2013 Management and Strategy, Walmart case study
WAL-MART’S CURRENT STRATEGY
INTRODUCTION Wal-Mart operates more than 11,000 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries. (Wal-Mart.com) They employ 2.2 million associates around the world; 1.3 million in the U.S. alone. Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well (www.Wal-Mart.com). When Sam Walton created Wal-Mart in 1962, he declared that three policy goals would define his business: respect for the individual, service to customers, and striving for excellence (www.Wal-Mart.com). Wal-Mart 's corporate management strategy involves selling high quality and brand name products at the lowest price. In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman. This paper will analyze Wal-Mart 's current strategy and challenges. In addition, I will discuss the threats and challenges facing Wal-Mart currently, priorities set by Wal-Mart CEO Lee Scott. I will also discuss the proposals outlined in the “Supplemental Benefits Documentation: Board of Directors Retreat FY06,”the result of the Board Benefits Strategy document leak, Wal-Mart initiatives from the standpoints of strategy and public relations, Wal-Mart’s strategic social challenges from the standpoint of “ When social issues become strategic” (Bonini, et al, 2006).
CURRENT WAL-MART THREAT AND CHALLENGES In recent times, Wal-Mart has faced much criticism over issues such as switching to products made overseas. Consumer surveys had established that Americans cared less and less about buying national brands: Low price trumped brand loyalty. In
INTRODUCTION Wal-Mart operates more than 11,000 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries. (Wal-Mart.com) They employ 2.2 million associates around the world; 1.3 million in the U.S. alone. Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well (www.Wal-Mart.com). When Sam Walton created Wal-Mart in 1962, he declared that three policy goals would define his business: respect for the individual, service to customers, and striving for excellence (www.Wal-Mart.com). Wal-Mart 's corporate management strategy involves selling high quality and brand name products at the lowest price. In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman. This paper will analyze Wal-Mart 's current strategy and challenges. In addition, I will discuss the threats and challenges facing Wal-Mart currently, priorities set by Wal-Mart CEO Lee Scott. I will also discuss the proposals outlined in the “Supplemental Benefits Documentation: Board of Directors Retreat FY06,”the result of the Board Benefits Strategy document leak, Wal-Mart initiatives from the standpoints of strategy and public relations, Wal-Mart’s strategic social challenges from the standpoint of “ When social issues become strategic” (Bonini, et al, 2006).
CURRENT WAL-MART THREAT AND CHALLENGES In recent times, Wal-Mart has faced much criticism over issues such as switching to products made overseas. Consumer surveys had established that Americans cared less and less about buying national brands: Low price trumped brand loyalty. In
References: 2013 Wal-Mart Annual Statement. Retrieved November 20, 2013 from http://stock.Wal-Mart.com/annual-reports Bhasin, K. (Sep 14, 2011) Wal-Mart Unveils A Multi-Billion Dollar Women 's Initiative To Patch Up Its Reputation. Retrieved from www.businessinsider.com Bonini, S. M. J., Mendonca, L. T., & Oppenheim, J. M. (January 01, 2006). When social issues become strategic. The Mckinsey Quarterly, 2, 20-32. Clifford, S., (January 15, 2013) Wal-Mart Plans to Buy American More Often. Retrieved from www.nytimes.com Dickinson, J.G., (June 5, 2013) Wal-Mart 's War Against Unions -- and the U.S. Laws That Make It Possible. Retrieved from www.huffingtonpost.com Durisin, M. (April 9, 2013) Wal-Mart Has a New Strategy for Tapping Into The Millennial Market. Retrieved from: www.businessinsider.com Porter, M. E., & Kramer, M. R. (January 01, 2006). Strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, 84, 12, 78-92. Wal-Mart’s 2013 Global Responsibility Report. Retrieved November 20, 2013 from: http://corporate.Wal-Mart.com/microsites/global-responsibility-report-2013/