...Table of Contents Introduction2 Wal-Mart’s resources2 Tangible resources2 Intangible resources3 Human resource3 Wal-Mart’s capabilities4 Distribution4 Corporate function4 Operation4 Management Information4 Marketing5 Competitive advantages5 Knowledge management5 Distribution network5 Relationships strategy with suppliers and associates6 Financial management6 International operation6 Conclusion7 References list7 Introduction This project will analyze resources and capabilities of Wal-Mart and the linkage between two strands. According to Wal-Mart’s case, it can be divided Wal-Mart’s resources into three main types of resource: tangible, intangible, and human resources. Moreover, thanks to its resources, Wal-Mart’s capabilities comprises of distribution, operation, management information, marketing, and corporate function. If linkage between resources and capabilities can be indicated and understood, it enables Wal-Mart to produce many competitive advantages: knowledge management, distribution network, partnerships, and financial management. Through those advantages, Wal-Mart creates some strategies for the growth of its operation line within United State or extending over the world. Wal-Mart’s resources Tangible resources In terms of financial resources, the company has established in discount retailing format and become the largest and most profitable retailer in the world. It has been developing rapidly, as result; Wal-Mart produces much profit to reinvest...
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...BEIHANG UNIVERSITY 北京航空航天大学 SCHOOL OF ECONOMICS AND MANAGEMENT 经济管理学院 SUPPLY CHAIN MANAGEMENT ASSIGNMENT 1 “Supply Chain Management of Wal-Mart” Professor: ZHAO QUIHONG Student: NGUYEN HAI YEN - LS 1508256 VU THI THU HIEN - LS 1508226 GANTA. MURALI - LS 1508233 NGUYEN KHANH LINH - LS 1508230 NGUYEN THI THU HIEN - LS 1508257 INTRODUCTION Wal - mart was founded in 1962 by Sam Walton in Rogers, Ark. It is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. Almost everything can be found in Wal-Mart stores and it has everything a homemaker can ever think of. It is arguably the largest retail chain that deals with millions of product ranging from furnitures, clothes, groceries, books, movies, electronic, jewelries, baby products and much more. In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization‘s ability to meet customer needs. As a result of these changes, organizations...
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...Wal-Mart Supply Chain Mathew Chitwood Southwest Florida College Marketing Strategy Professor Blakely November 20, 2013 Wal-Mart Many would argue the strategic advantage Wal-Mart holds in the retail industry is the ability to offer lower prices than their competitor’s, which translates into greater savings for the consumer; however, the key to offering lower prices stems directly from Wal-Mart’s distribution and inventory system. Through the application of advanced technological practices to the establishment of distribution centers throughout the country, Wal-Mart has been able to out-maneuver competitors by ensuring that store shelves are rapidly re-stocked with items that consumers wish to purchase. How exactly does Wal-Mart’s distribution system correlate to lower prices for their consumers one may ask; the answer is really quite simple. As stated by Ferrell & Hartline, “every time a different intermediary handles a product, the cost to the final customer increases” (Ferrell & Hartline, 2011, p. 282). With this in mind, it is rather evident as to why the establishment of distribution centers can be viewed as a key element to Wal-Mart’s competitive advantage. Wal-Mart currently operates 158 distribution centers which is one of the largest in the world. Much like the airline industry, these distribution centers are known as “hubs of activity” (Wal-Mart Corp, 2013) for the business. Combined with operating “a fleet of 6,500 tractors, 55,000 trailers, and...
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...lean retailing: the case of Wal-Mart’s failure in Germany Susan Christophersonà Abstract Wal-Mart’s exit from the German market in 2006 after 10 years of attempting to achieve sustainable competitive advantage contributes an interesting case to the small but expanding literature on ‘failure’ in international investment. The work on the disinvest decision in all its forms has been critical to a re-conceptualization of the international investment process as dynamic rather than static, linear and inexorable. An important segment of the work on investment and disinvestment as dynamic processes focuses on the environment in which investment and disinvestment decisions evolve. While the environment of the host country market has begun to be examined, the market environment of the country in which the retail transnational corporation (TNC) originates also affects the international disinvestment process. To explore this ‘home country effect’, I examine the resources Wal-Mart brought into the German market and their ability to use those resources in the German context. WalMart’s resources were shaped by the market governance regime in which the firm evolved, and not insignificantly, over which it had and has influence. Within this theoretical frame, Wal-Mart’s reliance on the resources of network dominance and autonomous action that made for its success in the USA contributed to unsuccessful strategies in the German retailing market. Keywords: lean retailing, Wal-Mart, Germany, corporate...
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...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 its first global...
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...CASE STUDY Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 – Business Strategy February 27, 2006 INDUSTRY ANALYSIS The retail industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in the general merchandise retailing; against Costco in the warehouse club segment; and against Kroger, Albertson’s and Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Further analysis provided by the following figure diagnoses the competitive environment of the retail industry. Five Forces Model of Competition Threat of Substitute Products Weak: Substitutes for big box retailers are smaller grocery stores; substitutes are higher priced relative to the performance they deliver. Supplier Bargaining Power Weak: Industry members account for a big fraction of suppliers’ total sales and continued high volume purchases are important to the wellbeing of suppliers. Rivalry among Competing Sellers Fierce: Competing sellers have triggered heated price competition and are active in making fresh moves to improve market standing and business performance. Buyer Bargaining Power Weak: There is a broad base of buyers so no single buyer can demand price concessions; buyers purchase merchandise in small quantities; buyer loyalty for...
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...the brothers decided break away and opened their own store in Rogers, Arkansas which was the start of the first Wal-Mart Discount City store. Their approach was to open stores in populations with 5000 to 25000 people. By the late 1960’s the Walton brothers has 18 discount stores and 15 Ben Franklin franchises which became incorporated in Wal-Mart Stores, Inc. (Tell me the history of Wal-Mart). During the 1970’s the Walton’s incorporated many changes to how they do business which laid the foundation to cut cost to gain more control. They implemented a warehouse distribution strategy of constructing their own warehouses so they can buy merchandise in great volume, and positioned its stores 200 square miles from each distribution point. By 1977, Forbes had Wal-Mart ranked #1 in return of equity, return on capital, sales growth, and earnings growth over all other discount and variety stores (Tell me the history of Wal-Mart). Wal-Mart’s continued expanding and in 1978, its stores included a pharmacy, auto service center, a shoe department, and a jewelry division. By 1979 Wal-Mart was in 11 states and sales had skyrocket from $44 million in 1970 to $1.25 Billion by 1979 which became the fastest company to reach to $1 Billion. In 1987 Sam expounded on an idea that he got from a French entrepreneur and referred to it as “Hypermart USA”, which later became known as Wal-Mart Supercenter”. Sam introduced a...
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...Wal-Mart Case Study Dr. Tonya D. Moore MNGT 5650 November 24, 2013 Introduction Wal-Mart can be defined as Goliath in the biblical story of David and Goliath (only he doesn’t fall), the “strategic Corporal,” a self-licking ice-cream cone, the industry benchmark, labor exploiter, cost cutting surgeons with chain-saws, and America’s company. Wal-Mart perceptions are across the board and in essence reflect all of our societal issues and problems in one massive company. They survive and thrive on their ability to shape perceptions of their business model to consumers while exploiting their workforce. Goliath was perceived to be too big of a giant to fall or loose in battle until David succeeded. Wal-Mart is perceived that they are too big to fall by their competitors, society, and the country. They are the largest employer in the country, they own massive supply chain networks, and stores in every town across the country. However, in the case of Wal-Mart, there is no David out there to knock them down. Arguably they are no true competitors in their industry. Because of being this perceived giant, Wal-Mart is able to be a bully with vendors, associates, and competitors. Further, because of being a giant everyone is watching them. Threats and Challenges The simple answer of what threats and challenges Wal-Mart currently faces centers around their associates wages and health care. However, why do they face this challenge instead of what they are doing to...
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...Supply Cha S ain Manage nt Pro emen oject ‐ Reta ail Sup Chain at pply C Project Group – Balaji Nag garajan (Roll n no: EPGP‐04A A‐016) Deepak M Mittal (Roll no: EPGP‐04A‐0 026) Kannan S (Roll no: EPG GP‐04A‐044) Mahesh R Rajesham (Roll no: EPGP‐04 A‐115) Mansi Sha arma (Roll no o : EPGP‐04 A‐ ‐051) Dr. Priyan nka Mallick (R Roll no : EPGP‐04 A‐068) Sandeep G Gawde (Roll n no : EPGP‐04 A‐030) SCM Project – Retail Supply Chain at Wal‐Mart Table of Contents 1. 2. I. II. 3. Introduction .......................................................................................................................................... 3 About Wal‐Mart .................................................................................................................................... 4 Operating Divisions ........................................................................................................................... 4 Competition and Regional Alignments ............................................................................................. 8 Components of Supply Chain Management (SCM) ............................................................................ 11 A. Main Elements ................................................................................................................................ 11 4. Wal‐Mart’s Method of Managing the Supply Chain .............
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...Wal-Mart Principles of Management Introduction Wal-Mart (Wal-Mart Stores, Inc.) is currently ranked not only as America’s largest, but also as the world’s largest company (Soderquist, 2005). The store’s three business segments, Wal-Mart International, Wal-Mart Stores and Sam’s Club all operate in discount retail industry. Currently Wal-Mart’s leadership is facing challenging issues including an invariable customer base, a declining same store base and a crumbling reputation. However, Wal-Mart’s history is a living example of innovative and successful leadership. The company started with a single store in 1962, in Rogers, Arkansas and it has grown into what is now regarded as the world’s largest retailer. Wal-Mart runs each store with the products stocked in the store, to the front-end equipments, helping to speed up checkouts. Using the same philosophy in all its stores to provide low prices and superior customer service, Wal-Mart can sell at low prices and thus eliminate expenses associated with frequent sales promotions as well as have predictable sales. Wal-Mart has invented its own unique inventory system, the cross-docking system that has enabled the company to achieve economies of scale, thus reducing the cost of sales. In this system, goods are continually delivered to Wal-Mart’s stores within 48 hours and without the store having to inventory them. This allows the stores to replenish their shelves four times faster than...
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...Summary The following case will analyze the Wal-Mart China’s Sustainability efforts. Wal-Mart China is in the begging stages of becoming sustainable, in an ecological sense, and faces some key issues. First the case will provide background information on Wal-Mart Global and Wal-Mart China to ensure the reader is aware of the circumstances. Then the case will analyze Wal-Mart China based on the 4Rs, recycling, resource, regulations, and reputation, described in Operations Management by Heizer, and how their efforts correlate with them. The case will then address key issues, such as questionable logistics practices, and price sensitive customers, and weary stakeholders. Background Information Wal-Mart Global Sam Walton “our customers are the reason we’re in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers’ expectations. That’s when we’re at our very best” (2011, Wal-Mart Culture). Sam Walton opened his doors in 1962, Arkansas, with the promise of offering the highest quality merchandise for the lowest prices while maintaining the best customer service. The company then sprinted to the top becoming a Fortune 500 and one of the largest retail companies in only four decades. Wal-Mart soon took on public scrutiny for being too powerful and with that came the realization of how much power Wal-Mart used. It was...
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...are focussing on incorporating sustainability policy and practices in their supply chain (Ageron et al, 2011). The topic of sustainability has been of great interest for the last decade and businesses have adopted a certain level of commitment towards sustainability practices (Hassini et al, 2012), yet some business tycoons suffer in developing an effective supply chain model. This report primarily discusses the issues that Wal-Mart is facing in establishing and maintaining a sustainable supply chain. The report outlines the company's origin and its progress in the years, followed by describing the issue it is faces. The issue described is related to Wal-Mart's failure to develop a Green sustainable process and the effects it has on the environment. 2.0 Company Background - Wal-Mart The idea of retail business grew very popular in the United States in the early 1950's, and Sam Walton, founder of Wal-Mart was convinced that people wanted more than just retail showrooms. Hence he opened his own retail store providing large discounts (Reuters, 2013). Over the years he spread his business across the United States and set up his first Wal-Mart store in 1962. In the next five years he opened 24 more stores and in 1969 Wal-Mart established itself as an incorporated company under the official name, Wal-Mart Stores Inc. (Wal-Mart Corporate, 2013). Phenomenal transformation of national retail business into global retail chains were witnessed in the two decades of 1980's and 1990's....
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...Wal-Mart- A Case Study of MIS Strategy Walden University Wal-Mart – A Case Study of MIS Strategy Management information system is all about people using technology to work with information as they support the organization in its quest for a competitive advantage (Haag & Cummings, 2008, p. 29). Researchers and authors have discussed management information systems and technology over the decades. The concepts of competitive advantage, technology, outsourcing etc. have been theorized, yet discussion on the subject matter continues. While MIS strategy formulation has seen advancement, organizations are evolving and constantly changing their operating models. An example of such organization is Wal-Mart, the global retail giant. This research seeks to pin-point Wal-Mart’s key management information system strategy, while providing a deeper understanding of the organization’s management information systems strategy and its impacts. Further it aims to investigate knowledge management, e-commerce strategy, and the impact of database management which are aspects that can be incorporated into the MIS strategy formulation. To achieve this objective the literature survey was conducted to explore available published papers in the sphere of IS/IT strategy formulation. Considering that the applicability of information systems and technology is mission critical, the research design focused on the qualitative approach. The primary method of data collection was through semi-structured...
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...Wal-Mart: The Challenges of Dominance There are few companies that have become household names all across the Americas and many parts of the globe. One such company is Wal-Mart. Since its’ birth in 1962, there have been over 4,700 company locations opened, employing over 1.4 million people in the continental United States alone. (WALMART STORES.COM 2011) Wal-Mart was founded by Sam and Bud Walton as a department-sized store targeting small rural towns throughout the Midwest. It has immersed itself in a rapid amount of growth and success over the first few years by offering among the best levels of customer service, as well as “Every Day Low Prices.” After several decades of extreme growth, Wal-Mart began to finally shift its focus from targeting rural areas to that of urban areas all across the United States with its adaptation of the larger supersized centers that could offer a wide array of products and services. A great example to show its rapid movement would be to compare its growth to that of several of its’ competitors. It was founded the same year as corporate moguls Target and Kmart, and in 2011 it grossed revenues of more than four times that of both of these companies combined. (WALMART 2011) Retailing is the second largest industry in the U.S. and one of the most sizable in the world, and Wal-Mart is larger than the next four global giants combined. Wal-Mart’s capabilities in the Retail link-system, as well as its innovations in developing the hub...
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...Strategy & Policy Indian Institute of Management Bangalore Bannerghatta Road, Bangalore – 5600 76 Ph: 080-26993039 muralip@iimb.ernet.in, m_patibandla@yahoo.com Year of Publication June 2012 1 Foreign Direct Investment in India’s Retail Sector: Some Issues Abstract Foreign direct investment (FDI) plays an important role in India’s growth dynamics. There are several examples of the benefits of FDI in India. FDI in the retail sector can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers, and suppliers (farmers). This also can result in net gains in employment at the aggregate level. This paper brings forth a few conceptual issues and analysis of qualitative information, data and stylized facts on these issues. Key words- India, Foreign direct investment, Retail, Supply chain, Farmers 2 INRODUCTION In applying transaction-cost logic to political aspects of the reform process in less-developed economies, Dixit (2003)) characterizes three phases in the formation of interest groups under information asymmetry: ex ante, interim, and ex post. At the ex ante stage, each individual is uncertain about his own type as well as the types of others because there is no private information. At the interim stage, each individual knows his own type but not the type of others. The ex post stage is when all players’ types are publicly revealed. In the case of India, one may start from the interim...
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