Introduction
Decision-making is a process of making choices by ascertaining a decision. The latter is achieved through information gathering and also assessing alternative resolutions. Using a step-by-step decision-making process can help in making a thoughtful and deliberate decision by pooling together relevant information and defining alternatives. Therefore, the paper will have a review of two distinct organizations and how they make their decisions. Decisions will be looked into from three perspectives: operational planning, managerial control, and strategic planning.
Walmart Inc. and Target Corp
Walmart Inc. is an enterprise that engages in retail and wholesale operations in a number of formats worldwide. The company operates via three segments; the store operates a number of outlets like supercenters, hypermarkets, and supermarkets, among others. The outlet operates Walmart U.S., Walmart International, and Sam’s Club. The company was founded by Moore and Walton back in 1962, with its headquarters in Bentonville (Ferguson, 2015). Target Corporation, on the other hand, is the second-largest discount store retailer in the U.S. The company focuses on merchandising operations, which include food discounts, a fully integrated online business, and general merchandise. Target, as a corporation, is committed to aligning the public-policy endeavors and interests of the business, sanctioning the decision-making process in support of compliance in line with the objectives.
Operational planning and control decisions
In this category, Walmart has engaged in various decisions. First, the enterprise has made a decision on the design of its goods and services. This choice area of operations management comprises a strategic depiction of products. As a retailer, the enterprise offers retail prices. However, Walmart has its own branded products like Sam’s Choice and Great Value. Therefore, the company’s operations management addresses the design of the retail service. Its decision in this area was to embark on efficient and cost-effective products. To address the decision, Walmart emphasizes the minimal cost of production and maximizing the efficacy of its retail service employees (Kourdi, 2011).
The second decision that Walmart made under operational planning and control involved location strategy. Its strategy was to have most of its stores located in or near urban centers. The decision area emphasizes efficiency in material movement, business information, and human resources. The company’s idea is to maximize market reach; the use of the internet by Walmart has been adopted to address the aspect of business information.
Target Corp made a decision on a channel-agnostic approach aimed at growing the business. The decision was geared toward driving the total Target experience through stores, mobile, and online channels. Consistent enhancement in inventory management, supply chain and technology will create a shopping experience that is founded on inspiration and ease. The second decision by Target Corp is the diversification of its merchandise categories. The company aims to invest in new areas with a focus on differentiation and newness. The decision targeted four areas, which are baby, kids, style, and wellness.
Managerial Control (tactical planning)
Under tactical planning, Walmart has engaged in a number of decisions in regard to its operations. First, Walmart has made a decision in preparation for changes. The point of tactical planning aims at attaining the goals and objectives of the strategic plan. Moreover, markets and business environments keep on changing. In case the latter happens, it is wise to assess how the plan tactics are working in line with the set objectives. Secondly, there is the adoption of flexible planning. The latter facilitates and takes care of unanticipated events. Therefore, planning needs to be incorporated into building tactical plans.
Target Corporation’s decisions have focused on areas of market control and bureaucratic control. Under the market control decision, Target made a decision on distribution. Its purpose is to sell its products through an online platform, open more outlets, and finally make its products reach a sizable number of consumers. The second decision concerns bureaucratic control: why should customers choose Target Corp over the other competitors? In response to the question, the company has offered affordable, better, and also faster products for clients. Using knowledge of the competition, it has been able to develop a number of strengths that fully address its weaknesses (LLP, 2018).
Strategic Planning
Walmart has engaged in various decisions touching on strategic planning. Walmart decided to sell its merchandise at a discount, aiming at selling more of its goods to existing clients. Walmart adopts market penetration as its key intensive strategy for growth. The second decision is the establishment of new stores to attain market development. Walmart uses market development as its tertiary strategy for growth. Basically, Walmart decided to open more outlets overseas to tap consumers in those markets.
First, Target Corporation made a decision to spur its growth and revise its REDcard rewards program strategy. The decision offers an additional 5% discount when a client uses a Target credit or debit card. The decision saw Target Corp commit to its online business through the implementation of a new mobile application and also launch a small CityTarget store. The second strategic-plan decision that Target adopted was an expansion to Canada. The decision was made in the 2010 fiscal year through the purchase of Zeller store leases. The goal of the decision was to increase its market visibility and also salvage its place from the failed website crash with Amazon.
Compare and Contrast the level of decision-making between the two organizations.
Operational decisions
Those are the decisions that relate to the daily running of the business. In comparison to the decisions made by both Target and Walmart, we realize that they all aim at decisions that are geared toward diversification. Both retail shops made decisions geared toward moving into new markets and new locations to market their products and increase their customer base. In contrast, Walmart ventured into decisions that will enhance its strategic locations across the globe, while Target’s decisions were directed toward online visibility.
Strategic decision
These decisions are long-term in their individual impacts. They aim at affecting and shaping the direction of the entire business. The four decisions adopted by the two corporations are similar in the sense that they all aimed toward pushing more stock turnover either through discounts or engaging bonuses on credit or debit card shopping. In contrast, although the duo aims at reaching new clients, Target emphasizes more on increasing its sales among its existing customer base, while Walmart expands its boundaries to reach new clients (Turban, Sharda & Delen, 2014).
Tactical Planning
Tactical planning aims to help in strategy implementation. In comparisons of the decisions adopted by the two retailers, they are all geared toward learning the clients’ needs and how to remain in business by offering tailor-made services to their clients. Moreover, in contrast, the duo adopts different decisions, although aimed at remaining relevant in the business. Walmart’s decisions are change-oriented, but the counterpart pursues decisions that are competitive in nature.
References
Ferguson, E. (2015). Walmart’s Vision, Mission, Generic & Intensive Strategies – Panmore Institute. Panmore Institute. Retrieved from https://panmore.com/walmart-vision-mission-statement-intensive-generic-strategies
Kourdi, J. (2011). Effective decision making: 10 steps to better decision making and problem solving. London: Marshall Cavendish Business.
LLP, B. (2018). Levels of decision making – Improving strategic decision making – Chartered Institute of Management Accountants | Chartered Institute of Management Accountants case studies, videos, social media and information | Business Case Studies. Businesscasestudies.co.uk. Retrieved from https://businesscasestudies.co.uk/cima/improving-strategic-decision-making/levels-of-decision-making.html
Turban, E., Sharda, R., & Delen, D. (2014). Business intelligence and analytics: systems for decision support (10th ed.). Boston: Pearson Education Inc
Academic Master Education Team is a group of academic editors and subject specialists responsible for producing structured, research-backed essays across multiple disciplines. Each article is developed following Academic Master’s Editorial Policy and supported by credible academic references. The team ensures clarity, citation accuracy, and adherence to ethical academic writing standards
Content reviewed under Academic Master Editorial Policy.
