You will research a planned organizational change that is currently taking place in your respective workplaces. Using the concepts, theories, and models presented in the text and literature, you will...

Part 1: Introduction 1
Analysis of Organizational Change at Wal-Mart
In light of
Hargreaves’ Five Pillars of Purpose and Partnership
Part 1: Introduction 2
Wal-Mart: An Introduction
Wal-Mart is one of the largest retailers in the world. Wal-Mart began its operation in
the year 1962 (officially incorporated in the year 1969) by Sam Walton at Rogers Ark. Wal-
Mart’s common stock is listed in New York Stock Exchange as WMT (Reuters, n.d.). Wal-
Mart mission statement states that they are committed to offer best quality merchandises at
lowest price in their stores across the globe along with guaranteed satisfaction from online
shopping. Further, company’s vision statement states “Saving People Money, So That They
Can Live Better.”. In addition to this, they operate on three basic beliefs i.e. offering service
for customer, respecting individual, and continuously striving for excellence. Wal-Mart retail
outlets include general merchandise, Wal-Mart supercenter, Wal-Mart neighborhood, and
Walmart.com. At present, Wal-Mart is operating within 27 countries and it approximately
consists of 10,130 retail units (Yahoo! Finance, 2012).
Wal-Mart’s Drivers for Organizational Change
Wal-Mart has been known for offering different merchandise at lowest prices. For the
purpose, Wal-Mart gained efficiency in their supply chain. But earlier, Wal-Mart used to deal
with the environmental issues in a defensive manner. Further, Wal-Mart’s prime focus was
on keeping the cost low through optimizing their supply chain. Moreover, the traditional
supply chain process was becoming inadequate around the world due to climatic change as
well as scarce resources. With increasing concern of the government, non-government
organizations, and consumers towards sustainability and environmental impacts, Wal-Mart
had to focus on sustainability in all of their buying-decisions made at Wal-Mart. Thus, to deal
with this emerging issue, green supply chain is the way that help in extending corporate
social responsibilities through concentrating on how energy is used by the suppliers, how
customers will use as well as dispose the products, and others.
Part 1: Introduction 3
Wal-Mart’s Organization Change: Benefits and Ramification
Implementing Green supply chain at Wal-Mart will help them to boost their public
image, public relations, human resource development, helps company in getting permission
for opening store in new markets, increase their sales, gain partner’s loyalty, mitigating risk,
and in turn gain long run sustainability across the globe. But implementing Green supply
chain within Wal-Mart will need change within the organization, and in turn this will create
resistance within the organization. For instance, resistance from the suppliers was
experienced when they were asked to improve its energy efficiencies by 20% in their
factories. Further, it was believed that Wal-Mart’s Green supply chain is unsustainable as this
will lead to threat of increased upfront cost, threat from the small suppliers, and others.
Data collection
Data collection is done with the help of primary methods as well as secondary
methods. Interview was the primary method for collecting data. The interview was
administrated with the change agent and change recipient. Furthermore, Internet, journals,
newspapers, books, and annual reports were used for collecting secondary source of data.
Unfamiliar Terms Used
 Change: change is defined as the term that is no longer the same but is in state of the
flux or evolution (Pendlebury, Grouard, and Meston, 1998).
 Change agent: change agent is the person who takes the responsibility for managing
the process change, and the one who acts as catalysts (Fox, 2006).
 Change management – the process that is used for administrating change through
tested tools and techniques for avoiding any new errors as well as minimizing the
impact of the change process (Nickols, 2004).
Part 1: Introduction 4
 Organizational culture - organization culture is viewed as the concept that is shared,
taught to new and existing employees, a way to solve problems, and the concept that
influences behavior within an organization (Robbins, 2001).
 Suppliers – all individuals who are involved in extracting and transforming raw
materials, procurement of the raw materials, manufacturing products, and delivering
these products to customers.
 Supply chain – supply chain is the process that involves all the parties that are directly
or indirectly related to fulfilling customer’s request.
Part 2: Analysis of Planned Change 1
Dynamics of Change
Section 1: Content of Change
In the year 1989, Wal-Mart was one of the first retail outlets that launched retail
campaign for selling environmental-safe-products in biodegradable or recyclable packaging.
For the stated purpose, Wal-mart used green color shelf-tags for more than 300 products that
were green. But at this time, Wal-Mart did not monitor the compliance of standards by their
suppliers. This practice resulted in negative as well as adverse publicity of Wal-Mart. Soon,
the environmental issue and green tag strategy diminished within the Wal-Mart’s priority lists
(Plambeck and Denend, 2008). Further, Wal-Mart’s reputation as well as their brand image
was declining in the eyes of the consumers. Wal-Mart’s business practices, competitive
strategies, and labor policies were under question. Furthermore, Wal-Mart was facing
challenges related to meeting customer promise and delivering their value proposition –
EDLP (Every Day Low Price). This core business proposition of Wal-Mart requires effective
distribution, communication, and logistic system that help in purchasing of goods, their
storage, warehousing, deliver, and total control of cost. Initially, Wal-Mart basically focused
on achieving low cost operations, and thereby achieving profits and growth. But, with the
changing environmental factors like, increased competition, labor issues, empowering
women, preserving environment, and others; Wal-Mart has to widen their focus towards
building network of the employees, government agencies, nonprofits organizations, and
suppliers for transforming their supply chain to Green Supply Chain. This network strategy
will help Wal-Mart to reduce their environmental footprint, and in turn increase their
profitability. For the purpose, Wal-Mart announced their new business objectives of 1)
supplying 100% renewable energy; 2) creating zero waste; and sell products which sustain
Wal-Mart’s resources and environment (Scott, 2005). The proposed change at Wal-Mart
relates one of the pillars of change in the fourth way. Here, pillars of change in the fourth way
Part 2: Analysis of Planned Change 2
consist of five pillars which are an inspiring as well as inclusive vision, deepened
engagement of the public, achievement through the investment, corporate educational
responsibility, and students as the partners (Chapman and Gunter, 2009). Wal-Mart’s change
process is related to following pillars of fourth way:
 An inspiring as well as inclusive vision – this vision will bring all people together for
uplifting the common purpose which connects all the people to a bigger objective and
innovative future. Wal-Mart’s change process for implementing Green supply chain is
an inspiring vision that will help Wal-Mart to reduce their pressure of increased
production expenses, implement innovation, and effective balancing of the
conventional and green products within their stores. This strategy will help Wal-Mart
to attract new customers, retain existing customers, cannibalize sales of their
conventional products, reduce waste, and minimize their footprint on the
environment.
 Achievement through the investment – this is relates to shared-social-responsibility
for creating better opportunities and increased investment in social services. This is
linked with the Wal-Mart’s change process within its supply change will helps them
to reduce their impact on the environment, differentiate themselves from their
competitors, maintain the license for continuous growth, and gain higher efficiencies
in their supply chain. Thus, this organization change at Wal-Mart will help them to
gain expertise in their environmental performance and sustainability.
 Corporate educational responsibility – corporate social responsibility is to be
practiced at every level and everyone should be equally responsible and accountable.
This pillar is linked to the Wal-Mart’s change process as Wal-Mart reached to their
stakeholders, including government agencies, non profits organizations,...