Retailing

Term Report
ON

GROUP MEMBERS
MUHMMAD IQBAL TAHIR (MBA13-31)
FARAZ AHMED KHAN (MBA 13-32)
FIAZ AHMED (MBA13-30)
MUDASSIR SAEED (MBA 13-29)

DEPARTMENT OF BUSINESS ADMINISTRATION

BAHAUDDIN ZAKARIYA UNIVERISTY
SUB CAMPUS SAHIWAL

Table of Contents
Introduction.....................................................................................................1
What is retailing?..............................................................................................1
Why is retailing important?.................................................................................2
The future of retailing........................................................................................2
What is walmart?..............................................................................................3
Early history....................................................................................................3
Cross-docking..................................................................................................4
Technology..................................................................................................5
Economies of scale............................................................................................5
Distribution.....................................................................................................5
What kind of retailing store is wal-mart?.................................................................6
Wal-mart core competencies................................................................................6
Marketing mix of walmart...................................................................................8
Product.......................................................................................................8
Price...........................................................................................................8
Place..........................................................................................................8
Promotions...................................................................................................9
HR in Walmart...............................................................................................11
Walmarts employee training..............................................................................11
Performance management at walmart...................................................................12
Walmarts Compensation Strategy....................................................................14
Information Systems.....................................................................................15
Type of data..............................................................................................15
Type of information....................................................................................16
Type of knowledge.....................................................................................16
Transaction process system (tps).........................................................................17
Relationship marketing has 4 key components:.......................................................18

Introduction
What is retailing?
Retailing involves set of business activities that adds value to the products and
services sold to consumers for their personal or family use. Department stores, like Metro
Cash & Carry Pakistan (Pvt) Ltd., discount stores like Wal-Mart and K-Mart, and specialty
stores like Zales Jewellers and Toys 'R' Us, are all examples of retail stores. Service
providers, like dentists, hotels and hair salons, and on-line stores, like Amazon.com, are also
retailers.
Many businesses, like Home Depot, are both wholesalers and retailers because they
sell to consumers and building contractors. Other businesses, like The Limited, are both
manufactures and retailers. Regardless of other functions these businesses perform, they are
still retailers when they interact with the final user of the product or service.

Manufacturer
Distributors/Wholesalers

Retailers

Consumers

Retailers

Manufacturer

Distributors/Wholesale
Consumers

rs

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Why is retailing important?

As the final link between consumers and manufacturers, retailers are a vital part of
the business world. Retailers add value to products by making it easier for manufactures to
sell and consumers to buy. It would be very costly and time consuming for you to locate,
contact and make a purchase from the manufacturer every time you wanted to buy a candy
bar, a sweater or a bar of soap. Similarly, it would be very costly for the manufactures of
these products to locate and distribute them to consumers individually.

By bringing

multitudes of manufacturers and consumers together at a single point, retailers make it

possible for products to be sold, and, consequently, business to be done.
Retailers also provide services that make it less risky and more fun to buy products.
They have salespeople on hand who can answer questions, may offer credit, and display
products so that consumers know what is available and can see it before buying. In addition,
retailers may provide many extra services, from personal shopping to gift wrapping to
delivery, that increase the value of products and services to consumers.
According to the National retail federation, 1 in 5 American workers are employed
in the retail industry. The Department of Labour estimates that since 1990, 700,000 new jobs
have been created in the retail sector. That's 13% of all new jobs in the United States. At
present, more jobs are provided in retailing than the entire U.S. manufacturing sector.

The future of retailing

Advances in technology, like the Internet, have helped make retailing an even more
challenging and exciting field in recent years. The nature of the business and the way
retailing is done are currently undergoing fundamental changes. However, retailing in some
form will always be necessary. For example, even through the Internet is beginning to make
it possible for manufacturers to sell directly to consumers, the very vastness of cyberspace
will still make it very difficult for a consumer to purchase every product he or she uses
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directly. On-line retailers, like Amazon.com, bring together assortments of products for
consumers to buy in the same way that bricks-and-mortar retailers do.
In addition, traditional retailers with physical stores will continue to be necessary.
Of course, retailers who offer personal services, like hair styling, will need to have face-toface interaction with the consumer. But even with products, consumers often want to see,
touch and try them before they buy. Or, they may want products immediately and won't want
to wait for them to be shipped. Also, and perhaps most importantly, in many cases the
experience of visiting the retailer is an important part of the purchase. Everything that the
retailer can do to make the shopping experience pleasurable and fun can help ensure that
customers come back.

What is walmart?
Wal-Mart, in full Wal-Mart Stores, Inc.American operator of discount stores. One of
the worlds biggest retailers. Its headquarters are in Bentonville, Ark. Wal-Mart was founded
by Sam Walton in Rogers (1962) .Wal-Mart is a mass merchandiser. Its the worlds largest
retailer. It has over 11,100 stores in 27 countries. With a market cap of over $275 billion, it
ranks among the top ten companies in the S&P 500 Index (SPY).The company generated net
sales of over $483 billion worldwide in the last 12 months. Thats more than four times other
major companies in the retail industryCostco (COST) at $114.5 billion, Kroger (KR) at
$106.5 billion, Carrefour SA (CA.PA) (CRRFY) in France at $100 billion, Tesco (TSCO.L)
(TSCDY) in the United Kingdom at $102.6 billion, and Target (TGT) at $73.7 billion.

Early history
Wal-Mart was founded by the Waltons. Co-founder Sam M. Walton opened a
franchise Ben Franklin variety store in Newport, Arkansas in 1945. His brother, James L.
Walton, opened another store in Versailles, Missouri the following year. Wal-Mart was
incorporated in 1969 in Delaware. In 1962, Wal-Mart first discount store, Discount City,
started operations in Rogers, Arkansas. The first Sams Clubs were established in 1984. WalMarts first supercenter format started operations in 1988.Wal-Marts first overseas venture
began in the early 1990s in Mexico. Since then, the company expanded its operations to 25
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other countries including the United Kingdom, Japan, Brazil, China, Canada, Argentina,
Chile, India, and parts of Africa and Central America
Managing Walmarts Supply Chain Cross-Docking and Other Tools
When you drop by Walmart, you are witnessing one of historys greatest logistical
and operational triumphs. According to Supply Chain Digest, this retail giant stocks products
made in more than 70 countries and at any given time, operates more than 11,000 stores in 27
countries around the world, and manages an average of $32 billion in inventory. With these
kinds of numbers, having an effective and efficient supply chain management strategy and
system is imperative. The entire organisation is committed to a business model of driving
costs out of supply chains to enable consumers to save money and live better.

Cross-docking
Cross-docking is an inventory management system. The retailer made it popular.
Through cross-docking, inbound shipments are unloaded directly into outbound trailers at
distribution centers. Cross-docking can lower the time required to transport merchandise.
Also, it lowers the inefficiencies in the system. It saves the retailer billions in storage costs.
It gives the retailer leeway to implement its everyday low price, or EDLP, strategy.
The EDLP strategy is important to gain trust among customers. This philosophy emphasizes
the retailers commitment to offer low prices to the customer every day. This ensures that
buyers dont stay away in the hope of frequent promotional activity.
Lowering supply chain costs also helps in the economics of implementing programs
like the Savings Catcher, Save Even More, Ad Match, and rollbacks. Read more on
Walmarts competitive price programs in Part 20 in this series.

Technology
In its relentless pursuit of low consumer prices, Walmart embraced technology to
become an innovator in the way stores track inventory and restock their shelves, thus
allowing them to cut costs.
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Technology plays a key role in Walmarts supply chain, serving as the foundation of
their supply chain. Walmart has the largest information technology infrastructure of any
private company in the world. Its state-of-the-art technology and network design allow
Walmart to accurately forecast demand, track and predict inventory levels, create highly
efficient transportation routes, and manage customer relationships and service response
logistics.

Economies of scale
In the last 12 months, Walmart earned over $483 billion in revenue. Thats more
than the following four companies combinedCostco (COST), Kroger (KR), Tesco
(TSCDY) (TSCO.L) in the United Kingdom, and Carrefour SA (CA.PA) (CRRFY) in France.
Walmart spent over $358 billion to purchase merchandise for its stores in fiscal year
2014. That kind of scale gives the company immense bargaining power with its suppliers. At
the same time, its a huge task to juggle the large number of suppliers from across the world.

Distribution
Wal-Mart uses a combination of owned and leased facilities and fulfilment centres
to distribute its products. In the US, about 80% of Wal-Marts products were shipped from
these facilities in fiscal year 2014. Suppliers transported the rest of the products directly to
the stores.
Fulfilling the e-commerce promise
Lately, Wal-Mart has also been using its network of supercenters and other retail
stores to double as fulfilment centres for e-commerce sales. This is an especially important
element of Wal-Marts supply chainif the retailer wants to stay relevant in the fast-paced
world of e-commerce.
Amazon (AMZN), Wal-Marts nemesis in online sales stakes, is quickly expanding
its network of fulfilment centres. Wal-Marts existing store network gives it a natural
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advantage over Amazon. As a result, Amazon is being forced to invest more in distribution.
For more on Wal-Mart and Amazons exciting rivalry in e-commerce, read Parts 1719 in this
series.
Wal-Marts stores are also being used to offer the click-and-collect facility to
customers. Customers can order online and collect their purchases at selected outlets. The
service is being tested for groceries. Its only available at about five locations in the US.
However, its being used more extensively in countries like the United Kingdom.

What kind of retailing store is wal-mart?

Wal-Mart Stores, Inc., doing business as Wal-Mart, is an American multinational
retail corporation that operates a chain of hypermarkets, discount department stores and
grocery stores.

Wal-mart core competencies

Wal-Mart is the largest public corporation according to the Forbes Global, it has
been running chain of stores and warehouses nationally and internationally.Wal-Mart has
been providing the thousands of brands under one roof at low cost compared to its
competitors.
Wal-Mart has competitive advantage over its competitors because of the following
core competencies.
As promised in its slogan Wal-Mart has been providing products at lower prices, it
is possible due to the low cost operations. Wal-Mart shares the value of low cost with
customers by selling the products at lower prices.
Hard working, efficient and process oriented employees have been working with
Wal-Mart.
Better use of technology to directly connect with supplier and partners.
Implemented Just-in-time inventory process to reduce the cost of managing
inventory at Warehouses

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In summary. Wal-Mart core competencies are employees,cost efficient processes

and relationship with supplier and partners by using technology.
Wal-Mart consumer behaviour shows buying green is going mainstream
BENTONVILLE, Ark., April 21, 2008 On the eve of celebrating Earth Day, WalMart issues new consumer research that shows shoppers are considering the environment
before making a purchase. Today the retailer announced an adoption rate increase of 66
percent from last year in its sustainability Live Better Index, which has been tracking
consumers decisions to purchase five key eco-friendly products since April 2007. This
growth in the sustainability index shows that concern for the environment has a growing
presence in shopping baskets of the retailers 200 million annual customers.
The sustainability Live Better Index follows the adoption rates sales compared to
other products in the category of five eco-friendly products based on Wal-Mart sales data.
The overall adoption rate of these products serves as a nationwide trend indicator of
consumer demand for green products. These products were selected because consumers can
make a conscious decision to purchase them for their environmental and cost-saving benefits
versus other products in the same category.
When the sustainability Live Better Index was established, we wanted to help
Americans understand that environmental choices were accessible and affordable for
everyone, said Stephen Quinn, chief marketing officer at Wal-Mart. The fact that product
adoption has increased dramatically in one year shows that the decisions our customers make
in the aisles coupled with Wal-Marts commitment to providing more eco-friendly choices at
the best value is helping consumers and the planet live better together.

Marketing mix of walmart

Walmart ranks no.1 in the fortune 500 list for the second consecutive year with a
revenue of 421,849.0 Million USD and made a profit of 16,389 Million USD during the
FY2011. It was founded in the year 1962 by Sam Walton.
Product
Walmart is a multinational retailer; in short it has every product or a brand which a
person could see in his day to day life. The broad range of product categories include movies,

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crafts, gifts, college essentials, Electronic items, home appliance, jewellery, photo centre,
toys, outdoor living, funeral, grocery, video games etc
Price
Walmart business model doesnt include manufacturing of any product; it procures
products across the globe in large quantities in order to enjoy benefits of economies of scale.
This makes price of Walmart to offer products at 15% lower price than other retailers.
Walmart uses different pricing concepts to get focus of the customers and compel a
purchasing behaviour through discount strategies. Sam Walton coined the term Always
lows prices and Everyday low prices; according to this each product is offered at different
discount prices based on the time and demand of the hour. The consumer electronics are
offered at a very low price compared to other retailers.
Place
Walmart has more than 10,020 retail units which is spread across 28 countries and
operates under 60 banners. It sells both by brick and mortar (traditional stores) and Brick and
click (e-commerce) formats. The average size of each Walmart store is more than a 1, 00,000
(1lac) square feet. Its store operations are categorized into following.

Walmart discount stores

Walmart super centers

Walmart neighborhood markets

Walmart express stores

Promotions
Walmart has its own in-store promotional activities which includes sales promotions
through product bundling and its pricing strategies. The online store of Walmart earns major
revenues from through customers placing online gifts. The pricing strategies adopted by
Walmart like Everyday low prices, value of the day increases the sales turnover. The
online store uses strategies to pull customer by attractive slogans like Grab it before its
done which pushes customer to take a purchase decision immediately before the deals get
expired.
Wal-Mart growth strategy
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Wal-Mart strategy drives growth and sustainable returns, Plans $20 billion share
repurchase program over two years
Market Penetration. Walmart uses market penetration as its main intensive strategy
for growth. Market penetration involves selling more goods or services to the current target
market. Walmart sells more goods and services to its current consumers by offering
discounts, promotions, and special packages. For example, the company offers discounted
wholesale packages of various goods.
Market Development. Walmart uses market development as its secondary intensive
strategy for growth. This intensive growth strategy involves entering new markets to sell to
consumers other than those that the company currently has. For example, Walmart establishes
new stores to achieve market development. The company opens new stores in overseas
locations to tap consumers in those markets.
Product Development. Walmart only minimally uses product development as an
intensive strategy for growth. In this intensive strategy, the focus is on offering new products
to the market. Understandably, Walmart does not invest much in new product development.
Instead, the companys efforts are on sales and marketing. Thus, product development is not a
significant intensive strategy in the firms growth.

The company provided a three-year strategic framework intended to

strengthen its U.S. and e-commerce businesses.

Net sales growth is expected to range between 3 and 4 percent annually over

the next three years, translating to $45 to $60 billion over the period.

Investments in people and technology to drive strong shareholder returns over

Capital investments will be approximately $11.0 billion for fiscal year 2017

time.

and will remain flat in fiscal years 2018 and 2019. This is below the revised fiscal year 2016
estimate of approximately $12.4 billion, primarily due to a moderation of physical store
expansion.

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Investments in e-commerce and digital initiatives are expected to total

approximately $1.1 billion in fiscal year 2017.

Wal-Mart success factors for international expansion
One of the best examples of the power of an explicit and systematic process to
analyze the complex set of factors involved in becoming a global player is Wal-Mart Stores
Inc., the largest retailer in the world. The company, which opened its first international store
(in Mexico City) in 1991, now operates in all 50 states, Puerto Rico, Canada, China, Mexico,
Brazil, Germany, Britain, Argentina and South Korea. Of a work force of more than 950,000,
it had more than 130,000 employees working in 729 facilities outside the United States by
July 1999.
Until its recent move into supermarkets, the retailer operated three types of outlets:
1) Wal-Mart stores, which offer clothing, linens, small appliances, hardware, sporting goods
and similar items; 2) Sam's Clubs, which offer bulk items to customers who purchase
warehouse memberships, and 3) Supercenters, which combine the inventories of a discount
store with a full-line supermarket.
Wal-Mart has pursued globalization aggressively since its first move across the
border in 1991. In 1993 just 1 percent of all Wal-Mart stores were located outside the United
States. By 1998, that had grown to 18 percent. Between 1995 and 1998, 5 percent of the
company's growth in sales and 4 percent of its growth in profits came from international
operations.

HR in Walmart
Walmarts Employee Retention Strategy
(Main article: Walmarts HRM: Recruitment, Selection, Employee Retention)
Walmart must maximize employee retention to minimize financial loss linked to turnover.
Higher turnover leads to higher financial loss, considering HR expenditure for recruitment,
selection and training. Employee retention at Walmart is achieved through a combination of
approaches. The companys human resource management uses the following employee
retention strategies:
1.

Recognition based on the employees performance

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2.

Benefits based on the employees status or position

3.

Incentives based on the employees status or position

Walmarts employee training

(Main article: Walmarts HRM: Training, Performance Management) In needs
analysis, Walmart determines how jobs fit the employees, and how these jobs fit the business
environment. For instance, needs analysis is used to determine if a workers needs are
satisfied. Walmarts human resource managers also use needs analysis to check if employees
satisfy the firms needs and requirements. Store managers conduct needs analyses. The results
are relayed to Walmarts corporate HR at the headquarters, where corporate managers
determine the changes and strategies needed in the workforce. A needs analysis at Walmart
reveals at least the following information:
1.

The need for diversified human resources in all Walmart locations

2.

The need for a more technologically savvy workforce

The program design for training at Walmart typically focuses on the performance of
sales personnel. Online delivery of the training program is included. However, the companys
human resource managers prefer traditional face-to-face training programs to ensure quality
of service at Walmart stores.
In the evaluation of effectiveness of training programs, Walmarts HR management
uses sales performance as a criterion. The company also uses feedback from supervisors and
employees on sales performance. Customer feedback further adds information that Walmart
human resource managers use to evaluate the success of employee training programs.

Performance management at walmart

(Main article: Walmarts HRM: Training, Performance Management) Performance
planning in Walmarts HR management involves a performance appraisal system. This
system provides feedback to employees on their performance levels. The company also gives
feedback to employees on how to improve their performance. In addition, the firm uses an
HR software product that analyzes individual and team performance levels. As a
recommendation, Walmart can use a micro-tailored appraisal system. The features of this
system vary based on the employee being appraised. The purpose of these activities is to
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allow Walmart human resource management to establish job responsibilities, specifications,

goals and objectives. The companys career development plan is also based on performance
plans.
Walmarts corporate objectives are linked to the performance management practices,
standards and measures through sales performance. The firm is mainly concerned about
maximizing sales revenues. Through its performance management activities, Walmarts
human resource management ensures support for sales performance through employee
productivity, especially sales personnel productivity.
Measurements and standards are used to evaluate if Walmarts human resource
performance is satisfactory. For each performance measure, the company has a set of
standards. Different HR standards are used for different areas of the business. The following
performance measures are used at Walmart:
1.

Effectiveness of processes

2.

Efficiency of processes

3.

Quality of customer service

4.

Timeliness of supply chain activities

5.

Productivity of sales personnel

Performance interviews are used at Walmart to provide more information for

appraisals. Performance interviews are conducted at least twice a year, so that the progress of
employees is regularly monitored. These performance interviews also allow Walmarts
human resource managers to obtain feedback from employees.
Walmart encounters performance problems like low employee morale and tardiness.
These HR problems reduce the firms financial performance. Walmart can address low
employee morale through job rotation and flexibility, incentives, and recognition for
employees high performance. The company can address tardiness through motivation
strategies and new policies, such as rules imposing a maximum percentage of tardy days per
number of workdays.
Career Development at Walmart

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(Main article: Walmarts HRM: Compensation, Career Development) For career

development, Walmarts human resource management uses its own training programs
regularly conducted to increase knowledge, skills and abilities. Training provides the
opportunity for employees to improve skills specific to retail business. Also, Walmart
supports employees to attend seminars and other programs outside the organization.
Walmart matches individual and organization needs through analysis of personorganization fit. Person-organization fit ensures that employees are aligned to the needs,
demands and expectations of the organization. This fit also ensures that the organization is
satisfactory to the worker. The person-organization fit is important in HR management
because it helps Walmart minimize expenses on recruitment, selection and training of
workers who do not fit the company. A higher person-organization fit leads to lower turnover.
Career opportunities and requirements are identified through Walmarts internal
business processes, job positions and expansion plans. When the company expands, more
career opportunities are created. Also, anybody pursuing a career at Walmart must satisfy the
firms job positions and business processes.
Employee potential is assessed at Walmart through a number of ways, including the
following HR activities:
1.

Appraisals matched with standards of the organization

2.

Feedback from managers, supervisors and colleagues

3.

Productivity based on records

4.

Individual employment record

5.

Personal interview results

Career development initiatives are instituted at Walmart through human resource

managers and supervisors of stores. The HR managers and supervisors implement the
initiatives with adjustments to suit the unique conditions of the individual Walmart stores.
Walmarts Compensation Strategy
(Main article: Walmarts HRM: Compensation, Career Development) Compensation
at Walmart is stratified. Pay is based on the job level relative to the organizational structure.

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Compensation is also partly based on the workers performance. This combination involves
pay grades and levels that correspond to different job positions in the company.
The types of individual incentive plans at Walmart include percentages of total
sales, and profit sharing for top personnel. The reason for implementing the sales percentages
is to encourage sales personnel to perform better. On the other hand, corporate human
resource management uses profit sharing to encourage managers to do more to improve the
business.
The success of Walmarts incentive plans is high. Sales performance is the core
consideration in the business. The focus of these incentive plans is on sales productivity and
performance. Thus, through these incentive plans, the human resource management directly
addresses such focus. These plans create significant boost for Walmarts business
performance.
A recommendation for Walmart is to use an incentive plan that gives better
incentives for low-ranking employees. Instead of focusing on supervisors and managers,
Walmarts HR management can increase incentives for sales personnel, who are the bottom
line and foundation of the business.
Walmarts incentive pay is focused on supervisors and managers. The company also
gives incentives to rank-and-file employees, but to a lesser degree. Thus, incentives tend to
have greater effect on managers and supervisors. Walmart can improve this imbalance in
human resources by giving equal emphasis on the incentives of managers, supervisors, and
rank-and-file employees.
Information Systems
Information systems used in Wal-Mart

o Size of different information system(s): Departmental

. Wal-Marts IS Department is very hierarchal. It includes a Business Analyst,
Senior Business Analyst, Manager, Senior Manager and levels below them. The department
of the information system is very structured and formal . It is so structured that they track the
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time spent on projects down to fifteen minute increments. Doing this keeps them on track for
budget and productivity metrics. Rollin Ford is the Executive Vice President and Chief
Information Officer of Wal-Mart Stores Inc. since 2006. His responsibility is all General
Merchandise, Fashion, Grocery, SAMS, Import, and Specialty Distribution Centres.
Type of data

Jane data center is the data center of Wal-Mart which has a capacity of 460 terabytes
of data. Which is a huge capacity of data available in the internet and it has helped Wal-Mart
become the biggest retailer in the world, and to the corporation's growing secrecy since
founder Sam Walton's death in 1992. To the power of data, Jane data center is considered a
mysterious icon. It helped Wal-Mart to become the biggest retailer in the world. When WalMart constructed its primary data center at corporate headquarters in 1989, it wasn't a secret,
it was the largest poured concrete structure in Arkansas at the time, and Walton himself
ordered a third story. According to the econometric society, Wal-Mart deals with the
following data: Store openings data which included the opening dates of Wal-Mart stores and
Supercenters. Also the data that Wal-Mart dealt with included distribution center opening
which show Opening dates of General Distribution Centers and Food Distribution Center

Type of information

the universal bar code was established after Wal-Mart pushed the retail industry ,
which made manufacturers adopt common labelling. The bar allowed retailers to generate all
kinds of information, creating a shift of power from manufacturers to retailers. Also Wal-Mart
became very good at using the information behind the bar code and is considered a pioneer
in developing sophisticated technology to track its inventory and cut the fat out of its supply
chain. The key to that was the power of the information that is hidden in the ubiquitous bar
code. Moreover , No one has used the technology as efficiently as Wal-Mart. The former of
Wal-Mart store ; Furthermore, The famous retail store Wal-Mart recently showed that it is
investing more in technology , dealing more with sales and production tracking. Wal-Mart
now requires its suppliers to provide microchips which will service radio frequency
identification, or RFID, which will greatly enhance the systems created by bar codes.
Descriptions provided through the tags are more detailed than those in a bar code, and Wal15 | P a g e

Mart will be able to have instant information on which products are selling and which
products are not well-received. This knowledge will be powerful when deciding which
products to purchase from its suppliers.

Type of knowledge

The giant chain stores Wal-Mart have created a major mark in the retail business
industry. It has a great effective knowledge management program that has enabled it to obtain
its competitive advantage even at unstable economic situations.
Moreover, Walmart met its goals by commitment with the business aims and the
balancing operations with the economy growth. as a result of the positive knowledge
management strategies that walmart followed , an important economic gin was achieved .
Also Walmart was able to focus on its strategic business operations into cutting operational
costs and creating a value for its shareholders by maintaining a good corporation knowledge
management strategies which was very useful . Furthermore, Wal-Mart managed to success in
productivity and making by using focused differentiation and walmart now is a leader of its
type in the whole world.

Wal-Mart faced many challenges at introducing the many

knowledge management strategies. the corporation's organizational growth was greatly

achieved by the change management analysis .

Transaction process system (tps)

This information system ordinarily automates routine and repetitive tasks that are
very important to the operation of the organization such as Point-of-Sale, preparing a payroll,
billing customers. The input of TPS is raw data; the processing involves with the
summarizing, recording, and merging the data and the output is in the form of report. One
example of TPS is Point-of-Sale when you check-out the product at the supermarket, the
cashier has to scan the product with the bar code that the input of system; The idea of bar
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code scanning required that industry develop a universal product code (UPC) system, a could
be a standard method for identifying products with numbers and coding those numbers as the
type of bar code shown in the photo .And it had many benefits found by Wal-Mart, were it

Ensure accurate pricing

Improve efficiency
Reduce Shrinkage
Improve communications

The use of bar code scanners made it easier were its unnecessary to put a price on
every item (but still important for consumer protection).This reduced costs so much.
The process involve with the calculating number of product multiple with the
price
of product and the output is in the form of receipt.
Customer Relationship Management of Wal-Mart
The Wal-Mart greeting was the original method used by the giant retailer to show
customers that they are appreciated. A greeter at the door thanks customers for coming in,
assists with a shopping cart, and provides a "goodbye thank you" upon departing the store.
The friendly senior citizen dressed in the blue vest conveys warmth and personality to every
guest entering or exiting a Wal-Mart store.

Relationship marketing has 4 key components:

* It has to be personalized. Personalization can come in the form of a highly
targeted direct mail piece, a phone call or email. Obviously the handshake and a smile
illustrated by Wal-Mart greeters also work well in personalizing the relationship.

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* It has to be targeted. Wal-Mart invests money in maintaining relationships with

existing customers. By targeting this group, Wal-Mart establishes long-term relationships
with their most loyal shoppers. Targeting customers through programs that reward loyalty can
result in big returns over the life of the customer.

* It has to be meaningful. Your marketing message has to connect in an emotional

way to establish a lasting relationship. If the Wal-Mart greeter did not look you in the eye
while saying "hello," the greeting would not have a lasting impact.

* It should be interactive. Many Wal-Mart greeters learn the names of frequent

shoppers. Walmart.com, a subsidiary of Wal-Mart Stores Inc., does a great job of asking for
the relationship online by providing special offers to those who supply their email address. It
is important to make relationship marketing interactive so you can hear feedback, determine
what is working and what is not.
Merchandize management in wallmart
Walmart has grown to be the worlds largest retailer by seeking every opportunity to
streamline its supply chain and cut costs in order to live up to its promise of everyday low
pricing. Getting there entails more than smart merchandising, however. Walmart also is a
leader in pioneering technologies to achieve operational efficiencies that ultimately bring
savings for its customers.
One such technology is radio-frequency identification, or RFID, which transfers
data stored on tags on a product or other object, facilitating identification and tracking. One
use of RFID technology familiar to many people is in vehicle transponders for toll
collections.
Walmart has been using RFID technology for about a decade and cites numerous
benefits, including more efficient inventory management. The company initially introduced
RFID to track pallets of merchandise traveling along its supply chain, including at
warehouses. In 2007, executives credited the technology with, among other things, cutting the
volume of excess inventory inWalmarts massive supply chain and slashing out-of-stock
occurrences by almost one-third.
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