...WAL-MART STORES, INC 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. Objective: 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. Strategies: 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...
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...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 “Twenty-first...
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...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 organization. Before...
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...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 deficit...
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...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 world...
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... Pages 1. Executive summary..................................................................................... 3 2. Introduction................................................................................................ 3 3. Company overview..................................................................................... 3 4. Importance of business strategy................................................................... 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...
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...loblaws Loblaw Companies Limited Case Study Table of Contents Introduction 3 External Analysis 4 Internal Analysis 8 Alternatives 9 Recommendation 10 References 11 Introduction Loblaw Companies is facing the greatest competitive challenge of its recent history with the launch of Wal-Mart into their markets. Having originally entered the market in 1994 through the acquisition of 122 Woolco Stores, Wal-Mart is planning to open their first SuperCenter in Canada imminently. Known for their Every Day Low Price (EDLP) value proposition, exceptionally efficient supply chain, logistics and ERP process execution, marketing aimed at budget-conscious buyers, and product selection, Wal-Mart is a strategic threat to Loblaw. While Wal-Mart is a strategic competitive threat, Loblaw must also stay focused on coordinating their competitive strategy to also stay ahead of dominant grocery competitors including Sobeys, Metrics, A&P, and Canada Safeway. In addition, wholesale clubs, specialty chains, convenience stores and online shopping are additional considerations to keep in mind when defining a strategic response o Wal-Mart. Any competitive response on Loblaw’s part must support and strengthen competitiveness in each of these other channels, or the company risks becoming out of balance from a competitive standpoint. Pricing as a competitive differentiator for Loblaw is not to be taken in isolation;...
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...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 trying...
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...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 (www.marketline.com, 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 (www.marketline.com, 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” (www.ask.com, 2013, p. 1). This mission statement complements their company slogan, which states, “Wal-Mart. Always low prices. Always” (www.ask.com, 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...
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...Founded in 1962, Wal-Mart has continued to uphold its mission statement of “Save Money. Live Better.” Wal-Mart shows commitment and appreciation to its customers by valuing them through everyday low prices. Customers can trust Wal-Mart because of their low price guarantee. Building a relationship with customers is an essential part of Wal-Mart’s mission because it allows them to meet their customers’ expectations and provide superior customer service. In return of the customer experience, all customers are encouraged to provide feedback to help improve elements Wal-Mart may lack, as well as provide positive feedback in regards to what they’re doing right. Wal-Mart stays true to its mission statement by continuously returning to the wisdom of their founder, Sam Walton: “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” (Farfan). Strategic Goals/Plans: Level 2 It’s important to Wal-Mart’s future as a business, to continue expanding its customer base, increase sales, and stay innovative. It’s no easy feat to achieve, but when Wal-Mart noticed an increase in white-collar consumers because of the recent economic downturn, they seized the opportunity to accommodate their new demographic by embarking on an aspiring U.S. store remodel program as part of its three-year strategic plan appropriately named, Project Impact. At the center of this new plan are 10 strategic words: Save Money...
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...the right people who make the decisions (Wheelen & Hunger, 2010). Environmental Scanning is the process of gathering information (internal and external) to evaluate the company’s position. The evaluation is performed using the SWOT (strengths, weaknesses, opportunities, and threats) analysis. The SWOT analysis is divided into two parts, the first looks at the company’s internal environmental strengths and weaknesses and the second the company’s external environmental opportunities and threats (Wheelen & Hunger, 2010). Wal-Mart and Target are two very large successful corporations, who happen to compete against each other to provide quality products and services to people in their communities. Both companies use environmental scanning to help them gain the edge against the other. Top management, to make decisions about the company’s future, uses information gained from the scans. * Internal Environment * The internal environment is made up of the company’s own structure, culture, and resources (Wheelen & Hunger, 2010). When it comes to the internal environment of Wal-Mart and Target they are very different on many counts. Wal-Mart’s internal environment is very strong. It has a firm infrastructure that is heavy in the human resources department with a strong management team that uses the best of technology to stay up on what it’s stores need while keeping tight control on company expenditures. Target’s is equally...
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...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 continuously...
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...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 implemented...
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...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 turn...
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...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 eleven components of Pearce and Robin’s model, and this has led to increase in Pepsi’s revenue in the recent past. The Pearce and Robinson Strategic Management Model The first component of this model is company mission. This is the unique purpose of the firm that makes it dissimilar from other companies that might offer the same products and services. The mission of the firm explains its...
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