Presentation

Team 1 Wal-Mart Presentation

Conclusion

Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large discount department stores. Sam Walton, founder of Wal-Mart, opened his own discount and retail store in Rogers, Arkansas. The popularity of the stores grew so much Walton open the first Wal-Mart in 1962 and the store just grew beyond any one's imagination. From there Walton open more and more stores the moving over seas and finally in the year 2000 Wal-Mart was listed for the first time in the "Fortune 500" list of the world's biggest corporations. In Sam Walton gives the responsible of Wal-Marts success by being able to successfully sell products to customer to satisfy their personal needs with good prices.

One of the biggest reasons why Wal-Mart one of the largest retaliers in the world is because of the used of supply chain management. The supply chain management used is an IT-based system which is vital to make sure the inventory is precise. It tracks inventory and information among the business process and the company as a whole. Wal-Mats supply chain management system focuses on squeezing every penn possible out of the supply chain so Wal-Mart can sell their products as cheap as possible.

Wal-Mart Overall Cost Leadership and Bottom-line initiative is the foundation for the reason why the store is one of the largest retailers. Wal-Mart's slogans of "Always Low Prices!" and "Every Day Low Prices" accurately describe the strategy of overall cost leadership.

Wal-Marts supply chain management based on IT-technology is very looked down upon it the industry because it drives excess time and unnecessary costs out of the supply chain. Wal-Mart can buy low, and sell even lower than all the other companies in the industry today.

Wal-Mart became the first major retailer to demand manufactures use radio frequency identification technology (RFID). The technology used radio frequencies to transmit data stored on small tags attached to pallets or individual products. RFID tags hold significantly more data than bar codes.

What I learned is the in the business of saving people money Wal-Mart will do about anything to try and make that happen because that was the true goal of Sam Walton when he opened his first discount store in Rogers, Arkansas. The way that Wal-Mart will keep being the number one retailer is by the use of technology. Stay one step ahead of all the other companies in technology and Wal-Mart will continue to grow and dominate their field.

Networking

What type of network do they have?

With the best technology and up to date, Wal-Mart has wireless networks that operate from one store to another. The Local Area Network (LAN), works by linking several computers without the need of wires.

What kind of interface do they use?

Wal-Mart uses two types of interface for commercial and personal. With personal use the interface used would be an expansion card but with commercial you would use an Ethernet card. A Ethernet card the most used interface with Wal-Mart

What kind of media?

The satellite communications system benefits Wal-Mart a great deal because it gives them real-time TV broadcasting to provide training programs and news updates. Also, Wal-Mart executives can hold important meetings to discuss new products, new ideas, problems, etc. and be able to communicate it to their employees immediately.

What kind of communications software?

In 1984, Wal-Mart increased its technology in a few stores by deploying a satellite communication system from Hughes Network Systems. Three years later, Wal-Mart began installing the system throughout all their stores. The benefits of this communication system was to make credit authorizations faster, and also having a much faster communication from one store to another, Wal-Mart’s headquarters and among all other facilities.

What kind of connecting devices or components?

The connecting devices are routers, servers, networks, and an 802.11 wireless connection used in Wal-Mart

How do they connect to the internet and at what speeds?

Wal-Mart uses frame relay on their DS3 network that run at 44.736 Mbps. The circuits can provide network connections for every office with having any physical lines.

Do they use Voice over IP?

The Wal-mart Smart Network was incorporated in 2008, and it gave the largest retailer stores a chance to roll out an internal IP network. It operates by carrying out custom, one-way video to TV displays that are already installed in all the Wal-Mart stores. This network helps Wal-Mart with their sales, their suppliers to better communicate and most importantly to engage their consumers. This is Wal-Mart’s best media network yet.

How do they apply the four principles of network security?

Four principles of network security are confidentiality, integrity, availability, and authenticity. Wal-Mart uses SSL which is Secure Sockets Layer, technology protects your online transactions and help increase trust in your Web site in the essential ways. 1. An SSL Certificate enable encryption of sensitive information during online transactions. 2. Each SSL Certificate is unique credential identifying the certificate owner. 3. A Certificate Authority authenticates the identity of the certificate owner before it is issued. Wal-Mart has set up a fire wall to protects against authenticity and integrity of the information. Wal-Mart wants to see chip-and-pin payment cards adopted in the United States in the effort to better secure financial transactions.

What is their domain name?

Wal-mart Stores, Inc.’s domain name is Wal-mart.com.

Wal-Marts Information Systems

Technology

What are some files used in your company?

One of the files used by Wal-mart is for on-line ordering purposes. These are files that include customer number, delivery address, order date, order number, item quantity and amount. Also, Wal-mart has files for its employees, which has information such as date hired, employee number, and overall employee information.

What databases?

Wal-mart operates various database systems; one of their main databases is the Inventory Management System. Wal-mart utilizes the Oracle Warehouse Management System for ongoing operations. This system is compatible to the Radio Frequency Identification, also used by Wal-mart to increase their inventory management. Also, Wal-mart operates with a database that holds information that’s more than one half a petabyte. Teradata database works well with Wal-mart’s database link decision and their suppliers.

What brand of database software?

Wal-mart operates with brands such as Cisco, which is the Oracle Warehouse Management System’s brand. Wal-mart operates with NCR Corp’s Teradata Database which works in combination with the database brand Internet Retail Linka and EDI.

Who is responsible for the database?

Rollin Ford became Wal-mart’s CIO in 2006, and he was assigned the top tech job since.

How do managers get reports?

Wal-mart’s managers receive their reports from a system called Collaborative Planning, Forecasting and Replenishment. This system is an inventory management initiative with which Wal-mart’s managers started operating since 1997.

What types of reports? Is OLAP used?

Wal-mart creates inventory, budgeting, forecasting and planning reports. Yes, Wal-mart works with OLAP. OLAP has the capability of manipulating and analyzing data from different perspectives. This allows Wal-mart to build an advanced merchandise planning and reporting system.

Is a data warehouse used? Are data marts used? Explain.

Yes, Wal-mart operates with a data warehouse called Oracle Warehouse Management. In 1997 Wal-mart’s size of data increased to 24 terabytes with 30 decision support applications. By 2004, Wal-mart increased its warehouse data to 423 terabytes. Yes, Wal-mart also operates with data-marts. POS data allows Wal-mart’s inventory management to know the product availability from the different locations at a shelf level.

What types of data mining is used?

With data warehouse available in Wal-mart, data mining was started in 1990. One type of data mining Wal-mart has been operating with is Neo Vista, which was installed in 1997. Neo Vista allows Wal-mart to analyze point-of-sale from each store.

Who is responsible?

Rob Fusillo is the Director of Replenishment Information Systems at Wal-mart.

What software?

Wal-mart works with SAP’s ERP Financials, which is software that helps Wal-mart combine all the different departments into one system.

What are some hardware categories used in (or sold by) your company?

When you pay for your items at Wal-Mart, you can see the hardware that is being used to checkout your items such as a monitor, keyboard, scanner, and computerized registers. Wal-Mart sells PC's, printers, labtops, iPods, MP3 Players, Blu-Ray Players, Cameras, and Camcorders. Wal-Mart sells Acer, Asus, Compaq, CyberPower, Dell, eMachines, HP, iBuyPower, Lenovo, Sony, Toshiba, ViewSonic, ZT Systems. You can find a Desktop without a monitor, all-in-one, Touch Screen, and with a Monitor. You can also find laptops and netbooks at Wal-Mart.

What brands of computer?

Wal-mart carries several computer brands. Such brands are Dell, HP, Compaq, Everex, Acer, eMachines, Toshiba, MSI, Sony, Lenovo, Coby, Averatec, and Gateway. What types of computers? Wal-mart sells Dell desktop computers such as Dell Inspiron One, Dell notebooks, HP Touchsmart Desktops, Compaq Desktops and Laptops, Acer Netbooks, Toshiba Laptops.

Who is responsible for the hardware and software?

Rollin L. Ford is the executive vice president and chief information office (CIO) for Wal-Mart Stores, Inc. He oversees the company's global informations systems division (IT), which

includes hardware, software, databases, and networks. He assumed this role in 2006.

What types of system software is used (sold)?

Wal-Mart's decision to purchase SAP's ERP Financials provides another piece of evidence that the IT strategy of the world's biggest retailer is shifting in favor of packaged applications. An SAP press release said that Wal-Mart had purchased ERP Financials to "support the retailer's global expansion and its need to efficiently respond to changes in the business and regulatory landscape." Buying packaged software applications is one way in which the $349 billion retailer can regain its IT dominance and fend off competition.Wal-mart sells Windows Media Center, Windows XP, Unix, Mac OS, Windows CE, and Palm OS.

Is Linux used?

No, Wal-mart is currently operating with Retail Link, EDI, ERP, and SAP. The continued dominance of the Windows operating system (OS) considerably strengthened its operation at Wal-Mart, which led Wal-mart to abandone sales of Linux, equipped computer hardware and software.

What types of application software is used (sold)? What brands?

Wal-mart operates with software such as Cisco’s Oracle Warehouse Management, and NCR Corporation’s Teradata Database. Wal-mart sells application software such as Microsoft’s Word, Microsoft’s Office Home & Student 2010, Microsoft’s Office Home & Business, QuickBooks Pro 2010, Karpersky Internet Security 2010, Norton Internet Security 2010, Norton Antivirus, Microsoft’s Publisher, MacAfee Total Protection 2010, Adobe Acrobat Professional, The Print Shop, Cyberlink PowerDirector Ultra, Turbo Tax, and Nero Multimedia, among many other systems software.

Business Article

Walmart, Target in Recession Retail Battle Over Food

Sat, Mar. 14 2009

When times are tough and consumers are buying more inexpensive goods, you will think store like Target would excel but they don't because there is another discount retailer that crushes Target and their competition called Wal-Mart. Everyone has to eat, and more consumers want to dine at home to shave expenses.

While Wal-Mart is the largest company in the world, Target has begun to close the gap between them but after the recession started once again Wal-Mart gained firm control over Target. Target sales have fallen for eight straight months while Wal-Mat's have risen for 22 straight months. Wal-mart sells what you need to have while Target sells to what you want to have.

Wal-Mart has focused on food for a long time, and is really hitting a stride during the recession. Wal-Mart works hard to build a strategy around groceries. They look at groceries as a qay to get people in the store for the first time while Target sees it as an add-on.

Walmart vs. Target: No Contest in the Recession

E-Commerce

a) What kinds of e-Commerce are used?

Wal-Mart now has Wan Ling Martello leading Global.com, Wal-Mart’s newest e-commerce. It operates to help consumers surf through their desired items and to be able to purchase online, instead of going to an actual store. Its purpose is also to allow consumers to preview the products and go out to the stores to purchase them.

b) What types of internet business models are used?Wal-Mart works with web-based applications on a Cisco Network in order to meet its customers’ needs. In the early 1980s, Wal-Mart started the technology era to be able to do its inventory, to have a better communication from one store to another, and to be able to place orders from its suppliers. By the 1990s Wal-mart was operating with Retail Linka, which helped helped suppliers forecasting, planning, producing, and finally shipping products to Wal-Mart stores as needed. Retail Linka remains to be Wal-mart’s internet application.

c) What type of marketing mix does it adopt?Wal-Mart holds 4 types of marketing mix, price, promotion, place, and most importantly its products. Wal-Mart has a wide selection of products, ranging from foods to sporting goods. They always have very low prices. Wal-Mart has a large number of ads circulating on a weekly basis and thy also promote their stores and “everyday low prices” on TV. There are many Wal-mart locations which brings convenience to their consumers.

d) What payments systems are used? Wal-Mart accepts a variety of payments, from credit cards to gift cards. In-store and on-line Wal-Mart accepts ATM Cards, Discover, Visa, Mastercard, American Express, and Wal-Mart’s Credit and Gift Cards. On-line Wal-mart accepts payments via Pay Pal, eGift cards, and Bill Me Later.

Business Strategy

Which of the 3 generic business strategies is used?

An organization focusing on overall cost leadership are numerous and change almost daily, with the most well-know example being Wal-Mart. Wal-Mart's slogans of "Always Low Prices!" and "Every Day Low Prices" accurately describe the strategy overall cost leadership. For everything from women's lingerie to car batteries, Wal-Mart's Focus is on offering the same products as the competition but at a lower price. Wal-Mart relies on an IT-enable tight supply chain management system to squeeze every penny possible out of the procurement, distribution, and warehousing of its products. It uses sophisticated business intelligence systems to predict what customers will want and when.

For your industry, estimate how much power each of the forces has ( suppliers include their employees and suppliers of technology). How do they reduce the buyer and supplier power? How do they create switching costs and entry barriers?

According to the Porter's Five Forces Model:

Power of Buyers: (Low Pressure) The individual buyer has little to no pressure on Wal-Mart because of how many customers Wal-Mart attracts. Consumer advocate groups have complained about Wal-Mart’s pricing techniques. Consumer could shop at a competitor who offers comparable products at comparable prices, but the convenience is lost.

Potential Competitors: (Med. Pressure) grocers could potentially enter into the retail side. Entry barriers are relatively high, as Wal-Mart has an outstanding distribution systems, locations, brand name, and financial capital to fend off competitors. Wal-Mart has an absolute cost advantage over other competitors.

Rivalry Among Established Companies: (Med. Pressure) There are three main companies that exist in the same market as Wal-Mart: Sears, K-Mart, and Target. Target is the strongest of the three in relation to retail. Target has experienced tremendous growth in their domestic markets and has defined their niche effectively. Sears and K-Mart seem to be drifting and have not challenged K-Mart in sometime.

Power of Suppliers: (Low to Med. Pressure) Since Wal-Mart holds so much of the market share, they offer a lot of business to manufacturers and wholesalers. This gives Wal-Mart a lot of power because by Wal-Mart threatening to switch to a different supplier would create a scare tactic to the suppliers. Wal-Mart does deal with some large suppliers like Coca-Cola who have more bargaining power than small suppliers.

Substitute Products: (Low Pressure) When it comes to this market, there are not many substitutes that offer convenience and low pricing. The customer has the choice of going to many specialty stores to get their desired products but are not going to find Wal-Mart’s low pricing. To reduce buyer and supplier power, they would have to put more work into the threat of substitute products.

What major business initiatives are used or being considered? What software is used? Are they top-line or bottom-line initiatives?

Wal-Mart is using the Supply Chain Management for their major business initiative. Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service. Supply Chain Management improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. Wal-Mart manages various components of the supply chain including distribution, logistics, and inventory management by using innovative IT-based supply chain management system. The system keeps tracks about inventory and information among business processes and across company. Wal-Mart makes use of bar coding and radio frequency technology to manage its inventories

Wal-Mart follow the bottom-line business strategy that helps them to keep their cost, and expenses low and reducing capital.

What type of IT organization is used? What philosophical approach do they use?

Wal-Mart became the first major retailer to demand manufactures use radio frequency identification technology (RFID). The technology uses radio frequencies to transmit data stored on small tags attached to pallets or individual products. RFID tags hold significantly more date than bar codes. During the first eight months of 2005, Wal-Mart experienced a 16 percent drop in out-of-stock merchandise at its RFID-equipped stores.

The frugal culture, established by Walton, also plays into Wal-Mart's success. The company has been criticized for the relatively meager wages and health care plans that it offers to rank-and-file employees. It has also been accused of demanding that hourly workers put in overtime without pay. Store managers often work more than 70 hours per week. They are are expected to pinch pennies wherever they can, even on things like the heating and cooling of the stores. In the winter, stores are kept at 70 degrees Fahrenheit, and in the summer, they stay at 73.