Strategic Management of Walmart

Topics: Wal-Mart, Hypermarket, Retailing Pages: 14 (3973 words) Published: December 22, 2010
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Submit to Dr Andrew JENKINS
Strategic Management: WAL-MART Case Analysis
FAZAL Muhamed

Executive Summary



Wal-Mart is the largest private employer in the United States and the biggest retailer in the world. The company started in 1962 with only a small number of employees and has hugely grown since then. Throughout this essay we will analyse how a small family business managed to become the leading retailer in the world. We will start by critically comment on the organisational culture of Wal-Mart. We will then apply Porter’s 5 forces Framework to this company. We will continue by undertaking a PESTEL analysis and discussing WAL-Marts key drivers for change. We will finish by critically comment on the strategies used by this leading retailer to expand outside the USA.

Table of Contents

Executive Summary2
I)Critically comment on the organisational culture of Wal-Mart.5
II)Porter`s Five forces on Wal-Mart6
What are Porter`s five analysis?6
The threat of Competitors6
Threat from New Entrants7
Porters Five force Diagram7
Suppliers` Power8
III)PESTEL Analysis for Wal-Mart9
PESTEL conclusion12
IV)Global Expansion13
Analysis of Wal-Mart International Expansion Strategy13

I) Critically comment on the organisational culture of Wal-Mart.

Wal-Mart created its organizational culture from the beginning of composition by Walton in his first opened in 1950. It is one of the few who are called to their employees “associates” and give them stock, and store and exchange data with them. Wal-Mart employees do not work for them, but they share. Wal-Mart's message to them is that people who work hard will be involved in the company's profit sharing program to become rich and happy. You will discover the organization culture of Wal-Mart from the first day on the job by just walk through the door and for the customer you will learn a lot about Wal-Mart culture just by crossing by first walk through its store. (

Wal-Mart’s founder, Sam Walton, preceded respect and concern for his staff from the beginning of the company. This led to an atmosphere of confidence until this day. Walton also modelled the behaviour that he desired from his employees, especially customer service (both to internal and external customers), by visiting his stores, meeting customers, and greeting the staff by their first name. It also included, encourage change in order to maintain competitiveness, and development of staff through them to work in different environments.الاستماع قراءة صوتية للكلمات

القاموس - عرض القاموس المفصل
1. اسم
1. foot
2. obsolescence
3. antiquity
4. peg
2. فعل
5. present
6. offer
7. submit
8. extend
9. come
10. set forth
11. advance
12. show
13. tender
14. move forward
15. chip
16. precede
17. bring forward
18. produce
19. arrive
20. age
21. bring out
22. reach
23. get to
24. give in
25. return
26. come back
27. turn in
28. proffer
29. become old
30. be age-old
31. become timeworn
32. display
(Golnaz Sadri and Brian Lees, 2001, pp.853 - 859)

Wal-Mart’s three basic rules are the customer is boss, “Get it done by sundown” and “Greet any customer who is within 10 feet.” Company logo is “Exceed customer expectations.” Wal-Mart culture is low cost. Wal-Mart's culture is the key to their success, until today, the staff continues to believe that how Sam would have done it when making decisions. (

II) Porter`s Five forces on Wal-Mart

What are Porter`s five analysis?

The five force analysis...

References: * David, F. (2005), Strategic Management: concepts and cases, Prentice Hall, Upper Saddle River, NJ.
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