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Cost-Benefit AnalysisThe strategic plan Walmart launched in which they chose to focus on increasing their ecommerce presence and to make their stores more friendly did come at a great cost. The company spend a great deal of money purchasing other online retailers that did not always work out in Walmart’s favor. An example would be the acquisition of Jet.com which came at a cost of
PAD 631 MILESTONE TWO 7nearly three billion dollars and the subsequent closure of the Jetblack personal shopping service. The company did retain the employees and shift them to different divisions. The risks associated with focusing on developing ecommerce have paid off with the thirty seven percent increase in ecommerce in the fiscal year 2019 (Walmart's online sales grow, 2020). The City of Durham’s strategic plan had a focus of increasing economic prosperity, safer, more diverse, connected communities, innovative organizations, and a sustainable environment. The costs associated with these initiatives were clearly offset by the promise of a stronger and safer community for the citizens of the city. Also by creating a safer, more prosperous city business would be more interested in building locations in the Durham which will continue to bring economic stability to the entire community thus helping to make the strategic plan more successful. The risks associated with these goals was relatively low. The American Red Cross faced the least risk of the three organizations with its strategic plan. The plan was heavily focused on increasing revenues and maintaining financial stability. The greatest risk to the organization is attempting to increase fund raising in a climate that is currently facing economic hardships and a steady decrease in donations to non-profit organizations (About Us, n.d.). The plan is to focus more heavily on corporate donations which can pose a risk as profits for corporations are decreasing due to the current pandemic. Constraints The three organizations face a multitude of constraints when it comes to strategic management. Walmart as a private company must still answer to the stakeholders of the companyprior to implementing a strategy. The stockholders and board of directors of the company allow the management a bit of latitude when it comes to making decisions, however, if they feel those decisions are not in the best interest of the company they will replace those who made them. The
PAD 631 MILESTONE TWO 8City of Durham and the American Red Cross face constraints that are imposed by one being a municipality and the other being a non-profit organization that operates by a charter. The city as a municipality is constrained by the fact they are led by a political body that must constantly answer to their constituents and cannot simply make decisions without considering the public reaction. The American Red Cross is constrained by the fact that it is made up of seven hundred and sixty nine regional chapters and each of those regional directors has some degree of autonomy. This can make it difficult to maintain a cohesive strategy. Another issue faced by the