Business Plan- Wallmart



Business Plan- Wallmart

Executive summary

Mission and Values

“Saving people money, so they can have a better life” is the mission of Wal-Mart on which it is based on. Wal-Mart's mission set to be the best retail store with a wide range of high quality and low prices both in the U.S, which has the largest number of branches, as in any of the nine countries where it operations.

The values of Wal-Mart include:

Honesty

High Quality

Continuous Improvement

Pragmatism

Neutrality

Innovation

Transparency

Professionalism

Value Proposition

The company has delivered on its promise through its Every Day Low Pricing concept (Walmart, 2010). EDLP stands out as the core of Wal-Mart's Business Model, and the rest of the key features of Wal-Mart's Business Model aligned to keep the everyday low price. From following this strategy Wal-Mart makes sure that the customers do not need to wait for sales to have the best deal possible. Besides, not only the sells convenience got associated by providing the wide range of products and services to choose from, but also with one-stop is possible to make all the shopping needed, from groceries to pharmacy (Niven, 2003, pp. 110-115). The customers of Wal-Mart save time and money.

Company overview

Wal-Mart Stores, Inc. is a U.S. multinational company founded by Sam Walton, specializing in retail and currently his eldest son heads the company, S. Robson Walton. Wal-Mart has grown extensively in Arkansas and led all U.S. begin to internationalize from 1991. In Europe, the stores are under the name Asda and they are present in Great Britain. Wal-Mart is now moving towards the Asian market. Wal-Mart started its business in China in 1996 and since then the group employed about 30,000 workers in China in 2006. In Japan it is formed under the name Seiyu. In 2005,The customer attending at Wal-Mart reached 20 million on average each day. Wal-Mart stores (Wal-Mart) are the world's largest retailers. At the end of January 2008, when the company operated 971 discount stores, 2447 supercentres, 591 Sam's Clubs and 132 Neighbourhoods Markets in the United States (Turban 2006, pp. 114-123). The below graph shows the number of stores distribution in various countries.

SWOT Analysis

Strengths

The company reported stable progress even during the current economic turmoil as it is financially very, the company continued to report profit.

The EDLP concept is very difficult to match.

The company has the advantage of economies of scale which is further reflected in its low prices presented to the customers.

Equity is the base of the capital structure of Wal-Mart.

Weaknesses

There has been a decline in the financial and the liquidity ratio of the company as it is making acquisitions to make expansions. Beside that the performance of the financial service segment has been reported to be low.

Opportunities

The major opportunity for the company is to increase its efficiency. The advancement in technology is its prime advantage and the small retailers are not able to match Wal-Mart's operational excellence.

The company can utilize the online shopping more, which can contribute to its bottom line.

Wal-Mart can explore new markets by internationalization which will open ...