Decision making is a process of making choices by ascertaining a decision. The latter is achieved through information gathering and also assessing alternate resolutions. Using of step to step decision making can be of 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 includes; food discount, entirely incorporated online business and universal 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 various decisions. First, the enterprise has made a decision on the design of their 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 operations management addresses the design of the retail service. Their decision on this area was to embark on the efficiency 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 engaged under operation planning and control involved location strategy. Their strategy was to have most of its store located in or near urban centers. The decision area emphasizes efficiency in material movement, business information, and human resource. The company’s idea is to maximize the market reach, the use of the internet by the Walmart has been adopted to address the aspect of business information.
Target Corp made a decision on channel-agnostic approach decision aimed at growing the business. The decision was geared towards driving total target experience through stores, mobile and online. A consistent enhancement in inventory management, supply chain and technology will create a shopping that is founded on inspiration and ease. The second decision by the Target Corp is diversification of its merchandise categories. The company aims at investing in new areas with its focus on differentiation and newness. The decision targeted on four areas which are baby, kids, style, and wellness.
Managerial Control (tactical planning)
Under tactical planning, Walmart has engaged a number of decisions in regards to its operations. First, Walmart has made a decision in preparation for changes. The point of tactical plain aims at attaining the goal and objectives of the strategic plan. Moreover, markets and business environment keeps 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, adoption of a flexible planning. The latter facilitates and takes care of unanticipated events. Therefore planning need to be incorporated in building a technical planning.
Target Corporation decisions have focused on areas of market control and bureaucratic control decisions. Under market control decision, Target made a decision on distribution. Its purpose to sell its products through an online platform, opening more of outlets and finally make its products reach a sizable number of consumers. The second decision on bureaucratic, why should customers choose Target Corp over the other competitors. In response the question the company has offered affordable, better and also a faster product for clients. Using the knowledge of the competition, it has been able to develop a number of strengths which addresses fully their weaknesses (LLP, 2018).
Walmart has engaged in various decisions touching on strategic planning. Walmart decided to sell its merchandise at a discount, which was aiming at selling more of its goods to the existing clients. Walmart adopts penetration to the market as its key intensive strategy for growth. The second decision, the establishment of new stores to attain market development. Walmart uses market development as its tertiary strategy for growth. Basically, Walmart decided on opening more outlets overseas to tap consumers in those markets.
First, Target Corporation made a decision to spur its growth revised REDcard rewards programs strategy. The decision offers an additional 5% discount when a client uses Target credit or debit card. The decision saw Target Corp commit to its online business through implementation of new mobile application and also launched a small CityTarget store. The second strategic plan decision that Target adopted was an expansion to Canada. The decision was made in 2010 fiscal year, through the purchase of Zeller stores 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
Those are the decisions which relate to the daily running of the business. In a comparison to the decisions made by both Target and Walmart, we realize that they all aim at decisions which are geared towards diversification. Both the two retail shops, their decisions were geared towards advancing towards moving into new markets and new locations to market of their products and increase customer base. In contrast, Walmart ventured into decisions which will enhance their strategic locations across the globe while Target decisions were directed towards online visibility
These decisions are long-term in their individual impacts. They aim at affecting and shaping the direction of the entire business. for the four decisions adopted by the two corporations are similar in the sense that they all aimed towards pushing more stock turnover either through discounts or engaging bonus on credit or debit cards shopping. In contrast, although the duo aims at reaching new clients, Target emphasizes, more on increasing its sales in an existing customers base while Walmart expands its boundaries to reach new clients (Turban, Sharda & Delen, 2014).
Tactical planning aims at helping in strategies implementations. In comparisons on the decisions adopted by the two retails, they are all geared towards learning of the client’s needs and how to remain in business by offering tailor-made services to its clients. Moreover, in contrast, the duo adopts different decisions although aimed at remaining relevant in the business. Walmart decisions are change-oriented but the counterpart pursues decisions which are competitive in nature.
Ferguson, E. (2015). Walmart’s Vision, Mission, Generic & Intensive Strategies – Panmore Institute. Panmore Institute. Retrieved from http://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