A. Internal Environment
Strength Weakness Remark
I. Management Infrastructure + + + Wal-Mart has been able to install and maintain a management team that is performing superiorly over its entire existence. This is foremost a consequence of the remarkable leadership abilities of its founder Sam Walton. He is often described as having been a very charismatic figure. The challenge that lies ahead is to perpetuate this spirit and not to become an ordinary organization like many of its competitors servicing top level management more than the customer. For that task it will need an equally outstanding and humble leader on its own.
1. Corporate Level Management
+ + + The credo of "always low prices" is the corporate mission and is had proved to be successful. In fulfilling this mission, Wal-Mart always emphasized not to increase margins but to pass on its benefits and advantages received to its customers in order to offer them the best price. Because the war over the retail customer is mainly a price war, this should be the route to success in the future, as well.
2. Business Level Management + + + Wal-Mart operations are split into Wal-Mart Stores, Sam's Clubs and International Wal-Mart. As of mid 2005, the Company had 1,289 Wal-Mart stores, 1,816 Super centers, 555 Sam's Club and 92 Neighborhood Markets' in the United States of America. Internationally, the Company operated 11 units in Argentina, 152 in Brazil, 261 in Canada, 47 in China, 89 in Germany, 16 in South Korea, 706 in Mexico, 54 in Puerto Rico and 291 in Great Britain. These are stocked by 110 distribution centers around the world.
Wal-Mart's success is based on its concentration of a single-business strategy, namely low prices, service, and "a smile". This strategy has achieved superior performance over the last three decades without relying upon diversification in other fields to sustain its growth and competitive advantages. The inherent risk is that... [continues]
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