ANALYSIS OF WALMART

Strategic Analysis of Walmart

Strategic Analysis of Walmart

Introduction and Overview

This essay is based on Wal-Mart. Wal-Mart is one of the renowned names in the Retailing Industry. It offers products of all categories to its customers. Wal-Mart is held in high regard among the customers since it caters to the distinct needs of its customers in an efficient manner. Wal-Mart offers all products under one roof and offers the customers an economical price associated with their products. This essay will discuss the Wal-Mart's strategic drift, bowman's clock, financial ratios (Working Capital, Stock Turn over, Gross Profit), ansoff matrix, an M&A alliance.

There are a number of factors that have contributed to the resounding success of Wal-Mart. Not only the cost factor but also Wal-Mart has focused on adopting the latest technological devices in reaching out to its customers. Wal-Mart not only focuses on its customers but also has technological mechanisms in place for suppliers. Suppliers play a significant role in the successful performance of world leading organizations. Thus Wal-Mart has also focused its attention on acquiring majority of the suppliers. The innovative decision making, Technological processes and offering economical prices have been major forces that drive the successful performance of Wal-Mart (Wal-Mart Annual Report, 2012).

Analysis of Strategic Drifts Strategy at Wal-Mart

The concept of strategic drift is based on the principal that organizations are more inclined towards managing the change depending on the internal and external business conditions. Wal-Mart is known for maintaining a strong and positive corporate environment throughout its offices and retail stores. They focus on incorporating the ideas from their associates, for which they conduct an associate opinion survey on regular basis. They have an open door environment, which allows the subordinates to feel free to contact their supervisors. Furthermore, the open door policy also allows the improvement in the overall process and procedures of the organization, as the management can be able to acquire different ideas from their employees. The organization also supports the teamwork environment, which not only helps the individuals to achieve their goals and objectives but also the objectives of the organization as a whole.

Change Management process at Wal-Mart ensures that all changes have been accepted and are used as standard methods, processes and procedures to ensure the effectiveness and efficiency. Wal-Mart believes that a major factor for the change to be successful is to connect people with the new vision and principles. Communication is a cornerstone for the successful development of these processes, as through it connects people with the change; generate knowledge, understanding and assimilation of the requirements for future performance. When we talk about managing change at Wal-Mart, we refer to the introduction of new technologies, changes in the business model, corporate restructuring, mergers and acquisitions, among other dynamics that directly impact the status quo of people. For a change to occur successfully, 75% of direct managers of the company must "buy" the change (Fishman, 2006).

Wal-Mart has designed a set of policies and procedures for its employees to ...