A Case Method on Green Up on Aisle Two

MGT 101 Concepts and Dynamics of Management

Submitted by
Antonio, Sophia Janelle S.
Blanca, Abcd D.
Bugaoisan, Erika Marielle C.
Cabilin, Regine Marie C.
De los Reyes, Danica R.
 I. Point of View

Chief Executive Officer (CEO)

Our group decided that the CEO will be the best person to handle the problem
because he/she is the most responsible in making crucial decisions for the
business and managing overall operations of the company.

II. Problem Statement

How can Walmart acquire enough suppliers while going green?

III. Analysis of Relevant Case Facts

STRENGTHS
High buyer power - Walmart is one of the leading companies in the world, losing it as
a customers can lead to a significant loss
Influential - Walmart’s reach in the business world can greatly affect the supply chain
Connections - Walmart’s success can be attributed to numerous valuable
organizations and individuals that it collaborated with.

WEAKNESSES
Operational Cost - The transition from the current system to a more sustainable one
will increase their cost that will lead to lower revenues for the company
Span of Control - The implementation will be more complex due to the number of
significant factors. (due to the size of the company, parang mahihirapan icontrol and
implement yung project sa napakalaking company)

OPPORTUNITIES
Good reputation - Walmart’s decision to go green can attract more customers since
more people are leaning towards environment-friendly activities.
Increase in market share - The transition to eco-friendly business practices will attract
additional groups of people.
Increase in stakeholder’s environmental consciousness - The customers’
knowledge on the state of the environment can lead them to support organizations that
are performing sustainable operations.

THREATS
Discontinuity of business operations with suppliers - Implementing sustainable
practices will require greater inputs that is not ideal for the suppliers
Presence of competition - More organizations are joining the industry that results to
increasing number of substitutes.
 IV. FORMULATION AND EVALUATION OF ALTERNATIVE SOLUTIONS

A. Decision Criteria

1. Adaptability (30%)
 The ability of the decision to be consistently and effectively executed in
the long run considering the external factors that cannot be controlled or
manipulated. Also, this defines the potential of the plan to be further
developed into a more efficient strategy that adapts to the changing
environment of the industry and recognize the potential of the business to
recover from the transition cost it will incur.
2. Sustainability (25%)
 The capability of the decision to satisfy the agenda of the business which
is to reduce the carbon footprint in its supply chain by carrying out
efficient and sustainable chain of operations. It also includes other
positive environmental impacts that the business may brought about by
the implementation of the decision.
3. Measure of Certainty (20%)
 The ability of the decision to allow the identification of possible drawbacks
and minimization potential risks when implementing the decision. This
criterion also defines the level of assurance that the plan will lead to a
successfully execution since the business is able to picture the possible
outcomes that may arise during the course of implementation.
4. Product Quality (15%)
 The degree to which the decision can promote sustainability in the
production of the goods being offered without sacrificing the quality of the
products being delivered. This criterion also paves way for the business to
offer variety of better-quality goods.
5. Increase in Market Share (10%)
 The ability of the decision to increase the percentage of the industry’s total
market sales by attracting more customers in a specific time frame. This
criterion is a determining factor if there is a possibility for the venture to
develop a reputation that may lead to profit increase.
 B. Swot Matrix

Opportunities Threats
 Good Reputation  Discontinuity of
 Increase in market share business operations
 Increase in stakeholder’s with suppliers
environmental  Presence of
consciousness Competition

Strengths SO Strategies ST Strategies

 High buyer
power Since there is a trend on They can use their influence
 Influential environmental awareness, they and connections to persuade
 Connections can influence their suppliers to new suppliers to support their
share the same goal resulting to goal.
a higher satisfaction from the
customers.

Weaknesses WO Strategies WT Strategies

 Operational
Cost To limit the cost and the span of Since they are already an
 Span of control, they can initiate a established company, they
Control gradual implementation of the can finance their cost and
plan to evaluate its possibility of treat it as a long-term
success. investment to ace their
competitors.

Alternative 1: CEO can collaborate with other suppliers which already embodies their
goal to be sustainable.

Pros:
a. Walmart’s difficulty in persuasion of its present suppliers will be avoided.
b. There’s a possibility that the current supplier of Walmart might agree to
head towards a more sustainable practice.

Cons:
a. Their connections with their long-term suppliers will be at stake, which
b. There’s an uncertainty on the quality of the products that the new
suppliers will provide.
Alternative 2: CEO can do a backward integration to cover for non-compliant suppliers.

Pros:
a. They will have sufficient supply to cater the market needs.
b. They can ensure the quality of the products they will provide.
c. The customers are ensured that the products are authentically eco-friendly
through sustainable practices.

Cons:
a. They need to hire more workers who are knowledgeable with the
production process.
b. The company would need to invest a large amount of money in doing a
backward integration.
c. A new framework is needed for the new operational activities.

Alternative 3: CEO can implement their environmental initiative gradually so they can
provide a transition period to their existing suppliers.

Pros:
a. There’s a high possibility that the suppliers will adapt to the system that
Walmart is planning to implement.
b. A gradual implementation will provide a clear result in the immediate
effects and acceptability of the market to these initiatives.
c. An evaluation in the initial performance can be done to improve the
succeeding implementations.

Cons:
a. The process of implementing the project on a global basis will be longer.
b. Competitors might foresee the success of the implementation and take
advantage of our slow progress.
Decision Matrix

CRITERIA Alternative 1 Alternative 2 Alternative 3

% Rank Weighted Rank Weighted Rank Weighted

Average Average Average

Adaptability 0.30 1 0.30 2 0.60 3 0.90

Sustainability 0.25 1 0.25 3 0.75 2 0.50

Measure of 0.20 1 0.20 2 0.40 3 0.60

Certainty

Product 0.15 1 0.15 3 0.45 2 0.30

Quality

Increase in 0.10 1 0.10 2 0.20 3 0.30

Market Share

Total Weighted 3 1 2.40 2.60

Average
 V. DECISION/RECOMMENDATION

A. Decision/ Recommendation

Among all the alternatives suggested, the third alternative is the best solution
to the problem because it garnered the highest weighted average in the decision
matrix. It is deemed that the gradual implementation of the plan towards becoming
an environmental-friendly company will be the most effective. Furthermore, it
lowers risks because in the process of implementation, it can address the problems
met during the initial performance and improve it for the next implementation. The
gradual process can also provide adaptation period for the company and the
suppliers which will lead to the success of the implementation.

B. Implementation Plan (Gantt Chart)

VI. CONTINGENCY PLAN

A. Contingency Plan

After a thorough observation and evaluation, it was noticed that all proposed
alternatives will not be enough to provide an effective solution to Walmart’s
problem. Discrepancies and unfortunate occurrences will leave the management with no
choice but to implement the contingency plan. Applying backward integration is the
company's last proposed idea to achieve a sustainable supply chain while practicing eco-
friendly practices. This activity will require more inputs like manpower, equipment, and
capital among others. However, by enforcing this, the company still has a chance to solve
its main problem.
B. Implementation Plan