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Using your learning from MBA 520 and MBA 640, analyze the projected costs, revenue streams, and net present value for the concept from launch until two years after the breakeven point. Be sure to include a budget, an assessment of assets and liabilities, your anticipated sources of funding, and the associated costs of attaining that capital as part of the analysis. Justify the analysis with relevant primary and secondary data in an appendix, specifying any relevant assumptions and limitations. You should include, among other support, sales forecasts, cash flow statements, income projections, and any other relevant calculations or financial reports. Overview: For the capstone assessment, you will create a business implementation plan and audiovisual presentation for the product, service, or idea you have
been developing throughout your MBA coursework.
In Milestone Four, you will submit a financial analysis and funding plan, which includes your analysis of the projected costs, revenue streams, and net present
value for the concept from launch until two years after the breakeven point. Be sure to include a budget, an assessment of assets and liabilities, your anticipated
sources of funding, and the associated costs of attaining that capital as part of your analysis. Support your analysis with relevant primary and secondary data in
an appendix, specifying any relevant assumptions and limitations. You should include, among other support, sales forecasts, cash flow statements, income
projections, and any other relevant calculations or financial reports.
Critical Elements:  Analyze the projected costs, revenue streams, and net present value for the concept from launch until two years after the breakeven point.
 Include the following as part of your analysis: o Budget o Assessment of assets and liabilities o Anticipated sources of funding o Associated costs of attaining that capital
 Include relevant proforma financial reports: o Sales forecasts o Cash flow statements o Income projections o All other relevant reports specific to your concept or idea Guidelines for Submission: Your draft must contain all of the elements listed above. It should be 5 to 8 pages in length (excluding the title page, references, and
appendices) using 12-point Times New Roman font, with one-inch margins. You may include summary pictures, charts, graphs, or other explanatory diagrams as
needed to successfully explain the concept and implementation, but should use appendices for detailed supporting documentation. Your paper should follow
APA guidelines. You must include at least 5 scholarly sources. Cite your sources within the text of your paper and on the reference page.Rubric:Critical Elements Proficient (100%) Not Proficient (0%) ValueMain Elements Includes most of the main elements Does not include any of the main elements 20Critical Thinking Provides logical conclusions and defends with examples/Does not provide logical conclusions 20Financial Analysis Provides an analysis of projected costs, revenue streams, and net present value for the concept from launch until two years after the breakeven point/Does not provides an analysis of projected costs, revenue streams, and net present value for the concept from launch until two years after the breakeven point 15Analysis Parts Provides a budget, an assessment of assets and liabilities, anticipated sources of funding, and the associated costs of attaining that capital as part of the analysis/Does not provide a budget, an assessment of assets and liabilities, anticipated sources of funding, and the associated costs of attaining that capital as part of the analysis 15Financial Reports Provides proforma financial reports including sales forecasts, cash flow statements, incomeprojections, and other relevant reports specific to concept or idea/Does not provide proforma financial reports 15Articulation of Response Submission does not have critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas/Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 15Total 100%
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Running Head: Mile Stone 1
MBA 705
Milestone One
Yazan Eid
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Walmart’s Mission Statement
Walmart Inc.’s corporate mission is “to save people money so they can live better.” The
mission statement is clearly reflecting the ideals of the company’s founder, Sam Walton.
Following a plan where strategic decisions making in the business ideas is a straight display of
this mission statement, which is synonymous to the company’s mission statement, “Save money.
Live better.” According to this statement, it is obvious that Walmart’s business strategies and
plans include using price as a selling point to attract targeted customers. The importance of such
a selling point is showed in many of the company’s strategies and plans. For instance, Walmart
Inc.’s marketing mix or 4P involves low prices as a strategy. Other departments of the company
are moved by the need to minimize selling prices as a way to achieve competitiveness and
staying ahead of the other competitors.
Walmart’s Vision Statement
Walmart Inc.’s corporate vision is to “Be THE destination for customers to save money,
no matter how they want to shop.” The company’s vision was authoritatively announced in the
company’s 2017 investment community meeting. The company’s previous vision statement was
“To be the best retailer in the hearts and minds of consumers and employees.” The switch in
the company’s vision reveals strategic changes that Walmart initiates in response to changes in
the competitive environment and the overall atmosphere of the retail industry.
In the past, the company’s corporate vision was all about becoming the top retailer in the
industry. Currently, Walmart’s vision statement is aimed for the same goal, but with the
concentration on business flexibility in accommodating customers. Moreover, the “no matter
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how they want to shop” element points out the company’s strategic objective of achieving
leadership in traditional way by transactions and in online retail transactions. However,
highlights the exclusion of “employees” as a major factor in Walmart’s vision statement. This
transformation might be indicating a possible reduction of employees’ empowerment. Moreover,
the shift could also point out some human resource management issues, as that the employees are
a key stakeholder group relevant to Walmart’s Corporate social responsibility strategy and
stakeholder management.
This is Walmart’s global strategic overview assessment report. The start of this report is
discussing Walmart’s major strategic background points. Researching Walmart, I have found
that Walmart is a multinational company functioning in 11,200 stores in 27 countries. Walmart
company owns many of its product lines and its business divisions are classified into four,
Walmart US, Walmart International, Sam’s Club, and e-Commerce US. Walmart has been
tremendously doing well in sales, revenues and net income in the last six years. Its current
strategic goals are expansion throughout taking over the market, the move towards using
renewable energy, and maintaining the company’s leadership in its market field. Researching
Walmart, I have found that Walmart’s major competitors are the Target, Home Depot, IKEA,
Alibaba, and Costco among others. In addition, Walmart top foreign markets are Mexico, the
United Kingdom, China, Chile, South Africa, and Japan. Walmart’s major affecting sources
would be political/legal, economical, social, technological, and environmental. Moreover, the
strengths include financial factors, human resources, advanced technology, and distribution.
Walmart operates under a hierarchical institutional structure. It supports diversity among its
employees by having employees from different cultures and backgrounds. Moreover, Walmart
follows Hofstede cultural scopes prior to expanding into a new market. Using an example of
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China, the Hofstede Analysis revealed that there were great cultural variations between the US
and many of Walmart’s foreign countries. however, entrepreneurship still a main challenge to
many companies in the retail industry including Walmart because as one of its results is the high
rate of retail industry entry.
Strategic Background
Walmart Stores Inc. is a multination corporation and the industry leader in the retail
industry. The company was established in 1962 in the United States by Sam Walton (Bonanno,
& Goetz, 2012). Walmart Stores Inc. was incorporated in 1967 to become a publicly traded
company. From 1 store in 1962 and 3 stores in 1964, the company has grown tremendously to
surpass the 11,200 stores mark to date (LeCavalier, 2016). Presently, Walmart Stores Inc. runs in
more than 27 countries worldwide while one of its latest expansion was opening of its fairly new
stores in Asia and China (Wal-Mart Stores Inc. 2014). Walmart Stores Inc now a day is one of
the retail industry pioneers in human resource employment due to the fact of having over 2.3
million employees working in all over of its stores. Low prices and human resource are some of
its key core competencies (Kasi 2013). Walmart Stores Inc. stocks are listed in the New York
Stock Exchange (NYSE).
Strategically, Walmart of operations are running under 55 banners in 27 countries
worldwide in addition to its online sales in 10 countries. Moreover, Walmart business units are
classified into Walmart US which runs under the brands of Walmart Supercenter, Walmart
Discount Stores and Walmart Neighborhood Market. The other business units are Walmart
international, the Sam’s Club and Walmart U.S. e-commerce. Walmart is always on the lead
when it comes to keeping a smooth flow of goods in its numerous stores, Walmart have an
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efficient strategy when it comes to its supply chain and distribution. As a result, Walmart has
over 150 distribution centers. These centers always work to make sure that the stores get timely
resupplied with the different goods Walmart sells when a request is issued. Furthermore, in its
determinations to renovate its stores into a one-stop shop that has everything a customer would
as for Walmart provides its customers with a variety of product lines containing various products
that fulfills customers’ needs and wants. Some of the products lines include electronics,
groceries, clothing, farm inputs and machinery, books, and apparel among others.
As for the past five years, Walmart has been performing extremely well financially. The
sales revenue register by Walmart over the last five years are 476.29 billion, 485.65 billion,
482.13 billion, 485.14 billion, and 500.34 billion for the years 2014 through 2018 respectively.
Leading into a steady sales revenue growth movement. However, the net income amount for
Walmart over the last five years was 15.92 billion, 16.18 billion, 14.69 billion, 13.64 billion and
9.86 billion for the years 2014 through 2018 respectively. Pointing out a steady decline in net
income all over the five years. Moreover, the company is still magnificently one of the most
profitable companies when compared to its competitors in the same retail industry. Having
Walmart in a strategic position where it’s easy for the company to freely expand its operation
without any restrictions.
As earlier mentioned, Walmart has extraordinary amount of operations internationally. It
has a dynamic international expansion strategy. While almost 60% of its sales come from its
domestic stores, for the that those stores are based in the US, its operations internationally can be
described as nothing short success. Walmart had over 6000 stores internationally located in 27
countries globally where it has its own existence. In addition, operating in these stores are more
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than 800,000 employees which roughly 35% of total Walmart employees. Similarly, in order to
ensure international stores are effective and experiencing no interruptions or issues, almost half
of Walmart distribution centers are located in international countries where Walmart operates
and runs. These distribution centers are critical and very important when it comes to linking
geographical distance between stores and suppliers. The effectiveness and efficiency of
Walmart’s infrastructure and presence internationally made it able to serve over 100 million
customers on weekly basis.
As the retail industry is a very competitive industry and tracking the high growth rate in
the industry’s competition, Walmart is ready and committed to grow and sustain in the retail
industry leadership and competitiveness. The company plans to do this by making sure that its
customers’ needs are sufficiently satisfied and while providing them with the healthy
environment any customer would ask for. As a result, in 2017 Walmart embarked on three
strategic initiatives aimed at ensuring that it remains the industry leader by increase customer
benefits. The three strategic initiatives are helping customers save more money and live better
strategy, the win, play, and show strategy as well as the fast, friendly, and clean strategy
(Murray, 2018).
The main Walmart rival is similar businesses in the same industry. Most of its
competitors work hard and try different strategies and new ideas all the time which are planned
for exceeding Walmart as the industry leader. Some of the major competitors include the Target,
7 Eleven, Home Depot, Costco, eBay, Lowes, and Amazon among other small companies in the
US. Internationally, Walmart competes against global giant Alibaba, and IKEA (Bhasin, 2018).
Making This company an enormous local and international presence. For example, the 7 Eleven
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is a US retailer with over 65,000 stores globally. This means it has a high presence than Walmart
however, the number of employees it has is a quite low number compared to Walmart standing at
60,000. Dealing with this massive company as its competitors, Walmart has to always plan
strategically several steps ahead of its competitor so as to maintain competitive and maintain its
leadership and position in the retail industry. Walmart always manages to overcome and exceed
a lot of its rival force from these competitors by keeping its low-price philosophy. It has
managed to sustain this philosophy all throughout all of its life time since the company first
started. Keeping customers satisfied with the quality of its product, services and price.
The Idea
Just recently, Walmart signed a deal with Microsoft that will see the company shift its
cloud services from SAP to Microsoft Azure cloud platform for the next five years (Evans, 2018).
In order to ensure that the process is a success, the first step will be to discuss with Microsoft a
way forward towards the cancelation of the recent contract that the two parties signed. This
will ensure that no legal ramifications result from Walmart’s decision to shift its operations
from Microsoft’s cloud system to its in-house information system. Microsoft should be notified
by the start of March 2019 of Walmart’s intention to cancel the contract. This is a process that
will be carried out jointly by the CIO and the COO at Walmart. However, the contract should
remain effective up to December 2020 so as to allow a swift transition process.
The second step will be to contract an IT company that will be responsible for designing
and creating an information system capable of handling the bulk data that Walmart handles
each day. The primary reason that this phase has been prioritized is due to the complexity of
the new system. As of 2017, Walmart transmitted up to 2.5 petabytes of data each hour from
Running Head: Mile Stone 1
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its retail outlets to the SAP cloud platform for real-time processing and procured a cloud
storage system with a capacity of up to 40 petabytes (Marr, 2017). With Walmart relying
heavily on big data and complex statistical analytics to predict the behavior of its employees,
the complexity of the new system should take close to a year to complete. Walmart should
have reached an agreement with an IT company by mid-March 2019 and the company should
commence the development process instantly. This step will be coordinated by the CIO.
The third step will be to acquire land to construct the facilities to house the new system.
This purchase should be made by end of March 2019 and will be coordinated by the head of the
procurement department in consultation with the COO. This will necessitate the contacting of a
construction company before mid-March 2019 and commencement of the construction process
by the end of the same month. Shortly after the construction commences, Walmart should look
for a vendor of supercomputers and other systems that will handle and process its data. This
process should be done through a bidding process in order to enable the company to identify
the best systems and acquire them cheaply through a competitive process. However, the
bidding process should be signed by August 2019 so as to necessitate the delivery of the
systems from the beginning of 2020. This process will also be coordinated by the COO and the
head of procurement.
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Running Head: Mile Stone 1
Sources:
Hofstede Insights (2017). Country comparison. China vs US. Retrieved from
https://www.hofstede-insights.com/country-comparison/china,the-usa/
Irma Hunt, Allison Watts, Sarah K. Bryant, (2018) “Walmart’s international expansion: successes
and miscalculations”, Journal of Business Strategy, Vol. 39 Issue: 2, pp.22-29,
https://doi.org/10.1108/JBS-02-2017-0013
Business Wire (2016). Global Retail Industry worth USD 28 Trillion by 2019 – Analysis,
Technologies & Forecasts Report 2016-2019 – Research and Markets. Retrieved from
https://www.businesswire.com/news/home/20160630005551/en/Global-Retail-IndustryWorth-USD-28-Trillion
Christine Rowland (2017). Walmart PESTEL/PESTLE Analysis & Recommendations. Retrieved
from http://panmore.com/walmart-pestel-analysis-recommendations-case-study
Martin Murray (2018). Walmart’s Strategic Initiative. Retrieved from
https://www.thebalancesmb.com/wal-mart-s-strategic-initiatives-2221112
Kasi
(2013).
Wal-Mart
Core
Competencies.
Retrieved
from
https://mba-
tutorials.com/strategy/1131-wal-mart-core-competencies.html
Evans, B. (2018). Walmart CIO: We Picked Microsoft For Huge Cloud Deal To Accelerate
Digital Transformation. Forbes. Available from
https://www.forbes.com/sites/bobevans1/2018/07/18/walmart-cio-we-picked-microsoftfor-huge-cloud-deal-to-accelerate-digital-transformation/#71cc6f46491c
Marr, B. (2017). Really Big Data At Walmart: Real-Time Insights From Their 40+ Petabyte
Data Cloud. Forbes. Available from
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https://www.forbes.com/sites/bernardmarr/2017/01/23/really-big-data-at-walmart-realtime-insights-from-their-40-petabyte-data-cloud/#116c3b256c10
LeCavalier, J. (2016). The Rule of Logistics: Walmart and the Architecture of Fulfillment.
University of Minnesota Press.
Bonanno, A., & Goetz, S. J. (2012). Walmart and local economic development: A survey.
Economic Development Quarterly, 26(4), 285-297.
Running head: BUSINESS IMPLEMENTATION PLAN FOR WALMART
A Business Implementation Plan for Walmart’s Information System
MBA 705
Yazan Eid
Southern New Hampshire University
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BUSINESS IMPLEMENTATION PLAN FOR WALMART
A business implementation plan for Walmart’s information system
Process and product improvement are vital to the sustainability of any business.
According to Project Management Institute (2013), businesses have to constantly adjust their
processes, products, and services to meet the dynamic needs of the consumers. There are a
number of factors that could create a need for implementing a new service or product. Some
of these include new market segments, new policies, business growth, and new technologies,
among others. One of the companies that could benefit from the implementation of a new
operation is Walmart. With more than 11,700 operations worldwide, more than 2.3 million
employees, and with annual sales that exceed $500 billion, Walmart is inarguably the largest
retailer in the world (Walmart, 2018). The company has growth tremendously over the past
few decades. Recently, the company has expanded its operations from purely big-box retail
operations to the e-commerce segment. As a result, the company serves at least 270 million
customers each week (Walmart, 2018). With the company collecting bulk data from all its
operations, it may be necessary to establish its own information system rather than rely on
third-party cloud service providers that could cost the company billions of dollars each year in
operational costs. This business implementation plan outlines the process of implementing an
information service operation at Walmart.
Implementation schedule
The proposed establishment of an in-house information system will take a long time to
implement as a result of its complexity and hefty requirements. Just recently, Walmart signed
a deal with Microsoft that will see the company shift its cloud services from SAP to Microsoft
Azure cloud platform for the next five years (Evans, 2018). In order to ensure that the process
is a success, the first step will be to discuss with Microsoft a way forward towards the
cancelation of the recent contract that the two parties signed. This will ensure that no legal
2
BUSINESS IMPLEMENTATION PLAN FOR WALMART
ramifications result from Walmart’s decision to shift its operations from Microsoft’s cloud
system to its in-house information system. Microsoft should be notified by the start of March
2019 of Walmart’s intention to cancel the contract. This is a process that will be carried out
jointly by the CIO and the COO at Walmart. However, the contract should remain effective
up to December 2020 so as to allow a swift transition process.
The second step will be to contract an IT company that will be responsible for
designing and creating an information system capable of handling the bulk data that Walmart
handles each day. The primary reason that this phase has been prioritized is due to the
complexity of the new system. As of 2017, Walmart transmitted up to 2.5 petabytes of data
each hour from its retail outlets to the SAP cloud platform for real-time processing and
procured a cloud storage system with a capacity of up to 40 petabytes (Marr, 2017). With
Walmart relying heavily on big data and complex statistical analytics to predict the behavior
of its employees, the complexity of the new system should take close to a year to complete.
Walmart should have reached an agreement with an IT company by mid-March 2019 and the
company should commence the development process instantly. This step will be coordinated
by the CIO.
The third step will be to acquire land to construct the facilities to house the new
system. This purchase should be made by end of March 2019 and will be coordinated by the
head of the procurement department in consultation with the COO. This will necessitate the
contacting of a construction company before mid-March 2019 and commencement of the
construction process by the end of the same month. Shortly after the construction commences,
Walmart should look for a vendor of supercomputers and other systems that will handle and
process its data. This process should be done through a bidding process in order to enable the
company to identify the best systems and acquire them cheaply through a competitive
process. However, the bidding process should be signed by August 2019 so as to necessitate
3
BUSINESS IMPLEMENTATION PLAN FOR WALMART
the delivery of the systems from the beginning of 2020. This process will also be coordinated
by the COO and the head of procurement.
Walmart should begin training its employees in the CIO department and recruiting
new ones as well by October 2019. …
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