Introduction
Wal-Mart Inc. an American multinational retail store that has successfully established 10,586
stores across 24 different countries. After 61 years of successful venture, Wal-Mart decided to
enter Japan in 2002 by buying 100% share from Seiyu- the Japanese retail store.
Triggering event of Wal-Mart:
Wal-Mart failed to convince Japanese consumers to buy in bulk from Seiyu as they are more
accustomed to purchase products in small intervals. The top management level noticed a
significant reduction in sales due to this. Hence, a TNA will be performed in order to identify the
cause of the degradation of sales.
Training Needs Analysis:
The Input Phase:
● Organization Analysis: “Everyday low price” gives an insight about Wal-Mart Inc’s.
mission which is to reduce cost while preserving the convenience of the customer using
multiple distribution channels (Hunt et al., 2018). By using the phrase, “make everyday
easier for busy families”, their vision is to bring simplicity to the busy families by
implementing a customer centric approach by integrating “operational excellence,
customer engagement, and innovation” (Cuofano, 2023). Wal-Mart Inc. is very
meticulous about the economic growth and sustainability of the environment, and with
this objective, Wal-Mart tried to go global, but unfortunately failed to retain customers in
Japan. Japanese people are “highly sophisticated and demanding consumers” meaning
discount prices come off as an insult to them (Hunt et al., 2018). People from Japan
connect price and quality directly by stating it as “low price, low quality” (Hunt et al.,
2018). Hence, they purchase expensive products in small quantities to protect their high
standard.
● Operational Analysis: Wal-mart has three dimensions in their performance
management: “Customer service orientation, decision-making and results orientation,
analysis and problem-solving” (Thompson, 2023). They prioritize customer satisfaction
by focusing on customer service orientation. No employees are allowed to serve more
than 6 customers so that employees do not lose focus while serving each customer. Wal-
mart also ensured that every employee- especially in top level management- holds
knowledge regarding decision making to magnify “organizational resilience” (Thompson,
2023). Having a problem-solving manager optimize the over performance of the
organization. Therefore, Wal-mart never fails to place expert workers in retail stores to
upgrade their employee performance.
● Person Analysis: In reality, their actual performance resulted in failure in international
retailing. After the acquisition of the Seiyu, ¼ of Seiyu’s permanent employees retired
voluntarily causing employment workload. Currently, employees have no proper skill,
knowledge and attitude to handle more than 6 employees. Moreover, only managerial
employees know how to solve the problem. In the meantime, employees have no other
choice but to wait for the circulation from the top level management.
The Process Phrase:
Based on the situation above, employees are expected to handle more than 6 customers at a time,
which creates a higher probability of losing focus from each customer. Japanese customers prefer
greetings, politeness and attention when they enter the store. If these things are not provided,
Wal-Mart is practically deviating from basic Japanese culture. This situation demands quick
response from management, but only top management has the idea regarding the situation.
Therefore, all employees need to understand the basic Japanese culture and courtesy to tackle
immediate situations like handling more customers without deteriorating the quality of the
service.
The Output Phase:
To narrow down the gap between expected performance and actual performance, Wal-Mart
needs a cross cross-cultural training program. A cross cultural training program will allow Wal-
Mart to understand the differences in standard of serving catered services to customers. This can
also allow Wal-Mart to provide differentiated products to the local customers based on their
needs. After receiving training, every employee will acquire the right skill, knowledge, and
attributes to work in the Japanese market.
Referencing:
Cuofano , G. (2023, October 1). Walmart Mission Statement and Vision Statement.
FourWeekMBA.
https://fourweekmba.com/walmart-vision-statement-mission-statement/#:~:text=
%E2%80%93%20Walmart’s%20mission%20emphasizes%20global%20reach,living
%20standards%20are%20core%20themes.&text=Vision-,%E2%80%9CMake%20every
%20day%20easier%20for%20busy%20families.%E2%80%9D,the%20lives%20of
%20busy%20families.
Hunt, I., Watts, A., & Bryant, S. K. (2018, April 16). Walmart’s international expansion:
Successes and miscalculations. Journal of Business Strategy.
https://www.emerald.com/insight/content/doi/10.1108/JBS-02-2017-0013/full/pdf?
title=walmarts-international-expansion-successes-and-miscalculations
Thompson, A. (2023, June 3). Walmart’s HRM: Training, performance management. Panmore
Institute.
https://panmore.com/walmart-human-resource-management-training-performance-
management
Wikimedia Foundation. (2023, October 18). Walmart. Wikipedia.
https://en.wikipedia.org/wiki/Walmart
