...Wal-Mart Stores, Inc. operates approximately 11,047 retail units under 69 banners in 27 countries. It has three segments: The Wal-Mart Stores, The Sam’s Club, and International. The Wal-Mart Stores segment includes 4,759 Discount Stores, Supercenters, and Neighborhood Markets in the United States, as well as Walmart.com. It offers apparel for women, girls, men, boys, and infants; domestics, fabrics, and notions; stationery and books; shoes; housewares; hardware; electronics; home furnishings; small appliances; automotive accessories; horticulture and accessories; sporting goods; toys; pet food and accessories; cameras and supplies; health and beauty aids; pharmaceuticals; jewelry; and optical, as well as photo processing services. The Neighborhood Markets include dry grocery, meat, produce, deli, bakery, dairy, frozen foods, pharmaceuticals, photo processing, health and beauty aids, household chemicals, paper goods, general merchandise, and pet supplies departments. The Sam’s Club segment includes 624 stores and comprises the warehouse membership clubs in the United States and samsclub.com. It offers hard-goods, soft-goods, software, electronics, jewelry, sporting goods, toys, tires, stationery and books, institutional-size grocery items, and selected private labels. The International segment operates 6,288 various retail formats in countries to include Argentina, Brazil, Canada, Germany, Mexico, Puerto Rico, South Korea, and the United Kingdom. This segment operated 261...
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...Strengths 1. Core competency/Cost Leadership- Walmart is known for their “everyday low prices.” This sets them aside from their major competitors such as Target. Walmart strives for "saving people money so they can live better." With the cost leadership strategy in effect, Walmart is ensured a steady and returning flow of customers to their stores. That understood, Walmart has a comparative advantage over their competition. Consumers are able to feel better about their purchases knowing they are at a discounted price. Walmart is therefore given a rating of 4 and weighted score of 1.0 in this category. 2. Economies of Scale- Walmart is rated a 3 with a weighted score of 0.3 in this particular category. Being the giant that Walmart is, they have a very large scale of operations. This therefore gives them strong supplier purchasing power and the opportunity to reduce prices. With their vast amount of products they can spread their fixed costs out lowering the price of the products. “Higher economies of scale results in lower prices that are passed to consumers” (http://www.strategicmanagementinsight.com/swot-analyses/walmart-swot-analysis.html) 3. Wide Range of Products- Walmart has one of the largest ranges of products providing ease for their customers. Customers are able to have that “one-stop-shopping” experience they so desire. Consumers certainly like this aspect for the convenience it entails. Although Walmart’s discount stores do in fact provide...
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...Environment of Walmart can be summarized as follows: a) Economic:Despite the general weakness in the world economy and the uncertain environment that prevailed, Walmart had reported sales growth of 11%, amounting to $6.4 billion. The company's associates were indeed doing the Walmart cheer in faraway places like Germany, South Korea, China and United Kingdom. In three decades, it had grown from its rural Arkansas roots to become the world's largest company, and quite possibly the most powerful retailer. b) Socio-cultural: Walmart stores were geared toward the low-income customer segment; headquarters were reflective of the company's tendency to be tightfisted as they were housed in warehouse style buildings with minimalist decor. Frugality was a central tenet at the company, and every associate was expected to fully adopt this value in all its manifestations. It was also said that the company is homogenizing the marketplace by letting smaller towns dictate popular culture. c) Global: Walmart worked globally under the philosophy: Different store for different folks. As it grows around the world, it is important to its success that it exchange best practices among all the countries where it operates. Walmart launched its globalization efforts with an initial foray into Mexico, then to Brazil, as well as Argentina. It then penetrated Europe with its stores in Germany and in the United Kingdom. Its Asian strategy composed of China, Korea and Japan. d) Technological: Walmart was a leader...
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...Building an International Company Name University Abstract An international company is any company that has its facilities and other assets in at least one country other than its home country. A successful company understands the meaning of competition which has caused them to actively fight for new markets, products, and services in order to sustain a competitive advantage. A company that has obtained success in its country of origin usually expands their services into the global economy to become an international business. These companies effectively control their financial and material resources by managing economies of scale, low cost production and fluctuations in currency. Human resources are also essential in the making of a successful company by recruiting talented individuals and encouraging innovation within the company. International companies can expand organically, which is a slow process that consists of building the business from ground up, or they can expand inorganically by buying out, or merging with, an existing business. If I had to create a new product idea, I would want to invent a new way to produce cheap efficient energy for the need of the masses. I would expand the company to international status using the inorganic global growth process. Due to advances in technology, and in today’s business market, most businesses have to compete globally. “These companies actively compete for new markets, products, and services in order to develop and sustain...
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...Walmart: Global Strategic Expansion - Executive Summary Since introducing its first international store in 1991, Walmart has transformed itself from an American retail giant into a global one, leveraging a wealth of resources to strategically expand operations. Although Walmart must contend with several formidable competitors, the retailer has successfully opened thousands of stores across the globe; most frequently, it has added international units through the acquisition of foreign retailers, which simultaneously reduces its competition and furthers its dominance. Walmart has differentiated itself by coupling its understanding of political, economic, legal, and cultural systems within target markets with its low-cost, high-quality approach to mass retail. Utilizing simultaneous strategic multiple thrusts, Walmart has developed layers of competitive advantage to establish itself as the world’s leading retailer. Focusing on strategic expansion, Walmart currently operates 9,826 stores across twenty-eight countries, allowing it to capture global scale efficiencies by creating a coordinated and integrated network of interdependent stores. Each unit within its network is regarded as a source of ideas and capabilities, and innovation is diffused across the company through initiatives such as a market-by-market training program that helps increase the company’s responsiveness to local demands and preferences. Thus, Walmart has established itself as a transnational corporation by developing...
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...Internal Risk Assessment Manuel Angel Cortez University of Phoenix Internal Risk Assessment: Wal-Mart Stores, Inc. “Walmart serves customers and members more than 200 million times per week at more than 8,838 retail units under 55 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Walmart employs 2.1 million associates worldwide” (Walmart, 2010). This document will focus on Walmart Stores, Inc. strength and weaknesses in marketing, human resources, management, research, development, and finance. The document will touch briefly on analyzing how internal organizational dynamics influence strategic business continuity for Walmart. Wal-Mart Stores, Inc.: Strengths and Weaknesses Walmart has grown to have a reputation for providing low prices, convenience, and product variety. Walmart Wal-Mart has seen significant growth, and has expanded globally over the years and is present in countries such as Canada, Mexico, and China. Walmart strengths can include the following: 1) Wal-Mart is powerful among its name brand, and has a reputation for convenience, money value, and wide variety of products all under one roof. 2) The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement. 3) A focused strategy is in place for...
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...Perspectives on International Trade and Finance Assessment 2 – 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...
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...Tony’s Wholesale Company, a fictitious business that supplies snacks to stores. The data highlight characteristics such as order date, cus- tomer, sales representative, product, quantity, and profit. The second line in Figure 1.2, for instance, shows that Roberta Cross sold 90 boxes of Ruffles to Walmart for $1,350, resulting in a profit of $450 (note that Profit = Sales − Costs). These data are useful for understanding individual sales; however, they do not provide us much insight into how Tony’s business is performing as a whole. Tony needs to answer questions that will help him manage his day-to-day operations such as: * Who are my best customers? * Who are my least-profitable customers? * What is my best-selling product? * What is my slowest-selling product? * Who is my strongest sales representative? * Who is my weakest sales representative? What Tony needs, in other words, is not data but information. Management Information Systems: Business Driven MIS Order Date Customer 4-Jan Walmart 4-Jan Walmart 5-Jan Safeway 6-Jan Walmart 7-Jan 7-Eleven 7-Jan Walmart 8-Jan Kroger 9-Jan Walmart 10-Jan Target 11-Jan Walmart Sales...
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...including the specific product, the schedule, the quality, and the price. Retailers are now more powerful than manufacturers, and they are forcing the decision to move production offshore.2 Dog-eat-dog environment. High competition. High change rate, not able to forecast the trends. What is the driving force to make the industry changing. (focus on the text-book’s idea). Tied into the dynamic environment. Complex! The system relationship. Organization environment. Recourses the company has. The player in the film suggests the Walmart is using pull strategy, which the want. And the player thinks this way is more efficiency and increase U.S. productivity as well. a. In my opinion, Walmart is belongs to the shareholder model. The main reason is, Walmart strives for the lowest cost and gives the best price to its customers, in order to do the best business and maximizes profits, shareholder wealth and satisfaction. Walmart to its shareholders’ socially responsible satisfied the shareholder model definition. b. Walmart’s shareholders gain the most from Walmart’s business strategy. a. Walmart’s business model is to sell a wide variety of merchandise to customers at great prices. The principle of Walmart’s business model is Delivering Everyday Low Price (EDLP). b. Example 1: Walmart uses information...
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...Wal-Mart operates more than 10,000 retail units in 27 different countries. There are more than 2 million associates who serve 200 million customers and members every week. 2012 fiscal review for Wal-Mart delivered a strong financial performance. Net sales increased by 5.9 percent to $443.9 billion and consolidated operating income grew by 4 percent to $26.6 billion. Their diluted earnings per share from continuing operations attributes to Wal-Mart were $4.54 per share that is up from $4.18 the previous year. Wal-Mart’s strong financial position is best shown by their ability to grow. Wal-Mart added 52.2 million square feet through 1,160 additional units, including acquisitions in the U.K. and South Africa (Walmart, 2012). Wal-Mart has made improvements in merchandising and operations and investing in lower prices. They did great job in closing the year with two quarters of positive sales, including positive end in the fourth quarter. Wal-Mart international delivered strong sales and remains the company’s primary growth engine. Having $125 billion in sales, it is among the three largest retailers in the world (Walmart, 2012). Walmart can serve the needs of all income based customers in high growth markets. Sam’s Club, a subsidiary of Wal-Mart, continues to drive the sales momentum by increasing its sales to 8.4 percent in fiscal year 2012. Sam’s Club has also made progress in growing its membership base. It was key for growth this year (Walmart, 2012). Wal-Mart has become one of...
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...Management Information Systems Assignment ON “Walmart Retail Link Case Study” MASTER IN BUSINESS ADMINISTRATION MBA++, FIRST YEAR IS SUBMITTED BY VAIBHAV AGHADATE (ROLL NO - 15227) CONCERNED FACULTY Prof. A.G. JOSHI DEPARTMENT OF MANAGEMENT SCIENCES PUMBA Q1. Where does Walmart’s supply chain start ? What triggers Walmart’s retail link system to ship goods to local Walmart store ? ANS : Walmart has one of the best supply chain management systems in retail. Walmart’s supply chain starts from the manufacturer as they have B2B supply chain management. Delivering the right product at the right time to the right customers is the core objective of Supply Chain Management of Walmart which leads to well stock of goods to their every retail store. Q2. Why is the detailed knowledge of consumer purchases at each store important to Walmart’s success ? ANS : Detailed knowledge of consumer purchases at each store is important because : 1) Walmart can identify which products they must keep in their stores in which region so that customers will be attracted. 2) Walmart can predict customers behavior depending on weather and forecast the demand and supply accordingly. 3) Walmart is always aware about every single products quantity to be provided in the store which is coming to end. Q3. Why can’t other retailers easily duplicate Walmart’s retail link ? ANS : Walmart has large network and it is more secure so it is difficult to duplicate. Also they have well...
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...Management Information Systems 13e KENNETH C. LAUDON AND JANE P. LAUDON CHAPTER 2 GLOBAL E-BUSINESS: HOW BUSINESSES USE INFORMATION SYSTEMS Walmart’s Retail Link Supply Chain CASE 1 VIDEO CASE Systems SUMMARY An introduction to Walmart’s Retail Link system, one of the largest B2B supply-chain systems in the world. Retail Link connects consumer purchase data to the Walmart purchasing system and to vendor supply systems. Retail Link plays a key role in Walmart’s corporate strategy to become the dominant low-cost provider of retail goods. L=7:13. URL http://www.youtube.com/watch?v=SUe-tSabKag CASE Walmart is a well-known leader in the application of network technology to coordinate its supply chain. Walmart’s supply chain is the secret sauce behind its claim of offering the lowest prices everyday. It’s able to make this promise because it has possibly the most efficient B2B supply chain in the world. It doesn’t hurt to also be the largest purchaser of consumer goods in the world. With sales of more than $443 billion for the fiscal year ending January 31, 2012, Walmart has been able to use information technology to achieve a decisive cost advantage over competitors. As you might imagine, the world’s largest retailer also has the world’s largest supply chain, with more than 60,000 suppliers worldwide. In the next five years, the company plans to expand from around 5,000 retail stores in the United States (including Sam’s Clubs)...
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...Case Study: Wal-Mart Stores “Every Day Low Prices” In China Webster University INTB 5000 1 Webster University 2 Wal-Mart Stores “Every Day Low Prices” In China FACTS: First opened in Shenzhen on August 12, 1996 As of December 2007 94 stores in 51 cities Employs 43,000+ associates Serves around 5 million customers per week Transition from rural US to metro/urban in China Competitive analysis a core value of the company Shopping 1,500 items and price matching them through “Special Buy” Analysis Major pressure from the Chinese regional governments to centralize in high growth regions About-face by Chinese govt. on Shanghai is of interest Has major implications on Wal-Mart’s ability to provide infrastructure for stores Supply Chain Challenges Abound Tier 1 cities include Beijing – Tianjin, Shanghai, Guangzhou Tier 2 cities include Chengdu, Nanjing, Chongqing, & Wuhan Tier 3 cities include Changzho, Jinhua, Mianyang Webster University 3 Wal-Mart Stores “Every Day Low Prices” In China 7,058 Units 1.9 Million Associates 23 offices sourcing from 70 countries UK 340 Units Canada 292 Units Japan 393 Units US 4,103 Units Mexico 943 Units Central America 433 Units China 86 Units Trust-Mart 101 Units India JV –Aug 2007 Puerto Rico 54 Units Brazil 297 Units Argentina 16 Units Webster University 4 Wal-Mart Stores “Every Day Low Prices” In China Webster University 5 Wal-Mart Stores “Every Day...
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...One mission: 2013 Annual Report A history of delivering strong results More than Approximately Approximately 10,700 retail units operated in 27 countries 245M customers served weekly in our stores in 27 countries 75 % of U.S. store operations management joined Walmart as hourly associates Increase of Increase of More than 59% in earnings per share(1) (1) Data reflects five-year period from fiscal 2009 through 2013. 123% in free cash flow(1)(2) $ 60B returned to shareholders through dividends and share repurchases(1) (2) Free cash flow is a non-GAAP measure. Net cash provided by operating activities of continuing operations is the closest GAAP measure to free cash flow. Reconciliations and other information regarding free cash flow and its closest GAAP measure can be found in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Annual Report and on our website at www.stock.walmart.com. About the cover: Regardless of the market where we operate, the retail format or the website, Walmart serves customers with one core mission: to help people save money so they can live better. To learn more about Walmart’s business strategies and company mission, please visit our electronic report at www.stock.walmart.com. You’ll hear from management, associates and customers about our business. Many of Walmart’s most innovative ideas originate from the insights of associates across...
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...1 How does expanding internationally benefit Walmart? After its beginning in 1962 Walmart ever since had constant growth rates and successfully gained market share in the merchandise and food retailing markets. “By 1990, however, Walmart realized that its opportunities for growth in the United States were becoming more limited”. To keep steady growth rates and profits the company decided to expand globally. The core competency of Walmart is the price. Selling merchandise and food for low prices made them earn market shares and continue the growth rates. Going global gives companies the opportunity of using location economies to secure the quality, use economy of scale to lower the productions costs per unit and benefit from learning effects. A global supply chain and global markets will lower the production costs since more volume is ordered following a higher demand trough international markets. Especially for Walmart expanding internationally supports and secures their core competency: Selling everyday life goods at a low price. 2 What are the risks that Walmart faces when entering other retail markets? How can these risks be mitigated? The strategy for success worked very well in the United States. That does not mean that it works very well in other countries. There are different preferences and consumer patterns in different countries. Adding to that Walmart may face strong competition from already established retailers that have a better understanding in local needs...
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