...STRATEGIC MANAGEMENT MGMT E -5000 WALMART CASE ANALYSIS BY Indhu SEPTEMBER 19th, 2012 SWOT Analysis of Wal-Mart: (2008- 2010) EXTERNAL ANALYSIS: Significant findings on the PESTEL analysis were:(Refer Fig 1 ) * Socio Cultural factor: One of the most important concerns among consumers during that period was price. Since its establishment Walton focused on Everyday low prices (EDLP) and always geared towards the low- income groups of the society. This provided Walmart better opportunities and helped them gain a competitive advantage in the industry. * Demographic factor: Another opportunity facing the industry was that Consumers (working Mothers and other American workers) wanted ease of shopping (fast, efficient and one-stop shopping). Walmart provided its customers with what they want in the Walmart supercenters combined with its wholesale unit “Sam’s Club”. * Technological Factor: Heightening of Internet users (70% of the population) and more people were comfortable shopping online. This yielded both favorable (lower over head costs and convenience to the customers with wide choices of items and prices that were appealing) and unfavorable (Walmart has invested heavily on the infrastructure like the EDI links and POS systems) circumstances. * Economic Factor: Domestically the U.S market had a very slow growth. Although the economy was said to be in recession it favored the growth of the organization because it offered consumers commodities at a...
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...Case Objective: This case objective is to study Wal-Mart’s history, external environment, internal environment, perform a SWOT analysis, analyze its business strategy, performance measures, and to provide strategic recommendations. Moreover, Wal-Mart’s “glory days are over” and its stock is “dead money”. So, what had worked in the past for Wal-Mart was no longer sustainable in the current competitive environment. The president Lee Scott wondered whether he should somehow adjust Wal-Mart’s course or to change efforts he had started over the past few years would begin to have a positive effect. These statements and facts will be addressed and discussed in the course of the paper and presentation. Wal-Mart's Mission: "To give ordinary folk the chance to buy the same thing as rich people" Wal-Mart's Vision: "To become the world leaders in retailing" (WalMart.com, 2011) Introduction: Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large, discount department stores. It is world’s largest public corporation by revenue and was founded by Sam Walton in 1962. It is the largest private employer in the world and the fourth largest utility or commercial employer. Other key facts about Wal-Mart are that “at the end of fiscal year 2010 Wal-Mart has over 4,300 stores and clubs in the U.S., and more than 8,400 units worldwide.”(Walmart.com, 2011) They employ 1.8 million in over 6,700 stores in 14 countries and on a weekly basis “they serve 200...
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...Wal-Mart Stores, Inc. After reading and analyzing the case pertaining to Wal-Mart, I was honestly amazed of how it started and how it was built. Sam Walton started a legacy that worked well for the company. I believe that the policies he started made Wal-Mart as desirable of a store as it is today. Sam used different ideas and methods in order for his store to be the best there is. But what captured my attention was the way he treated his associates. Unlike other stores or companies, he called them “associate” rather than “employees. He treats his associates in a manner in which he wants his customers to be treated by them. It has become a very effective tool since how he treats his associates reflects on how his associates treat their customers. He gives them responsibilities instead of monopolizing the work. He gives them his trust in which the associates return with diligence and hard work. He believed that it was best to empower them instead of overpowering them. With this in mind, Sam never experienced a union in his stores since all of his associates are very committed in working for him. He also suggested different programs that cater to the needs of his stores as well as his associates. In one of his programs, associates are given the power to voice out their suggestions, complaints and recommendations, be it for the benefit of the stores or of the associates. Sam never failed to support, recognize and reward associates in the management of...
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...September 26 & 28: Wal-Mart case Question 1 – Assessment of Wal-Mart’s external environment Wal-Mart –> Part of the retailing Industry External Environment: * Demographics I. Age Structure –> younger generation, a generation that is easier to influence, mainly women between the ages of 25-45. II. Income Distribution –> lower class/lower income individuals, but who still have a strong interest in fashion and who want to look good * Socio-Cultural Our society and our culture “dictate” how and what you should wear. The increase in TV reality shows such as “What Not To Wear” greatly influence our decision-making. Industry Environment: * Power of Buyers –> High We, the consumers, are the buyers of Wal-Mart’s cheap chick clothing line. The switching costs are low; it is easy for us to go see elsewhere to acquire clothing. As buyers, the consumers represent Wal-Mart’s sole source of income, which means that if dissatisfied consumers will buy elsewhere, giving buyers high power in Wal-Mart’s future profit margins. * Power of Suppliers –> Low The textile industry would be considered to be Wal-Mart’s suppliers as well as a third-party clothes producers / factories where Wal-Mart places its orders. Since Wal-Mart is part of the “cheap chick” industry, it is not as picky when it comes to the “quality” of the textiles acquired to make their clothing items; and the clothes are not expected to be of premium quality and long-lasting...
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...waste, selling sustainable products and using 100 percent renewable energy. With this strategy the company not only aimed to resolve the problem of paying fines to state and federal regulators for its environmental damage but also change its bad reputation among customers. The company also realized its sustainability strategy creates cost advantages and this should turn out an opportunity to maintain its lower price strategy. Customers’ reactions to Wal-Mart’s new sustainability strategy showed that low or middle class consumers’ expectations are not limited to purchase only low price products; they are also willing to buy green, sustainable ones when they find them in affordable prices. This was a sign that Walmart is on the right track. Today’s business practice of Walmart needs to transform more -through quick wins which are actions that makes business sense based on available technologies, products and processes; innovation projects which base on emerging technologies, processes, and innovation; big game challenge which is a way to lead the market works for sustainability, not against it- to complete its sustainable pathway successfully and reach the sustainable business practices level. In this way, they should identify opportunities to develop supply chain, coordinate manufacturers and compete with the rivals. Company should find new ways to get greener supply chain with less capital, lower the operating costs and catch more competitive advantages in the market. Even though...
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...For decades, Wal-Mart has held the title of the American retailer (although it is international) where people can get products for the lowest price possible. As the world’s largest retailer, Wal-Mart has been looked at as a role model for many competitors who desired the profits Wal-Mart has received in past periods. The founder, Sam Walton, began to design his stores in 1962 to the have everyday low pricing (EDLP) method, opposed to the popular at the time hi-lo pricing. Lucky for Walton, throughout the late 1900s there was a great trend in discount retailing—buying in bulk at a lower price, which EDLP catered to, making Wal-Mart the leading retailer. The firm also strides itself on its efficient strategies in its supply chain, especially within the distribution system. Throughout the past decade, however, there have been other trends, like online shopping, which have resulted in Wal-Mart’s decline. The firm’s stock price had been growing significantly, except in the past 10 years it has been flat—ranging from $45-$55, whereas its competitors’ stocks have kept increasing. This has made many shareholders, including James Neuhausen, a stock analyst, question the firm’s worth and its potential in years to come. When looking at Wal-Mart and its worth, it is important to have an entire overview of the firm, and really analyze the supply chain management installed at the company. First, the EDLP strategy has worked to put Wal-Mart at a competitive advantage over others in...
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...Walmart in Japan I. Problem identification phase Introduction Walmart is an American international retail company that is headquartered in Bentonville, Arkansas. The company began operations in 1962 after being founded by Sam Walton and incorporated in 1969. The present brand name—Walmart—came about in 2008 and before that it was referred to as Wal-Mart. The company is famous for operating chains of large discount departmental stores and warehouse stores. Presently, the company is the 18th public corporation in terms of size and the biggest in terms of revenue, private employment, and retailer (Walmart 2011 Annual report). Furthermore, the largest shareholders are the Walton’s with 48% shares; hence they control the company. The company has approximately 9000 stores in over 15 countries all operating under different names. For instance, in Mexico it is called Walmex, in UK Asda, and in Japan Seiyu. This article analyses Walmart in Japan through three phases. The three phases are: problem identification, analysis, and solution phases. Background Walmart bought 6.2% of Seiyu in May 2002 (Holstein 73). The shares of the company increased over time and in 2005 December, Walmart was the majority shareholder of 50.9%. In 2008, Seiyu was entirely owned by Walmart whose headquarters are in Tokyo. The company has 419 retail units that are inclusive of: Seiyu Hypermarket, Seiyu Supermarket, Wakana, and Seiyu General Merchendise. Setting operations in Japan was not an easy feat...
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...Individual Case Analysis Case Analysis Walmart’s Expansion in Africa: A New Exploration Strategy Submitted by: Pharin Chhodarangsey (Kevin) 001MG715 Date of Submission: November 4th, 2015 Submitted to: Dr. Rachaniphorn Ngotngamwong 1 Table of Contents I. Introduction 3 I. 1 Company Background 3 II. Case Analysis 3 1. Detail the growth of Walmart and its international experience. 3 2. Describe the growth strategies of Massmart in the African Continent. 5 3. Detail Walmart’s acquisition of Massmart and expected strategic advantages.5 4. Analyses the challenges Walmart have to face in the African Continent. 6 5. What happened to Walmart’s operations after taking 51% share in Massmart in 2011? 7 References 2 I. Introduction I. 1 Company Background Walmart Stores, Inc., is an American multinational retail corporation that operates a chain of discount department stores and warehouse stores. Headquartered in Bentonville, Arkansas, United States, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. (Winston-Salem Journal, 2010) From the humble beginnings as a small discount retailer in Rogers, Ark., Walmart has opened thousands of stores in the United States and expanded internationally. Through the model of business global expansion, which brings the right store formats to the communities that need them, Walmart are creating ...
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...Summary of Case Table of Contents Summary of Case History Overview: * Vision, Mission, and Goals Major Issues Swot Analysis CSR Analysis - “Buy American” program and “Environmental Awareness” program Sam Walton: A motivational Genius? Walmart’s responsibility to it employees Stakeholder analysis Competitors Ethical Practice towards Walmart Walmart’s and the international arena Critique Recommendations References History Overview Walmart’s mission statement is “We save people money so they can live better.” Walmart's vision statement is to 'promote ownership of Walmart's ethical culture to all stakeholders globally.’ Walmart Corporation has guidelines to help associates to uphold this vision. Some of these guidelines are following all laws, being fair, having integrity, respecting others and embracing diversity. They also believe in the idea of “working together, we’ll lower the cost of living for everyone, and give an opportunity to see what it’s like to save and have a better life.” One of their many goals is to become an international brand. Walmart was founded and opened by Sam and Helen Walton in Rogers, Ark. in 1962 while using their family home as collateral. The store was just 18,000 square feet of selling space, and had clothing racks made of plumbing pipes. Store 1 was modest, but customers loved the great prices and the wide assortment. Starting off with Sam Walton’s idea of low prices in the 1940s, Wal-Mart has since then become the world’s...
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...[;’p// Walmart Case Study: Half a Century of Supply Chain Management SCM 607 Dr. John Wu March 15, 2014 Table of Contents INTRODUCTION 4 BACKGROUND OF THE COMPANY 4 GOALS AND OBJECTIVES 5 KEY ISSUES 6 EXTERNAL ANALYSIS 7 Economy 8 Customer Behavior 8 Technology 8 Politics & Legal Aspects 8 INTERNAL ANALYSIS 9 Company Culture 9 Operations 9 Purchasing & Suppliers 10 Inventory 10 Logistics 10 SWOT ANALYSIS 11 Strengths 11 Procurement 11 Distribution 12 Store Network 12 Information Systems 13 Weaknesses 14 Procurement 14 Store Network 14 Human Resources 14 Focusing on the Supply Chain 14 Opportunities 15 Focusing on the Supply Chain 15 New Initiatives and a Reorganization 15 Threats 16 Human Resources 16 DECISIONS 17 CONCLUSION 18 EXHIBIT 3 19 EXHIBIT 3 (continued) 20 EXHIBIT 3 (continued) 21 EXHIBIT 5 22 REFERENCES 23 Walmart Case Study: Half a Century of Supply Chain Management INTRODUCTION Walmart dominates the retailing industry in terms of its sales revenue, its customer base, and its ability to drive down costs and deliver good value to its customers. After all, the world’s largest corporation, employing 1.8 million associates worldwide, takes pride in having received numerous accolades for its ability to continuously improve efficiency in the supply chain while meeting its corporate mandate of offering customers everyday low prices. Walmart demonstrates how a physical product retailer...
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...Wal-Mart study Case#1 1. What threats and challenges is Wal-Mart currently facing? From the beginning, Walmart did not have many threats. However, not only the competition is different, several global retailers such as Target, Carrefour, Costco, and Amazon, are working hard to keep efficiency. They are trying to work together to shrink the prices difference between them. Walmart has facing difficulties from every single angle. Not only the company has internal labor relation problems, but also it has some external threats from its competitors. The company must work hard to get possible solutions against its competitors, and to solve any internal problems regarding its labor relations. Even though Walmart does not have any problems with its good sales performance, it does not stop the company to have issues with sales. Walmart needs to pay attention because there are too many claims from women regarding the lawsuit discrimination for several reasons inside the company such as pay, promotions, and training. The company has no other recourses to re-evaluate the situation to make its employees feel better as far as the coverage is concerned. There are several companies in the United States that offer better health insurance coverage than Walmart does. As a result, a re-evaluation is necessary so that associates can pay less with a higher contribution of the company. Life insurance is important for every single employee within an organization. An employee with no good life...
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...them. Further, perception occurs due to people’s ability to choose some stimuli while ignoring others. Consumers form perceptions about brands and companies depending on their experiences and what they have heard from other people. Walmart Stores, Inc. is a retail corporation operating discount department stores in 27 countries. Founded in 1962 in Bentonville, Arkansas, the retail chain is the largest retailer and company by revenue in the world employing over 2 million people. The company’s mission is to serve customer needs first by charging them low prices as well as providing easy access to more of Walmart through online provision of products. Further, the company combines technology and world-class retailing to ensure customer satisfaction, convenience, and everyday low prices. The company’s customers attribute low prices as the chief reason for shopping there with studies showing that more than a fifth of its customers in the United States do not have a bank account. Moreover, the retail chain customers are also sensitive to higher utility costs. However, the company has been unable to penetrate the Germany and South Korea markets though it is doing well in United Kingdom and China. In the investigation of the consumer perception of Walmart, a survey method on 150 consumers would be used to solicit information and arrive at conclusions. Qualitative interviews, if used enrich the data collected through use of questionnaires. Qualitative research would give a more in-depth...
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...Walmart Case Study Beth R. Thornhill Organization The relevance of choosing Walmart lies in their enormous growth and their strategies to be and maintain their competitiveness in the free-market. Some of their strategies were outlined by San Walton, founder of Walmart include: Sam Walton’s strategy of, “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.” (Walmart.com) Background on Walmart Walmart serves customers and members more than 200 million times per week at more than 10,130 retail units under 69 different banners in 27 countries. With fiscal year 2012 sales of $443 billion, Walmart employs 2.2 million associates worldwide. Walmart was founded in 1962, with the opening of the first Walmart discount store in Rogers, Ark. The company incorporated as Wal-Mart Stores, Inc., on Oct. 31, 1969. The company's shares began trading on OTC markets in 1970 and were listed on the New York Stock Exchange two years later. The company grew to 276 stores in 11 states by the end of the decade. In 1983, the company opened its first Sam’s Club membership warehouse and in 1988 opened the first supercenter -- now the company’s dominant format -- featuring a complete grocery in addition to general merchandise. Walmart became an international company in 1991 when it opened its first Sam's Club near Mexico City. (Walmart.com) Background on Walmart Strategy Traditionally, Walmart...
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...Nicholas Case Analysis #2 Wal-Mart de Mexico MKT 611-1 April 10, 2015 I. HISTORICAL OVERVIEW/COMPANY PROFILE The present case pits a Mexican retail chain, Comercial Mexicana S.A. (Comerci) against a multinational conglomerate (Walmart), while affording a context through which to measure the many documented benefits of oft-celebrated free trade against its shortfalls. II. PROBLEM IDENTIFICATION The problem for Comerci is the entrance of Walmart into the Mexican market in 1991 amidst trade negotiations between Canada, Mexico and the United States, which eventually resulted in NAFTA (1994). Walmart, through a series of innate and systemic advantages, as well as favorable external conditions (i.e. relaxation of trade protectionism, opening to foreign investment, infrastructural improvement, rise of manufacturing supply base), was able to undercut its domestic rivals on the basis of price. Comerci’s problem regards how, and whether, to compete with Walmart. Beyond a motion filed with the Mexico’s Federal Competition Commission, which seems a longshot, the company is faced with the following options: 1. Remain independent, hoping for more favorable terms with suppliers; or 2. Pursue a merger with a local or foreign retailer. III. STRATEGIC ANALYSIS I have selected Porter’s Five Forces as a strategic analysis tool. This is owing to its incorporation of buyer, supplier and competitive factors, all of which are critical to resolving the case. The present...
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...Walmart Swot Analysis Walmart, which is a multinational retail company is based in the US. It majorly deals with selling groceries and general merchandise. The company has developed a well organized planning method that is used to analyze and evaluate the opportunities and threats, strengths and weaknesses detected in a particular business venture. The method is known as Swot analysis. Despite the strengths approved, there is an existence of certain weaknesses which have been found to be existing in the Swot analysis of the company. Some of the weaknesses include; (1) employee turnover, which is high, (2) negative publicity, (3) little differentiation (4) labor related lawsuits, and (5) inappropriate marketing aspects (Dess, 2012). 1. Inappropriate marketing aspects. This is one of the major weaknesses concerning marketing identified in Walmart company. In this case, the company has failed to fully expand into new markets with respect to national and international levels. Because of the economic effects such as traffic and problems concerning the environment, many parts across the US attempted blocking Walmart introduction. This was done due to the company's damaged reputation. When the company conquers and acquires a new location, it finally insists in new stores which are unethical to be opened. For example, the company shut down business in Germany and South-Korea claiming that they were under-performing (Roberts & Berg, 2012 ). 2. Lobor related lawsuits Every year, Walmart...
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