...Wal-Mart VS Target Group Analysis [Type the author name] 4/21/2013 [A group analysis of the two top retailers; Wal-Mart and Target. This paper will discuss the SWOT of both companies as well as give an in depth analysis of both companies as big competitors.] 1962 was the year of creation. That is when two great companies were founded, Target and Wal-Mart. Target opening saying it’s a “new idea in discount stores”. Wal-Mart was the retailer who “focused on helping customers and communities save money and live better”. The two companies opened with the same ideas in mind. Sam Walton opened Wal-Mart’s first store in Rogers, Arkansas while Target was opened in Roseville, Minnesota by the Dayton Company. Later that year Target opened three more stores in St. Louis Park, Crystal and Duluth, Minnesota. Over the years the companies have managed to create household names for themselves that have lasted for over 50 years. Target and Wal-Mart have many things about their companies in common, strategy isn’t one of them. These companies seem to take two different approaches and it works in both persons favor. They both are leaders in different aspects therefor making them great competitors. Wal-Mart has 3 different strategies. Focus strategy is usually defined as: focusing on offering products and services to a particular market segment or buyer group, within a segment of a product line, and/ or to a specific geographic market. The differentiation strategy is defined...
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...Responding to Internal and External Factors; Wal-mart Analysis Abstract; this report examines the ways in which Wal-mart responds to internal and external factors such as globalization, new technology, innovation, diversity, and ethics. Wal-Mart is a successful industry giant, so it stands to reason that they are proficient at responding to internal and internal factors and thriving . In this essay we explore Wal-Mart’s programs and initiatives and access if we could use their examples to learn from and grow as managers and business owners. There are various internal and external factors that affect the four functions of Management positively or negatively. Organizations need to pay close attention to these factors because it can enhance the company’s success when used appropriately. The most prevalent factors that management has to be concerned with in this era are globalization, new technologies, innovation, diversity, and ethics. Wal-mart is a big player in the nation nal and global market and must stay reactive to these internal and external factors to stay on top. Wal-mart is addressing each of these issues directly. Globalization has raised numerous questions about the credibility, leading to perceptions. Wal-Mart is one leading store serving millions of customers globally and continues to do so by opening more stores worldwide. Globalization has a great impact on the company. It has broadened their market structure and also increased profit margin. Even...
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...Question Set One What purpose (function) does Wal-Mart serve for our society, either domestically or internationally, or both? One of Walmart’s serves a purpose of giving to the community. Both domestically, and internationally, Walmart has been giving communities access to a better life, one by one. They have stated that their mission was to “create opportunities so people can live better,” and they do so by giving grants, donations, volunteer efforts and etc… Are the functions the same for everyone in society (explain, don't just say "yes" or "no")? Yes, I believe that the function are the same for everyone in society. Although it does not impact at the same thing, and give the same results, it does serve the same function. Meaning Walmart’s...
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...Case: Wal-Mart’s Supply Current Strategy and Challenges Carjamin Scott MNGT 5650 QB S2 2015 Due: Saturday, April 18, 2015 Webster University Abstract This case is primarily based on the findings of the “Supplemental Benefits Documentation: Board of Directors Retreat FY06" to discuss the threats and challenges that Wal-Mart is currently facing. It will also overview the priorities of CEO Lee Scott as set in his “Wal-Mart: Twenty-First Century Leadership” address. Wal-Mart’s Board discussed proposals to meet (some of) these challenges at a board retreat in 2005. The Wal-Mart health cost strategy will also be examined with emphasis on the additional damage done to Wal-Mart by the leaking to the public of the Board Benefits Strategy document. I will also comment on two recent Wal-Mart initiatives from the standpoints of strategy and public relations. Also some strategic social challenges will be discussed from the standpoints of Bonini, Sheila M. J.; Mendonca, Lenny T.; Oppenheim, Jeremy M. “When social issues become strategic”. McKinsey Quarterly. 2006 no. 2. Introduction Sam Walton is the founder of Wal-Mart. In 1962, the first Wal-Mart store started in Rogers, Arkansas. The brand had a vision to provide customers with low prices, anywhere. After the Walton family earned 12.7 million in sales, the newly incorporated Wal-Mart, was on the fast track to become a worldwide leading multimillion-dollar retail store. Wal-Mart has over 8,000 locations within 3 business segments...
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...Wal-Mart Jessica Martin May 28, 2011 MKTG305 AIU Online Abstract Wal-Mart is rated 1 on the Forbes 500 international list. It has stores in 15 different countries. It has always kept its mission statement. The mission statement for Wal-Mart is to save people money so they can live a better life. Japan, Honduras, India, and the United States each have their own way of doing business. They each advertise differently, have different ways of pricing, and contain different products. Wal-Mart Wal-Mart has become an icon. The first Wal-Mart discount store opened in 1962 in Rogers, AR. On October 31, 1969 it was incorporated as Wal-Mart Stores, Inc. (Wal-Mart, n.d.) It was listed on the New York Stock Exchange in 1972. At this time there were 276 stores in 11 states. In 1983 the first Sam’s Club membership warehouse was opened and in 1988 the first supercenter opened. Wal-Mart became an international company in 1991 when it opened a Sam’s Club near Mexico City. (Wal-Mart, n.d.) Most of the Wal-Mart stores are now supercenters. The supercenters have a complete grocery store along with general merchandise. When Sam Walton opened the first Wal-Mart he had a vision. His vision was to help save people money and live better lives. Wal-Mart has more than 9,000 retail stores in 15 countries and has 2 million employees worldwide. Mr. Walton said it best “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see...
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...Capstone Wal-Mart Introduction Wal-Mart Corporation is one of the largest retail stores in the world. They serve customers in meeting their needs with low cost saving items. On October 31, 1962, Wal-Mart was founded and incorporated by Sam Walton in Bentonville, Arkansas. Mr. Walton went into business because he felt that items sold were too high for the average customer to afford. His focus was to sell products at low prices to get higher volume sales at a lower profit margin. He bought bulk products from different suppliers so he could incorporate savings into his pricing to lower cost for customers. Under the savings cost concept, Wal-Mart grew rapidly and surpassed its competitors in sales and generating profits. By 1987 there were 1,198 stores in the United States with sales of $15.9 billion dollars and 200,000 associates (Wal-Mart Corporations, n.d.). In 1988, under the direction of David Glass, (the CEO who proceeded Sam Walton) the first Wal-Mart Supercenter was created. It combined general merchandise with a full-scale supermarket to provide a one-stop shopping convenience for customers. By 1991, Wal-Mart Corps had outperformed its competitors in the market. Surpassing both K-Mart and Sears; Wal-Mart was labeled as the leading retailer in the United States. Currently, Wal-Mart has 10,700 stores in 27 different countries and they are operating globally around the world (Wal-Mart Corporations, n.d.). Vision, Mission and Stakeholder Influences...
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...Wal-Mart: To Gain or Lose Geneva Moore MGT/521 October 28, 2012 Professor Phillip Norris Wal-Mart: To Gain or Lose I, as a Mutual Fund Manager, have decided to evaluate whether to invest in Wal-Mart. A SWOT analysis should prove helpful in identifying if it is feasible to take the investment risk with Wal-Mart. Several companies would be good investments but Wal-Mart has been a strong pillar in many communities for years therefore being the most logical choice. This paper will extend some background for the company and attempt to show the likelihood of profit by investing in Wal-Mart. Wal-Mart has been in business since 1962 in Rogers Arkansas. By 1967 Sam Walton, visionary of Wal-Mart, had 24 stores operating with millions of dollars in sales. ”Before the 1970’s Wal-Mart became incorporated and after the 1970’s Wal-Mart began to take the world by storm expanding globally” (http://corporate.walmart.com). In the 1970’s, “Wal-Mart became a publicly traded company and the first stock sold at sixteen dollars and fifty cents per share” (http://corporate.walmart.com). In 1972, ‘Wal-Mart was listed on the New York stock exchange” (http://corporate.walmart.com). “Wal-Mart’s first distribution and home office opened in Bentonville, Arkansas in 1971” (http://corporate.walmart.com). After the 1970’s, Wal-Mart started to make a rapid sprint towards becoming a leader in its industry. Such steps as “reaching one billion in annual sales in 1980, replacing cash registers with...
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...Wal-mart 2013 Principles of Management Wal-Mart and Effective Management Karwan S. Othman Wal-Mart, United States Of America Wal-Mart at Its Peak Wal-Mart is the largest retailer worldwide; the reasons may vary from different functional fields of the company. Fifty years ago, the company started the business based on the lowest prices that could be offered to customers. Since then, Wal-Mart is “Everyday low price” pricing strategy to maximize the sales as much as possible. Besides of that, it is using the current technology to keep track on every single sale at each store among all the stores in around forty countries. New financial systems through the new technology being in charge enable the company to manage the financial systems of each single store. Wal-Mart’s mission is to get to zero waste and highest sales among the other retailers. It is been said that Wal-Mart is doing the best of retailing, and it is because of various aspects of the organization although I believe planning, low pricing, using modern information systems and controlling strategies are the most vital characteristics of the organization’s triumph. Wal-Mart is established based on lowest prices possible for customers, and that is one of the most significant factors of the company’s success. Everyday low pricing, EDLP is a strategy that organizations use to offer low prices than common prices of products which would encourage customers to purchase without waiting for sales. According to the...
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...Introduction In 1997, Wal-Mart Inc had acquired 21 units of a well known chain of stores in Germany named Wertkauf. One year later, another acquisition deal involving 74 units of the market chain Interspar was negotiated between Wal-Mart Inc and Spar Handels AG. (Arndt, Knorr, 2003) The negotiations were a success, and through the acquisitions Wal-Mart had quickly evolved into one of the biggest operators in the German hypermarket industry. Though the first acquisition was considered to be a wise investment because of Wertkauf’s previous success, Interspar was not looked at the same way. The Interspar hypermarket chain was in serious need of financial reformation as the business itself was unprofitable. Wal-Mart did manage to improve the line of former Interspar hypermarkets; however other factors played a role in the failure of our expansion. This report will disclose non-financial aspects of Wal-Mart’s failure to succeed in Germany. Problem Statement Wal-Mart needs to adjust its business plan in a way that facilitates cultural understanding and adheres to the laws and regulations of Germany. Measurable Objective and Long-term Goal With a very small market share at 1.1%, (Sundarji, 2012) turnover of 2.9 billion Euros and further losses of 1 billion Euros, (Arndt, 2003) a long-term goal would be to make the business profitable, increase employee satisfaction and. An increase of the market share, elimination of debt, reversal of employee cuts and an increase in...
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...Wal-Mart Stores, Inc: Image Issues for the World’s Largest Retailer Where do you buy eggs, laundry detergent, and motor oil? If you are like millions of others the answer is Wal-Mart. “Each week, 138 million shoppers visit a Wal-Mart retail store somewhere, and 82% of Americans made at least one purchase at Wal-Mart in the year 2003” (O’Rourke, 139). “Wal-Mart’s central promise to its customers is always to have low prices for the goods they want” (O’Rourke, 139). Because of this promise, the company has had to engage in some questionable, perhaps illegal practices. The question is, how does the company balance the promise it made to its customers in 1962, while maintaining a positive image. Employees are an important aspect in any business. Wal-Mart employs a global workforce of 1.5 million people (O’Rourke, 140). In 2004, the average annual wage for a full-time Wal-Mart employee was $9.76 an hour (O’Rourke, 140). This comes out to $20,300 a year, $1,210 a year more than the poverty level for a household of three. If you increase the family size to four, the figure is $2,750 below the poverty level (aspe.hhs.gov). In 2004 it was discovered that Wal-Mart was locking in their overnight associates. The only ways to get out were through the fire exit or by having the manager manually open the door. Employees complained that if they used the fire exits to leave they would be fired. The also noted that on many nights there wouldn’t be a manager on duty to open the doors...
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...International Business Strategy | Wal-Mart Case Study | | Aneesha Radia | | 09466782 | 1/28/2013 | | Contents 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations in the 1950s? 3 THE THREAT OF ENTRY 3 THE DEGREE OF RIVALRY 3 THE THREAT OF SUBSTITUES 3 BARGAINING POWER OF BUYERS 4 SUPPLIER POWER 4 2. With reference to the key components of its Business Model, describe the sources of Wal-Mart’s competitive advantage in the USA 4 FIRM INFASTRUCTURE 4 HUMAN RESOURCES 5 INFORMATION TECHNOLOGY 5 PROCUREMENT 5 INBOUND LOGISTICS 5 OPERATIONS 5 MARKETING AND SALES 6 3. How sustainable is Wal-Mart’s competitive advantage in discount retailing in the USA? 6 IMITATION 6 SUSTITUTION 6 SLACK 7 HOLD-UP 7 4. With reference to Dunning’s Eclectic Paradigm of foreign direct Investment (FDI), compare and contrast Wal-Mart’s entry into the German market in 1997 with it’s subsequent entry into the UK market in 1999. Why was Wal-Mart unsuccessful in Germany, withdrawing in 2006, and relatively successful in the UK? 7 FIRM SPECIFIC ADVANTAGES 7 LOCATION SPECIFIC ADVANTAGES 8 INTERNALIZATION 9 APPENDICIES 10 APPENDIX 1 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 2 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 3 11 SOURCE: GOOGLE IMAGES APPENDIX 4 11 SOURCE: GOOGLE IMAGES 11 REFERENCES 12 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations in...
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...2012 All companies have a specific way of planning their organizations success. There are basic six steps of the planning process include 1) situational analysis (in which planners gather and analyze data), 2) alternative goals and plans (alternate goals and objectives that are broad based and designed to be pursued in the future), 3) goal and plan evaluation (assess advantages and disadvantages for proposed goals and plans), 4) goal and plan selection(managers select appropriate goals and plans for support to the organization), 5) implementation (managers and employees must understand plans to fully support and achieve certain goals), and finally 6) monitor and control (ensures plans are implemented properly). In the following I will analysis the organization of Wal-Mart. Wal-mart Stores, Inc. is one of the biggest chains of corporations when it comes down to department discount stores. Wal-mart is considered one of the leading public corporation according to the 2008 Fortune Global 500 (Fortune Global 500, 2007). Wal-mart was founded in 1962, and incorporated in October 31, 1969, by Sam Walton. Wal-mart is known for having stores nationwide as well as international one but with a different name. The steps of planning this organizations success have been followed though and thought-out very well so that the organization can have it’s success, not only for the companies own good but for the ones that brought it together. The Wal-mart companies were in corporate October...
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...they can find. People across the United States are looking for ways to save money; thus, searching for stores that will provide them with everything they need at a lower cost. Companies all over the United States are fighting to stay competitive and are seeking ways to restructure their company and still provide for consumers the best possible prices. Companies such as Wal-Mart do not have to change their structure to fit the demands of consumers because it already offers its customers brand name items at lower prices. Wal-Mart’s basic structure has helped make it a powerful retail business, and a place consumer’s love. Market Structure Wal-Mart Stores Inc. opened its first discount store in 1962, Sam Walton had no idea his business would be the success that it is today. The reason for Wal-Mart’s success is their ability to create a basic structure for their business. Wal-Mart offers a variety of well-known brands and sells them at about 5-10% cheaper than other retailers. This makes Wal-Mart a powerful force in the retail business. Wal-Mart Stores is considered an oligopoly market structure. Colander (2008) defines oligopoly as a market condition in which sellers are so few that the actions of any one of them will materially affect price and have a measurable impact on competitors. With their continued success, Wal-Mart’s market structure could also be considered a monopolistic competitive structure. Wal-Mart has all the characteristics of a monopolistic competitive structure...
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...Marketing Mix Holly Brown MKT/421 April 24, 2013 Mary Hinds The Marketing Mix Starting in 1962 by Sam Walton, Wal-Mart grew into a major corporation that serves in 15 international markets, including more than 3,600 stores in the United States alone. In 2012, it was ranked #1 for the second year in a row on the Fortune 500 list. Wal-Mart is a widely known corporation that offers just about anything and everything a person could ask for. Known for their customer service, wide variety of selection, convenient locations, and ability to make customers happy, it is easy to see why the marketing mix that they use is a key factor in the continuing growth and success of the business. The marketing mix of a company consists of four components, or the four P’s: Product, Price, Place, and Promotion. Each part is something that is a part of the product’s marketing plan and is controlled. The four P’s are created and edited in order for the company to produce a marketing plan that serves the needs of customers and produces the most attainable income for the company. Product describes the types of products a company is marketing to increase sales. The price of these products determines how well a company will do compared to that of its’ competitors. The place in which the company is located will determine what types of customers will shop from the consumer. Last, the way in which a company promotes its’ products will determine the attention the company gets. For instance, if a company...
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...Brian Cash Wal-Mart Case Study International Business How has the implementation of NAFTA affected Wal-Mart’s success in Mexico? When NAFTA was implemented in Mexico, it was an almost immediate success for Wal-Mart. This was because they lowered and abolished the tariffs that Wal-Mart was required to pay prior to the implementation of NAFTA. With the lack of tariff fees, all of the Wal-Marts' in Mexico have been able to offer the “Every Day Low Prices” that we Americans are used to. The Mexican population has other retail options, but none offer the variety of products at the prices that Wal-Mart can offer them. Prior to NAFTA, Wal-Mart was having strong levels of success all over Mexico, but was taking a huge hit as it struggled to incorporate the import costs on the products it sold in the stores. In 1994, NAFTA was implemented in Mexico they were able to do a multitude of things. Firstly, they lowered tariffs from 10 to 3 percent on all American goods travelling from the United States into Mexico. (Daniels, Radebaugh, & Sullivan, 2013) At the same time they were also helping the government by encouraging them to improve its infrastructure. The improvements to subpar roads and the various routes delivery trucks utilized helped connect the logistical issues that plagued Wal-Mart and kept them from branching out into further enterprises within Mexico. The strategy worked and allowed Wal-Mart the ability to transport goods directly to the warehouse and...
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