...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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...Wal-Mart Sustainability Strategy “Given the fact that Wal-Mart customers generally are unwilling to pay a premium for environmentally friendly products, how is the company deriving business value from its sustainability strategy, or if not, how can it ensure that it does?” Wal-Mart launched a sustainability strategy to dramatically reduce the company’s impact on the global environment and become “the most competitive and innovative company on the world”(Denend, L.(2007)).I believe the decision to launch a sustainability strategy was a brilliant move for the company because it takes advantage of the opportunity to significantly increase Wal-Mart’s reputation, thereby increasing consumer loyalty and profits in the long-run. Through this strategy, not only would Wal-Mart benefit, but the global environment as a whole. Wal-Mart responded to public concerns of the company’s global environmental impact by contracting a nongovernmental organization (NGO) to research the issue. The Union of Concerned Scientists (UCS) compiled data regarding the impact in five areas: 1) greenhouse gas emissions, (2) air pollution, (3) water pollution, (4) water use, and (5) land use. From this research came Wal-Mart’s sustainability strategy. The company began to develop goals and objectives to reduce their impact on the environment (Denend, L.(2007)). During the process of developing goals and objectives, the organization’s culture shifted from an internally focused culture...
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...Wal-Mart vs Honda 1. What are the sources of Wal-Mart’s competitive advantage in discount retailing? Discount stores extended to general merchandise by charging gross margins 10% ~ 15% lower than those of conventional department stores. To compensate, discount stores cut costs to the bone. In this way, Wal-Mart had two key aspects of initiating their business. First, they were locating stores in isolated rural areas and small towns. The other element was the pattern of expansion. They were always pushing from the inside out. As for operating business, Wal-Mart had their own way of doing things. First, they built their own warehouse so they could buy in volume at attractive prices and store the merchandise. Second, their useful information systems made flexibility among stores to operate their own strategy like “everyday-low-prices”, “satisfaction guaranteed” policies. Also, a two-step hub-and-spoke distribution network was used to reduce costs. It made Wal-Mart and their vendors benefited from reduced inventory costs and increased sales. In spite of some legal conflicts with competitors, they kept focusing on diversification and international operations with a strong relationship between the management and employees. 2. What is the strategy that allowed Honda to be so successful in the motorcycle industry? Beginning in the 1950s, Honda focused on superior productivity. First, they offered a multiproduct line. Second, they took leadership in product innovation and exploited...
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...Human Resource Management Strategies of Wal-Mart TITLE OF ASSIGNMENT: Human Resource Strategy of Wal-Mart inc Table of Contents Table of Contents (This page) ------------------------------------------------------------------------2 1.0 Introduction ------------------------------------------------------------------------3 2.0 Wal-Mart Human resource strategy ------------------------------------------------------------------------4 2.1 Recruitment and selection ------------------------------------------------------------------------4 2.2 Training and development ------------------------------------------------------------------------6 2.3 Employee motivation and Reward / benefits ---------------------------------------------------------7 2.3.1 Financial benefits ------------------------------------------------------------------------8 2.3.2 Health and awareness benefits ------------------------------------------------------------------------8 2.4 Performance management --------------------------------------------------------------------------9 3.0 Challenges faced by the human resources -----------------------------------------------------------------9 4.0 Recommendations to overcome these challenges -----------------------------------------------------10 1.0 INTRODUCTION Human resource management according to Wilton (2011) in his book “an introduction to human resource management” is a phrase used...
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...Wal-Mart- A Case Study of MIS Strategy Walden University Wal-Mart – A Case Study of MIS Strategy Management information system is all about people using technology to work with information as they support the organization in its quest for a competitive advantage (Haag & Cummings, 2008, p. 29). Researchers and authors have discussed management information systems and technology over the decades. The concepts of competitive advantage, technology, outsourcing etc. have been theorized, yet discussion on the subject matter continues. While MIS strategy formulation has seen advancement, organizations are evolving and constantly changing their operating models. An example of such organization is Wal-Mart, the global retail giant. This research seeks to pin-point Wal-Mart’s key management information system strategy, while providing a deeper understanding of the organization’s management information systems strategy and its impacts. Further it aims to investigate knowledge management, e-commerce strategy, and the impact of database management which are aspects that can be incorporated into the MIS strategy formulation. To achieve this objective the literature survey was conducted to explore available published papers in the sphere of IS/IT strategy formulation. Considering that the applicability of information systems and technology is mission critical, the research design focused on the qualitative approach. The primary method of data collection was through semi-structured...
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...CASE STUDY 10 | SHRM Table of Contents EXECUTIVE SUMMARY ........................................................................................................................ 2 ANNEXURE ............................................................................................................................................ 3 INTRODUCTION ................................................................................................................................... 9 INTRODUCTION TO THE COMPANY ................................................................................................. 9 QUESTIONS ......................................................................................................................................... 10 QUESTION 01: ................................................................................................................................... 10 QUESTION 02 ................................................................................................................................... 12 QUESTION 03 ................................................................................................................................... 14 QUESTION 04 ................................................................................................................................... 16 CONCLUSION.....................................................................................................................................
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...PREPARED BY: GROUP MEMBER 1) NURSYAHIDAH BINTI RAZALI 62283113720 2) NURUL NABILAH BINTI RAZALI 62283313248 3) NURUL ZAITUN BINTI ABDUL MALIK 62283313168 4) UMMI KHALSUM BINTI RAHMAT 62283313053 PREPARED FOR: LECTURER’S NAME: MOHD HAIZAM BIN MOHD SAUDI 1. What is the nature of the company business? What are their product lines? Wal-Mart is the World's largest retailer. It has over 11,500 stores in 28 countries across the globe. Wal-Mart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores. Walmart products include discount stores, cash and carry wholesale, warehouse club, super-center, supermarket and superstore and also an e-commerce business. 2. Develop a suitable vision and mission statement for the company. Vision i. To be the best retailer in the hearts and mind of consumer and employees. ii. To promote ownership of Wal-Mart ethical culture to all stakeholder globally. Mission i. Saving the people's money so they can live better. ii. If we work together we will lower the cost of living for everyone. iii. Save money. Live better. 3. Using the following template, develop EIGHT (8) core business objectives in fulfilling the stakeholder’s expectation. Please refer Chapter 4 page 134 of your text book for the details. The objectives must meet SMART (Specific, Measurable...
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...Walton,the leader (strategy Vector) innovative vision,tech savvy, and observing business practices, keeping one step ahead of the ever-changing technology and methods of today’s fast-paced business environment. Strike a comfortable balance between increasing its profits and recognizing its social and ethical responsibilities. Why is Wal-Mart so Successful? Is it Good Strategy or Good Strategy Implementation? Vector Core Values What ,And why analysis The Wal-Mart Philosophy — Wal-Mart is successful not only because it makes sound strategic management decisions, but also for its innovative implementation of those strategic decisions. Regarded by many as the entrepreneur of the century, Walton had a reputation for caring about his customers, his employees (or “associates” as he referred to them), and the community. In order to maintain its market position in the discount retail business, Wal-Mart executives continue to adhere to the management guidelines Sam developed. Walton was a man of simple tastes and took a keen interest in people. He believed in three guiding principles: 1. Customer value and service; 2. Partnership with its associates; 3. Community involvement (The Story of Wal-Mart, 1995). The Customer — The word “always” can be seen in virtually all of Wal-Mart’s literature. One of Walton’s deepest beliefs was that the customer is always right, and his stores are still driven by this philosophy. When questioned about Wal-Mart’s secrets of success, Walton...
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...International Business Strategy | Wal-Mart Case Study | | Aneesha Radia | | 09466782 | 1/28/2013 | | Contents 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations in the 1950s? 3 THE THREAT OF ENTRY 3 THE DEGREE OF RIVALRY 3 THE THREAT OF SUBSTITUES 3 BARGAINING POWER OF BUYERS 4 SUPPLIER POWER 4 2. With reference to the key components of its Business Model, describe the sources of Wal-Mart’s competitive advantage in the USA 4 FIRM INFASTRUCTURE 4 HUMAN RESOURCES 5 INFORMATION TECHNOLOGY 5 PROCUREMENT 5 INBOUND LOGISTICS 5 OPERATIONS 5 MARKETING AND SALES 6 3. How sustainable is Wal-Mart’s competitive advantage in discount retailing in the USA? 6 IMITATION 6 SUSTITUTION 6 SLACK 7 HOLD-UP 7 4. With reference to Dunning’s Eclectic Paradigm of foreign direct Investment (FDI), compare and contrast Wal-Mart’s entry into the German market in 1997 with it’s subsequent entry into the UK market in 1999. Why was Wal-Mart unsuccessful in Germany, withdrawing in 2006, and relatively successful in the UK? 7 FIRM SPECIFIC ADVANTAGES 7 LOCATION SPECIFIC ADVANTAGES 8 INTERNALIZATION 9 APPENDICIES 10 APPENDIX 1 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 2 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 3 11 SOURCE: GOOGLE IMAGES APPENDIX 4 11 SOURCE: GOOGLE IMAGES 11 REFERENCES 12 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations...
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...Wal-Mart Case Study Dr. Tonya D. Moore MNGT 5650 November 24, 2013 Introduction Wal-Mart can be defined as Goliath in the biblical story of David and Goliath (only he doesn’t fall), the “strategic Corporal,” a self-licking ice-cream cone, the industry benchmark, labor exploiter, cost cutting surgeons with chain-saws, and America’s company. Wal-Mart perceptions are across the board and in essence reflect all of our societal issues and problems in one massive company. They survive and thrive on their ability to shape perceptions of their business model to consumers while exploiting their workforce. Goliath was perceived to be too big of a giant to fall or loose in battle until David succeeded. Wal-Mart is perceived that they are too big to fall by their competitors, society, and the country. They are the largest employer in the country, they own massive supply chain networks, and stores in every town across the country. However, in the case of Wal-Mart, there is no David out there to knock them down. Arguably they are no true competitors in their industry. Because of being this perceived giant, Wal-Mart is able to be a bully with vendors, associates, and competitors. Further, because of being a giant everyone is watching them. Threats and Challenges The simple answer of what threats and challenges Wal-Mart currently faces centers around their associates wages and health care. However, why do they face this challenge instead of what they are doing to...
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...Wal-Mart and Its Urban Expansion Strategy Herbert Reliza Drummond Columbia Southern University Course Title DBA 7035 4 October, 2011 Abstract Wal-Mart’s presence in the retail market industry has been extensive and profitable; resulting with Wal-Mart grossing sales of 256 billion, $9 billion profit, and employing 1.3 million associates (employees) within the United States. “With attractive sights becoming scarce, Wal-Mart pursued an urban expansion strategy and in 2004 negotiations commenced to open new stores in the Chicago metropolitan area, but none in the city itself” (Baron, 2010, p. 217). Furthermore, of its 3,000 plus stores Wal-Mart management altered its strategy and focused on two major areas primarily located on the Southside and Westside of urban African-American areas located in Chicago Illinois- Ryerson Tull and Helene Curtis facilities. However, in this case study we will closely analyze several factors dealing with Wal-Mart’s perils that have not only tarnished its reputation but also has questioned the probability of gaining the trust of Chicago’s social and political agencies to enter into the Chicago retail industry to compete with rivals: Target, K-Mart, as well as many others. Entering Chicago Retail Market Background According to Baron (2010), “Wal-Mart’s market strategy emphasized low prices, low costs, helpful sales...
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...Case Study: Wal-Mart in China (2012) In 1996, China’s national economy was growing at a rapid pace. The gross domestic product reached over US$1064.4 billion, an increase of 9.7% over the previous year. To further increase and attract foreign investment, the Chinese government increased its number of experimental, special economic-zoned cities in which foreigners could operate a business. There were, however, restrictions set forward by the government, in that all foreign businesses would have to be in a joint venture or other type of cooperative agreement with at least one Chinese partner, with that Chinese partner getting a stake greater than 51%. In August 1995, Wal-Mart, the great American retain chain and Middle America success story, arrived in China, establishing a joint venture with Shenzhen International Fiduciary Investment Co, Ltc, China. In 1996, Wal-Mart opened its first supercentre and a Sam’s Club in the special economic zone of Shenzhen. In 2007, Wal-Mart acquired a 35% stake in Trust-Mart, a Taiwanese-owned chain of retail supercentres operating in the Middle Kingdom. By 2010, Wal-Mart’s presence in China grew to 189 units in 101 Chinese cities, with the creation of over 50,000 local jobs. By 2012, the company nearly doubled its presence with 370 stores in 140 cities. As the U.S. and European economies slumped in late 2011 and into 2012, the world’s number-two economy became an even more important growth market. In the first quarter of 2012, China’s...
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...try to boost their profits” (Epstein & Meredith, 2010). Companies are reacting quickly to get a cut of the action in China. It is viable for companies to create an efficient strategy that will effectively distinguish themselves from its competitors and have the capability to conquer the foreign market. However, when entering to unfamiliar territories there are many challenges that companies ought to overcome such as cultures, regulation, communication barriers, and so forth. Currently, Wal-mart and Carrefour are dominating in China as the foreign discount stores but they have different strategy to compete in China. Background In 1959, Carrefour was created in Southern France and became international by 1969. “It innovated with the hypermarket format in France in 1963 where it introduced the idea of one stop shopping for food, clothing, electronics, appliances, etc. Although it does not compete in the USA, it has adapted successfully to Latin American and Asia markets” (Arnold, 2002, p. 563). “Now, it serves over 2 billion clients per year in its more than 9,000 stores, which are present in 32 countries across 3 geographic zones. Carrefour is not only the second but also the most internationalized retailer worldwide” (Shiue, Der-Juinn, & Yeh, 2006, p. 171). In 1962, Wal-mart began its story in Northwest Arkansas as the discount store and quickly expanded to the largest family owned business. “It is active in 11 countries and has stores in North and South...
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...The Strategy of International Business Hill, International Business, 7th Edition CLOSING CASE: Wal-Mart’s Global Expansion Summary The closing case describes Wal-Mart’s international expansion strategy. Wal-Mart, today the largest retailer in the world, was a purely domestic company until 1991. When the company decided to expand into Mexico, critics warned that the company was too American, that its model would not work in other where markets where infrastructure, consumer tastes and preferences vary, and where established retailers already dominated. Wal-Mart went ahead with its expansion plans anyway, opening a joint venture operation in Mexico with local retailer Cifera. Discussion of the closing can revolve around the following questions: QUESTION1: How does expanding internationally benefit Wal-Mart? ANSWER 1: Wal-Mart really had no choice but to expand internationally if the company was to continue to grow. The company had reached a saturation point in the U.S. market, and needed to expand elsewhere in order to grow revenues. However, other benefits have accrued as a result of the international expansion including the ability to reap significant economies of scale from its global buying power, and gains from the cross-flow of ideas across the thirteen countries in which the company now competes. QUESTION 2: What are the risks that Wal-Mart faces when entering other retail markets? How can these risks be mitigated? ANSWER 2: While Wal-Mart...
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...i) Name of the organization : Wal-Mart URL :www.walmart.com ii) wide variety of general merchandise which includes grocery items, cosmetics, clothing, pharmacy, toys, foot wears, furniture,etc iii)Wal-Mart’s target market includes families and individual with modest incomes. Part b) Strategies adopted by Wal-Mart a) Generic Strategy – It is evident that the generic strategy adopted by Wal-Mart is Cost Leadership. The Wal-Mart mission is – We save people money so that they can live better. Wal-Mart adopts very firm policy to keep costs low. It follows the Everyday Low Price Strategy (EDLP) in which It promises its customers to keep the low prices without the need to wait for sale price events and comparison shops. EDLP saves the time and money needed to mark down prices in stores during sale events and market these events and is believed to create shoppers loyalty. It is a correct strategy wherein competitive market it has kept the low prices keeping in view its target market. Part c) Porter’s five force analysis 1) Competition between rival companies: * Currently there are three main competitors of Wal-Mart- Sears, K-Mart , Target * Wal-Mart often has low cost advantage over its competitors. * Wal-Mart has mature industry life cycle thus it gives tough competition to its competitors . 2) Bargaining power of buyers : * The individual buyer has quite a minimal power when it comes to Wal-Mart. * Consumer could shop at the competitors who...
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