By focusing on its strengths, its key customers, and the underlying values they need, Wal-Mart will increase sales to more than $200 billion in three years, while improving the gross margin on sales and cash management and working capital. This business plan leads the way. It renews our vision and strategic focus: adding value to our target market segments, the small as well as the large family, in our global market. It also provides the step-by-step plan for improving our sales, gross margin, and profitability. In order to implement these changes and improve profitability, we plan to invest another $70 billion long-term this year. The amount seems in-line with the balance sheet capabilities. Wal-Mart is built on the assumption that by keeping prices as low as possible family can afford to have more of what they need when they need it. Small family families aren’t economist. Families need to be able to find quality products at a low price. Wal-Mart seeks to fulfill this need and become the leader in the world in the area of affordable retail. Wal-Mart provides a large variety of products and services to make them useful to our customers. We are especially focused on providing high quality dependable merchandise and services to small and medium and large families. In order to accomplish our objectives, our keys to success over the next three years are: * Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support--and charging for it. * Increase gross margin to more than 30%.
* Increase our non-hardware sales to 20% of the total sales by the third year. Wal-Mart was founded as retailer to help people save money to help them live a better way of live. The goal is to provide provides a wide array of products like toys, electronics, groceries, jewelry, ladies, men, and children’s apparel, and hard goods and service and support to differentiate itself from price-oriented competitors. We have many locations around the world 20,000 square foot stores in a suburban shopping center located conveniently close to the downtown area. It includes a training area, service. Wal-Mart is a publicly traded corporation owned in majority by its founder and president family of Sam Walton. The company includes 240,000 employees. Our main management divisions are sales, marketing, service, and administration. The service department handles service requests, support, training, and development. At present, we are strongest in the area of retail in the world. We currently depend on television, internet, radio and newspaper advertising as our main way to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves. We will be refocusing on our core message of service through sales brochures, direct mailers and word of mouth. We need to sell the company, not the product. We sell Wal-Mart not Apple, IBM, Hewlett-Packard, or Compaq, or any of our merchandise brand names. Wal-Mart has been a part of many changes in the past years in the retail industry. Some of these changes were for the good of the business and some of turned in the opposite direction. We will talk about some of the major changes that Wal-Mart has implemented such as their types of stores, some of their promotions they use to lure customers, and new ideas to cut costs. Wal-Mart has created new ideas for their stores that has been very beneficial to them, such as creating the Wal-Mart Superstores, Neighborhood Market by Wal-Mart, and going global with Wal-Mart. The first Wal-Mart Superstore was opened in 1988 in Washington, Missouri. This store was considered their hypermarkets where you could basically get any kind of product, food, drug, and so forth that you needed all in one place. There are currently over 2,800 of these types of stores in the United States. Even though the name “Superstore” has since begun to phase out since the...
Please join StudyMode to read the full document