...Wal-Mart VS Target Group Analysis [Type the author name] 4/21/2013 [A group analysis of the two top retailers; Wal-Mart and Target. This paper will discuss the SWOT of both companies as well as give an in depth analysis of both companies as big competitors.] 1962 was the year of creation. That is when two great companies were founded, Target and Wal-Mart. Target opening saying it’s a “new idea in discount stores”. Wal-Mart was the retailer who “focused on helping customers and communities save money and live better”. The two companies opened with the same ideas in mind. Sam Walton opened Wal-Mart’s first store in Rogers, Arkansas while Target was opened in Roseville, Minnesota by the Dayton Company. Later that year Target opened three more stores in St. Louis Park, Crystal and Duluth, Minnesota. Over the years the companies have managed to create household names for themselves that have lasted for over 50 years. Target and Wal-Mart have many things about their companies in common, strategy isn’t one of them. These companies seem to take two different approaches and it works in both persons favor. They both are leaders in different aspects therefor making them great competitors. Wal-Mart has 3 different strategies. Focus strategy is usually defined as: focusing on offering products and services to a particular market segment or buyer group, within a segment of a product line, and/ or to a specific geographic market. The differentiation strategy is defined...
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...Question Set One What purpose (function) does Wal-Mart serve for our society, either domestically or internationally, or both? One of Walmart’s serves a purpose of giving to the community. Both domestically, and internationally, Walmart has been giving communities access to a better life, one by one. They have stated that their mission was to “create opportunities so people can live better,” and they do so by giving grants, donations, volunteer efforts and etc… Are the functions the same for everyone in society (explain, don't just say "yes" or "no")? Yes, I believe that the function are the same for everyone in society. Although it does not impact at the same thing, and give the same results, it does serve the same function. Meaning Walmart’s...
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...Case: Wal-Mart’s Supply Current Strategy and Challenges Carjamin Scott MNGT 5650 QB S2 2015 Due: Saturday, April 18, 2015 Webster University Abstract This case is primarily based on the findings of the “Supplemental Benefits Documentation: Board of Directors Retreat FY06" to discuss the threats and challenges that Wal-Mart is currently facing. It will also overview the priorities of CEO Lee Scott as set in his “Wal-Mart: Twenty-First Century Leadership” address. Wal-Mart’s Board discussed proposals to meet (some of) these challenges at a board retreat in 2005. The Wal-Mart health cost strategy will also be examined with emphasis on the additional damage done to Wal-Mart by the leaking to the public of the Board Benefits Strategy document. I will also comment on two recent Wal-Mart initiatives from the standpoints of strategy and public relations. Also some strategic social challenges will be discussed from the standpoints of Bonini, Sheila M. J.; Mendonca, Lenny T.; Oppenheim, Jeremy M. “When social issues become strategic”. McKinsey Quarterly. 2006 no. 2. Introduction Sam Walton is the founder of Wal-Mart. In 1962, the first Wal-Mart store started in Rogers, Arkansas. The brand had a vision to provide customers with low prices, anywhere. After the Walton family earned 12.7 million in sales, the newly incorporated Wal-Mart, was on the fast track to become a worldwide leading multimillion-dollar retail store. Wal-Mart has over 8,000 locations within 3 business segments...
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...Wal-Mart: To Gain or Lose Geneva Moore MGT/521 October 28, 2012 Professor Phillip Norris Wal-Mart: To Gain or Lose I, as a Mutual Fund Manager, have decided to evaluate whether to invest in Wal-Mart. A SWOT analysis should prove helpful in identifying if it is feasible to take the investment risk with Wal-Mart. Several companies would be good investments but Wal-Mart has been a strong pillar in many communities for years therefore being the most logical choice. This paper will extend some background for the company and attempt to show the likelihood of profit by investing in Wal-Mart. Wal-Mart has been in business since 1962 in Rogers Arkansas. By 1967 Sam Walton, visionary of Wal-Mart, had 24 stores operating with millions of dollars in sales. ”Before the 1970’s Wal-Mart became incorporated and after the 1970’s Wal-Mart began to take the world by storm expanding globally” (http://corporate.walmart.com). In the 1970’s, “Wal-Mart became a publicly traded company and the first stock sold at sixteen dollars and fifty cents per share” (http://corporate.walmart.com). In 1972, ‘Wal-Mart was listed on the New York stock exchange” (http://corporate.walmart.com). “Wal-Mart’s first distribution and home office opened in Bentonville, Arkansas in 1971” (http://corporate.walmart.com). After the 1970’s, Wal-Mart started to make a rapid sprint towards becoming a leader in its industry. Such steps as “reaching one billion in annual sales in 1980, replacing cash registers with...
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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 in...
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...2012 All companies have a specific way of planning their organizations success. There are basic six steps of the planning process include 1) situational analysis (in which planners gather and analyze data), 2) alternative goals and plans (alternate goals and objectives that are broad based and designed to be pursued in the future), 3) goal and plan evaluation (assess advantages and disadvantages for proposed goals and plans), 4) goal and plan selection(managers select appropriate goals and plans for support to the organization), 5) implementation (managers and employees must understand plans to fully support and achieve certain goals), and finally 6) monitor and control (ensures plans are implemented properly). In the following I will analysis the organization of Wal-Mart. Wal-mart Stores, Inc. is one of the biggest chains of corporations when it comes down to department discount stores. Wal-mart is considered one of the leading public corporation according to the 2008 Fortune Global 500 (Fortune Global 500, 2007). Wal-mart was founded in 1962, and incorporated in October 31, 1969, by Sam Walton. Wal-mart is known for having stores nationwide as well as international one but with a different name. The steps of planning this organizations success have been followed though and thought-out very well so that the organization can have it’s success, not only for the companies own good but for the ones that brought it together. The Wal-mart companies were in corporate October...
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...Marketing Mix Holly Brown MKT/421 April 24, 2013 Mary Hinds The Marketing Mix Starting in 1962 by Sam Walton, Wal-Mart grew into a major corporation that serves in 15 international markets, including more than 3,600 stores in the United States alone. In 2012, it was ranked #1 for the second year in a row on the Fortune 500 list. Wal-Mart is a widely known corporation that offers just about anything and everything a person could ask for. Known for their customer service, wide variety of selection, convenient locations, and ability to make customers happy, it is easy to see why the marketing mix that they use is a key factor in the continuing growth and success of the business. The marketing mix of a company consists of four components, or the four P’s: Product, Price, Place, and Promotion. Each part is something that is a part of the product’s marketing plan and is controlled. The four P’s are created and edited in order for the company to produce a marketing plan that serves the needs of customers and produces the most attainable income for the company. Product describes the types of products a company is marketing to increase sales. The price of these products determines how well a company will do compared to that of its’ competitors. The place in which the company is located will determine what types of customers will shop from the consumer. Last, the way in which a company promotes its’ products will determine the attention the company gets. For instance, if a company...
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...unfamiliar with Wal-Mart. Headquartered in Bentonville, Arkansas, with more than 10,150 Wal-Mart stores and clubs worldwide, the company continues to grow and expand. It also owns and operates Sam’s Club, a retail warehouse club for members only. The company sells a wide variety of products from household products, electronics, clothing, toys, jewelry, and also grocery items. The company also provides services such as pharmacy, check cashing, automotive repair, hairstyling, manicures, and pedicures. The store is a giant one stop shop. The convenience of having all these products and services in one place and the low competitive prices that Wal-Mart offer is pretty hard to beat. Wal-Mart will also match the price (with the advertisement) of products sold for less by other retailers. Due to the broad range of products and services offered by Wal-Mart, their customer base consists of both genders and all age groups, which in turn enables the company to serve over 200 million consumers a week worldwide. There is something for everyone at Wal-Mart. In the retail market Wal-Mart is a force to reckon with, putting many local mom and pop stores out of business. Large companies like Target and K-Mart are continuing to restrategize their competitive edge in order to contend with the multi-billion dollar business. Wal-Mart’s existence into the retail market and low prices reduced K-Mart’s profit margin to almost nothing. Competing with the prices of Wal-Mart left K-Mart in a huge disadvantage...
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...Wal-Mart: Corporate Giant or Corporate Beast? Ever since Wal-Mart’s establishment, there has been an ongoing debate amongst shoppers of whether or not the company is a magnificent creation or a complete monster. On one side, costumers cannot deny that their everyday savings certainly do draw a smile on their faces; while on the other side, costumers feel that there must be some terrible reason for the prices of their products to be so low. This mystery that has stewed up this ongoing debate over the years about Wal-Mart needs to be discovered. In order to discover this mystery, research on the topic has to go all the way back to the beginning stages of the company. From the birth of the company to present day empire it has created, one question must be answered: corporate giant or corporate beast? Wal-Mart has a long history and they have been around much longer than what most people think. The founder of Wal-Mart was Sam Walton. Sam Walton was born into a farmer’s family in Kingfisher, Oklahoma on March 29, 1918. [31] He had one brother whose name was James Walton. Sam’s father was a farmer until he decided that farming was not producing enough revenue and decided to become a mortgage man. Sam grew up in the great depression where he learned many moral values like working hard. He had many odd jobs so he could help his family out with money. The family then moved to Florida, while there Sam became the youngest Eagle Scout in the state’s history. After graduating...
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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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...09-16-10 Wal-Mart KGA: Strategic Action Plan Wal-Mart “Always low prices”, is the first thing you think of when you think about one of the most successful companies around the world, Wal-Mart. For years they stand as a well know company due to their everyday low prices and variety of products. Their mission statement is “Saving people money so that they can live better”. They have chosen their mission statement wisely yet there is a lot of controversy when it comes to this International Company. Wal-Mart was started in Rogers, Arkansas during the early 1960’s by Sam Walton. (Ghillyer, 2010). Walton traveled all around the country researching what consumers wanted in a retail store. When Sam Walton fist opened Wal-Mart he “built it under the foundation of honesty, respect, fairness and integrity” (Ghillyer, 2010). Wal-Mart’s sales have made them a billion dollar revenue in the previous years. Walton tried to create a culture that shared the same beliefs as he did. Out of his beliefs he chose the three strongest that well suited his store: Respect for individuals, service to customers, and striving for excellence. Wal-Mart’s success promotes many benefits. Stockholders, customers, employees and communities benefit from the company’s success. In 1972, after 15 stores, Wal-Mart suffered with a lot of competition. Wal-Mart stock was offered for the first time in the New York Stock exchange. Being a public company helped Wal-Mart expand rapidly. It grew from...
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...Brooke Ellington October 13, 2013 University of Phoenix XMGT/230 Sam Walton opened the first Wal-Mart store in Arkansas on July 2, 1962, (Carson, 1999-2013). The vision of Sam Walton for his store Wal-Mart was to provide lower prices and to reflect on the values of the community and the customer. Consumers remember Wal-Mart for its motto "customer satisfaction" and “guaranteed lower prices." Wal-Mart offers employee training for everyone in the store from the greeters to the managers to ensure excellent customer skills and to instill Sam Walton's philosophy in the consumers mind. Wal-Mart's growth leads to the company becoming incorporated in 1969 that has led to stores opening in the nation and globally. Celebrating 50 years of helping communities and customers, Wal-Mart has more than 10,000 stores in at least 27 countries (History Timeline, 2012). Sam Walton has proven successful management using the four functions of management to grow his business. The four functions include planning, organizing, leading, and controlling. Wal-Mart's success in various levels of management has led to multidivisional structures. Wal-Mart has 13 divisions of strategic management that offers traditional functional areas and geographic areas in the retail operation. The purpose of this paper is to explain how internal and external factors affect the four functions of management in the Wal-Mart Corporation. For any organization to survive, irrespective of its size, it must develop and implement...
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...Wal-Mart Amanda Reeves SS340-01American Business History Kaplan University Wal-Mart On July 2, 1962 when the first Wal-Mart store opened in Rogers Arkansas, no one would have guessed that in less than fifty years, one store would explode into nine-hundred and seventy one locations across the United States. The Wal-Mart Store has revolutionized the way that Americans shop for groceries, household supplies, clothes, and even home repair items. Sam Walton’s vision for a place that people could come to purchase a variety of items in one location for a reasonable price, began in 1940 when he started working in retail for J.C. Penny. During his career at Penny’s, Walton was approached by Butler Brothers Retailers, who offered him the opportunity to run one of their variety stores in Newport Arkansas called “Ben Franklin”. Walton jumped at the chance and was actually very successful at the venture. After the initial lease expired for “Ben Franklin”, Walton chose to relocate and rename the store. He moved to a building in Bentonville Arkansas, and renamed the store “Walton’s Five and Dime”. It was here that Walton learned a valuable lesson in sales. By slightly reducing his markup on products, he was able to out sell his competitors with significant profit and sales margins. Walton took this valuable knowledge and began to study and research different discount retailers across the country, learning everything he could about discount retailing...
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...Investigate the unethical business practice of Wal-Mart company Wal-Mart is the largest retailer in the world nowadays and it was established by businessman Same Walton. The company's marketing slogan, "Always Low Prices", which is successfully attracted most of the shoppers to buy products at the stores. However, there's unethical business practice and unfair treatment to employees behind this accomplishment. This paper will estimate the behavior of the company while it's doing the business, discuss the problems that the company carries out, the influences from the issues of discrimination, environment, society, and economy, and suggest possible solutions. Trace back to Sam Walton's historical line, he opened his first variety store after World War II and gained profit little by little. Later on, he got enough funds to open a chain of drugstore. His ambition turns him to cooperate with his brother in business. They expanded their business to more locations. According to PBS(Public Broadcasting Station), it reported that "by 1960, the Waltons' 15 stores were taking in $1.4 million a year". It led Walton brothers to step into a brighter future in their business planning. When the brothers believed they achieved their goal successfully, other competitor came into the market. The competitor utilized the tactic of discounting goods in the store. They realized that they had to come up with a way to survive in the market, otherwise, their business would be driven...
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...Wal-Mart and the Ethical Dilemma Presented to: Dr. Robert D. Gulbro In completion of MGT 5013 Organizational Behavior Florida Institute of Technology By: Felix Knight Wal-Mart was started by Sam Walton in 1962; the first store was in Rogers Arkansas. By the beginning of the 1970’s, Wal-Mart had grown to 1,500 employees and 44.2 million dollars in sales. The company also went public in 1970. The company’s growth continued throughout the decade, with the employee count reaching 21,000 by 1980 with $1.2 billion dollars in sales. Wal-Mart made its first acquisition, buying 16 Mohr-Value stores. In 1983, the first Sam’s Club warehouse opened followed by the first Wal-Mart Supercenter in 1988. By the end of the decade, the company had over 1,402 Wal-Mart and 123 Sam’s Club locations and $26 billion dollars in sales – an increase of 2,600% over the decade. Today, Wal-Mart is the world’s largest retailer, with $405 billion in sales, over 4,300 stores, and 2.1 million employees (Duke, 2010, p. 0). One hundred shares of Wal-Mart stock purchased for $1,650 when the company went public would have grown to 204,800 shares worth over $10.1 million as of July 9, 2010 for a return of 613,431% (“Dividends & stock splits”, 2010, July 9) (“Wal-Mart (WMT) stock quote” 2010, July 9). Daft (2008) stated “Wal-Mart is the largest retailer in the United States” (p. 129). Wal-Mart’s 2010 annual report provides the mission statement of the...
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