Walmart -Planning Essay Example | Topics and Well Written Essays - 750 words

Walmart -Planning - Essay Example Overview of planning Planning is considered to be the first step in doing anything. Planning comprises of a scheduled set of activities and tasks which are pre-defined and resources, cost, material, labor and time is also determined in advance for every activity in the planning process. Without planning, there is no set route to follow and everything goes haywire. Chances of discrepancies, inadequacies, risks and gaps increase in the absence of planning process. Planning can take the form of short or long term planning. In the former case, planning is not much in-depth and focuses on achieving short term monetary benefits. Long term planning is meant to gain strategic advantage because all other elements of managing, controlling and organizing are then aligned with that of strategic planning to fulfill desired goals. Wal-Mart’s vision and mission Wal-Mart’s successful operations are attributed to its cost leadership strategy which has always been focused on its customer (Center for Applied Research 2005). While its vision/mission statement goes as "Wal-Mart’s mission is to help people save money so they can live better†, its stores slogans also compliment its vision and mission statement which run as "Wal-Mart. Always low price. Always." Thus, cost effectiveness and providing products and services at rock bottom prices stand at the core of any planning or managing process at Wal-Mart. Planning at Wal-Mart is a mix of both strategic and day-to-day planning. When we talk of strategic goals, it refer to supplier selection, optimizing on technological inputs, use of automation techniques, software and other decisions which provide a competitive edge to it. Daily routine planning involves inventory control and management, quality control, distribution systems, et cetera (Goodstein, Nolan & Pfeiffer 1993, p.131). Application of planning process within Wal-Mart Wal-Mart is considered as a value driven company and this value addition is attri buted to its strategic planning in operational, tactical and contingency categories. It has always decided in advance where it wants to go, how and which activities to focus upon to achieve desired objectives. Wal-Mart’s planning process spans across all of its functions namely store management, finance, human resources, operations, information technology and strategic management. On tactical front, it has always devised plans and means on how to attract customers and stick to its low cost proposition. This is what gives way to its EDLP (Every Day Low Pricing) strategy. In operations side also, Wal-Mart exercises collaborative planning and forecasting relationship (CPFR) with that of its suppliers as it believes that involvement of suppliers in critical decisions helps reduce costs and improve quality. This way, it is able to extract synergies from that of its partners and develop long term relations with them. From financial perspective, separate committee is formed comprisi ng of 3-4 members who meet regularly and discuss issues pertaining to the capital structure, financial status, global policies, acquisitions, investments and annual financing plans. Within strategic planning, the committee also analyzes the basic goals to be achieved and in this respect, reviews its relations with investors, stakeholders, banks, financial institutions and others. Regular monitoring and check on its dividend policy and annual budgeting process enables undeviated implementation of set plans