STRATEGIC MANAGEMENT

Strategic Management: Wal-Mart

Introduction3

Discussion3

Task 13

Mission3

Objectives4

Corporate Social Responsibility (CSR)4

Critical Appraisal5

Task 27

SWOT7

Porter's Five Forces Model8

PEST9

Strategic Group Mapping9

Strategic Approach of Wal-Mart10

Task 3 - Recommendations11

Conclusion12

References13

Appendix15

Strategic Management: Wal-Mart

Introduction

Wal-Mart is the renowned retailer across the world and operates in five retail formats across the globe including Sam's Clubs, marketside, neighborhood markets, supercenters and discount stores. Samuel Moore Walton found Wal-Mart in 1962. Wal-Mart employs around 2.1 million people and is headquartered in Bentonville, Arkansas. The company sells a broad range of merchandise at the discounted prices in its retail outlets. There are three business segments of Wal-Mart, namely, international segment, Sam's Club and US. Currently, Wal-Mart has 10,800 stores in around 27 countries. Wal-Mart reported revenue of $446 billion during FY2013 (Wal-Mart, 2013, pp.1-64).

The aim of this paper is to critically appraise the mission and objectives of Wal-Mart, along with its corporate social responsibility. Later section, critically examines strategic management models to shed light on the Wal-Mart's approach to strategic management, as well as offer strategic recommendations.

Discussion

Task 1

Mission

Wal-Mart's mission statement is to “save money live better.” The emphasis of Wal-Mart is always on low prices. This unrelenting mission statement directs the path or the way Wal-Mart operates across the world, which has drawn considerable criticism about the relationship with stakeholders, employment practices, and Wal-Mart impact on local businesses (Wal-Mart, 2013, pp.1-64).

Objectives

Sales of comparative stores signify the performance of Wal-Mart's existing retail outlets through measuring growth in terms of sales for time duration that correspond to the past year.

Strive to increase operating income as for Wal-Mart; it is the true measure for success rather than net sales growth.

Net sales rate grows at a faster rate than inventory growth as it is a true measure of efficiency for Wal-Mart.

Since, Wal-Mart has a large base of asset, the company emphasized on continuing to ensure assets are productive. It is significant for the company to sustain ROA (return on asset) (Wal-Mart, 2013, pp.1-64).

Corporate Social Responsibility (CSR)

The mission of Wal-Mart “Save money live better,” is not just a written statement but the company lives it. Wal-Mart “Every Day Low Cost” strategy helps populace in saving money, provide a better lifestyle for families, and stretch their paychecks. However, the corporate social responsible is not just limited to its retail stores, but the company strives to extend its walls to communities across the world and has an effect on people's lives (Frank, 2007, pp.177-198).

CSR of Wal-Mart is driven from its mission and works in the areas of environmental suitability, hunger and nutrition, economic empowerment of women, diversity and inclusion, US manufacturing, ethical sourcing, and veterans and military families.

Critical Appraisal

Wal-Mart believes in the strategic alignment; thus, its policies and strategies are true predictor of its mission. For example, the low cost strategy of Wal-Mart is driven by its mission to attain the goal of saving money to perk up the living standard of people across the world. Save money is always a part of Wal-Mart, “live better” brought in a sentimental ...