Company Analysis: Wall-Mart
Table of Content
Company Analysis: Wal-Mart
Mission, Objectives, and Strategies
Porter’s Five Forces Analysis
Business and Corporate Strategies
Company Analysis: Wal-Mart
Wal-mart Stores Inc is a United States based company started in 1962 in Arkansas. The company has grown exponentially to open branches in many parts of the world. It operates in three formats: United States based segment, abroad/international segment, and Sam’s Club. Through the three segments, the company owns and runs stores (retail and discount), chains of supermarkets and supercentres, and websites affiliated with the company. In those stores and supermarkets, one can buy foodstuffs, beverages, dairy products, and meat, among many other foodstuffs, electronics, accessories, cloth ware, and many other things. More than retail, the company offers financial services through banks and electronic payments. The company’s retail units are estimated to be around 10,800 all spread in about 27 countries all over the world.
Wal-mart Stores Inc. has been listed in top 10 of the world’s 500 biggest companies by Forbes (Fishman 16). An analysis of the company reveals that it is growing remarkably well in spite of the turbulent economic times being experienced in America and many parts of Europe. Corporate and business strategy formulated by the company have enabled it transcend many challenges that have littered its path of progress. This paper will identify the company’s current mission and review its strategies and objectives. The financial status of the company will be analyzed by using financial rations, income data, and balanced sheet data. Additionally, internal strengths and weaknesses will be analyzed using SWOT model. External opportunities and threats will be analyzed using PESTEL and Porter’s five forces model analysis. Based on those analyses, the mission and strategies of the company will be revised. Corporate and business strategies that will enable the company achieve its mission and objectives will be developed and discussed, and appropriate recommendations made. Actions needed to implement the strategies that will be formulated will be outlined. Appropriate long term objectives in areas of marketing, human resources, finance, operations, and information systems will be developed. The results expected will be specified including pro forma financial statements. Lastly, procedural recommendations will be made for strategy review and evaluation. Specific measures to be utilized will be documented. Mission, Objectives, and Strategies
Wall-mart growth in recent years has seen it overtake other companies to become the biggest retailer in the world. With a customer base exceeding 200 million customers annually and over 2.5 million employees, the company’s sales are expected to surpass the $2 billion achieved in 2012 (Roberts, Bryan, & Natalie 14). Low prices and provision of high quality customer care service continue to be the drivers of the company’s growth. The strategies have revolved around attracting and retaining customers by low pricing and great customer care services. The low pricing is achieved by constant pressure on suppliers to lower their prices and redesign all services and products.
The company’s mission is summarized in one sentence, “Save people money so they could live better” (Roberts, Bryan, & Natalie 34). Their objective is thus to lower the prices of their commodities so that customers are happy and satisfied. The low price strategy is premised on the knowledge that large volumes dispensed at a low price will compensate for the lowered price. By putting customers first, the company has survived tough economic times. Through its management strategy, transitions have been achieved efficiently. In recent...
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Fishman, Charles. The Wal-Mart Effect: How the World 's Most Powerful Company Really Works, and How It 's Transforming the American Economy. New York: The Penguin Press, 2006. Print.
Pahl, Nadine, and Anne Richter. Swot Analysis: Idea, Methodology and a Practical Approach. Munchen: GRIN Verlag, 2007. Print.
Roberts, Bryan R, and Natalie Berg. Walmart: Key Insights and Practical Lessons from the World 's Largest Retailer. London: Kogan Page, 2012. Print.
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