementation than on the conceptual tasks
required” (Latta, 2009, para. 8). It is of essence to note that all process models find their roots to
Lewin’s classic three-stage model of change, “denoting the essential progression through phases
of unfreeze, change, and refreeze” (Latta, 2009, para. 8).

A behavioral approach to change emphasizes better utilization of human resources, and this
fosters inclusivity of employees through participation, motivation, and empowerment. Employee
participation, motivation, and empowerment will, in turn, enhance performance. A teamwork
approach can also lead to solutions that can contribute to the development of organizations.
Teams create synergy and thus teaming up at both the levels of employees and leaders will lead
to solutions that will positively help the progression of the organization.

Parallel learning structures promote innovation and organizational development. Groups


representing various levels and functions work together to create new channels of
communication parallel to the normal hierarchical structure. Parallel learning structures will help
in capturing an organization’s collective expertise. Walmart should use a parallel learning
structure to help advance its operations and smoothen the process of organizational restructuring.

6. Discuss change from an organisational culture perspective (B1)


"he big si0e of the Wal-Mart company has attracted some ma/or problems in itsoperations despite
its popularity! Some of the problems faced by the company include;

Discrimination in the workplace

Many women who work in the Wal-Mart Company have raised a claim or discrimination in the
areas of promotion! 2n their complaint, they state that promotions are given to male staff
members, and they are denied such opportunities
High cost of implementing changes in the company and also the potential misuse of the data by
the consumer.

Walmart’s organizational structure determines the company’s business activities. Currently, these
activities are mainly in the retail industry, including operations in the e-commerce market. The
company’s corporate structure also imposes limits on how the business addresses its problems.
Structural characteristics help facilitate the company’s strategic implementations in capturing a
bigger share of the retail market. In relation, Walmart’s organizational culture determines the
way people respond to challenges in the workplace. The resilience of the company’s human
resources partly depends on the mindset supported through the corporate culture. Cultural
features help the retail business adapt to changes and emerging challenges in the international
market. The long history of Walmart Inc. in succeeding and continually growing internationally
shows that the firm’s organizational structure and organizational culture are helpful in bringing
competitive advantages and success. The organizational structure interacts with the
organizational culture to maintain the significant competitive advantage of Walmart against other
firms, such as Amazon and Target, as well as Apple, Google, and other technology companies
that have major online digital content distribution operations.

Formerly named Wal-Mart Stores Inc., the company has a leadership position in the industry.
Such a retail market position and potential long-term business success are linked to the beneficial
and synergistic combination of the company’s organizational structure and organizational
culture. The characteristics and implications of the corporate culture are influenced by how the
corporate structure supports human resource development and other aspects of Walmart’s retail
business operations, such as marketing, and strategic formulation and organizational design
founded on the company’s mission and vision.

Walmart’s Organizational Structure

Walmart has a hierarchical functional organizational structure. This structure has two features:
hierarchy and function-based definition. The hierarchy feature pertains to the vertical lines of
command and authority throughout the organizational structure. For example, except for the
CEO, every employee has a direct superior. Directives and mandates coming from the top levels
of the company’s management are implemented through middle managers down to the rank-and-
file employees in Walmart stores. On the other hand, the function-based definition feature of the
company’s corporate structure involves groups of employees fulfilling certain functions. For
example, Walmart has a department for the function of human resource management. The
company also has a department for the function of information technology, and another
department for the function of marketing. These are just some of the numerous function-based
departments in Walmart’s organizational structure.

The main effect of Walmart’s hierarchical functional organizational structure is the ability of
corporate managers to easily influence the entire organization. For example, new policies and
strategies developed at the company’s corporate headquarters are directly passed on to regional
managers down to the store managers. In this way, effective monitoring and control are achieved
through Walmart’s hierarchical functional organizational structure. However, a downside of this
corporate structure is that it has minimal support for organizational flexibility. The lower levels
of the organizational structure cannot easily adjust business practices because of the lengthy
communications and approval process involving the middle managers and corporate managers at
Walmart’s headquarters.

Walmart’s Organizational Culture

Walmart’s organizational culture has four main components. These components guide
employees’ behaviors, which determine organizational capacities to add value in the provision of
retail service and related services to consumers. The cultural components are also identified as
Walmart’s beliefs:

1. Service to customers
2. Respect for the individual
3. Strive for excellence
4. Action with integrity

In terms of service to customers, the company prioritizes customers in its operations. Walmart
also recognizes the contributions of each employee to the success of the business. In addition, the
firm strives for excellence in the performance of individual workers, teams, and the entire
organization. In terms of maintaining integrity, Walmart promotes the virtues of honesty,
fairness, and impartiality in decision-making processes.

7. Discuss change from a power and politics perspective (B2)


Walmart embraces two types of leadership. The first one is known as participative leadership.
Participative often called the democratic leadership style, participative leadership values the
input of team members and peers, but the responsibility of making the final decision rests with
the participative leader. Participative leadership can increases employee morale because
employees make contributions to the decision-making process and it causes them to feel as if
their suggestion matter. The participative leadership style can helps employees accept changes
easily when the company needs to changes within the organization because they play a role in
the process. It overcomes the challenges if the company needs to make a decision in a short
period.According to the company’s “open door” policy. All associates are encouraged to share
concerns, express ideas, and speak freely which help to improve daily operations. In return, they
can expect managersto treat all discussions fairly with an open thinking. The policy is right out
of Walton’s playbook. “Listen toyour associates,” Walton urged. “They’re the best idea
generators.”

Walmart also embraces transformational leadership. The transformational leadership style


depends on high levels of communication from management to achieve goals. Leaders enhance
productivity and efficiency, and motivate employees through high visibility and communication.
This leadership needs the involvement of management to achieve the goals. Leaders must focus
on the big picture within an organization and delegate smaller tasks to the team to accomplish
goals. For example, Walmart cheer is a powerful symbol of Walmart’s team spirit and business
philosophy is rolled into one. The cheer comes from the ideas of Sam Wilton which get from
watching workers perform a motivational cheer and group calisthenics at a Korean tennis ball
factory. Sam Wilton knows his job as a leader to motivate their worker to be more efficient in
their job to achieve the goal. He knows and understands the aim of his leadership which created
that idea for his associate. To be a good manager, the pursuit of purpose with passion is
important. The worker will not motivated and efficient in their work if the managers do not know
their job. Leader must monitor the worker to do their job in a proper way and to make sure the
worker achieve the goal.

Power is defined as the potential or capacity for a person to influence the behavior of another so
that the person who was influenced can act in accordance with the influencer’s wishes. (Robbins,
p.368). A person can only have power over others if they have control over a resource that the
others desire. The more control they have over that resource, the more power they exert. Power
can be categorized into two groups: Formal power and Personal power. • Formal Power is based
on a person’s position within an organization, such as a CEO, and it is divided to three
subcategories: Coercive Power, Reward Power, and Legitimate Power. Being the founder of the
Wal-Mart Company, Sam Walton had the Formal Power to Reward employees. He believed in
vision, good education, hard charging and being resistant. He was an active user of Reward
Power. As the name implies, this power rests on the ability of a manager to give some sort of
reward.

His real strength was to lead people effectively. This will be shown using the approach of French
and Raven, which differs between five sources of power. Sam Walton’s power and influence on
his associates can mainly be identified with Referent Power. Referent Power derives from
employee’s respect for a manager and their desire to identify with or emulate him or her. In
Referent Power, the manager leads by example. It rests heavily on trust and often influences
employees who may not be particularly aware that they are modeling their behavior on that of the
manager and using what they presume he or she would do in such a situation as a point of
reference. Walton was so committed to his business and so hard working that he affected most of
his staff with his enthusiasm. One reason for Wal-Mart success therefore surely was Sam’s finding
that “ If you love your work, you will be out there every day trying to do it the best you possibly
can, and pretty soon everybody around will catch the passion from you- like a.
8. Discuss change from an organisational learning perspective (B3)
The concept of organisational learning The most difficult part of the whole change process is
getting it started (Hendry, 1996). Past experiences and learning have a significant part here
(Schein, 1992). The organizations’ ‘capacity to learn’ is critical resource. There are three key
criteria, which lead to success (Probst, Büchel, 1997): First, responsiveness to the needs of the
members of the organization who will be affected by change; second, the learning capacity of the
organization; and finally, organization’s capacity for action. The ability to learn continually
means remaining open to experience, understanding instances when things do not work out as
expected, spotting shifts in the environment, seeking new information, learning from customers
and everyone else, challenging assumptions and beliefs, moving outside of comfort zone, and
turning into inner creativity and wisdom in order to change behavior in response to external
changes and to develop ever-greater capacity to achieve results (Jaffe, Scott and Tobe, 1994:
221). The concept of learning organization presumes ability to adapt to change. Management
must anticipate or at a minimum recognize problems and use learning skills to solve them
(DiBella, Nevis, 1998). Accelerating change and continuing advances in network information
technology have stimulated a growing interest in organization learning and knowledge
management, the development of an organization’s intellectual capital (Edvinsson, Malone,
1997). Organisational learning has been generally defined as a vital process by which
organisations adapt to change in their social, political, or economic settings (Rosenstiel and
Koch, 2001). Tsang (1997) defines organisational learning in more detail as the learning which
occurs in an organisation that produces real or potential change after a shift in the relationship
between thought, organisational action and environmental response. Emphasis on the connection
between organisational learning and the environment in both definitions indicates that certain
types of change in an environment may require a particular type of learning. One critical issue in
the literature dealing with the learning organisation is the relationship between individual and
organisational learning. According to Senge (1997) organisations learn only through learning
individuals. Without individual learning organisational learning does not occur. But individual
learning does not guarantee organisational learning. Senge (1999) makes difference between
adaptive learning and generative learning. Adaptive learning is about coping, and it is only the
first stage in moving toward learning organization. Generative learning is creative, it expands
capabilities. Generative learning requires new ways of seeing the world: seeing the systems that
control events. DiBella and Nevis (1998) have identified four organizational learning styles.
They define organizational learning style as a function of how organizations learn and is
determined by knowledge source and learning scope:

 correction – learning to adjust or correct what Walmart already doing;


 innovation – learning from their own operations and use of that knowledge
transformatively, creating new products or process innovation;
 adaptation – making incremental changes or improvements to knowledge acquired
externally;
 acquisition – acquiring what has been learned by others and further incorporating that
learning into their own operations. It involves some amount of acquisition. Individual
learning has been viewed by different theorists as a rational, information-based system or
as a socially constructed process. Organisational learning emphasises the socially
constructed process, which proceeds through sharing interpretations of events and
through reflection on these interpretations (Mahler, 1997).

There are different views about process of organizational learning. According to Dewey (1933)
organizational learning consists of four processes:

1. Discovery. By this process errors or gaps between desired and actual conditions are
detected.
2. Invention. It involves diagnosing the causes of the gap and inventing appropriate
solutions to reduce it.
3. Production. It includes implementing solutions.
4. Generalization means drawing conclusions about effects of the solutions and applying
this new knowledge to other situations.

These processes are interrelated. Mumford (1999) developed learning cycle consisting of four
actions:

 having an experience,
 reviewing
 concluding,
 planning.

According to Probst and Büchel (1997) the process of organizational learning is characterized
by:

 change in organizational knowledge


 increase in the range of possible actions
 change in subjective constructions of reality.

An organization skilled at creating, acquiring, and transferring knowledge, and at modifing


its behavior to reflect new knowledge and insights is called learning organization (Garvin
1993: 80). Learning organization facilitates the learning of all its members and continuously
transforms itself (Pedler, Bourgoyne, and Boydell, 1991).

9. Analyse the internal and external environments which influence organisational change
(C1)
But the recent years proved to be challenging for Wal-Mart as analysts are doubtful of the
company’s ability to maintain the pace of growth that it has shown in the previous years. Wal-
Mart has to face competition from big players like Carrefour, Metro and Tesco as well as new
entrants such as Dollar General.

Besides that, Wal-Mart has taken advantage of its massive base of power to force suppliers to do
more for less. Employees are also dissatisfied with the company’s lack of employee welfare.

External Environment
Wal-Mart is one of the major players in the retailer industry. It has its own store brands in
addition to selling the national brands in US. Being the main retailer in US, it has garnered
enough power to negotiate the prices with the suppliers. Recently, it has an ‘image issue’ due to
the lawsuits it is facing, the loss of jobs indirectly linked to it as well as the declaration of
bankruptcy or the shutting down of many retailers and manufacturer.

Sociological Factors
The giant retailer has been accused of paying its employees as low as US$8.23 which amounted
being below the federal poverty line for a family of three. The company has also been sued for
forcing its employees to work overtime for free. Another lawsuit against Wal-Mart is about the
discrimination of women in top management. While about 90 per cent of Wal-Mart associates
are women, only 15 per cent are in the top management positions. It is also suggested that Wal-
Mart may be hiring illegal immigrants in violation of the law.

Ethical Factors
Wal-Mart is such a powerful company that its decisions will have a direct impact on all its
suppliers and might even result in them filing for bankruptcy or shutting down, causing
thousands to lose their jobs. In an ethical way, the retailer does not weigh the consequences or try
to reduce the impact as long as the decision is beneficial to itself.

Industry Environment
Potential Threats of Substitutes
Small -scale retailers such as Dollar General which catered to the low-income customers are
proving to be among the companies that Wal-Mart needs to be wary of. While the target market
seems to be the fastest growing segments of the population in US, the suppliers are also
generally satisfied working with Dollar General, as compared to Wal-Mart and its suppliers.

Intensity of Rivalry (International Market)


Penetrating into the international market has been quite difficult for Wal-Mart because it is not as
powerful and reputable as it is in US, unlike the major international players such as Carrefour,
Metro and Tesco. There are more competitors that Wal-Mart has to face in the international
market.

Competitor
Current Strategies
Competitors like Carrefour are using their longer experience in the international market to their
advantage. Carrefour has been accused of leaning on suppliers to choke Wal-Mart’s supply lines.
Another strategy Carrefour employs is to demonstrate a new variation of the ‘Everyday Low
Price’ where its employees are found in Wal-Mart’s parking lots to distribute fliers, showing
price comparisons with the prices at Wal-Mart at an almost real-time basis.

Assumptions
Major retail players like Carrefour and Tesco believe that they have the upper-hand in the
international market as they are more experienced and understand the markets better. Besides
that, they already have established reputations among the suppliers and will be more credible as a
retailer as compared to Wal-Mart.

Internal Environment
Reputation with Customers
By providing low prices for customers especially those living in the rural areas, many are
grateful that they can save up. In addition, Wal-Mart has become so powerful that it is able to sell
well-known brands at lower prices and thus proving the superior value it brings to its customers.

Capabilities
Wal-Mart is equipped with first-hand information about consumer preference data by having
suppliers to attach remote frequency devices (RFID) technology in all their packaging to track
individual items sold in the store. To improve efficiency of all business transactions with the
suppliers, Wal-Mart’s suppliers also have to an electronic data interchange (EDI) called Retail
Link that will track all business transactions with the giant retailer.

Core Competency
In the recent years, most of the sales of more than 30,000 suppliers are done through Wal-Mart
and this puts the retailer in a very favourable position for negotiation of the prices of the
products. With great foresight about the retail industry, the company is always ahead of the rest
especially in terms of efficiency and delivering its promise to its customers.

Stakeholders of Wal-Mart
 Suppliers
The suppliers have become over- reliant on Wal-Mart and need the retailer more than the retailer
needs them. Thus when Wal-Mart is determining the prices and thus drawing out significant
price concessions from its suppliers, they are willing to comply and absorb any additional prices
to make the giant retailer appease.

Besides that, the suppliers also have to meet the terms set by Wal-Mart, such as the automated
technology demands to have the Retail Link for their business dealings with Wal-Mart and the
RFID technology in all their packaging. Suppliers are also expected to show up just when they
are needed in the case of deliveries as they will be due for payment for any delivery that they
miss or delay.
 Employees
Employees have sued Wal-Mart for numerous reasons, showing their dissatisfactions with the
company. Wal-Mart has been accused of making the employees work overtime without any
allowance, paying low wages and involved in unfair labour practice against women in separate
occasions.

SWOT
(S)trengths
Has its own logistics as well as its own trucks and a private satellite

A systematic and controlled management practice with the suppliers

First-hand data about customer preference, more insight into the target market

(W)eaknesses
Wal-Mart’s image problem where the supplier are intimidated by it

Ignores price increase- resulted in the suppliers shutting down, be forced into a merger/ transfer
the production overseas

Indirectly linked to thousands losing their jobs

(O)pportunities
Wal-Mart as a willing teacher, constantly educating the suppliers with new technique to tackle
cost control and efficiency – more would be ready to work with it

(T) hreats
Unreliable employees because of how they are treated by Wal-Mart

Upstart chains like Dollar General contesting Wal-Mart’s position in the US retail market

Review of Present Situation


Though Wal-Mart is a powerful retailer in US and around the world, it does not maintain a
positive image with its suppliers and the public. It may be looked upon in cases where people
analyse its success but people may remember the negative aspects of the company better.

Recommendations
Create a positive image of Wal-Mart
To avoid being blamed for all the jobs lost when a supplier could not live up to Wal-Mart’s
expectations, the retailer should try to such situations whenever it can. For example, it could
compromise with a supplier regarding the prices of the stocks when the prices increase. Other
than that, it can donate to charitable organisations as a way of showing that the retailer also cares
and gives back to the society. Wal-Mart could also create a fund to aid jobless people until they
get another job.

10. Discuss, in consultation with others, how change transition is designed by strategic
leaders and managers (C2)
Walmart has to make some adjustments to its current structures in order to succeed in the
Chinese market. It is imperative to note that the Chinese market advocates for low prices for
products, as well as high quality. Walmart has been able to maintain low prices.

However, it has not focused a lot on the quality of its products. As a result, it might not succeed
in China unless it improves on its product quality and maintain the low prices. Low prices and
high quality will be the only way that the company can win the loyalty of Chinese consumers
(Chuang et al., 2011).

Walmart also needs to change its marketing strategies since the Chinese market is different from
other markets where Walmart operates. First, Chinese people are known for being brand
conscious.

It is the brand that usually influences their decisions; therefore, Walmart should be able to
maintain its brand in the market. It should focus its efforts mainly on conducting promotions that
attract masses, as well as incite the consumer emotions into buying its products. This can be
achieved by use of salespersons.

Finally, Walmart needs to adjust its partial current centralization strategy that it has adopted in
pursuing its operations. China is known to be a less homogeneous market. As a result, Walmart
needs to decentralize its strategies and approach in the Chinese market.
This will give more freedom to allow room for decision making by the organization that is more
fitting to the Chinese market. The managers will be given the freedom to enter into business
deals and agreements with suppliers, thus making business operations easy (Chuang et al. 2011).

Decentralized decision making increases chances of innovation. Different employees have


different ideas that can be of importance to the entire organization if they are paid attention to.

China believes in innovation and, therefore, the Chinese give all employees a chance to make
their contribution in decision making. This is also a way of motivating employees to work hard
since they feel they are part of the organization.

11. Critically evaluate ways in which strategic management enabled the conditions for
organisational change in a given context (C3)
Business process modeling is a technology aimed at modelling business processes and analyzing
them with the objective of using the analyses to drive process transformations. Business process
modeling tools have underlying capabilities such as simulation that helps business analysts to
understand and quantify the impact of different process transformations on process Key
Performance Indicators (KPIs). Even though business process modeling is widely used, analytic
capabilities such as simulation are used to a much lesser degree because developing and running
simulation models and interpreting their results is seen as a complicated activity by a majority of
business analysts. As a result, many business analysts consider such tools as only suitable for
experts in the field and are hampered in unlocking the full potential of business process
modelling for identifying and assessing business process transformation options. Hence, there is
a need for researching approaches that enable business analysts to use quantitative analysis
methods easily towards the overall objective of business process transformation..

 Business process transformation is the fundamental rethinking and radical redesign of


business processes to achieve dramatic improvements in critical, contemporary measures
of performance, such as cost, quality, service, and speed
 Business process Transformation is a top-down approach.
 It is not about projects carried out in isolation to examine a specific activity.
 Business process transformation is about looking at entire processes, rather than at
specific activities or functions.
 It also needs to be customer-centric and look at the chain of activities leading to the
customer output (whether that is service or product).

Wal-mart’s mission statement: “Wal-mart mission is to enhance and integrate our supplier
diversity programs into all of our procurement practices and to be an advocate for minority- and
women-owned businesses.”

‘To give ordinary folk the chance to buy the same thing as rich people’

Behaviours that needed for achieve the mission and aim

 Optimize resource capacities

This pattern results in potential reduction of operating costs, by reducing resource capacities in
different roles.

 Optimize resource scheduling policies

This pattern results in potential improvement in service and reduction in cost, by refining the
scheduling policies governing the allocation of resources to different activities.

 Combine roles

This pattern results in potential reduction in operational costs, by creating new roles in the
process, by aggregating multiple existing roles.

 Change branching probability

This pattern results in potential operational improvements, by modifying the probability that a
specific branch is chosen by a token. The change in probability may in turn be realized by
different means, such as employing improved technologies for managing flows, etc.

 Introduce business integration solutions, IT (InformationTechnology) systems

This pattern results in potential improvement in operating costs, by automating the process using
business integration and other information technology

Stake holder analysis


The purpose of stakeholder analysis is to inform the Project Board and Project Manager who
should contribute to the project, where barriers might be and the actions that need to be taken
before detailed project planning.

Key stakeholders of Wal-Mart

A Key stakeholder is a stakeholder whose interest in the project must be recognised if the project
is to be successful. In particular, those who may be positively or negatively affected during the
project or upon successful completion of the project

 Shareholders
 The management authority of the BPL
 Employees
 Physicians / Doctors
 Related banks
 Participants
 The retaile
 The distributor
 Supplier

The non key stakeholder

A Non-key stakeholder is a stakeholder who does not need to be recognised in order for the
project to be successful, but will be identified as s result of the process of identifying all
stakeholders

 Pressure group
 Taxation authority
 The Standard testing Institute
 Local community
 Political influences
 International policy

System modelling

 The 7-S-Model
The 7-S-Model is better known as McKinsey 7-S. This is because the two persons who
developed this model, Tom Peters and Robert Waterman, have been consultants at McKinsey &
Co at that time. Thy published their 7-S-Model in their article “Structure Is Not Organization”
(1980) and in their books “The Art of Japanese Management” (1981) and “In Search of
Excellence” (1982).

The model starts on the premise that an organization is not just Structure, but consists of seven
elements:

Strategy

Actions a company plans in response to or anticipation of changes in its external environment.

Structure

Basis for specialization and co-ordination influenced primarily by strategy and by organization
size and diversity. Systems Formal and informal procedures that support the strategy and
structure.

Style / Culture

The culture of the organization, consisting of two components: Organizational Culture: the
dominant values and beliefs, and norms, which develop over time and become relatively
enduring features of organizational life.

Staff

The people/human resource management – processes used to develop managers, socialization


processes, ways of shaping basic values of management cadre, ways of introducing young
recruits to the company, ways of helping to manage the careers of employees

Skills

The distinctive competences – what the company does best, ways of expanding or shifting
competences

Super ordinate goals


These represent the aspirations of the organisation, the beliefs, the principles and aims which
should pull it towards success. A shared view of this within the organisation is a powerful
competitive advantage for an organisation to develop

Resources:

 Recourses needed for achieving the new markets


 Established a new plant for production
 Ensure better quality
 Set up new marketing channel specially for the international markets
 New management and trained staff
 Finance
 Political support
 Marketing environment

Implementation

Implementing the Change

A practical understanding of how people and organizations respond to change. This is received
by a exporters to understanding how change unfolds helps reduce the amount of unproductive
behavior that may accompany the implementation of a new technical solution by reducing the
amount of uncertainty involved in change. Reduced uncertainty alleviates surprises and better
equips people to focus time and energy on the technical solution.

The manner in which change unfolds can be broadly grouped into seven key concept areas.
These areas are:

 Nature. The impact of change on the individual.


 Process. The typical flow of change.
 Roles. The positions that are central to change.
 Resistance. The reactions that accompany change.
 Commitment. The process by which individuals and organizations align with change.
 Culture. The organization’s past and present ways of doing things and the influence of
these behaviours on the change.
 Synergy. The impact of teamwork on the change.
 Making Good Decisions

Decisions are the alignment of an organization’s current and planned changes with the resources
available for implementing the initiatives.

For an organization to be successful in implementing change, it must ensure that the demands
created by its change initiatives do not exceed the organization’s capacity for executing the
changes. When change demands exceed the organization’s capacity for change, key resources
become overwhelmed by the number of changes competing for their time. The result is an
increase in dysfunctional behavior that detracts energy from the implementation effort and, in
many cases, impedes its process.

Ensuring adequate capacity for existing and planned change demands generally involves:

 Inventorying current and planned changes and evaluating them to determine their
potential value, impact, and resource requirements.
 Prioritizing changes according to this evaluation.
 Determining current capacity to implement changes.
 Trimming current and planned changes as necessary according to capacity limits.
 Developing and implementing strategies to increase overall change capacity to expand
organizational adaptability.
 Structured Implementation Architecture: The structured plan for achieving the desired
goals through implementation of the perceived change solution.

Following a structured, yet flexible, implementation framework reduces errors and oversights
and allows a team to proactively address issues that are routinely associated with the failure of
organizational changes. Such a structured framework consists of seven phases which, when
applied as a system, facilitate successful implementation of an initiative.

The seven phases are:

 Clarification. Development of a comprehensive vision and measurable outcomes that are


wholly shared by key leaders.
 Announcement. Development and execution of a detailed communication plan.
 Diagnosis. Assessment of critical risks and key levers associated with the change.
 Planning. Development of comprehensive strategies to mitigate risks and use levers
identified in the diagnosis phase.
 Execution. Implementation of developed strategies
 Monitoring. Continuous assessment and augmentation of an implementation sequence.
 Evaluation. Assessment of a complete implementation sequence, and documentation and
transfer of key learnings.

12. Evaluate the importance of employee engagement to organisational change (C4)


With our position as one of the world’s largest private employers and a major contributor to the
global economy, Walmartseek to accelerate the professional development and advancement of
our associates and the general workforce through good jobs, competitive compensation and
benefits, training and education programs, growth-oriented career paths and Walmart and the
Walmart Foundation’s philanthropic programs, as further described below.

Inclusion: Walmartaim to build diverse and inclusive teams throughout our business. Our efforts
include offering jobs with low barriers to entry, providing support and opportunities to develop
and advance, identifying opportunities to further enhance diversity across all levels in the
organization, as well as providing multiple avenues to engage with and provide feedback to
management and company leadership.

Well-being: Walmartare focused on the financial, physical and emotional well-being of our
associates. Walmart provide competitive total compensation and benefits packages, including
paid time off (which includes sick leave) and medical coverage to eligible associates, and
Walmart seek to improve job experiences through approaches such as scheduling that is
predictable, yet flexible.

Growth: Walmart continues to design and invest in programs that help our associates develop the
skills and knowledge they need to advance within our company. Walmart provide on-the-job and
specialized training, redesigned roles with a focus on cross-training and mobility, and for eligible
U.S. associates, the chance to complete higher education debt-free through Live Better U (LBU).
Digital: To meet evolving customer expectations, Walmart empower our associates through
digital tools and prepare them for the digital present and future, including newer roles supporting
our omni-channel business.

Strengthening workforce development beyond Walmart: Walmart use philanthropy and our
ability to convene to strengthen the U.S. frontline workforce development system in retail and
related sectors, with an emphasis on engaging employers and funders in innovative approaches to
training and advancement.

Key strategies & progress

Inclusion, Well-being ,Growth ,Strengthening workforce development beyond Walmart

Inclusion

Access to employment

Entry-level jobs provide economic opportunity and paths to upward mobility, but sometimes
people face barriers to employment. While employers use education degrees as a proxy for
proficiency, such requirements do not necessarily correlate to skill, nor do they measure work
ethic or accurately predict growth potential. Walmart use various strategies to increase access to
make our overall workforce and talent pipeline more diverse:

Since 2015, Walmart in the U.S. has:


Expanded benefits while raising minimum starting wages by more than 50%Built one of the
largest private employer training programs in the countryCreated an in-house skilling capability
that allows the company to introduce new innovations and accompanying training at
scaleLaunched a college program designed for adult working learners to graduate debt-free
through Live Better U

Low barriers to employment: Walmart offers thousands of different kinds of jobs, creating a
place for everyone. For some it’s a first job and for others a second chance.

Countering degree inflation: There are many roles in the U.S. job market, especially in the
service sector, where a college degree should not be required for career access and mobility. For
example, Walmart do not require Walmart store managers, who earned an average of
approximately $210,000 in FY2021, to have a college degree. According to a Harvard Business
School study, people of color are disproportionately impacted by degree inflation, and this
inequity is likely to grow due to the impact of COVID-19.

Valuing work experience: As an employer, Walmart values skills and knowledge gained through
work experience. Walmart believe an emphasis on relevant skills and knowledge over
educational pedigree makes it easier for job-seekers to find employment and to advance.

COVID-19 hiring: In 2020, our role as an access employer expanded to include hiring those
displaced from jobs due to the impacts of COVID-19. In 2020, Walmart hired more than 500,000
new associates globally.

Formerly incarcerated applicants: Walmart adopted “ban the box” more than 10 years ago.
Today, we’re also working to help address root causes of racial disparity across societal systems,
including criminal justice. Walmart are looking at more ways to re-shape hiring practices to help
non-violent, formerly incarcerated applicants and support them as they re-enter the workforce.

Due to the long-term economic impacts of the COVID-19 pandemic, Walmart expect that access
to jobs will continue to be an urgent societal issue in 2021 and Walmart remain committed to
helping people find meaningful work.

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