Reference no: EM133588676

Walmart's service and sales models drive the organization's Service-Profit Chain by ensuring customer focus. Walmart's focus on the customer is part of the company's core values. Customer focus is managed through Internal Service Quality areas, such as workplace design, employee selection, and tools provided to Walmart associates for serving customers. In addition, the store is also able to recognize employees, encourage career growth, and even offer college funding for continued education.

Wal-Mart's everyday low prices business model and establishing itself as a cost leader in the retail industry have been vital sources of growth for the company. For Wal-Mart to provide low prices for its customers, it had to be very conscious about keeping costs low and charging slim margins. The premise of this business model is that by controlling costs and prices low, the business will capture value through much higher sales volume and profits.

Walmart works with supplier relations and is conscious closely with its suppliers and outsources its point of sales data to its suppliers. Wal-Mart's suppliers use this data to manage their inventory and supply chain to reduce waste in inventory management at Wal-Mart. It gives the inventory management decision to the suppliers that can best estimate their products' throughput and cycle time to prevent stockouts or excess inventory.

Associate satisfaction helps produce satisfied customers. Satisfied employees are likely to assist customers with a more pleasant demeanor and a higher level of customer service. This creates a more satisfying customer experience, increases customer loyalty, and ultimately drives increased profitability.

Companies with loyal, productive employees tend to perform better financially because companies' revenue increases when associates are happy and valued. On that same token, One service-profit chain I will improve in my store will be customer engagement by encouraging my associates to communicate and interact more with the customers to create a better customer experience.