...financial efficiency. Wal-Mart developed the strategic planning initiative of Every Day Low Price (EDLP), which prices it products at low, affordable prices. Wal-Mart’s strategic planning has made the store one of the best known organizations and industry leaders in low prices. The strategic planning initiative effects costs and the sales within the organization that can also create risks; however, if managed effectively can make the discount giant even more profitable. Strategic Planning Initiative, Financial Planning Wal-Mart has grown from modest beginnings to become one of the most recognizable store chains in the world by operating almost 11,000 stores in 27 countries with more than two million employees (Wal-Mart, 2012). With such a large, well-known organization the company strives to remain competitive within a global market. To succeed, the company used strategic planning to identify an aggressive strategy within their 2012 annual report. Wal-Mart management entitled the strategy“Delivering Everyday Low Price (EDLP). According to Wal-Mart’s 2012 annual report, the EDLP strategy represents an essential component of its message of delivering the lowest prices possible every day to its customers. As part of the EDLP plan, the company initiated what it believes the strongest competitor advertisement matching policy in the retail industry. The company goal through implementation of EDLP separates Wal-Mart from its competitors through price variance (A. Wal-Mart Stores, Inc,...
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...Strategic Initiative FIN/370 March 19, 2012 Christine Gordon Strategic Initiative Wal-Mart Stores, Inc. is a global company that has taken a moral and ethical position on becoming a leader on social issues that each community finds itself dealing with daily. This year Wal-Mart has invested in what they currently call the Global Responsibility Report. This report covers a multi-faceted plan that it plans to deal with over the past year and how it will approach these social issues in the future. What we will be looking at is the strategic planning on the environmental initiatives that Wal-Mart has deemed a priority in the next few years, how these initiatives will affect the financial planning of the company, how it will affect the cost and sales of products not only to the customer but also the vendors and what the financial risk that are associated with the initiatives. As we look at these different pieces of Wal-Mart’s managerial direction it will give us a better understanding of how big businesses are not only leading in their current venue but also trying to be a leader in our social issues of the day. Strategic Planning of Environmental Initiative of Wal-Mart Stores, Inc. When reviewing the annual report of Wal-Mart Stores, Inc. it gives us a vivid look into how corporations are trying to play a larger leadership role in today’s social issues. Per Wal-Mart Annual Report (2011),”This year, we’ve published a Global Responsibility Report, expanding the...
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...1. Functionalist questions a. What are the functions of Wal-Mart for society? Wal-Mart is an American multinational retail corporation and one of the leading discount department retail stores (Wikipedia). It is the highest- grossing company in the United States (Fortune 2008a), and is by far one of the most successful companies worldwide. Wal-Mart offers a place to buy the majority of our goods under one roof like electronics, furniture, clothing, pharmacy, sports, food, books etc. Wal-Mart sells good at lower price than the others and this is even shown by its slogan “save money, live better”. It drives out smaller and sometimes even the expensive stores out of business due to its lower prices. Wal-Mart provides jobs for thousands of people in the society including the low-skilled people. It represents a trend of one stop shopping where we can get almost everything that we want. b. Are they the same or different from the functions of Wal-Mart in our individual lives? How do the two types of functions connect? One of Wal-Mart belief and function is the respect for the individual. They have given importance of respect for every individual and every member of the community. For individuals; Wal-Mart offers convenience, good pricing and multiple products under one roof. It reduced the overall cost to consumers as they don’t have to go from one place to another to buy different goods. c. Does Wal-Mart have both manifest and latent functions? Manifest functions are conscious...
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...Franco MGT/230 August 21, 2013 Professor Chris Pahl Internal and External Factors The internal and external fact of functions affects management every day. It is the performance that an organization or company within itself could turn out positive or negative. This also pertains to the outside world, where the factors can be beyond the control of the organization in positive or negative situations. The concepts in management implements the four functions needed for the core requirement in management. Planning is the foundation base which all others areas are built. There may be sudden strategies required to be implemented during a crisis. Depending on the conditions, a company may have to alter its course of action regarding certain goals. Organizing is the second function of management that is affected if resources beforehand are not organized. Leading or directing is the third function affected in management, it helps control and supervise the actions of the staff. The leading managers whether positive or negative the internal and external outcome, have to be sensitive and inspirational on a personal basis. Controlling is the last of the functions performance that is affected by the factors. Control is also dynamic in nature as the management can anticipate future problems. When it comes to globalization, internal and external factor affects various segments of a business, company branding, employee capabilities, and consumer and market analysis. A global economy opens...
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...a moments notice. At Wal-Mart, top executives have learned to utilize the four traditional functions of management: planning, organizing, leading, and controlling. Through understanding the four functions, they have been able to overcome the internal and external factors that have threatened Wal-Mart’s place in their industry. However, Wal-Mart has experienced situations where internal and external factors have affected and, in some cases, enhanced their ability to use those functions. Now we will take a look at these five factors: Globalization, Technology, Innovation, Diversity, and Ethics and analyze their affects on the four functions of management. For Wal-Mart, globalization has affected the four functions of management. When the organization decided to go global in 1991, Wal-Mart experienced a huge shift in its ideas of planning. With the options of going into Europe, Asia, and other countries in the western hemisphere, Wal-Mart decided to first move into the South American markets. Ultimately, Wal- Mart chose to expand its organization globally in Mexico where it could gain knowledge and experience, and use this knowledge to continue to expand internationally. Globalization affected the company’s organization function of management as well. For Wal-Mart to expand further than South America and into Canada, the firm had to establish an organizational strategy. The corporation chose four main areas. (1) Work Force: Wal-Mart acquired a retailer...
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...Abstract The supply chain is a concept resulting from multiple independent entities that affect each other. This paper will discuss about Wal-Mart supply chain it will provide the six component, problems and approaches to solve the problems. Wal-Mart is one of the major retail in the world (Walmart 2011). Wal-Mart is continuously developing its business by developing its services and product portfolio. The supply chain of Wal-Mart is also effective to enhance its effectiveness within the industry (Hoppenstedt & Rathkolb 2005). Introduction Wal-Mart is the largest multinational company in the retail industry (Cullen and Parboteeah, 2008). Wal-Mart retail store was started by Mr. Sam Walton in 1945. Mr. Walton began his career as J. C. Penny management trainee. In infancy of the Wal-Mart store Mr. Walton leased a Ben Franklin franchised in Arkansas, United States of America. He kept on struggling in retail industry and by the year 1962 he owned the store under the name of Walton 5 & 7. In the same year he with assistance of his brother James opened the first Wal-Mart Discount city in Rogers, Arkansas. In 1970 Wal-Mart went for public offering at the time when its sales were scoring at $44 million and had 18 stores under its umbrella in small and medium sized towns. It grew to 276 Wal-Mart stores by the year 1980. Components of Supply chain Management According to the definition Supply chain is a network that is used in business concern to sustain the exact flow of information...
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...need at a lower cost. Companies all over the United States are fighting to stay competitive and are seeking ways to restructure their company and still provide for consumers the best possible prices. Companies such as Wal-Mart do not have to change their structure to fit the demands of consumers because it already offers its customers brand name items at lower prices. Wal-Mart’s basic structure has helped make it a powerful retail business, and a place consumer’s love. Market Structure Wal-Mart Stores Inc. opened its first discount store in 1962, Sam Walton had no idea his business would be the success that it is today. The reason for Wal-Mart’s success is their ability to create a basic structure for their business. Wal-Mart offers a variety of well-known brands and sells them at about 5-10% cheaper than other retailers. This makes Wal-Mart a powerful force in the retail business. Wal-Mart Stores is considered an oligopoly market structure. Colander (2008) defines oligopoly as a market condition in which sellers are so few that the actions of any one of them will materially affect price and have a measurable impact on competitors. With their continued success, Wal-Mart’s market structure could also be considered a monopolistic competitive structure. Wal-Mart has all the characteristics of a monopolistic competitive structure as described by Colander (2008), they have many sellers, offer differentiated products, and they exhibit multiple dimensions of competition....
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...strategic plan initiative that identifies how the organization plans to achieve its goals in the future. These goals not only include financial but also community, environmental, and charitable goals. The following data will cover Wal-Mart’s latest strategic initiative while answering several key questions concerning the initiative, which include: 1. How the initiative affects the organizations financial plan 2. How the initiative affects costs and sales 3. Risks and affects associated with the initiative Strategic Planning Initiative for Wal-Mart and Initiative Identified in Annual Report A strategic planning initiative Wal-Mart implemented to help grow the company is the “Save Money, Live Better” initiative. To ensure the initiative was a success, the company identified several components that needed to be addressed. For example, one of the “Save Money, Live Better” initiative’s objectives is to achieve price leadership for Wal-Mart. The company’s plan to achieve price leadership is to do everything in its power to offer its products at a greater value than other competitors in the market while not hindering the company’s growth objective (Murray, 2012). In response to the price leadership component of the initiative, Wal-Mart determined its private label products can both help increase the company’s revenue and aid in achieving the initiative’s objective. As a result of the economy’s current condition,...
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...Wal-Mart Business Analysis Part 2 This paper compares Wal-Mart’s financial health to its competitors such as Target and K-Mart, which are also designed in retail multi-shopping department stores. Further review will detail how Wal-Mart’s rates in comparison of profitability through its income statement, balance sheet, and cash flow in relationship to Target and K-Mart. Upon examination, this information will illustrate the future perspective success of Wal-Mart and determine areas of improvement such as sales, operating income, return on investments, liabilities, and cash flow. Further information will identify the processes that Wal-Mart has designated to comply with the Security Exchange Commission (SEC) regulations. Detailed evaluations will specify Wal-Mart’s financial performance and the principal tools of benchmarking analyses that differentiates Wal-Mart’s position in best practices, operational processes and procedures in the domestic and global markets as well as the technology advantages in relationship to Target and K-Mart (University of Phoenix, 2011). Financial Statements Wal-Mart implemented a new financial system, which reflects the retail method of accounting for inventory. This procedure affects the operating income and the consolidated net income for all comparable periods. Wal-Mart reclassified expense and revenue items within these statements of income for the purpose of reporting. However, the reclassifications did not affect consolidated operating income...
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...Wal-Mart, Inc.: A Tribute to Sound Strategic and Operational Planning Ben F. Soares MGT/521 September 13, 2013 James Sternieri Company Overview: Wal-Mart, Inc. is a retail store that sells everything from clothing and groceries, to electronics, and computers. Established in 1969, the company employees 2.2 million workers, and operates 10,130 stores across 27 countries, which makes it the largest retail company in the world (www.marketline.com, 2013, p. 3-4). Wal-Mart’s net profits decreased by 4.2% to $15,699 million from 2011 to 2012, however; the company continues to grow, which is a tribute to their sound strategic and operational plans (www.marketline.com, 2013, p. 3). Mission Statement: Wal-Mart runs its business under the mission statement “We help people save money, so that they can live better” (www.ask.com, 2013, p. 1). This mission statement complements their company slogan, which states, “Wal-Mart. Always low prices. Always” (www.ask.com, 2013, p. 1). These statements help deliver Wal-Mart’s vision of operating as a low cost merchandiser, and form the basis for their strategic and operational plans. Strategic and Operational Plans: In order for Wal-Mart to achieve its goals it must formulate sound strategic and operational plans. Strategic plans are usually broad in scope, and deal with long-term objectives, usually three to five years (Warwick, 2013, p. 1). Operational plans tend to be narrow in scope, cover a one-year time frame, and outline a...
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...Environmental Scan Environmental scanning is one function of strategic management of analyzing external factors that can affect an organization. Environmental scanning is to scan the environment to monitor and identify the changes such as new trends that may cause an effect on the organization. In addition, environmental scanning with an internal analysis of the organization strengths, weakness, mission, and vision can assist management to formulate a strategic plan to gain control that may have potentially significant affect. Successful organizations like The Home Depot and Wal-Mart are dependent upon the ability of leaders and employees to adapt to the rapidly transforming external environment (Wheeler & Hunter, 2010). The Home Depot is the world's largest home improvement specialty retailer with more than 2,200 stores in the United States, Puerto Rico, U.S. Virgin Islands, Guam, Canada, Mexico, and China (Annual Report, 2011, p. 7). The retailer sells approximately 40,000 products to consumers and its 321,000 associates are the key to the organization success who deeply believe in the values the organization. Instead of a mission statement, Home Depot has eight corporate values designed to guide the actions of all its employees. According to Home Depot, the corporate values are: “Taking care of our people, giving back to our communities, doing the right thing, excellent customer service, creating shareholders value, building strong relationships...
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...Workplace,Business & Ethics on evaluation of job ethical standards in Wal-Mart in South Carolina In Partial Fulfillment of Business Research and Project BUS 499 Nagliesha L Miles Supervisor: Dr. Mmutakaego Chukwuanu Allen University Date: December 8,2010 Table of content Table of Content...............................................................................................................2 Abstract............................................................................................................................3 List of Illustrations Wal-Mart earnings preview......................................................................................13 U.S Retail food pricing.................................................................................14 Chapter 1 Introduction.....................................................................................................................5 Background information.......................................................................................5 Statement of problem............................................................................................5 Hypothesis............................................................................................................6 Chapter 2 Literature Review...........................................................................................................8 Chapter 3 Methodology.................................................
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...Internal and External Factors Paper Wal-Mart is a not only a retail business but an organization that everyone has either heard about or shopped at. As a leading organization, Wal-Mart has employed a total 2.2 million associates around the world, with only 1.3 million hired with in the U.S. (Wal-Mart Stores, Inc., 2014). There are several internal and external factors that affect the four functions of management. As Wal-Mart continues to strive towards success, globalization, technology, innovation, diversity, and ethics are all factors that affect Wal-Mart being one of the largest organizations in the world. Internal Factors Such is the case for every organization that wants to continue to expand and remain lucrative; the core of that company is their management. Management has four very important functions which keep their business and their employees afloat and those are planning, organizing, leading, and controlling. This format that management follows is no different when it comes to Wal-Mart. Wal-Mart is a company that continues to expand at a rapid pace due to the low prices, large availability of items, various services offered, and the customer experience when they come to the store. Inevitably, just like any other company, they will have some internal and external factors which may make certain situations on the job tougher. Examples of internal factors which could affect the job duties of a manager would be employees who do not want to work or are unmotivated...
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...In the News… Week 5 Business Policy Wal-Mart vs. Compliance By Daniel Williams Student of DeVry University Professor Bethany Poore Compliance with laws and fairness are a major hurdle for most companies. There is a fine line between paying someone for their services and giving them money for an upper hand. Recently there have been allegations against Wal-Mart for some unethical behavior in foreign countries. This has created such uproar that investors are now suing top Wal-Mart executives. Several board members involved in the scandals are being asked to step down from their positions by some shareholders (D'innocenzio, 2012). Wal-Mart CEO Mike Duke has come forward to reassure the public that Wal-Mart will take care of the problems and make things right. The scandals came about when the New York Times came out with a story stating Wal-Mart had allegedly bribed key foreign official. Then Wal-Mart failed to notify law enforcement after finding evidence that officials authorized millions of dollars in bribes in Mexico (Clifford, 2012). The alleged bribes where meant to get speedier building permits and other favors. Shock and dismay can be used to describe the public’s reaction to the recent controversy. Wal-Mart has been polishing their image so they can win over the public and create a feeling of trust. Mexican president Felipe Calderón recently stated he was “indignant” over Wal-Mart’s behavior (Clifford, 2012). The Mexican government is now looking...
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...Analyse The Wal Marts Case Study Management Essay ukessays.com /essays/management/analyse-the-wal-marts-case-study-management-essay.php Wal-Mart Stores, Inc. opened in 1962 by Sam Walton and his brother. Nowadays, it is ranks as the largest corporation in the World. In early 1990s, the company announced that it would initiate the international operations, which commenced in 1991 in some countries like Canada, Puerto Rico, Argentina, China, etc. (Reference for Business, 2012). PEST Analysis In order to analyse the Wal-Mart's case study we are going to apply the PEST analysis which is 'A type of situation analysis in which political-legal, economic, socio-cultural and technological factors are examined to chart an organization's long-term plans' (Business Dictionary, 2012). II.1. Political Factors When a firm desires to undertake businesses in a foreign country there are some factors to investigate before taking a final decision, for example, the system of the government, law and local trade unions, language, religious and ethical values. Wal-Mart faced numerous complications on the legal and political front in many countries. For example, in Mexico the company participated in an aggressive lobbying campaign to amend the long-standing U.S. anti-bribery law that the company might have violated. The 1977 law, well-known as the Foreign Corrupt Practices Act, prohibits U.S. firms from offering fees or gifts to foreign officials to advance corporate interests (Hamburger, Dennis & Yang...
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