Premium Essay

Strategic Management Analysis for Wal-Mart

In: Business and Management

Submitted By huichee1992
Words 7179
Pages 29
Step 1: Identify the Firm’s Existing Vision, Mission, Objectives, and Strategies.
Vision and Mission:
There is no formal vision and mission of Wal-Mart available in this case study.
Wal-Mart is a retail store that strives to excellently serve, respect and focus on both domestic and international customer by providing every-day low prices’ general merchandise to satisfy customers’ needs and help customers to save money.
1. Forward Integration * Wal-Mart acquired four stores and six sites from Makro, the Korean Club store retailer. (pg 614) 2. Horizontal Integration * Wal-Mart had acquired entrenched, dominant player, the Wertkauf hypermarket chain in Germany. (pg 611) * Wal-Mart acquired 229 stores of Asda Group PLC, the UK’s third largest supermarket chain. (pg 615) 3. Product Development * Wal-Mart reported experimenting internationally with new operational elements, including jewelry, one-hour photos, optical labs, and online home-delivery programs. (pg 605) 4. Market penetration * Wal-Mart plans to add another 50 German stores by the year 2003. (pg 614) * Wal-Mart plans to open 120-130 new stores in existing international markets. (pg 616) * Wal-Mart announced plans to open 44-55 new stores, 200 new Supercenters, 20-25 new Neighborhood Markets, and 40-45 new Sam’s Clubs. (pg 616) 5. Cost Leadership * Wal-Mart foresaw opportunities to serve customers in other countries, using its management and IT skills, purchasing scale, and corporate mentality of keeping costs low. (pg 607) * Sam’s Clubs used high-volume, low-cost merchandising, minimized handling costs, leveraged their buying power, and passed the savings on the members.

Step 2: Develop Vision and Mission Statements for the Organization
Below is the proposed vision and mission statement for Wal-Mart:
To be the…...

Similar Documents

Premium Essay


...Strategic Management: Strategy is a long-term plan framed to gain a competitive advantage. Strategic management is a domain wherein strategies are transformed in to actions. It even comprises decisions made based on priorities, say, tasks to which time is devoted like resource allocation. These plans and decisions are aligned to goals of an organization. (Amason, A. 2010) Strategic management focuses on clients to know their expectations and serve them brilliantly. It involves action plans to reduce attrition and to retain the best talent. Its scope involves the functions and activities which make the organization innovative and pioneering. (Karami, A. 2007) Need for Strategic Management: Need for its strategic management arises to fulfill the priorities of an organization few of which include: o To accelerate its growth in this global business. o To augment the operational excellence of the organization. o To become globalized. It aims towards value creation to all shareholders at the same time even being centered towards society. (Amason, A. 2010) Executive Summary: Strategic Management involves formulation and implementation of strategies to improve the performance and to gain competitive advantage. It involves decisions and acts that managers undertake in order to attain the desired goals. Strategies are planned means to attain end results. Strategic management is long term in nature and gives a direction to the......

Words: 4279 - Pages: 18

Premium Essay

Strategic Plan

...Strategic Plan To validate the organizational vision, mission, and values statements of Wal-Mart, the strategic management process will be examined. The strategic management activities are different for each business but the basic components within the strategic management model are very parallel when looking at the strategic management operations. Some components of the strategic management model include company mission, external environment, and internal analysis. The mission of a company is the unique purpose that sets it apart from other companies of its type and identifies the scope of its operations (Pearce & Robinson, II, 2011). The company mission exemplifies the company’s product, market, and technological areas of emphasis that mirror the values and priorities of the strategic decision makers. Social responsibility is a critical consideration for a company’s strategic decision makers because the mission statement must express how the company intends to contribute to the societies that sustain it (Pearce & Robinson, II, 2011). Therefore a business has to set social responsibility objectives. The first Wal-Mart store was opened in 1962 in Rogers, AR. Wal-Mart was opened and mostly financed by Sam Walton. The mission statement and purpose of Wal-Mart is “We save people money so they can live better.” Wal-Mart’s founder Sam Walton originally defined the company purpose which is “ If we work together, we’ll lower the cost of living for everyone…we’ll give the......

Words: 858 - Pages: 4

Premium Essay


...Case Study: Wal-Mart DeLeon A. Rich Management and Strategy Webster University May 15, 2013 Table of Contents Table of Contents 1 Introduction 2 Wal-Mart’s Threats and Challenges 2 Priorities of Wal-Mart CEO during the October Address 2 Wal-Mart Board’s Strategic Initiatives 3 Recent Wal-Mart Initiatives 4 Recent Initiatives 4 Comment: Strategy 5 Comment: Personal Relations 5 Wal-Mart’s Social Challenges 5 Conclusion 5 References 5 Introduction Every business organization in the contemporary world continues to face serious challenges and turbulences. Such challenges and turbulences have called on to business enterprises to re-structure and re-engineer their strategic plan in order to establish effective strategic initiatives. Dynamisms and increased competition are some of the challenges that business enterprises continue to face. One example of a business enterprise that has had to re-structure and re-engineer its strategic plan amidst increased dynamisms and competition with Wal-Mart. Late in 2005, Wal-Mart announced a series of sweeping new strategic initiatives. Such strategic initiatives are aimed at enhancing the position of the business within the industry and the market as well as performances. This case study provides an in-depth analysis of Wal-Mart in respect to its current strategy and challenges. Analysis of the threats and challenges coupled with priorities that Wal-Mart CEO, Lee Scott set in the address on......

Words: 3007 - Pages: 13

Premium Essay

Wall Mart

.................. 4 5. Mission of Wal-Mart.................................................................................. 4 6. Objectives of Wal-Mart.............................................................................. 4 7. SWOT analysis of Wal-Mart...................................................................... 4-5 8. Application of Porter’s five forces in Wal-Mart............................................ 6-7 9. Wal-Mart Focus on Low-cost..................................................................... 8 10. Conclusion................................................................................................ 8 11. Recommendation....................................................................................... 9 12. References................................................................................................ 10-11 Executive Summary: In contemporary business world, Strategy plays an important role in every sector. A good strategy gives the company a competitive edge over the competitors. This report will emphasize on a business organisation called Wal-Mart Stores Inc. which make superior performance over the last few years. Wal-Mart is the number one and fast growing retail store of the world and currently operating 27 countries worldwide. In this report we will look at Wal-Mart Mission, Objectives, Competitive Strategy under the case of SWOT analysis and Porter’s five forces followed by...

Words: 2259 - Pages: 10

Premium Essay


...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 (, 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 (, 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” (, 2013, p. 1). This mission statement complements their company slogan, which states, “Wal-Mart. Always low prices. Always” (, 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...

Words: 792 - Pages: 4

Premium Essay

Swot Analysis of Walmart

...Wal mart With around 5000 retail outlets worldwide, operating in more then a dozen countries and with over US$286 billion in annual sales, Wal-Mart is the top retail chain and number one fortune 500 company in the world. Wal-Mart is the top employer in the U.S. with 1.3 million employees, “the company accounts for 9 cents of every US retail dollar and sells around 20 per cent of the nation’s groceries and pharmaceuticals.” (Times News Network). Wal-Mart’s sheer size gives it unrestrained economic power which allows it to drive down costs in the retail and manufacturing sectors and to enact its own standards with regards to its work force. Facts about Wal-Mart and China * It is important to understand that there is a huge difference between the Chinese model and the Indian growth model, the Indian model is essentially domestic demand driven unlike the Chinese one that is fuelled by export growth. * More than 70 per cent of the commodities sold in Wal-Mart are made in China. * Wal-Mart Stores Inc, says its inventory of stock produced in China is expected to hit US$18 billion this year, keeping the annual growth rate of over 20 per cent consistent over two years. * "If Wal-Mart were an individual economy, it would rank as China's eighth-biggest trading partner, ahead of Russia, Australia and Canada," Xu Jun, Wal-Mart China's director of external affairs said. * Insiders point out that Wal-Mart's imports from China have largely influenced the US trade......

Words: 2423 - Pages: 10

Premium Essay

Strategic Manangement

...Strategic Management Process MGT/498 Abstract The primary components of the strategic management process are strategic planning and strategic execution. The strategic management process is an important factor to the success of an organization. Components to consider are the planning and execution of the strategy. Wal-Mart is trying to increase their sales by reinventing how they do business and building on the Internet side of the business. Strategic Management Process Organizations begin because someone had an idea and wanted to share it with the world. However, an organization cannot be successful based on the ideal alone. Some planning must take place to establish the internal and external components of the organization. In other words, policies on how the company will operate, procedures on how the product is developed, and how to reach the customer base is imperative prior to starting a business. This is when strategic management is most effective. According to Wheelen and Hunger (2008), strategic management is “a set of managerial decisions and actions that determines the long-run performance of a corporation” (p.5). The purpose of the paper is to explain the primary components of a strategic management process, indicate why a strategic management process is needed, and examine a strategic management process of Wal-Mart. Primary components of strategic management Strategic planning and strategic execution are the primary components of strategic......

Words: 672 - Pages: 3

Premium Essay

Environmental Scan

...In today’s global market place strategic management planning is more important than ever. Developing a strategic management plan is vital to the future of the organization. First and foremost the strategic plan lays down a solid foundation for growth, defining company goals, direction the company is going in the future, and how it is going to get there. A strategic management plan is just like it sounds, it manages the steps along the path leading into the future making sure company goals are meet and if not what changes need to be made in order to stay on course. Developing a strategic management plan can be difficult. Implementing an environmental scan will help identify both internal and external problems and influences used to build or change and existing strategic management plan. Several factors can influence the planning process. Many of the factors can be identified and taken into consideration when planning for the future. No matter how well an organization builds their strategic management plan there are always going to be unforeseen problems that will need to be addressed. Developing a strategic management plan that is able to manage change is essential to the success of the organization. Changes in market trends, consumer demands, and technological advancements are just a few areas change is inevitable. If the strategic management plan is going to work it must manage and implement changes in both internal and external environments. Two organizations that have......

Words: 1227 - Pages: 5

Premium Essay

Strategic Management

...Strategic Management Process MGT 498 Strategic Management Process The strategic management process is how a company defines its organizational strategy. It is how managers make a choice of a set of strategies that will enable the company achieve optimal performance in a continuously changing environment. It is a continual process by which a company establishes its objectives, formulates strategies enabling it to meet those objectives in a desirable amount of time, implementation of those strategies, and assesses the progress and results. The primary components of strategic management are: environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Environmental scanning is the process of collecting, analyzing, and providing information for strategic purposes. It allows the company to assess its current situation in the market. This is accomplished through a SWOT (strengths, weaknesses, opportunities, and threats) analysis. The SWOT analysis describes the company’s particular strengths, weaknesses, opportunities, and threats, which are important strategic factors for a specific company in a certain market. After the analysis complete, managers formulate a company strategy, known as strategic formulation. This strategy is used to decide which is the best course of actions (long range plans) a company should take for the effective management of the company’s threats and opportunities. In addition, it allows the......

Words: 522 - Pages: 3

Premium Essay

The Cola Wars

...Case Study #2 Cola Wars Management 5650 Fall 1 October, 17, 2013 Introduction There has been stiff competition between companies that produce similar goods. This competition is alive and well, especially in situations where there is need for a multiple of companies that offer similar goods and services to counter monopoly. However, these wars can take a different turn and bring changes to general operations of some firms (Long & Harding, 1998). Coca Cola and Pepsi are such companies that produce soft beverages, and the wars between these cola firms are far from over. In the recent past, Pepsi has made essential changes in its line of production, and this decision has enabled the beverage firm earn more revenue than Coca Cola. This case study will look at the strategies that both Coca Cola and Pepsi have adopted in their recent operations and the effects of these policies on the two beverage firms’ operations. Pepsi has made use of the application of the Pearce and Robinson Strategic Management Model to outplay Coca Cola in most of its internal strategic operations. This strategic management model has eleven components, and each component plays an important role toward the full implementation of the model as a system (Pearce-Robinson, 2010). Indra Nooyi, the boss at the Pepsi Co. has made several steps to counter Coca Cola’s high quality products. One of her major concern has been to produce less sugary goods at fairly pocket friendly prices. She has applied the......

Words: 2939 - Pages: 12

Premium Essay

Wal-Mart Strategic Audit

...Wal-Mart is the number one retailer in the United States. Geographical growth opportunities are shrinking within the boundaries of the United States.The company needs to evaluate multiple options to determine the best strategy to deploy. The challenge is “keeping the world’s biggest retailer on its phenomenal roll and delivering the huge sales and earnings increases that investors had come to expect from Wal-Mart over the years” (Camerius& Hunger, p. 19-30, 2006). The company’s current strategic plan is tothrive in the followingareas: • Low costs, high customer service, and always low prices • Product mix • Logistics and supply-chain management • International markets • Domestic growth • Public relations I have developed multiple strategic alternativesfor the company. They are as follows: • Stability – Pause And Proceed: Pause physical growth then proceed with growth domestically and globally • Growth – Concentration: Concentrated Internet program to target domestic and foreign markets • Growth – Concentration: Horizontal Growth with International Entry for global geographical internal expansion The plan deployed must be consistent with the corporate strategy. Per Sam Walton (1918-1992), the company’s founder, “Our goal has always been in our business to be the very best and, along with that, we believe that in order to do that, you’ve got to make a good situation and put the interests of your associates first. If we really do that consistently, they in......

Words: 8588 - Pages: 35

Free Essay

Wal-Mart: Strategic Initiatives in a Changing Market

...Wal-Mart: Strategic Initiatives for a Changing Market MGT 521 Wal-Mart: Strategic Initiatives for a Changing Market Local, state, and national economic trends play a large part in the success and failure of businesses. When the economy experiences a downturn, consumers spend less and seek more for the money they do choose to spend; this puts companies in a unique situation. Many companies must choose between increasing prices and letting employees go in order to keep themselves in business. The United States recession of 2008 put employers in the same situation; in fact, this recession put employers in an even more difficult position. The recession saw a decrease in employment of over 6 percent—double that of all previous postwar recessions (Auguste, Lund, & Manyika, 2011). The retail sector lost 1 million jobs during the most recent economic recession. Since then the industry has added over 90,000 jobs, but this still results in job losses offsetting job gains due to this rough economic time (McCall, 2011). Wal-Mart, like any other retail business, feels the effects of recent economic trends. Unfortunately, Wal-Mart has had to resort to eliminating health insurance coverage for part-time employees and increasing premiums for other workers in an effort to cut costs (Wright, 2011). This strategy, though unfortunate, allowed the company to cut costs during the recession without eliminating positions or increasing prices. Wal-Mart also......

Words: 1233 - Pages: 5

Premium Essay

Gb520 Walmart Case Study

...16, 2014 Strategic Human Resources Management GB520-01N Wal-Mart Case Study Contents Introduction 3 Background 3 Summary 3 Exploring Answers 4 The Secret Formula 4 The Issues 5 Recommendations 7 Conclusion 7 Introduction The purpose of this analysis is to examine domestic Human Resource strategies in contrast to International Human Resource strategies. One goal of globalization is to be able to do business across borders without stress. Similarly, as companies grow customer bases, it is important to have strategic business units in areas local to the customer base. It is what is required to successfully build a successful global presence. This analysis will attempt to highlight potential issues faced by Walmart when they opened up for business in China in 1996. This analysis will also provide a set of recommendations that may have helped to avert the issues that Wal-Mart faced. Background Wal-Mart Stores, Inc. started when Sam Walton set out on an ambitious mission to have a store with the lowest prices anytime, anywhere. In 1962 Sam Walton opened the very first Wal-Mart in Rogers, Arkansas. By 1967, they owned 24 stores and continued to rapid expanding. In 1983, they added to their portfolio by starting a wholesale/bulk retailer called “Sam’s Club” and by 1988, they started a hybrid of general merchandise stores and supermarkets and aptly called them “Super Centers.” In 1990 Wal-Mart became USA’s number-one retailer. In 1991, Wal-Mart opened......

Words: 1566 - Pages: 7

Premium Essay

Walmat Case Study

...relevant issues. Wal-Mart is an organization which is subject to increasing levels of change and volatility in their business. While it is fact of business life, it also reflects that it drives a relentless increase in the proportion of an organization’s activity that is dedicated to change in meeting the new challenges. Wal-Mart has become one of America's most successful retail giants generating about ROI was 18.6% and 19.2% for fiscal 2012 and 2011, respectively. (Wal-Mart Annual Report, 2012). It is well know as the leader in thinking outside the box, anticipating market opportunities and executing effective strategies to capitalize on them. It has over 10,800 stores worldwide. Businesses have to face the challenge of too many competitors, partly originated by the globalisation, all competing for same objective of making highest profit. So, increasingly companies are not merely asking themselves the management question of ‘Are we doing the right?’ but are having to regularly ask ‘Are we still doing it right?’ They have been seeking a more holistic means of doing this than traditional means of delivering products and services to the customers. In a volatile world, decision makers need options on the future and the ability to change direction as strategic opportunities. Although, business as usual (BAU) performance change is providing a short term success but they are typically faced with a less than perfect processes to make investments. In this case analysis, we are......

Words: 8726 - Pages: 35

Premium Essay

Strategic Development in Global Food Retail

...usually follow two strategic formats which are as follows: * Discount Outlets These kind of global food retailers work in same format in all the divisions regardless of what country they are operating in. They also keep the same products for retailing. This system usually follows adopting the same distribution channels and maintaining centralized distribution centres. The prime examples of this format of global food retailers are Lidals and Aldi. * Hypermarkets In this case food retailers adopt international multi-channelization and diversification to achieve maximum growth out of food retailing. Some of the examples of such global food retail super market are Wal-Mart and Tesco. The hypermarkets and supermarkets are the food retailers where thousands of products are brought together at single location and the availability of the products are made year round. Global food retail sales are estimates to around $4 trillion per annum. The supermarkets and hypermarkets make the maximum sales in food retailing. All around U.S., the food retail supermarket industry is dominated by Wal-Mart, Target and Costco. Wal-Mart is the leading supermarket in America with major percentage of sales of total food retail industry. In this paper, we will discuss in detail, the global food retail super markets such as Wal-Mart and Tesco with their strategic implementation processes and analysing them. Wal-Mart: Wal-Mart was started by Mr. Sam Walton in year 1962. Wal-Mart is......

Words: 3699 - Pages: 15