Answer To: Team Assignment – Report & Presentation ITECH2304 Emerging Information Systems CRICOS Provider No....
Amar answered on May 15 2021
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Running Header: Emerging Information Systems Team Assignment – Report
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Emerging Information Systems Team Assignment – Report
Emerging Information Systems Team Assignment – Report
Executive Summary
The company identified for undertaking this study is Walmart Inc. and this company tops the ranking list published by Fortune magazine. This report was undertaken with an aim of detailed assessment and presenting the industry background, the business model / business environment analysis, review of IT infrastructure, review of various ERP systems, and recommending the most suitable one for Walmart Inc. On the basis of detailed industry, business, and IT infrastructure analysis undertaken with respect to the company, the ERP system proposed for Walmart Inc. is SAP S/4HANA.
Table of Contents
Executive Summary 2
1. Introduction 4
2. Industry Background 4
3. Business Model & Environment 7
SWOT Analysis 7
Porter’s Five Forces Evaluation 8
4. IT Infrastructure 10
5. ERP System Review 12
6. Recommendation & Justification 14
7. Conclusion 15
Reference List 16
1. Introduction
The company identified for undertaking this study is Walmart Inc. and this company tops the ranking list published by Fortune magazine (Fortune, 2019). This report aims in undertaking detailed assessment and presenting the industry background, the business model / business environment analysis, review of IT infrastructure, review of various Enterprise resource planning (“ERP”) systems, and recommending the most suitable one for Walmart Inc.
Industry Background
Walmart Inc. cannot be stated as not just largest of the retailers across the globe, the entity at present ranks in being largest sized corporation across the globe (Walmart Inc., 2019a; Walmart 2019b). This retail behemoth essentially dwarfs even the nearest competition and generates about three times of revenues as compared to the other global retailer, Carrefour SA based in France (Walmart Inc., 2019a; Walmart 2019b). At a domestic level, Walmart Inc. has over ~1 million employees therein making the company to be largest of non-governmental employers in United States (Walmart Inc., 2019a; Walmart 2019b). Walmart Inc. in essence competes against with major companies within retail industry like that of Amazon and the subsidiary of Amazon, that is, Whole Foods Market, and also others like Home Depot, Costco Wholesale, eBay Inc., etc. (Walmart Inc., 2019a; Walmart 2019b). This wide and varied competition environment essentially compels Walmart Inc. in developing suitable strategies for protecting its business against varied issues within the industry environment.
Overall, Walmart has attained the leadership position in the domestic as well as the global market on account of its strategy focussed on cost leadership. The company, however, is required in being aware of various competitive forces on account of the competitors, overall threats from substitutes, threats from any new entrants, customers, and suppliers (Walmart Inc., 2019a; Walmart 2019b; Schuetz, 2015; Wheelen et al., 2017; Anwar & Hasnu, 2016). Let us consider one amongst its rival retailers, Target. Whilst Target does not undertake sale of things in the lower price strategy akin to the strategy of Walmart, Target continues to attract customers through the creation of amiable atmosphere / environment for shopping as well as increased number of product choices (Walmart Inc., 2019a; Walmart 2019b; Schuetz, 2015; Wheelen et al., 2017; Anwar & Hasnu, 2016). To the most extent while people walk inside the Walmart stores, they shall encounter crowded / noisy store environment /atmosphere. In addition, there are wide ranging product categories available at Walmart as well as that some of these product categories are not actually clear (Walmart Inc., 2019a; Walmart 2019b; Schuetz, 2015; Wheelen et al., 2017; Anwar & Hasnu, 2016). Hence, it shall take more time to the customers in locating products needed by them. In a contrast to this, Target stores can be noted to be cleaner as well as colourful. In general, there is not a case of numerous customers, as well as varied products get categorized by varied colours that shall be easier for the customers in seeing as well as making the stores in looking nice (Walmart Inc., 2019a; Walmart 2019b; Schuetz, 2015; Wheelen et al., 2017; Anwar & Hasnu, 2016). In recent times, whilst Walmart is getting blamed in driving work related opportunities by outsourcing to emerging economy nations, Target continues to build relatively good reputation in the manner of treating the employees in a better manner (Walmart Inc., 2019a; Walmart 2019b; Schuetz, 2015; Wheelen et al., 2017; Anwar & Hasnu, 2016).
In essence, Walmart has seen incredible success and effective business outcomes through its approach of cost reductions, attaining economies in scale, as well as implementing technologies for cost-cutting with an aim for gaining further market share as well as achieving corporate growth (Walmart Inc., 2019a; Walmart 2019b; LeCavalier, 2016; Anwar & Hasnu, 2016; Jenkins & Williamson, 2015). Right from the inception of Walmart, the promoter was adamant in adhering with the philosophy of discounted pricing. Early in this course, the organization learned using reduction in price levels for increasing the sales volume shall often be profitable over longer term as compared to increasing price for having higher levels of profit margin on a per item basis (Walmart Inc., 2019a; Walmart 2019b; LeCavalier, 2016; Anwar & Hasnu, 2016; Jenkins & Williamson, 2015). The said philosophy continues to remain one of the primary elements in the strategy / philosophy / culture of Walmart all through the forty-year course of the business. Numerous retailers employ the discounted pricing approach occasionally as the means for attracting the consumers. In contrast, Walmart realized in that for purposes of achieving sustainable levels of competitive price advantages, the company is required to provide lower prices across all times. In alignment to this core principle, Every Day Low Prices (“EDLP”) philosophy has been implemented by Walmart (Walmart Inc., 2019a; Walmart 2019b; LeCavalier, 2016; Anwar & Hasnu, 2016; Jenkins & Williamson, 2015). Wal-Mart is committed in passing on the savings for its consumers and therein lowering the everyday prices. For the purposes of achieving the same, Walmart in a continual manner strive in lowering the costs for purposes of lowering the prices as well as therein increase the sales volume (Walmart Inc., 2019a; Walmart 2019b; LeCavalier, 2016; Anwar & Hasnu, 2016; Jenkins & Williamson, 2015).
Business Model & Environment
SWOT Analysis
Strengths
· The huge scale / scope of its operations, resource capabilities, store networks, etc. are its huge assets with competitive advantages (Walmart Inc., 2019a; Walmart 2019b).
· Higher levels of competence with respect to its information systems capabilities
· The offering of wide-ranging set of products at the stores
· The continued and effective form of strategy in cost leadership
· The...