Wal-Mart Company Analysis

Executive Summary

The paper is an in depth study of Wal-Mart and its business practices. The development of a strategic plan is a great help to clarify the general plans of the organization and to ensure that key managers are clear about the goals of the company and work in the same direction. Wal-Mart is the world's largest company, the largest private employer in the world, the eighth buyer of Chinese products (to Russia and the United Kingdom). Wal-Mart is one of the most famous and well known retail stores of the world. It continues to display innovation in marketing strategies. It is the largest distribution network, representing 67.2% of sales in fiscal 2006. This division also includes Walmart.com, the online sales site. This paper includes a brief review of Wal-Mart's history and expalins Wal-Mart's recipe for success, its corporate level and business level strategies. Later it discusses the political, economical, social/cultural and technological environment affecting the organization and the strengths, weaknesses, opportunities and threats faced by Wal-Mart. The paper also includes some strategic models such as the strategies for expansion and growth in the other regions. Understanding the requirements and needs of the customer is the major focus of Wal-Mart Company. However, to be successful in business, they also need to give prime importance in understanding the greater impact of their business all over the world. Wal-Mart being an oligopoly continues to open up more stores in US and worldwide through using up the strategic pricing.

Table of Content

Executive Summary5

Introduction10

Historical Background11

Mission Statement And Major Goals12

Mission12

Respect for the Individual12

Vision13

Our Purpose13

What We Do13

Economic Opportunity13

Their Philosophy of Business14

Incorporation and Growth14

Strategic Planning14

1.Resource allocation:14

2.Adapting the environment:14

3.Internal coordination of all departments and divisions:15

Their Impact and Management Practices15

Low Price Strategy16

Social Factors16

Economic Factors17

Technological Factors17

Legal Factors17

Strengths Of The Company18

Store Locations18

Weaknesses Of The Company19

External Analysis19

Opportunities19

Threats20

Wal-Mart And Shareholders20

The Board of Directors22

Independence22

Committees23

The Stockholders23

The Employees24

Consumers24

Non-profit Organizations24

Other Retailers25

Online Retailers25

Gasoline Retailers26

Non-Market Stakeholders26

Labor Unions26

International Retail Stores26

Politicians27

Comptetive Advantage27

Competitive Analysis27

Blurring Difference Between Wal-Mart and its Competitors27

Five Forces Model Of Porter29

Analysis of the forces29

Competitors29

Potential Entrants29

Customers and their Bargaining Power30

Suppliers and their Bargaining Power30

Wal-Mart's Social Responsibilities30

Our People Watch Your Community31

Supporting Small Farmers and Their Communities33

Producing More Food with Fewer Resources, and Reduce Food Waste33

Goal 1:34

Goal 2:35

Macro Environment35

Macro-Environmental Issues35

Internal Code of Conduct36

Employees36

Business Partners36

Related Searches36

Society37

Code of Conduct for External Manufacturers and Wal-Mart38

Business Level Strategies38

Wal-Mart Does Not Compete With The Competition38

The Most Profitable Customers Who Pay The Least39

Optimization Of The Supply Chain39

Grouping Items On The "Modules"39

Improving Database40

Invent Value Innovation That Would Bring Sustainable Advantage40

Steps Taken40

International Marketing Management44

Analyzing People, Organization and Technology- Success Factor & Current Issue44

Inspirational Leader44

Macroeconomic Forecast of Economic Indicators45

Generic Strategies of Walmart46

Performance Evaluation of Walmart47

Motivational Factor at Wal-Mart49

Wal-Mart's Cultural and HRM Practices50

Strategic Position of the Company50

Strategic Innovation51

The Role of Motivation in Increasing the Performance of Employees52

Effective Internet Marketing Strategy52

Reward Approach At Walmart53

Save As You Earn (SAYE)53

Buy As You Earn (BAYE)54

Looking In To the Future54

Pension54

Life Insurance55

Non-Economic Factors in the Remote Environment55

Social and cultural55

Political and Legal55

Environmental and Physical56

Geographical and Technological57

Recommended Growth Strategies57

Managing the Growth58

Strategic Direction58

Conclusion59

References62

Appendix64

Wal-Mart Company Analysis

Introduction

Wal-Mart is the world's largest company, the largest private employer in the world, the eighth buyer ...