Wal-Mart: Strategic Management

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  • Topic: Wal-Mart, Strategic management, Sam Walton
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  • Published : June 26, 2011
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Wal-Mart: Strategic Management
An in depth analysis of Wal-Mart and its global strategic management and electronic distribution Analysis for Business Policy: Strategic Management. Instructor: Dr. M. Reitzel, DeVry University, February 2007, Austin, TX. Members of the Team: Marcus Bedford Jon Cable Wayne Oulicky Constince Sanchez

Table of Contents:
Executive Summary.……………………………………………………………….2 Problem Statement ………………………………………………………………...2 Situational Description and Strategic Analyses …………………………………...3 Strategic Analysis Overview & History.……………………………………………..3 External Environment.……………………………………………6 Internal Environment.…………………………………………….6 Intellectual Assets.……………………………………………......9 Strategic Formulation Business Level Strategy………………………………………….9 Corporate Level Strategy………………………………………...12 International Strategy……………………………………………14 Digital Business Strategy………………………………………..15 Strategic Implementation Strategic Control plus Governance………………………………15 Organizational Design……………………………………………19 Leadership……………………………………………………......20 Innovation……………..……….………………………………...22 Opportunities plus New Ventures…..……..……………………..22 Proposed Alternative Solutions…………………………………………………....23 Recommendations……………………………………………………………….....23 Summary……………………………………………………………………….......24 Bibliography……………………………………………………………………….25

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Executive Summary
Though out the years since their inception in the 1960’s, Wal-Mart has grown at an alarming rate. Although in the early years Wal-Mart was thought to be unsuccessful, it has since proven to be a retailer of the future. It is the largest retailer in the world. It has the highest gross profits of any company in the world as well as the highest net profits. Wal-Mart has also topped the Fortune 500 4 times. According to “Wal-Mart - Out in Front”i it has the following Corporate strategies: • • • • • Broadening Our Appeal to All of Our Customers Becoming an Even Better Place to Work Improving Business Operations and Efficiency Driving Growth in Our International Business Making Unique Contributions to Communities

Because the public view of Wal-Mart is some what tarnished, they are making an effort both corporate and globally to address the image issues that they have. Many communities have refused or at least petitioned to have Wal-Marts banned. Wal-Mart has tried to gain public interest by lining itself with politicians to achieve its overall goals. While the goals that Wal-Mart has currently for its corporate strategy may lead them to their overall achievement, Team Wal-Mart does not believe that it will lead Wal-Mart into continued success. Wal-Mart has addressed all the issues listed above. However, our team thinks their success, although driven by these goals, contains major problems that arise while putting these goals into action. Some of the recommendations that we have developed are more at the local store level, where some of the goals need to be implemented globally. The public image needs to be addressed, the treatment of their employees both with regards to their pay scale as well as the traumatic treatment that is displayed in the view of the media. Corporate hunger for additional market gain has clouded their judgment when it comes to hiring to retain vs. hiring to fill head count. Wal-Mart also needs to address its views on how to navigate, infiltrate and dominate the global discount retail industry. Wal-Mart needs to address the issues that they currently have with the public, their employees and themselves. Although many work for Wal-Mart it is not the best place to work if you are a single mother, student or minority. Wal-Mart also needs to implement changes on how it treats and work with physically disabled people.

Problem Statement
The best way to describe the problems that Wal-Mart is facing is the lack of being able to or just not implementing their once believed motto that “customers are always right”. Although customers are not always right, associates at Wal-Mart...
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