The Transformational Global Leader, Research Paper Example

Introduction

An organization which experiences a significant change or transformation of its current strategy provides an essential opportunity to explore the different elements that contribute to change and that support the need for change. This process has been largely evident in many large organizations throughout the United States, with significant change signaling a new direction for a business that has perhaps gone stagnant or for which another type of change is necessary. These factors are the precursors for a transformation event, whereby an organization is in a position to shift its practices to ensure that it is viable over the long term. This process is also essential to the discovery of new strategies to ensure that an organization is able to recognize its path and to be successful in meeting its objectives. Wal-Mart has experienced a transformation in recent years that has enabled the business to one of the most recognizable brands in the world. Through this transformation, Wal-Mart has expanded its presence in the world marketplace and continues to adopt a low-cost strategy that has been largely effective in supporting its continued growth. These factors have enabled Wal-Mart to set an example for all other retailers to follow that has led to significant results. The following discussion will address Wal-Mart’s transformative strategy in greater detail and will emphasize the importance of its focus on distribution and in keeping costs for its customers as low as possible.

Analysis

Wal-Mart has strived to be an American brand with a strong focus on success and achievement for its employees and as a symbol of the United States. The organization thrives on its ability to achieve great success through its low prices that are affordable for any consumers throughout the world. The organization continues to excel in its level of success and has many loyal shoppers who visit its retail locations on a regular basis. This process has been instrumental in shaping long-term growth for the firm and a vast international presence. The organization has transformed for a variety of reasons that are largely based upon its business model and ongoing practice efforts that support its growth and change on many levels. The following paragraphs will address Wal-Mart’s approach to doing business and how it has been impacted by a gradual transformation that has been influential in shaping long-term growth and success.

In recent years, Wal-Mart has led an effort to become more sustainable in its business practices through a widespread effort through several large-scale initiatives that have increased its sustainability ranking (Souza, 2013). To be specific, Wal-Mart has been working with over 1,000 suppliers to incorporate many different types of sustainability initiatives throughout the company, and it is expected that by the end of 2014, over 5,000 suppliers will be involved in these practices and in supporting a widespread sustainability effort to alleviate the harsh impact of many products on the environment (Souza, 2013). This process has been largely effective in improving Wal-Mart’s approach to sustainability that will improve its focus for the foreseeable future (Souza, 2013). From this perspective, Wal-Mart has been largely innovative in areas such as improving environmentally friendly packaging, limiting the number of chemicals that are used, and an increase in recycling, all of which have been largely instrumental in enabling the company to be successful in this area (Souza, 2013). Although Wal-Mart’s own sustainability scorecard has been somewhat confusing on many levels, it represents an opportunity to explore the different dimensions of improving sustainability, one step at a time (Souza, 2013). However, with over 100,000 suppliers in place, Wal-Mart has a long way to go in order to be largely successful in this area over the long term (Souza, 2013).

Similarly, in the energy marketplace, Wal-Mart has experienced significant success in its efforts to become more energy efficient within its retail locations and in other areas (Kelly-Detwiler, 2013). The organization has been able to tap into its energy efficient abilities through its efforts to reduce lighting costs within its facilities, and this has been achieved through the use of LED lighting for its refrigerated cases and also in lighting its parking lots (Kelly-Detwiler, 2013). Wal-Mart views energy use and efficiency in a comprehensive manner through its efforts to promote innovative methods to conserve energy and to light its retail locations, while also considering the costs associated with equipment maintenance and replacement, all of which represent an opportunity to evaluate different alternative solutions to enable the firm to save money and to be recognized for its value in this area (Kelly-Detwiler, 2013). With the use of LED lighting, for example, these lights do not burn out at the same pace as traditional lighting using light bulbs; therefore, they last for many years and provide much greater efficiency at a lower cost, since replacement is not nearly as frequent (Kelly-Detwiler, 2013). Furthermore, in determining its level of efficiency for new stores, its strategy is to examine the store’s rate of return in order to establishing the selection for energy efficient means with similar costs (Kelly-Detwiler, 2013).

Similarly, the use of different energy efficient technologies is important to the organization because it enables Wal-Mart to pursue these alternatives to ensure that the company is a continuous position to achieve greater growth and to improve customer satisfaction in the process (Kelly-Detwiler, 2013). The organization has been successful in its efforts to be effective in keeping its customers happy and content through such options as LED lighting, which is attractive to consumers because they do not see glare and any type of reflection with this alternative (Kelly-Detwiler, 2013). As a result, the organization is largely focused on expanding its energy efficient methods in order to improve customer satisfaction and repeat visits to these retail locations, as its product displays are appropriate and effective in getting the message across to its vast customer base (Kelly-Detwiler, 2013).

Wal-Mart has largely transformed itself as a result of its creative approaches to doing business that have a positive impact on its operations, on employees, and on its primary key stakeholders, its customers (UConn Business). This process has enabled Wal-Mart to have a greater focus on its energy efficient processes, including the aforementioned strategies, accompanied by smaller packaging, and aerodynamic trucks, all of which contribute to cost savings of millions of dollars annually (UConn Business). Wal-Mart is also able to recognize good ideas when it sees them; therefore, the company remains on the cutting edge of innovation in many ways (UConn Business). These practices are largely effective in enabling Wal-Mart to develop a more concentrated focus on specific areas that have a lasting impact on the organization, its employees, and its customers (UConn Business).

Although some might argue that Wal-Mart’s position on sustainability is not that relevant, others who serve to protect the environment have identified this strategy as highly meaningful and effective (Gunther, 2013). With this transformative initiative, the company has the ability to move forward its sustainability agenda even beyond what is required, using its platform, its high level of visibility, and its 100,000 plus suppliers as a primary means of expanding its success to new heights (Gunther, 2013). Wal-Mart has even begun to adopt the sustainability index as a means of measuring its long-term vision and focus for the future in the development and manufacture of its private brand products in the United States (Gunther, 2013). This process has been largely successful in enabling the company to move forward with this agenda in a significant way in order to achieve the desired results (Gunther, 2013). However, although not surprising, long-term sustainability remains to be seen and must also be considered as part of a long-term strategy for success in this area (Gunther, 2013).

As a transformational leader, Wal-Mart continues to overcome even its greatest expectations, as it has become increasingly popular and relevant in many unexpected nations, such as India and Brazil (Fan, 2013). In response to the demand in these areas, Wal-Mart has been able to exercise a high level of concern for local workforces through its efforts to hire, train, and retain employees within these areas (Fan, 2013). Many people who reside in the vicinity of Wal-Mart in Brazil, for example, have been successful in obtaining positions with the company, due in large part to its vocational training centers that have certified over 9,000 students, with 3,000 students placed in jobs (Fan, 2013). As a result, Wal-Mart has demonstrate widespread concern and interest for the people of other nations where its retailers are located because these individuals require some type of income that will aid in supporting their families (Fan, 2013).  In areas of Central America, Wal-Mart has been largely successful in its efforts to support and improve farming through its global direct farm program (Fan, 2013). This initiative has demonstrated the importance of developing farmers through such programs as Tierra Fertil, which enabled 3,770 farmers in 2011 (Fan, 2013). Also, Wal-Mart supported 2,440 farmers in Mexico and 3,700 farmers in India (Fan, 2013). For an organization with a widespread focus on retail sales, Wal-Mart is surprisingly generous with its efforts to share its wealth with the people of the world who need it the most (Fan, 2013).

In recent years, Wal-Mart has also made a commitment to the Fair Food Program, which is designed to support the ability to treat farm workers in the United States in a fair and equitable manner (Marquis, 2014). This program mandates zero tolerance for child labor, sexual harassment, and the necessity to establish safe and humane working conditions for all employees at all times (Marquis, 2014). This is a form of social responsibility that Wal-Mart fully supports because it provides a greater sense of discovery and support that is aligned with its business practices and vision for the future (Marquis, 2014). Wal-Mart has also demonstrated its willingness to address the working conditions of farmers through its efforts to improve training and education for these workers (Marquis, 2014). Wal-Mart is a proud participant in this process and continues to support its efforts to be successful in working only with partners and suppliers who are socially and morally responsible (Marquis, 2014).

Finally, Wal-Mart has learned many lessons over the past several decades, but violations against the Foreign Corrupt Practices Act (FCPA) were a wakeup call for the organization to improve its overall level of compliance and expand education and training in this area (Fox, 2012). In this context, Wal-Mart was subject to a review of its practices by the U.S. Department of Justice; therefore, an inevitability was the need for improvements to the existing compliance program in order to better manage its behaviors (Fox, 2012). This probe/inquiry was a blessing in disguise because it enabled Wal-Mart to become transformative in other ways, thereby creating an environment of compliance that was effective in supporting log-term success and growth (Fox, 2012). The firm’s focus on these areas also demonstrated its ability to learn from prior mistakes and to make the most of a negative situation (Fox, 2012). Through this endeavor, Wal-Mart was able to capitalize on current practices, modify as necessary, and to adopt new practices so that the firm could remain compliant and competitive within the retail industry (Fox, 2012). These behaviors were critical for Wal-Mart because they supported the continued expansion of efforts designed to facilitate new practices that would not only be compliant with government standards, but that would provide employees with fair and equitable treatment at all times to ensure that they are protected from unnecessary risk or harm (Fox, 2012). This process supported the growth of a world-class compliance program at Wal-Mart that was largely instrumental in promoting change and progress within the organization, along with improving its focus on full compliance for the foreseeable future (Fox, 2012).

Conclusion

Wal-Mart has in many ways experienced a complete transformation in recent years that has captured the minds and attention of many people throughout the world. Its primary stakeholders, its vast customer base, has reaped the benefits of this transformation through a continued effort to keep prices low. This process has been effective on many levels and also provides a greater understanding of the organization’s focus and intent in supporting its long-term objectives. One of the most successful if not surprising efforts that the company has established is its sustainability programs to improve energy efficiency in its retail units and in developing environmentally friendly packaging and the increased use of recycled materials. These efforts have largely transformed the organization to a much higher level and have been successful in promoting a high level of respect for the firm and for its people. These practices have enabled Wal-Mart to experience great success that has been largely affected by its willingness to become more efficient and to recognize its own creative potential. These factors have been important in addressing the needs of Wal-Mart’s customers and in supporting its vision for long-term growth and success. The company must continue this trend into the future and explore other transformative options that enable the firm to achieve great success in its business practices throughout the world. These opportunities will support Wal-Mart’s primary mission and vision to provide its customers with products at the lowest possible cost on a global scale.

References

Fan, D. (2013). The transformational global leader. Diversity MBA, retrieved from http://diversitymbamagazine.com/the-transformational-global-leader

Fox, T. (2012). Wal-Mart and the strategic transformation of a compliance culture. Retrieved from http://tfoxlaw.wordpress.com/2012/04/30/wal-mart-and-the-strategic-transformation-of-a-compliance-culture/

Gunther, M. (2013). Environmental Defense Fund: why Walmart’s sustainability index matters. Retrieved from http://www.marcgunther.com/environmental-defense-fund-why-walmarts-sustainability-index-matters/

Kelly-Detwiler, P. (2013). How Walmart and G.E. are leading a transformation in the energy market. Forbes, retrieve from http://www.forbes.com/sites/peterdetwiler/2013/09/30/walmart-ge-and-lighting-a-case-study-in-market-transformation/

Marquis, S.L. (2014). Wal-Mart chooses fairness, giving farmworkers a boost. Retrieved from http://articles.orlandosentinel.com/2014-02-06/news/os-ed-fair-food-program-020614-20140205_1_tomato-fields-fair-food-program-wal-mart-stores

Souza, K. (2013). Wal-Mart highlights sustainable efforts. Retrieved from http://www.thecitywire.com/node/29564#.U2aOq1cVG0I

UConn Business. Walmart executives address organizational transformation and careers with MBA students. Retrieved from http://www.business.uconn.edu/magazine/v1n1/pdf/walmart.pdf