Statement of Problem
Wal-Mart must decide on how to improve management of its enormous company and continue its domestic and international growth. In addition, Wal-Mart must address ancillary issues such as development of store format, technology deployment, human capital, and internationalization in order to have further short and long-term success.
Economics: great earnings and profits.
Goodwill: well recognized name, brand.
Size (one of the largest grocers, third largest pharmacy). o
One-stop shopping for all products.
Diversification: Well designed structure of having superstores, stores, and discount stores to attract all types of shoppers. o
Online sales campaign development.
Employment structure that saves costs (health care, employment benefit packages).
Expansion into foreign markets (many competitors do not have such large international influence).
Technology: well developed IT system
World’s best inventory measurement.
Economics: some international sectors of growth failed to perform, such as Germany, Japan in 2002.
Competition: other companies such as Home Depot, Target, Costco, etc., still occupy a significant portion of the market share.
International criticism: child labor, poor working conditions, workplace safety, low pay may affect its international outreach.
Operations: inventory measurement may be further improved from 94% accuracy to 100%.
Negative social perception
Working conditions/employment benefits for low-earning associates.
Further expansion into international markets, particularly countries of Asia, Pacific Rim, Europe, and South America.
Further development and expansion of online sales, electronic sales, and various services provided on Wal-Mart’s premises and online.
Promote commitment to good working conditions, philanthropic, and favorable image.
Further IT development.
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