Case Study Of Wal-Mart

1. SUMMARY OF THE CASE: Wal-Mart has become the World’s largest company. In doing so many small businesses were forced to close and many larger companies forced to file for bankruptcy or even close. Becoming the World’s largest company has not been an easy road trip for Wal-Mart, it has required many different strategies in many different areas. And even now they cannot stop finding new ways to change, to grow, to be innovative. Wal-Mart has overcome difficult times by using many different tactics and whether or not you agree with the way they may of approached things or taken care of business, everyone must agree that their Strategic Management is superb. Through the years they have had to restructure their business but they have done so efficiently, always changing and always growing but always making the consumer feel as if they are first. Their unique way of treating employees helps to make this company stand out and is another much admired strategy because by just calling an employee an associate or partner they have managed to make each individual in the company feel as if they belong, they matter and in doing so, the employee becomes more productive allowing the company to run more efficiently and for profits to increase. Strategically, Wal-Mart is the company to learn from.

2. MISSION STATEMENT: A Mission and Vision statement should include the following questions:

1. Who are we?

2. What do we do?

3. Why are we here?

4. What kind of company are we?

5. What kind of company do we want to become?

6. What kind of company must we become?

Wal-Mart lacks a formal Mission statement. Based upon the case, there are nine components that support the company’s mission for the consumers. These components include the customers, public image, technology, markets, employees, self-concept, philosophy as well as survival, growth and profitability.

3. CORE PROBLEM: The core problem is that the company has grown so rapidly that now to keep it all going and growing has become a big challenge. The management team must continue to find ways to keep profits and sales growing into the future.

4. EXTERNAL ANALYSIS:

Strengths

• (ES-1)The company possesses a strong brand name in the retail industry that represents both value and quality. This strength emphasizes Wal-Mart’s capability to attract new customers and maintain customer loyalty. In addition, with the diversity of its products offered in one retail store, company also provides customers yet another important strength, which is convenience.

• (ES-2) Wal-Mart is a global company that is capable of operating not only in the local setting but in other parts of the world as well. This is considered a strength as it helps in increasing the size of the company’s market coverage as well as diversity. The purchase of major retail companies abroad such as UK’s ASDA for example, also marked the company’s strong global expansion potential. This also helps the companies adapt successfully even in foreign setting.

• (ES-3) Wal-Mart has kept itself diversified externally by balancing different concepts, such as the Neighborhood Market, Sam’s Club, Wal-Mart Super Stores, and the initial Wal-Mart stores, in different areas and regions. They avoided having a Super Wal-Mart in a small area where it would not produce profits and instead built a Neighborhood Market.

Weaknesses

• (EW-1) The company is considered one of the largest retailer in the world as it manages not only a huge array of product lines but also serve a considerable consumer population both in local and international sectors. While the company may have the tools, strategies and technologies that can handle and address its internal needs, the significant size of Wal-Mart’s operations leave the company weak in some aspects.

• (EW-2)Though the company is already operating globally; however, the number of its international branches are only limited to a few countries. This then does not optimize the ability of the company to operate internationally.

Opportunities

• (EO-1) Wal-Mart has access to the opportunity of adapting its current strategy of establishing and operating large super centers worldwide. New types of stores and potential business sites are available for the company to enhance its market development. These include the opportunity to expand in the international retailing sector.

• (EO-2) Forming strategic alliances, merging or taking over other local and global retailers is also another possible opportunity for the company to strengthen its operations, overcome competitors and support its future success.

Threats

• (ET-1) As a global retail company, Wal-Mart is an open target by several competitors both in the local and international setting. This puts the company on regular pressure particularly in terms of maintaining its consumers as well as developing new and better business strategies.

• (ET-2) Wal-Mart is a global retailer that needs to adapt to foreign regulations and standards so as to penetrate markets abroad. Because of this, the company is vulnerable to the issues that would affect the country it chooses to operate in, particularly political and economic issues.

• (ET-3) The diversity in conducting manufacturing operations has changed drastically over time. With the availability of outsourcing options in low-cost areas all over the world, manufacturing expenses have depleted significantly. This in turn results to intense price competition among retailers.

5. INTERNAL ANANLYSIS:

Strengths

• (IS-1)The company employs a focused strategy on its human resources, enabling its employees to be shaped into productive and efficient service providers. By investing on the staff’s training and development, Wal-Mart is able to acquire a workforce that is loyal to the company, its set goals and customers.

• (IS-2) Wal-Mart utilizes the most modern technologies available in order to handle and manage it local and international logistic operations. This technology not only allowed