1000 results for “Wal Mart”.
Wal-Mart's SWOT Analysis and Generic Business-Level Strategy
Walmart's SWOT Analysis
Wal-Mart's SWOT Analysis and Generic Business-Level Strategy
Wal-Mart's SWOT Analysis and Generic Business-Level Strategy
Wal-Mart
Wal-Mart is the world's leading corporation in the retail industry. It operates in 27 countries of the world with 69 well-recognized brands. With this huge scale of operations and vast business network, Wal-Mart serves a large number of customers with numerous product categories in its retail stores, departmental stores, and discount stores. It is also considered as the fastest growing business corporation in the Global retail industry. It has a huge supply chain network with highly reliable suppliers, distributors, and promotional firms from all the corners of the world. Wal-Mart has always pursued growth strategies for its business operations in the Global market. At present, it is the largest employers in the world with a total workforce of more than 2.2 million employees. It is…
References
Barley, F., Bragg, D., Dawson, M., Shah, H., Sillanpaa, B., & Sleeper, N. (2012). Wal-Mart Stores, Inc. U.S.: Arizona State University.
Hitt, M.A., Ireland, R.D. & Hokisson, R.E. (2011). Strategic management: Competitiveness & globalization concepts & cases, 10th Edition. Mason, OH: South-Western Cengage Learning.
Hill, C.W., & Jones, G.R. 2012, Strategic Management Theory, 10th Edition. Mason, OH: South-Western, Cengage Learning
Kurtz, D.L., MacKenzie, H.F., & Snow, K. 2010, Contemporary Marketing, 2nd Edition. Toronto: Nelson Education
Wal-Mart: Financial Statement Analysis
WAL-MAT FINANCIAL STATEMENT ANALYSIS
Company Description
Wal-Mart Stores Inc. (WMT) is a world largest grocery chain and retail stores. The company operates 8000 stores across three business segments which include apparel, groceries, electronics and small appliances. While the company operates globally, half of the company stores are located in the United States. To complete in the international markets, Wal-Mart also operates its business through subsidiaries in Canada, Argentina, China, Brazil, the United Kingdom and Japan. However, the company majority-owned subsidiaries are located in Chile, and Central & South America. Wal-Mart business strategy is to buy products at rock-bottom prices and pass savings on customers and Wal-Mart has been able to drive up its profitability by purchasing billion of dollars worth of low costs merchandise directly from China and the company has been able to win the trusts of customers by providing its products at low prices.…
References
Seeking Alpha (2012).Valuation Analysis: Wal-Mart Looks Fairly Priced. Seeking Alpha Magazine. USA.
Yahoo Finance, (2012). Wal-Mart Store Inc. (WMT). Yahoo Inc.
Wal-Mart (2012). Management's Discussion and Analysis of Financial Condition and Results of Operations. Wal-Mart Stores Inc.
Wal-Mart (2012) Annual Report Store Inc. 2012. USA.
Wal-Mart is the name that is well-known to all the households these days because it has established itself as the largest retailer the world over. The sales of Wal-Mart are growing with every passing day as the sales totaled up to more than $280 billion, according to the reports published in 2004. However, it should be noted Wal-Mart did not appear on the international with more than 4500 stores in 14 different countries and with a workforce of 1.5 million over a small period of time. From the very beginning, Wal-Mart worked day in and day out to make sure that it develops the right strategies that would help it to become a success; both at the national and the global level. It worked efficiently to establish itself as the best merchandiser that operated with the most effective systems that led to the increased buying of the customers and superior…
Similar problems are now being faced by Wal-Mart by China as well. However, to ease the tension, the Chinese government has stated that it would cut down the laws a notch to make it easier to open stores there. Seeing how the competition in China is fierce, Wal-Mart won't only do well by having discounts. The company must make its mark by the quality and the variety of products it has to offer. The people in China will not shy away from a non-Chinese retailer. This has been exampled by Metro doing very well. Better designs and better goofs will provide for the customers the new edge of style that they need.
Apart from China, Japan is also present with a lot of hopes for Wal-Mart. The company is slowly getting itself in form and in practice there. In 2003, the 400 unit chain lost a total of 65 million dollars there. However, the new strategies that Wal-Mart has, the company might make a u-turn when it comes to performance in Japan.
Last but not the least, Wal-Mart's performance in Mexico is yet another prospect for the big giant. This operation was initiated with Cifera, a local retailer in the country. However, Wal-Mart had issue in copying the distribution patterns of Mexico. There were problems faced with the infrastructure there and the lack of dealings with the suppliers in the country.
Wal-Mart's Strategic And Financial Planning:
Since its inception about 50 years ago, Wal-Mart has continued to remarkable growth as a firm that focuses on providing customers with a wide range of merchandise at great prices. In its initial years, the company only operated in one store that has contributed to changes in the way retail works. Currently, the firm operates over 10,000 retail units within 69 distinct banners in 27 countries across the globe. The organization consists of over 2 million hard-working employees and associates who serve approximately 200 million customers and members across the globe on a weekly basis. The success, growth, and profitability of the firm can be attributed to the various strategic plans it has adopted from time to time, which have had significant impacts on its financial planning.
Wal-Mart's Strategic Planning Initiative:
While Wal-Mart has experienced decline in earnings multiple because of decreasing earnings and revenues…
References:
Daris, M. (2012, March 26). Wal-Mart: Strong Upside Potential in 2012. Retrieved June 8,
2012, from http://seekingalpha.com/article/457111-wal-mart-strong-upside-potential-in-2012
"Walmart 2012 Annual Report." (2012). 50 Years of Helping Customers Save Money and Live
Better. Retrieved June 8, 2012, from http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf
al-Mart Porters
al-Mart Strategic Management
al-Mart mission is based on the model that by simply saving people money so they can live better. The philosophy and overall business strategy was developed based on a simple idea created by founder Sam alton: offer shoppers lower prices than they can get anywhere else. This strategy has been the basis of an incredible history and growth record for the company. This strategy still guides the company in nearly all aspects of the organization. The company delivers the consumer the lowest costs possible through many of the strategic decisions in their human resources, their suppliers, their information, distribution and logistical systems as well as many more business functions.
Strategy Discussion
The success of this strategy is clearly evident from al-Mart's single location in the Midwest to its global presence as the world's largest private retailer. The company's current holding include more than 8,500 departmental…
Works Cited
Cernansky, R. (2011, January 31). Are Walmart's Eco-Efforts Enough? Balancing Sustainability & Social Responsibility at America's Largest Retailer. Retrieved from Tree Hugger: http://www.treehugger.com/corporate-responsibility/are-walmarts-eco-efforts-enough-balancing-sustainability-social-responsibility-at-americas-largest-retailer.html
Gunther, M. (2011, December 5). Just How Sustainable Is Walmart? Retrieved from Green Biz: http://www.greenbiz.com/blog/2011/12/05/just-how-sustainable-walmart
Ken, A. (N.d.). Wal-Mart's Major International Strategy. Retrieved from Ezine Mark: http://public-company.ezinemark.com/wal-marts-major-international-strategy-7d35349720f4.html
Lewis, N. (2013, February 21). Though Income Can't Be Legislated, Obama's Minimum Wage Hike Is Not A Bad Idea. Retrieved from Forbes: http://www.forbes.com/sites/nathanlewis/2013/02/21/though-income-cant-be-legislated-obamas-minimum-wage-hike-is-not-a-bad-idea/
Wal-Mart and Employee ights
Labor cost is always considered as the main issue, mostly in case of employees' unionization at Wal-Mart. This was noticed when Wal-Mart showed a remarkable earning at the rate of 44% per annum for its labor working on hourly basis. Another point which brought this issue ahead was when the sales clerk of Wal-Mart in 2001 earned wages below Federal Poverty Scale. According to an issue of Fortune released on 3rd March 2003, the approximate share of Wal-Mart in the Gross National Product (GNP) of U.S. market was about 2.3% in 2002. Thus, Wal-Mart was expected to show further boom by sharing the U.S. economy at the largest scale ever estimated in 2006, considering the phenomenal growth rate stated in Fortune. However, other companies like U.S. Steel Corporation shared the U.S. GNP by 2.8% in 1917 and also the highest GNP share of General Motors Corporation…
References
Cramer, James J. "Wal-Mart, Fess Up to Weakness Within." Wake-Up Wal-Mart.com,
17 August 2005. 18 November 2005. Retrieved from .
Kalra, Ritu. "Wal-Mart Storm Swirling." The Hartford Courant. 2 November 2005. 3 November 2005. Retrieved from .
Lindeman, Teresa F. "Two Public Relations Campaigns pit Wal-Mart Against Critics." Pittsburgh Post-Gazette. 1 November 2005. 3 November 2005. Retrieved from .
Wal Mart
Over the last several years, Wal Mart has been a story that is focused on continuing successes and challenges. This is because the company was impacted by issues such as employee rights, costs and fierce competition. Yet, at the same time, they were able to experience continuing increases in their bottom line results. This is despite the fact that consumer spending has remained stagnant in the aftermath of the recession. ("50 Years of Helping Customers to Save Money and Live Better," 2012)
To fully understand what is happening requires examining Wal Mart's most recent financial information. This will be accomplished by analyzing the company, its financial condition, profitability trends, cash position, inventory chain, internal controls, the risks to outside events, potential vulnerabilities and predicting where the firm will be five years from now. Together, these factors will highlight the challenges and opportunities that are available.
Create an executive…
References
50 Years of Helping Customers to Save Money and Live Better. (2012). Wal Mart. Retrieved from: http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf
Chan, A. (2011). Wal Mart in China. Ithaca, NY: ILR Press.
Holmes, T. (2011). The Diffusion of Wal Mart. Ecometria, 79 (1), 235 -- 302.
Hugos, M. (2011). Essentials of Supply Chain Management. Hoboken, NJ: Wiley.
al-Mart Financial Analysis
al-Mart Store Inc. is a multinational retailer corporation branded as al-Mart in 2008. Founded in 1962, al-Mart has now become one of the largest American corporations with chain of retail stores. al-Mart sells varieties of consumer goods such as consumer electronics, toys, automobiles, furniture, video games and several other consumers goods. Presently, al-Mart enjoys the patronages of 200 million customers per week making the company to record the sales of $419 billion at the end of the 2011 fiscal year. al-Mart operates in 27 countries and records $443 billion in sales in 2012. (al-Mart Annual Report).
The objective of this report is to provide the financial analysis of al-Mart. The report uses the last 5-year financial data to perform the company financial analysis.
: al-Mart Financial Analysis
The paper uses last 5 years financial summary to evaluate the al-Mart performances. The data from Table 1 reveals that…
Works Cited
Annual Report. Wal-Mart Annual Report. Wal-Mart Store Inc.2011
Stock Analysis. Wal-Mart Stores Inc. (WMT) | Statement of Cash Flows. Stock Analysis Net. 2011.
Yahoo Finance. Wal-Mart Stores, Inc. Common St. (WMT). Yahoo Inc.2012.
Zenith Management Consulting. Case Study: How to Exploit Wal-Mart's Weakness. Zenith Management Consulting White Paper. 2006.
al-Mart SOT
Internal Analysis & SOT
Currently one of al-Mart's biggest assets is it powerful retail brand name. The company has branded itself as the low cost leader in their industry and consumer perceive the brand as offering value for money, convenience and a wide range of products all in one store (Marketing Teacher, N.d.). al-Mart has been able to build this brand image over time by focusing on providing consumer the lowest cost possible in their industry. Over many years consumers have begun to associate the al-Mart brand with primarily value which offers the company many advantages.
hat are the two or three biggest strengths the company has that allow it to make the company's vision come to fruition?
A major strength that al-Mart has is that it sells many consumer necessities. This has allowed the company to avoid many of the negative aspects of the economic cycle as…
Works Cited
Denning, S. (2012, March 7). Emulate Wal-Mart And Dare To Be Bad? Retrieved from Forbes: http://www.forbes.com/sites/stevedenning/2012/03/07/emulate-wal-mart-and-dare-to-be-bad/
Guenette, R. (2012, November 5). Wal-Mart Stores: Strengths, Weaknesses, Opportunities, and Threats. Retrieved from The Motley Fool: http://beta.fool.com/makinmoney2424/2012/11/05/wal-mart-stores-strengths-weaknesses-opportunities/15793/
Marketing Teacher. (N.d.). SWOT Analysis of Wal-Mart. Retrieved from Marketing Teacher: http://marketingteacher.com/SWOT/walmart-SWOT.html #
Romero, E. (2005). Leadership, Culture, and Competitive Advantage. Retrieved from Compete Outside the Box: http://competeoutsidethebox.com/wp-content/uploads/articles/Leadership,%20Culture%20and%20Competitive%20Advantage.pdf
Further, under this segment are a number of financial products ranging from bill payments to wire transfers and money orders. On the other hand, the company's international segment has in its fold online retail as well as a number of discount and retail store formats. The company's Sam's Club segment has in place private-label items as well as other merchandise categorized as either soft goods or hard goods. Further, it can also be noted that this segment currently operates 4,263 stores and has a workforce of more than 600,000 workers spread over 15 nations outside the U.S. At the moment, al-Mart which happens to be Mexico's and America's largest employer has a total of 2.1 million associates (employees) across the world. In some cases, al-Mart's foreign expansion has been marked by the acquisition of retail chains already in operation. For instance, the company's expansion to Canada was preceded by the…
Works Cited
Grant, Robert, M. & Kent, E. Neupert. Cases in Contemporary Strategic Analysis. Wiley-Blackwell. 2003. Print.
Hicks, Michael, J. The Local Economic Impact of Wal-Mart. Cambridge Press. 2007. Print
Mallaby, Sebastian. "Progressive Wal-Mart. Really." Washington Post. 28th November 2005. Web. 18th November 2011. < http://www.washingtonpost.com/wp-dyn/content/article/2005/11/27/AR2005112700687.html
Wal-Mart. Wal-Mart Corporate: History Timeline. Wal-Mart Stores, N.d. Web. 16th November 2011. <
al-Mart
Operations
al-Mart's has grown to be one of the most powerful organizations in the world and its biggest assets is it powerful retail brand name. The company has branded itself as the low cost leader in their industry and consumer perceive the brand as offering value for money, convenience and a wide range of products all in one store (Marketing Teacher, N.d.). Although al-Mart does not produce many goods internally, it offers a retail service that connects suppliers from all over the world with consumers via its network of retail outlets. al-Mart is known for its dedication to providing retail goods the lowest prices possible to consumers in their industry. al-Mart has some of the most sophisticated supply chains and distribution networks available and the company creates value through quantities of supply.
Supply and Demand
There are many factors that influence al-Mart's ability to achieve equilibrium in supply and…
Works Cited
Hsu, T. (2013, February 21). Wal-Mart: Tax refund delay, high gas prices to flatten sales. Retrieved from LA Times: http://www.latimes.com/business/money/la-fi-mo-walmart-profit-flat-sales-20130221,0,5846500.story
Marketing Teacher. (N.d.). SWOT Analysis of Wal-Mart. Retrieved from Marketing Teacher: http://marketingteacher.com/SWOT/walmart-SWOT.html #
Raza, P. (2013, January 13). Walmart in supply chain crackdown after Bangladesh factory fire. Retrieved from The Telegraph: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9821366/Walmart-in-supply-chain-crackdown-after-Bangladesh-factory-fire.html
However (on the plus side toward Wal-Mart's capacity for increased successful globalization) there remains Wal-Mart's sophisticated supply technology, the best in the retail world, a tool that makes it possible for the retailing giant to meet individual store and customer needs everywhere, almost instantaneously. Ernsberger (2002) points out that:
one reason the company is so productive is that it knows how to use technology... Wal-Mart was the first major retailer to use satellite communications to link stores to suppliers, so suppliers can track sales second by second, and deliver new stock as fast as old stock disappears from the shelves... [s]ays Dan Binder, a senior vice president of Morgan Stanley in New York "They do a lot of little things right."
In perusing the United States Wal-Mart.com website (Wal-Mart.com, August 7, 2005), one finds that enormous attention is paid to local needs and markets, for example, a link to a…
References
Books. (August 7, 2005) Wal-Mart.com. Retrieved August 7, 2005, from: http://www.walmart.com /books?path=0%3A3920.html.
Ernsberger, R., Jr. (May 20, 2002) Wal-Mart world. Newsweek international. 50.
E- library. Retrieved August 7, 2005, from: http://europa.ccsn.nevada.edu:2263 / libweb/elib/do/document?set=pbsissue&groupid=1&requestid=issue_docs & resulted
24&edition=&ts=C0E005574F3A1EB4DC9C77177F4EAD40_1123448077234 urn=urn%3Abigchalk%3AUS%3BBCLib%3Bdocument%3B53060287.html.
Wal Mart is a global leader in retail supply chain management, logistics, operations, fulfillment and transportation services. The efficiency and profitability of the WalMart supply chain operations globally have set a new standard in their industry and often been used as the basis of comparing performance of supply chains in related industries as well (Stevenson, 2009). What has contributed to the rapid growth of WalMart however has been the acquired expertise in planning, launching and support supercenters in remote geographic regions in the U.S., while also being able to tailor their unique retailing strategy to foreign markets as well. WalMart has learned how to integrate customer and buyer demographics into their retail planning and execution systems to ensure every store format, from the very large and complex Supercenters to the small storefronts in China, all operate to an optimal level of sales and profitability performance (Courtemanche, Carden, 2011). By basing…
References
Courtemanche, C., & Carden, A. (2011). Supersizing supercenters? The impact of Walmart supercenters on body mass index and obesity. Journal of Urban Economics, 69(2), 165-181.
Edwards, B. (2011, Mar 20). Controversy over new A.V. WalMart continues. McClatchy - Tribune Business News, pp. n/a.
LaRose, G. (2011). Real estate pros expect walmart to trigger more retail activity in eastern new Orleans. New Orleans CityBusiness, (02794527)
Stevenson, W.J. (2009). Operations management (10th ed). New York: McGraw Hill/Irwin
Robson Walton - Chairman of the oard of Directors of Wal-Mart Stores, Inc.
Stephen P. Whaley - Senior Vice President and Controller
Eric S. Zorn - Executive Vice President and President, Wal-Mart Realty
III. INTERNAL ENVIRONMENT: STRENGHTS and WEAKNESSES
A. CORPORATE STRUCTURE
Wal-Mart's retail division is formed from four major subsidiaries: Wal-Mart Discount Stores, Wal-Mart Supercenters, Wal-Mart Neighborhood Markets and Sam's Clubs. (Wal-Mart Facts, 2007)
Wal-Mart Discount Stores more than 1,000 in U.S. alone average surface per store of 107,000 square feet; 225 associates and 120,000 items sold
Wal-Mart Supercenters are generally open 24 hours a day and sell wide array of products, including grocery, clothing and any other general merchandise more than 2,300 stores, internationally spread average surface of 187,000 square feet; 350 or more associates and 42,000 different products
Wal-Mart Neighborhood Markets grocery, pharmaceuticals and general merchandise more than 120 neighborhood markets, generally present on markets with supercenters…
Bibliography
Wal-Mart Annual Report for 2006, Retrieved at http://www.walmartstores.com/Files/2006_annual_report.pdf , on November 21, 2007
Parmelee, N., February 20, 2007, Wal-Mart's Powerful Performance: Fool by Numbers, the Motley Fool, http://www.fool.com/investing/value/2007/02/20/wal-marts-powerful-performance-fool-by-numbers.aspx , last accessed on November 21, 2007
1994-2007, Center for Business Planning, Mission Statement, http://www.businessplans.org/Mission.html, last accessed on November 21, 2007
2007, Website of Wal-Mart Stores, http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=316,last accessed on November 21, 2007
For Wal-Mart, cost is the sole determinant of their purchasing policy. In terms of production costs, other countries have a competitive advantage over the United States. China, for example, has a technology level almost equivalent to the United States, which enables it to produce reasonable-quality goods. Their advantage, however, lies in labor costs. The average Chinese worker makes $100 per month. American factories simply cannot compete with that in terms of price. Those wages work in China, where a person can live comfortably on two dollars a day. That is not possible in the United States. We have built an economic model not on low cost, but on high quality of life. This used to drive our manufacturing sector. Firms such as Rubbermaid used to compete on quality, but Wal-Mart and other large discount chains have made cost a more important determinant in their purchasing practices.
The shift towards low-cost…
al-Mart Target
al-Mart and Target are two of the leading retailers in the world. al-Mart is one of the world's largest companies and Target is one of its primary competitors. hile the both succeed based on similar competencies in logistics and merchandising, there are significant differences between the two that lead to different financial results. al-Mart is by far the larger, and this allows it to execute the cost leadership business model more effectively, leveraging economies of scale. al-Mart is also more diversified -- it operates internationally while Target does not, is stronger in groceries and has a much stronger online business. The purpose of a financial analysis of these companies is to determine which of the two is stronger financially. The analysis aims to answer the question of how the strategic differences between the two companies translates into differences in financial performance. This information is of particular use to…
Works Cited:
Loth. R. (2011). Financial ratio tutorial. Investopedia. Retrieved June 14, 2011 from http://www.investopedia.com/university/ratios/liquidity-measurement/default.asp
MSN Moneycentral: Target (2011). Retrieved June 14, 2011 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=TGT
MSN Moneycentral: Wal-Mart (2011). Retrieved June 14, 2011 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=wmt
Wal-Mart Nation
The dream of Sam Walton was a simple one: "Give people high value, low prices and a warm welcome" (Walton, 2003). At an early age, he was working hard delivering what the customer needed and wanted at a reasonable price - newspapers and selling milk from the cow (Huey, 1998). The development of Wal-Mart, KMart, and Target has brought about a retail business that is highly competitive within the communities of America. Through the years, a trend has developed that encompasses each corporation. This paper will discuss the phenomenon of Kmart, Wal-Mart, and Target and how large corporations have affected today's economy, communities, and lifestyles.
On July 2, 1962, at the age of 44, Sam Walton opened his first Wal-Mart store, in ogers, Arkansas S.S. Kresge launched K. Mart that same year, and Dayton Hudson began its Target chain. Discounting had hit America in a big way, and…
References
Bureau of Labor Statistics. Consumer Expenditure Survey, 1999. Washington, DC., 2000.
Craig, T. (2002). "World's largest, and growing." DSN Retailing Today. 24 April 2004 www.findarticles.com.
Collins, James, and Jerry Porras. Built to Last: Successful Habits of Visionary Companies. New York: Harper Collins Publishers, 2002.
Greenhouse, Steven. "Wal-Mart, a Nation Unto Itself." New York Times 17 April. 2004, late ed.:B7+.
There is an increasing amount of research also showing how big box retailers including Wal-Mart when they enter local economies, are driving smaller retailers that provided a basis of price competition and employment are being driven out of business (Harris, 2006).
On top of their fear and anti-growth sentiment many communities have about big box retailers moving into their communities, many also fear Wal-Mart will move their manufacturing jobs overseas by shifting their product orders from local companies tot hose off-shore. Worst case, local communities see their manufacturing base going away and their entire communities becoming more reliant on Wal-Mart wages to the exclusion of higher value jobs.
Competitive & Internal Analysis
From a Wal-Mart specific standpoint, in addition to an internal analysis perspective, Wal-Mart executives need to make the issues of the company's lack of ability to globalize their operations, the continue costs of litigation, and the lack of…
References
Cherie Blanchard, Clare L. Comm, Dennis F.X. Mathaisel. (2008). Adding value to service providers: benchmarking Wal-Mart. Benchmarking, 15(2), 166-177. Retrieved November 27, 2008, from ABI/INFORM Global database. (Document ID: 1487917171).
Katherine Bowers (2007, February). Wal-Mart Acquisition Builds China Presence. WWD, 193(44), 4. Retrieved November 28, 2008, from ABI/INFORM Trade & Industry database. (Document ID: 1227384161).
Heike Dieckmann (2007, February). Final curtain call for Wal-Mart Germany. Office Products International,1. Retrieved November 28, 2008, from ABI/INFORM Trade & Industry database. (Document ID: 1227036281).
Mike Duff (2008, May). Thinking global. Competing local. Retailing Today, 47(6), 1, 20. Retrieved November 27, 2008, from ABI/INFORM Global database. (Document ID: 1505416871).
Wal-Mart's Competitive Advantage 2003
Wal-Mart stores are the largest retailer of discounted products across the globe with numerous superstores primarily in small towns throughout the United States. It consists of discount stores, supercenters, and neighborhood markets. About 75% of its stores are in the U.S. And due to awakening of globalization; Wal-Mart is also expanding in global markets. (Wal- Mart annual report, 2003)
Nature of competitive strategy
According to Daniel MillSap,(2009), every business exists to make profits and to maximize value for its shareholders. Higher revenues do not necessarily mean higher profits as this depends on the strategy that the organization pursues.
From Wal- Mart report, (2003) its evident that leading superstore is pursuing low price/cost leadership strategy. In Wal-Mart, this is an every day strategy of delivering low priced and quality products at a price everyone can afford.
According to departmental research, low priced consumer goods are more preferred.…
Reference
Corporate Watch UK,(2004). ASDA/WAL-MART: Corporate Profile. Retrieved October 6, 2011
from http://www.corporatewatch.org/?lid=800
Daniel Fortunato Millsap, (2009) Hypothetical Wal-Mart strategic marketing plan for 2009-2010
Retrieved October 6, 2011 from . http://danielmillsap.com/research/wal-mart-hypothetical-strategic-marketing-plan.html
Another weakness with Wal-Mart is in the past few years the organization has faced must litigation from employees accusing it of unfair employment activities -- especially from female employees which has given the bad reputation as an employer. Some of the goods sold by Wal-Mart from its Chinese suppliers in the past year have been marred by different cases of health and safety hazards (Neumark, Zhang, & Ciccarella, 2008). . The company is global, but has a presence in relatively few countries .
Opportunities
The current economic crisis has decreased the disposable income of many individuals and thus has caused many individuals and households to lower their expectations and to shop for bargains, thus Wal-Mart stands to gain in such a situation. The inflation in the economy is on the decline and the economy is on t he brink of deflation thus it may mean that Wal-Mart is able to…
References
Wal-Mart Corporate. In Corporate . Retrieved march 21, 2010, from
Also, commercially sold products at al-Mart, even if part of major labels, should not mislead consumers as to their origin or product composition. Finally, al-Mart will strive to reduce its consumption of fossil fuels in the environment, and make alternative products, such as organic produce, available for consumers to choose over standard products. al-Mart is committed to choice.
How the policy is to be implemented
al-Mart will refuse to allow products manufactured in an environmentally unacceptable fashion at its stores that are not currently consistent with FDA (Food and Drug Administration) safety guidelines. Also, it will encourage suppliers to create more innovative products that contain additional protections for the environment than currently exist at present by doing business with these suppliers in bulk, if such products are generated. It will also devote some of its research and development funds for new products to creating more environmentally friendly products, and generating…
Works Cited
Wal-Mart Official Website. (2006) Official Website of the World's Largest Retailer.
Retrieved on 7 Sept 2006 at Wal-Mart.com.
Another means of attracting customers is that of promoting the American way of being, embodied in a great purchasing power revealed by the large amounts of goods that can be bought in the Wal-Mart stores. Additionally, the American sentiment is preserved through the Wal-Mart greetings and the cheerful staff.
A proven advantage Wal-Mart has over its competitors is the abundance of financial resources. Yet, it is the means in which the company invests this money that creates comparative advantages. Such a means is the sustained investment in Information Technology. Wal-Mart uses IT applications at all levels of corporate affairs with the stipulated aim of increasing operational efficiency. The technologies they use support better customer relations; improve inventory management; enhance customer safety; reduce the risks of theft or reduce the time for waiting in line at the cash register. And these are just a few of the technological applications at Wal-Mart.…
Reference:
2009, Wal-Mart Website, http://www.walmart.com / last accessed on January 25, 2010
The remainder of employees are part-time and work approximately 20 hours a week (Wal-Mart, 2007) This staffing decision by WalMart of the mix of full and part-time employees is also complimentary to their organizational structure as it is hierarchical in design yet needs to be flexible in responding to supply chain, seasonal selling demand, and economic change. As a result, this has been very effective for the company and has given employees stability over time as WalMart is not forced to hire and fire to keep their stores profitable.
In terms of motivating teams this structure allows for greater levels of task ownership and product expertise (Gereffi, Christian, 2009). Full-time employees are defined to teams within departments and stay with assignments for the long-term. The motivational aspects of this are that it allows for autonomy, mastery and purpose of roles within structure to be achieved. This gives employees a greater…
References
Richard Drogin, Ph. D. (2003) - STATISTICAL ANALYSIS OF GENDER PATTERNS IN WAL-MART WORKFORCE, February, 2003 Drogin, Kakigi & Associates, Berkeley, CA 94705
Gereffi, G., & Christian, M.(2009). The Impacts of Wal-Mart: The Rise and Consequences of the World's Dominant Retailer. Annual Review of Sociology, 35, 573.
Wal-Mart Annual Report -- 2007. (1 January). ProQuest Annual Reports.
At that point, the competitive advantages of the American retailers would shine through. U.S. companies that lack these competitive advantages would see no benefit from entering the Mexican market, regardless of NAFTA.
3. Comerci's main move to remain competitive was to try and match Wal-Mart's buying power. It tied with another competitor to form a buying group, in the hopes that it can lower its cost of goods sold to a level that would allow it to compete with Wal-Mart. This appears to have been the main strategic response the company has made to compete.
Ultimately, Wal-Mart derives its buying power from its global scale. In addition to its massive U.S. market, it buys for Mexico and Canada at the same time, and often its goods from China are sold by its stores there as well. This means that Comerci cannot match the buying power of Wal-Mart no matter with…
The quest for cheaper prices is pushing manufacturing jobs offshore and affecting the jobs of Americans. This is the trade off involved in globalization.
ibliography
1) Wal-Mart, 'About Us', retrieved Oct 15th 2010, from, http://walmartstores.com/AboutUs/
2) Suzanne Kapner, (2009), 'Changing of the Guard at Wal-Mart', retrievd Oct 15th 2010, from, http://money.cnn.com/2009/02/17/news/companies/kapner_scott.fortune/index.htm
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5) Katherine owers, (Nov 2008), 'Duke rings Global Heft to Wal-Mart', retrievd Oct 15th 2010, from, http://www.wwd.com/media/issues/2008/11/24/wwd1124.pdf
6) Keith Naughton, (Mar 2008), 'Arab-America's Store: Wal-Mart stocks falafel, Olives and Islamic greeting cards to attract Dearborn's Ethnic Shoppers', retrieved Oct 15th 2010, from, http://www.newsweek.com/2008/03/01/arab-america-s-store.html
7) Lisa aertlein, (2010), 'Factbox: Key Wal-Mart International Growth Strategies', retrieved Oct 15th…
Bibliography
1) Wal-Mart, 'About Us', retrieved Oct 15th 2010, from,
Wal-Mart was formed by Sam Walton in 1962 with the intention of concentrating on small towns and not on downtown retail districts. He had set up the super store from small beginnings on a town's interiors, stock various kinds of goods in the shelves, and sell the goods to the customers at comparatively lower prices. The progress of Wal-Mart has been tremendous, with the expansion to 4,300 stores recently from 874 stores in the year 1985. Wal-Mart is a 39-year-old retail store which is very popular in U.S. companies, and it is only behind ExxonMobil in annual turnover. (Lawsuits a volume business at Wal-Mart) It could be witnessed that every week, certain 138 million do their shopping at Wal-Mart. Wal-Mart has its retail stores in all states and more than 80% of U.S. families have had made at least a single purchase from a Wal-Mart retail store. (Analysis: Wal-Mart's growing…
References
Boczkiewicz, Robert. Appeals Court Hears Arguments in Wal-Mart Pharmacists' Case. The Pueblo Chieftain. September 30, 2004, p.8-12
Learn about us. Retrieved from http://www.containerstore.com/learn/index.jhtml Accessed on 12 October, 2004
Pharmacist Employment with Wal-Mart. Retrieved from http://allpharmacyjobs.com/wal_mart_jobs.htm Accessed on 12 October, 2004
Retail Store Managers. Retrieved from http://www.thebeerstore.ca/about/tbs-jobs-storemanagers.html Accessed on 12 October, 2004
al-Mart
Threats
There are a number of threats that al-Mart faces in the external environment. These include intellectual property rights, rising cost of production in China, and the threat that is posed by intense competition in its many spaces.
As al-Mart expands its retail footprint in emerging markets, especially China, it must take into account that the intellectual property protections are different in other parts of the world. In China, for example, one of the major competitors is u-Mart, where name confusion is not only evident but deliberate. Such knock-offs can not only siphon business away from al-Mart, but can also reduce consumer impressions of al-Mart as well, particularly if the knock-off is inferior. Other countries that have potentially high growth also have weak intellectual property protections.
Another threat that al-Mart has is its dependence on China as a source for its goods. al-Mart typically deals with third-party suppliers, but…
Works Cited:
Ketchen, D. & Hult, G. (2007). Bridging organization theory and supply chain management: The case of the best value supply chains. Journal of Operations Management. Vol 25 (2007) 573-580.
Liu, Y.; Li, W. & Yang, Y. (2008). The influence of RMB exchange rate on China's inflation: The view of exchange rate pass-through. Journal of Financial Research. Vol. 3 (2008).
Palmeri, C. (2008). Wal-Mart wins big during downturn. Business Week. Retrieved November 3, 2012 from http://www.businessweek.com/stories/2008-10-29/wal-mart-wins-big-during-downturn
Willcocks, L. & Plant, R. (2001). Pathways to e-business leadership: Getting from bricks to clicks. MIT Sloan Management Review. Retrieved November 3, 2012 from http://www.carig.co.uk/pages/userdata/carig/articlesmrwillcocksplanpathwaysebusiness.pdf
com to drive customers into the store for the most competitive product areas, which during the holiday season, is toys.
Should Wal-Mart have pursued e-commerce more aggressively sooner?
No, it was wise to wait and see what lessons were being learned both from their store-based and online-based competitors. Most importantly however, Wal-mart took the time to understand why integration of their systems and the ability to break down larger shipments into smaller ones was critical for their operations.
What do you think the potential impact of Wal-Mart.com will be on the parent company's efforts to expand internationally?
Wal-Mart has traditionally struggled in international markets where the nations' cultures they are going into vary significantly from the U.S. This is why the German version of Wal-Marts has not succeeded in addition to the Korean ones. Yet the website, once translated for personalization, would make global expansion much easier for the company…
" In fact, Richard S. Tedlow, Harvard usiness School professor of business administration said in his interview with the LA Times that: "You could argue that some of what Wal-Mart does to cut costs has been win-win."
"What's being squeezed out is waste."
In spite of all that negative effects of Wal-Mart, those that have promise and stick with Wal-Mart are laughing all the way to the bank on payday with store managers earning $95,000 (including bonuses) on an annual basis and managers at Supercenter managers. It should be said that long hours are required in fact, usually over 80 a week and an individual better be ready to relocate if need be.
All of this is good and fine in an idealistic world, where supplies are endless and everyone is the society is in a state of balanced advantage and opportunities. However, in the "real" world where mom and…
al-Mart Organizational Structure
The most successful companies have something to teach us. al-Mart has proved its successful business approach by adapting with changes throughout the years while maintaining a certain organizational system. The purpose of this essay is to examine al-Mart and its organizational structure methods. I will specifically analyze three different organizing functions for this company. I will evaluate the organizational structure of al-Mart and compare it to other forms of structuring. Next, this essay will evaluate al-Mart in terms of its organizational functions. Finally, I will demonstrate how al-Mart's organizational design suits its business model.
Defining al-Mart
According to al-Mart's corporate web site, this company serves over 200 million customers a week providing consumer items including groceries, clothing, electronics and more. al-Mart sells its goods to customer through various outlets including retail, online and mobile devices. al-Mart employs more than 2 million people throughout the world and its…
Works Cited
Gereffi, G. & Christian, M. (2009). The Impacts of Wal-Mart: The Rise and Consequence of the World's Dominant Retailer. Annual Review of Sociology, 2009, 35: 573-91. Retrieved from http://www.annualreviews.org/doi/pdf/10.1146/annurev-soc-070308-115947
Hartung, A. (2012). Wal-Mart's Wrong-Headed Reorganization. Forbes, 30 Jan 2012. Retrieved from http://www.forbes.com/sites/adamhartung/2012/01/30/wal-marts-wrong-headed-re - organization/2/
Wal-Mart Corporate Web page. "Leadership." Viewed on 25 Jan 2013. Retrieved from http://corporate.walmart.com/ our-story/
79 in 2003 to 7.27% in 2009. In addition, evenue Per Employee increased from $176,089 in 2003 to $192,618 in 2009. Wal-Mart has defined a series of internal strategies that allow them to capitalize on asset efficiencies and coordinate them to increase profits over the long-term. An example of this type of strategy is the reliance on continual supplier relationship management significantly improving the company's asset turnover from 10.38 in 2003 to 11.61 in 2009. Wal-Mart also relies on an intensive knowledge and information sharing network that includes pricing and sales uploads every night from each of their stores via satellite link. This data is then analyzed in the Bentonville, Arkansas headquarters and used for managing inventories, pricing, and suppliers more effectively than their competitors. This is also the factor leading to the company's higher inventory turns and more efficient use of assets as well.
Assessing the Price/Earnings atio
In…
References
Chiou, L. "Empirical Analysis of Competition between Wal-Mart and Other Retail Channels." Journal of Economics & Management Strategy 18.2 (2009): 285.
Mya Frazier. "Marketing in Bentonville: Now it's serious. " Advertising Age 13 Feb. 2006: 34
Mottner, S., and S. Smith. "Wal-Mart: Supplier performance and market power " Journal of Business Research 62.5 (2009): 535.
Sodhi, M., and B. Son. "Supply-chain partnership performance. " Transportation Research. Part E, Logistics & Transportation Review 45.6 (2009): 937.
However, Switzerland has moved very slowly as a nation in accepting new cultures and outsiders. Swiss citizenship is nearly impossible to obtain. The nation is dependent upon a small, closely-knit band of citizen-soldiers for its defense. Socially, women were only given the right to vote in Switzerland in the second half of the 20th century, well after other nations. In other words, an American business manager must be prepared for a slower pace of decision making than he or she is accustomed (20th century, 2011, Swiss orld.org). hile typically American corporate mission statements reflect a 5-10-year framework, in Switzerland, companies take an even longer point-of-view, and are even more resistant to organizational change (Adler 2001: 23).
Certain stereotypes that al-Mart might confront in Switzerland might relate to the perception of Americans as overly focused on optimism and a false sense of teamwork. One common observation of Americans by foreigners is…
Work Cited
20th century. (2011). Swiss World.org. Retrieved February 15, 2011 at http://www.swissworld.org/en/history/the_20th_century/general_overview/
Adler, N. (2001). International dimensions of organizational behavior. 5th ed.
South-Western.
Doing business in Switzerland, 2011, World Business Culture: Swiss Business Structure.
Wal-Mart is also a highly delegative culture in terms of its subsidiaries, with in-store managers in all regions they operate in responsible for performance. The Wal-Mart approach to delegation also requires in-store associates to assist with the unloading of trailers when they arrive with merchandise at Superstores as well. Wal-Mart strongly holds efficiency and delegation in the same context (Appelbaum, Lichtenstein, 2006).
Diversity and Ethics
Wal-Mart has often been criticized for their lack of diversity and for a lack of ethics in managing part-time workers. In response to these claims and to practices that proved to be unethical, the company has created a Corporate Social esponsibility (CS) program that is global in scope. Wal-Mart's efforts to ensure diversity and ethics have in turn been delegated to the store manager level (Spangler, Britt, Parks, 2008) where individual performance is measured and evaluated over time. The framework of planning, organizing, leading and…
References
Appelbaum, R., & Lichtenstein, N.. (2006). A New World of Retail Supremacy: Supply Chains and Workers' Chains in the Age of Wal-Mart. International Labor and Working Class History, 70(1), 106-125.
Bateman, Snell. (2009). Management: Leading and Collaborating in a Competitive World. New York: McGraw Hill
Cherie Blanchard, Clare L. Comm, & Dennis F.X. Mathaisel. (2008). Adding value to service providers: benchmarking Wal-Mart. Benchmarking, 15(2), 166-177.
Krotov, V., & Junglas, I.. (2008). RFID as a Disruptive Innovation. Journal of Theoretical and Applied Electronic Commerce Research, 3(2), 44-59.
With no actual Corporate Social esponsibility (CS) program in place to introduce the Wal-Mart Statement of Ethics, which was required by the New York Stock Exchange (NYSE) for Wal-Mart to go public, the company floundered and alienated entire local and regional governments in Germany, ceasing labor unions to sue them to stop the Statement of Ethics from being enforced (Talaulicar, 2009). German workers, when handed the Statement of Ethics, immediately went to their labor union leaders, who quickly filed a complaint with local government authorities. The German unions claimed the Statement of Ethics was against the German Works Constitution Act (Talaulicar, 2009).
Conclusion
If Wal-Mart had actually defined a thorough Corporate Social esponsibility (CS) Program to launch the Statement of Ethics in Germany, taking the time to include more of the cultural and legal aspects of the country, they would have increased the odds of their success. Instead, Wal-Mart charged…
References
Christopherson, S. (2007). Barriers to U.S. style lean retailing: The case of wal-marts failure in germany. Journal of Economic Geography, 7(4), 451-469.
Talaulicar, T. (2009). Global retailers and their corporate codes of ethics: The case of wal-mart in Germany. The Service Industries Journal, 29(1), 1.
Wal Mart Stats
Wal-Mart Survey Analysis
In order to begin addressing two key research questions, how can Wal-Mart ensure decent quality products and simultaneously keep consumers happy with prices and how would Wal-Mart keep the costs of its products down, a survey of Wal-Mart customers was taken. Attitudes towards prices, quality of products, and overall shopping experiences were collected and analyzed via in-person questionnaires/surveys to consumers exiting Wal-Mart stores after shopping. All responses were recorded on a Likert scale of 1-5, with 5 representing high satisfaction or strong agreement and 1 representing extreme dissatisfaction or strong disagreement. The following paragraphs assess the quality of this survey and its results in terms of addressing the research question.
Validity and eliability
The research questions themselves as detailed above are very valid questions to be asked of Wal-Mart, a company that built its business model on the ability to offer low-priced goods to…
References
Cooper, D.R. & Schindler, P.S. (2011). Business research methods (11th ed.). New York, NY: McGraw-Hill/Irwin.
McClave, J.T., Benson, P.G., & Sincich, T. (2011). Statistics for business and economics (11th ed.). Boston, MA: Prentice Hall
Walmart Co. (2012). About Us. Retrieved from http://corporate.walmart.com/
Wal-Mart Merger
If you were to pick one company for Wal-Mart to merge with, what would it be? Explain your choice with respect to possible benefits of this merger and why you would choose this company over any other choice for a potential.
The primary candidate for Wal-Mart to acquire would be United Parcel Service (UPS). UPS is known for having the best IT systems and logistics processes of any of the global third party logistics providers (Alghalith, 2005). It is also very well-known for being a company culture that relies heavily on standard metrics of performance including performance dashboards to provide real-time visibility of each shipment, no matter how large or small (agu, 2009). UPS would complement the extensive supply chain expertise of Wal-Mart and would also add significant depth of global operations that the company has struggled to get in place over the last decade (Sodhi, Son, 2009).…
References
Nabil Alghalith (2005). Competing with IT: The UPS Case. Journal of American Academy of Business, Cambridge, 7(2), 7-15.
Cohan, P.. (2008). Riding the value cycle. Business Strategy Review, 19(2), 36-41.
Gereffi, G., & Christian, M.. (2009). The Impacts of Wal-Mart: The Rise and Consequences of the World's Dominant Retailer. Annual Review of Sociology, 35, 573.
Jared M. Hansen. (2009). The evolution of buyer-supplier relationships: an historical industry approach. The Journal of Business & Industrial Marketing, 24(3/4), 227-236.
Compounding that problem, Massey had also failed to properly vent the mine shaft of methane gas and coal dust. Forensic analysis suggests that methane gas and/or coal dust (both of which are highly combustible) were almost certainly responsible for the explosion. Moreover, the mine had been cited for fifty different MSHA violations in the moths before the explosion, of which no fewer than twelve related directly to the methane and/or coal dust venting issue. The mine had been cited sixty-eight times by inspectors for violations that were "high-negligence" category and three violations that were considered "reckless" disregard for safety considerations. In addition to the citations for methane and coal dust issues, the mine had also been cited specifically for its failure to maintain adequate escape pathways and to mitigate the risk of structural collapse.
Furthermore, the evidence in the case suggests that on the day of the explosion, the mine…
Wal-Mart is also deemed to be a company that greatly mistreats and discriminates against its employees but there has apparently been no reliable empirical data to back that up (Van iper, 2008).
The article concludes by conceding to some Wal-Mart critics. First, Wal-Mart cites Ohio University professor ichard Vedder, who points out that Bureau of Labor Statistics Data holds that Wal-Mart's wage structure lags behind the retail sector as a whole (Van iper, 2008)
elative to what Wal-Mart pays its employee and the benefits they bestow, a third source was widely condemnatory of Wal-Mart and insisted that it could and should be paying its employees more…a lot more. The average associate at Wal-Mart, per this story, makes an average of not quite twelve dollars an hour. If annualized, that would be below the United States poverty line. The story's author insists that wages and benefits are not higher simply because…
References
Blodget, H. (2012, February 16). Walmart Should Pay Its Employees More - Business Insider. Featured Articles From the Business Insider. Retrieved September 28, 2012, from http://articles.businessinsider.com/2012-02-16/news/31065802_1_manufacturing-jobs-middle-class-jobs-low-wage-service
Evaluating Wal-Mart's health insurance. (2012, September 28)
http://reclaimdemocracy.org/walmart/health_insurance_program.php
Edwards J (July 20, 2009) UPDATED: Wal-Mart Axes Half the Drug Brands Covered in Employee Health Benefit Plan http://www.cbsnews.com/8301-505123_162 -
orporate Mission
As the largest mass merchandiser in the world, Wal-Mart's work in supply chain execution, research, and policies defines best practices for the broader high volume retailing industry worldwide. Wal-Mart is comprised of three operating segments including the Wal-Mart stores, Sam's lub and the International Stores. The typical Wal-Mart discount store as 50 departments or more and a few are offering groceries in addition to apparel, fabrics, stationery and books, shoes, house wares, hardware, electronics, home furnishings, small appliances, automotive accessories, gardening accessories, sporting goods, toys, and pet food. Wal-Mart moved into the Superenter retailing concept in the 1990s and has at this point 1,700 of these Superenters worldwide (Sampson, 2008).
These Superenters range in size from slightly over 90,000 square feet to 260,000 square feet. These are substantially larger than its normal stores, ranging in size from 90,000 square feet to 261,000 square feet. Wal-Mart also runs smaller…
Concentrating on supply chain efficiencies to support is primary messaging of its Low Price Everyday (LPED) value proposition, Wal-mart is differentiating itself by concentrating on the two most critical aspects that consumers consider when purchasing more commodity like products, which are price and availability. The general marketing strategy is to concentrate on what Wal-Mart calls the price value shopper, which comprises 16% of its total customer base, followed by brand Aspirational (29%) and price-Sensitive Affluents (15%). This segmentation strategy is how the company defines its strategic objectives for creating a demand-driven supply chain as well.
The value chain for Wal-Mart is integral to its overarching marketing strategy. Only by having a high enough level of inventory turns and logistics, supply chain and operational efficiencies can Wal-Mart support is LPED value proposition. Further, the role of each SuperCenter as a Distribution Center (DC) in the supply chain also underscores the other critical elements of the LPED strategy, which is to focus on price and availability over premium product or pricing positioning. Strategic marketing planning at Wal-Mart centers on the Price Value Shopper Segment, the majority of which are women who shop for their families whose household income (HH) is $40,000 or less per year (Birchall, 2008). Wal-Mart has successfully defined itself as a shopping strategy for making ends meet in the Value-Shopper segment and as a result has been able to sustain strong customer loyalty. In the customer segmentation discussion Wal-Mart's specific approaches to managing each segments' unique requirements is discussed. Market Strategy
The Wal-Mart market strategy concentrates on the Price Value Shopper segment as its top priority followed by the Brand Aspirationals who comprise 29% of their total sales. With the primary
Wal-Mart
International Expansion
International Expansion (Wal-Mart)
Company Background
Wal-Mart Stores, Inc. is the prime retailer in the world, the world's second-largest company after Exxonmobil and the nation's leading nongovernmental company. Wal-Mart Stores, Inc. operates retail stores in a variety of retailing layouts in all 50 states in the United States. The Company's selling operations and functions serve its customers mainly through the operation of three segments. The Wal-Mart Stores segments comprise its discount stores, Supercenters, and locality Markets in the United States. The Sam's club segment comprises the warehouse membership clubs in the United States. The Company's subsidiary, McLane Company, Inc. gives products and allocation services to retail industry and institutional foodservice customers.
Layout plan
Industry Analysis
The Threat of New Entrants: The discount retailing market was dominated by large players, which by themselves served as substantial barriers to entry for new players. At the micro-level this was accomplished by:…
References
About Wal-Mart. (2004). Retrieved March 15, 2011, from http://walmartstores.com .
Anderson, F. (1994). U.S. Discounters Head North and South of the Border. (Cover Story). Discount Merchandiser, 34, (9), p64.
Bianco, A., Zellner, W. (2003). Is Wal-Mart Too Powerful? BusinessWeek, (3852), p100.
Biddle, R. (2004, Mar. 28). Wal-Mart:Bully or Benefactor? Megachain an Economic Godsend in Many Areas Daily News, pV1.Financial Report. (2003). Retrieved March 15, 2011 from http://financeyahoo.com
al-Mart faces an industry that is generally challenging, but its strength in the industry results in the industry being favorable. al-Mart's success is predicated on excellence execution of key components of the discount retail value chain -- procurement, logistics and merchandising. al-Mart has numerous strengths, but as befits the world's largest company it has relatively few weaknesses. In its intensely competitive businesses, al-Mart sees many threats, but there are still tremendous opportunities that al-Mart can take advantage of. In general, the external environment is favorable for al-Mart to continue to use its strengths to capitalize on its opportunities.
Porter's Five Forces. al-Mart's industry is intensely competitive, but the five forces work differently on al-Mart as an established, dominant player than they would on a new entrant. The five forces are power of suppliers, power of buyers, threat of substitutes, threat of new entrants and intensity of rivalry (QuickMBA.com, 2010). Supplier…
Works Cited:
Iwata, E. (2008). Some companies (like Wal-Mart) thrive despite recession. USA Today. Retrieved March 20, 2011 from http://www.usatoday.com/money/economy/2008-12-03-recession-proof-companies_N.htm
MSN Moneycentral: Wal-Mart. Retrieved March 20, 2011 from http://investing.money.msn.com/investments/stock-price?Symbol=wmt&s=qbeb
QuickMBA.com (2010). Porter's five forces. QuickMBA.com. Retrieved March 20, 2011 from http://www.quickmba.com/strategy/porter.shtml
Schmitt, E. (2009). The profits and perils of supplying to Wal-Mart. Business Week. Retrieved March 20, 2011 from http://www.businessweek.com/smallbiz/content/jul2009/sb20090714_270767.htm
16; Wilbert, 2006, p. 2)
Strategic process, planning and decision making
As confirmed by Lee Scot's words regarding the aggressive strategy followed by each Wal-Mart store (Mohideen, 2009, p. 9), even if general stream planning and decision making is still largely centralized, being undertaken at the Wal-Mart Headquarters in Arkansas (for elements such as type of products to be sold, stores to be opened or closed, financial results and objectives, etc.), for issues regarding how to battle the local competition and better respond to customer needs, planning and decision making takes place at store level, as mentioned before in the "Functions and roles of managers" chapter.
Managing by objectives is a very much used practice within Wal-Mart, regional objectives being cascaded to store level. As is to be expected, the number one objective at store level and beyond is to reduce costs as much as possible.
Human Resource Management is…
Bibliography
Adubato, S. (2008), Why Wal-Mart's Communication Fell Short, Caucus Educational Corporation, retrieved November 18th 2009 from Caucus website, at http://www.caucusnj.org/adubato/starledger/2008/052708.asp
Carmichael, E. (2008), Motivation and Strategies for Entrepreneurs, Lesson #1: Motivate Your Workers, retrieved November 18th 2009 from Mr. Carmichael website, at http://www.evancarmichael.com/Famous-Entrepreneurs/591/Lesson-1-Motivate-Your-Workers.html
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Wal-Mart Delivery Time Cycle
The author of this report is asked to speak to Wal-Mart and their delivery time cycle performance vis-a-vis its benefit to Wal-Mart and how it allows Wal-Mart to remain so dominant in the retail sector. Indeed, there are other big-box stores that closely or loosely match what Wal-Marts sells including Kroger, K-Mart/Sears, Target, and so forth. However, in its half-century or so of existence, Wal-Mart has become the juggernaut of the world retail sector and there is little to no chance of that changing anytime soon barring a cataclysmic even in the retail sector or broader business or cultural world. While Wal-Mart has taken its share of proverbial black eyes for wages and benefits and how much it buys from China, its position as the retail cost leader and how much its supply chain and delivery time cycle figure into this calculus is something that cannot…
References
Bayat, A., Sundararajan, S., & Gustafson, H. (2011). Sustainably driven supply chains. Industrial Engineer: IE, 43(8), 26-31.
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Supply Chain Management, 9(2), 7-18.
This is also true for inventory turnover. As significant as the impacts of all of these outputs can be on the organization, when improvements are made to multiple outputs, the impact is magnified.
Furthermore, these outputs all contribute to another crucial output for al-Mart, the profits. Profit is the ultimate output for al-Mart, and all of their other key measures relate directly to this objective. Many other outputs at al-Mart, for example staff turnover, intergroup collaboration, or even customer satisfaction are less directly correlated with improvements to profits. Thus, they are not considered to be outputs of equivalent importance to those described above. Those inputs have a high level of congruence with one another. They support one another and combine with each other easily to improve the bottom line.
In areas where the key outputs do not come together, they complement one another. hile improvements to same store sales will…
Works Cited
Burke, W. Warner & Litwin, George H. (1992). "A Causal Model of Organizational Performance and Change." Journal of Management. Retrieved November 27, 2008 at http://findarticles.com/p/articles/mi_m4256/is_n3_v18/ai_13526990/pg_2
Falleta, Salvatore V. (2005) "Organizational Diagnostic Models: A Review and Synthesis" Leadership Sphere. Retrieved November 27, 2008 at http://www.leadersphere.com/img/Orgmodels.pdf
The result of this is a company that consistent meets its objectives for cost reduction, growth and profits.
orks Cited
Faletta, Salvatore. (2005). Organizational Diagnostics Models: A Review & Synthesis. Leadersphere.com. Retrieved October 30, 2008 at http://www.leadersphere.com/img/Orgmodels.pdf
Nadler, David; Tushman, Michael & Nadler, Mark B. (1997) Competing by Design: The Power of Organizational Architecture. pp. 28-39 Retrieved October 30, 2008 at http://books.google.com/books?id=pemtYXc1Y1gC&pg=PA28&lpg=PA28&dq=nadler+tushman+congruence+model&source=web&ots=QI3cHfVfu&sig=LO7-ujjwO6zj0ebfkBwQxDkBcBM&hl=en&sa=X&oi=book_result&resnum=2&ct=result
Cawsey, Tupper F. & Deszca, Gene. (2007). Toolkit for Organizational Change. Retrieved October 30, 2008 at http://books.google.com/books?id=4MMwBA8p-aIC&pg=PA64&lpg=PA64&dq=nadler+tushman+congruence+model&source=web&ots=bjMrF2z1C&sig=oai_PqK3gQ3OZDFPvyKtT-frQYY&hl=en&sa=X&oi=book_result&resnum=8&ct=result
Lundberg, Annie (2002). al-Mart: IT Inside the orld's Biggest Company. CIO Magazine. Retrieved October 30, 2008 at http://www.cio.com/article/31174/al_Mart_IT_Inside_the_orld_s_Biggest_Company
Bradley, Stephen & Ghemawat, Pankaj. (2002). al*Mart Stores, Inc. Harvard Business School. 9-794-024
Video: Is al-Mart Good for America. PBS. Retrieved October 30, 2008 at http://www.pbs.org/wgbh/pages/frontline/shows/walmart/view/
Faletta, Salvatore. (2005). Organizational Diagnostics Models: A Review & Synthesis. Leadersphere.com.
Nadler, David; Tushman, Michael & Nadler, Mark B. (1997) Competing by Design: The Power of Organizational…
Works Cited
Faletta, Salvatore. (2005). Organizational Diagnostics Models: A Review & Synthesis. Leadersphere.com. Retrieved October 30, 2008 at http://www.leadersphere.com/img/Orgmodels.pdf
Nadler, David; Tushman, Michael & Nadler, Mark B. (1997) Competing by Design: The Power of Organizational Architecture. pp. 28-39 Retrieved October 30, 2008 at http://books.google.com/books?id=pemtYXc1Y1gC&pg=PA28&lpg=PA28&dq=nadler+tushman+congruence+model&source=web&ots=QI3cHfWVfu&sig=LO7-ujjwO6zj0ebfkBwQxDkBcBM&hl=en&sa=X&oi=book_result&resnum=2&ct=result
Cawsey, Tupper F. & Deszca, Gene. (2007). Toolkit for Organizational Change. Retrieved October 30, 2008 at http://books.google.com/books?id=4MMwBA8p-aIC&pg=PA64&lpg=PA64&dq=nadler+tushman+congruence+model&source=web&ots=bjMrWF2z1C&sig=oai_PqK3gQ3OZDFPvyKtT-frQYY&hl=en&sa=X&oi=book_result&resnum=8&ct=result
Lundberg, Annie (2002). Wal-Mart: IT Inside the World's Biggest Company. CIO Magazine. Retrieved October 30, 2008 at http://www.cio.com/article/31174/Wal_Mart_IT_Inside_the_World_s_Biggest_Company
Also, the stores in the suburbs may also be chain stores, although locally or regionally based, rather than nationally-based chains like al-Mart. Consumers do not feel the same connection to these establishments, they way they might to old-fashioned mom-and-pop stores, or corner urban bodegas.
One further irony of al-Mart's employee policy is that even employees who are angry at the company they work for, who are being most hurt by its practices, may still shop at al-Mart. This is not because al-Mart offers good employee discounts, but because these consumers are usually on the lowest rungs of the economic ladder, and do not have the luxury of refusing to buy inexpensive goods for ethical reasons, given the size of their paychecks. The al-Mart hiring practice essentially creates a community of captive, low-wage consumers. And as society grows more expensive to live in because of the rising price of fuel and…
Works Cited
Landler, Mark & Michael Barbaro. "Wal-Mart Finds That Its Formula Doesn't Fit Every
Culture." The New York Times. 2 Aug 2006. 24 Jul 2007. http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html?ex=1312171200&en=e01e99c3081724c5&ei=5088&partner=rssnyt
Wal-Mart Warehousing
Wal-Mart is a corporation that has successfully utilized its business model and mission of providing high-quality products to its customers at the lowest price possible. With the utilization of such beliefs, Wal-Mart has become one of the most successful corporate entities within the United States and its respective success has been noted further on an international level. To fully understand Wal-Mart's success as a company, one can view it comparatively. If Wal-Mart were a country, it would be the world's 26th largest economy, just behind Austria -- that says quite a lot (Lecavalier, 2010, p.1). While Wal-Mart's success has generally been linked to this business model and its corporate policy, there is one facet of Wal-Mart's success that is less frequently noted, despite its significance in the company's respective success, and that facet is warehousing. Wal-Mart's ability to provide its customers with top-quality products would cease to exist…
References
Brown, M. (2006). How did Wal-Mart attain a cost-leadership position? Web. Retrieved
from: http://www.worldhistoryblog.com/2006/09/how-did-wal-mart-attain-cost.html on 15 November 2011.
Camerius. J.W. (2004). Wal-Mart Stores, Inc.: strategies for dominance in the new millennium, in C. Hill and G. Jones [Eds.], Strategic management: an integrated approach (C374-C385). Boston, MA: Houghton Mifflin Company. Print.
Lecavalier, J. (2010). All those numbers: logistics, territory and Wal-Mart. The Design
Wal-Mart Social esponsibility Analysis: An Employee Perspective
To begin the study "the purpose statement is "a statement that provides the major objective or intent, or "road map" to the study" (Creswell, 2009a, 104).Therefore, the purpose of this narrative is to discuss what employees at various Wal-Mart facilities around the Kansas City area have experienced regarding the social responsibility initiatives undertaken by the company. The method for this particular paper is a qualitative design. Because the desired conclusions were to be drawn from the specific experiences of individuals employed at Wal-Mart stores and Distribution Centers around the area, it was determined that the best method of gathering that information was via interviews with employees rather than the gathering of quantitative data which would not reveal individual interpretations of the policies put in place. The specific questions asked to the participants ranged from their impressions of environmental policies to treatment of employees…
References
Baker, M. (2003). Wal-Mart: From folk hero to corporate monster. Business Respect, 52, 13-15.
Chamberlin, Kaufman, & Jones. (2003). Coverage under FLSA. Retrieved from http://www.flsa.com/coverage.html
Chatterji, A., & Listokin, S. (2007). Corporate social responsibility: Progressives need to end their fixation with corporate social responsibility -- and focus on reform that actually works. Democracy Journal. 52-63.
Creswell, J.W. (2009a). Qualitative inquiry and research design: Choosing among five approaches, (2nd ed. ). Thousand Oaks, CA: SAGE Publications.
Wal-Mart's most obvious image is that as a low-cost provider. The slogan "Everyday low prices" is common throughout the store and many goods are signed indicated that they have been subject to a recent price reduction.
Wal-Mart does appear to want to establish a strong presence in the community. The store is large, as is the parking lot. There is a clear intention to draw a substantial number of customers from the community and to become a major retailing force in the area. The location is a primary form of marketing for the company. Geographically, the location is out of the way, but physically its large presence makes stands out even among other box stores. And the Wal-Mart is much larger than conventional retailers. It would take a long time to walk past the Wal-Mart, and it cannot help but be noticed by all who pass it. Wal-Mart does have…
Employees and managers have also benefited from al-Mart's approach. In addition to job creation, al-Mart's wealth and might have allowed it to enrich the lives of its employees. For example, the company subscribes to the principles of respect for the individual, service to customers and striving for excellence, each of which allow employees to feel good about their jobs and lives.
The company's suppliers for the most part are also beneficiaries of al-Mart's mission. The suppliers capable of managing a high-volume, low-cost strategy benefit from the tremendous volumes that al-Mart offers them, which allows them the profitability to build their capacity and strengthen their businesses. al-Mart's mission therefore in theory is able to deliver value for all of the company's major shareholders. The strategy is predicated on strong growth that results from pleasing the customer. Not only does this focus the company on delivering value to the customer, but it…
Works Cited:
MSN Moneycentral: Wal-Mart. (2010). Retrieved June 24, 2010 from http://moneycentral.msn.com/detail/stock_quote?Symbol=wmt&getquote=Get+Quote
WalmartStores.com, various pages. (2010). Retrieved June 24, 2010 from
The charitable donations that they made also contribute to tax write-offs, so al-Mart is not donating at a level where they no longer have incentive -- they benefit from their donations. The donations of employee time amount to little. al-Mart has 2 million employees, so the average donation is 1/2-hour per year per employee.
The SPI may influence the company's suppliers to strengthen their own CSR, but the program is too young to be judged as of yet. Such changes, particularly in the developing world where most of al-Mart's suppliers are located, can take a long time to implement. Furthermore, the SPI does not constitute direct pressure from al-Mart, and could be seen more as the company covering its backside in the event of a scandal relating to treatment of employees at one of its suppliers.
al-Mart's level of corporate social responsibility may be improving, but most of its efforts…
Works Cited:
Ferdinand, A. (2007). Wal-Mart determined to lead in corporate social responsibility. McCombs School of Business. Retrieved February 2, 2010 from http://www.mccombs.utexas.edu/news/pressreleases/Blackwell07.asp
Baue, B. (2009). The latest corporate social responsibility news: Wal-Mart and sustainability: Oxymoron or salvation -- or both? CSR Wire. Retrieved February 2, 2010 from http://www.csrwire.com/press/press_release/27370-The-Latest-Corporate-Social-Responsibility-News-Walmart-and-Sustainability-Oxymoron-or-Salvation-or-Both -
Goleman, D. (2009). Wal-Mart exposes the devalue chain. CSR Wire. Retrieved February 2, 2010 from http://www.csrwire.com/csrlive/commentary_detail/745-Wal-Mart-Exposes-the-De-Value-Chain
Wal-Mart Corporation 2009 Sustainability Report. Retrieved February 2, 2010 from http://www.socialfunds.com/shared/reports/1245090485_Wal-Mart_2009_Sustainability_Report.pdf
Wal-Mart, Mexico, and NAFTA
Was NAFTA the reason for Wal-Mart's success in Mexico or was it Wal-Mart's new competitive strategy? Wal-Mart's generic competitive strategy is clearly that of a 'low price' model in all nations where the retailer is located. It sells a seemingly infinite amount of goods and services in an undifferentiated fashion. The main reason that consumers go to Wal-Mart is because of its prices. Wal-Mart claims to offer one-stop shopping with the lowest prices a consumer can find in the area. Without offering such low prices, the store has little traction in the market, given that other retailers offer a more expansive product line of specific items, offer specific special deals, and offer greater prestige to the customer in terms of store name. NAFTA (The North American Free Trade Agreement) marked a watershed in Wal-Mart's relationship with Mexico. Today, Wal-Mart is the largest private employer in Mexico…
Zimbabwe did not sign the Kimberley Accords, an agreement used to introduce ethical mining practices to the diamond industry. Combined with his policy of land seizure, President Mugabe is using the nation's diamond supply to support his rule and hold onto his position of power within the nation, after decades of bloody rule.
Lieberman, Rachel. (2008, September 9). Majority stake in Williamson diamond mine acquired by Petra. Israeli Diamond News. Retrieved January 28, 2011 at http://www.israelidiamond.co.il/english/News.aspx?boneID=918&objID=4031
In Tanzania, one of the nation's largest diamond mines was acquired in 2008 by Petra, which is based in Jersey (United Kingdom). This adds Petra's global diamond portfolio. The exchange was for a cash interest of $10 million bestowed to the Tanzanian government, illustrating the willingness of the African nation to do business with corporations of former colonial powers of the region.
Wal-Mart
Porter's 5 Force Model
In this Porter's 5 Force Model analysis, specific focus is being paid to the competition of Wal-Mart that exists within the consumer retail industry rather than the industries in which Wal-Mart competes. We will be discussing the position of Wal-Mart in the industry with respect to various industry forces (St.Hilaire, 2012).
Threat of new entrants to a market: Medium pressure
Threats of new market entrants for Wal-Mart are relatively moderate for the reason that Wal-Mart has very strong marketing, distribution and purchasing along with the fact that it has sufficient capital to hire and train their employees and purchase merchandises (St.Hilaire, 2012).
Due to the fact that the Wal-Mart has built a brand name for itself and has excellent distribution systems as well as capital to keep the competitors at bay the barriers to entry are very high in this particular sector (Bryant, 2010).
Furthermore,…
References
St.Hilaire, K. (2012). Porter's Five Forces Model for Wal-Mart. Taken from: http://www.kylesthilaire.com/about-me/
Bryant. (2010). Business Strategy. Taken from: http://team1walmart.blogspot.com/2010/07/business-strategy.html
Wal-Mart:
Using Investments to One's Advantage
eturn on Assets & eturn on Equity
A return on assets (OA) ratio is a way for a company to recognize how profitable it is in accordance with its total assets. This formula allows for the company to observe how efficient their management team is at using its assets in a way that will generate more generous earnings for the company and the shareholders. The formula, a favorite to investors, can easily be determined by taking the company's net income and dividing it by its total assets (Crosson, et al., 2008).
The return on equity (OE) ratio is the amount of net income that is returned as a percentage of the shareholders' equity (Loth, 2011). This formula, also a favorite to investors, measures a company's ability to be profitable by showing how much money the company is able to generate with shareholder investments (Loth,…
References
Crosson, S.V., Needles, B.E. Jr., Needles, B.E., Powers, M. (2008). Principles of accounting.
Boston: Houghton Mifflin. p. 209.
Loth, R. (2011). Profitability indicator ratios: Return on equity. Retrieved March 27, 2011 from http://www.investopedia.com/university/ratios/profitability-indicator/ratio4.asp
Walmart.com. (2011). Walmart announces investments in Argentina for over 100 million dollars
Wal-Mart
An example of a short-term project that Wal-Mart undertakes is opening a new store. The company regularly opens new stores, and it takes several months from start to finish for the project. New stores have a relatively infinite life, so they are a capital project, but they are short-term in nature before they begin earning revenues of their own. The life span of the project indicates that equity may be more appropriate for this project. For a short-term project, equity typically comes from working capital by way of retained earnings.
For a short-term project at Wal-Mart financing should be done from cash. The financing decision should be made on the basis of a company's ideal capital structure and the cost of capital, but also should be made with consideration for the company's existing balance sheet. For Wal-Mart, the balance sheet has sufficient capital - $7 billion in cash for…
al-Mart
Introduction number of companies today are experiencing financial setbacks and bankruptcies.
It is important to examine al-Mart and understand how the company is functioning in the economy today.
Marketing
al-Mart standardizes its global marketing strategies with methods such as global sourcing. This global marketing strategy is aimed at improving a product's quality, lowering its price or gaining efficiency.
al-Mart has become a global firm as it has learned to incorporate proven marketing strategies of the countries it has expanded to. The company has done well in Canada, Mexico, Puerto Rico and the United Kingdom, which could be attributed to the fact that consumers in these markets are looking for more for their money, and have lower incomes.
al-Mart will do well in the Russian market, however it needs to be aware of the depressed economy the country is experiencing. al-Mart may do well in Japan, however, it should remember…
Works Cited
Annual Report. (accessed 06 December, 2003). www.wal-mart.com).
The stores products are not targeted to me, which highlights a difference in expectations between the in-store and online experiences. I expect that an in-store experience will not be personalized, so I do not notice when something the company is attempting fails. But online I do expect a more personalized experience, so when deals are offered that are of no relevance to my search and of no interest to me this comes across as being inefficient. To me this illustrates that the online experience should be, if anything, more economically efficient, but I have found it to be less so.
The firm's position in the market appears to be therefore hindered by the information available over the Internet. The firm is simply less effective at meeting the customer's needs. Whereas Wal-Mart excels in-store at creating visual experiences that draw customers around the store, this is not the case online. Therefore,…
Wal-Mart:
Capital Project for Expansion to New Countries
Wal-Mart is an American multinational corporation that is publicly traded. The company is known for its chain of large discount stores and warehouses. In 2010, the company was able to announce the title of 'World's Largest Public Corporation' in terms of its revenue. Since its founding in 1962, Wal-Mart has successfully built 8,500 stores in fifteen countries. However, despite such great success, the company has experienced a few failures; the company did not succeed in Germany or South Korea. Of the most success outside of the United States are stores located within South America and in Asia (WalMart.com, 2011).
Type of New Investment & Issues Surrounding It
Because of Wal-Mart's drive to expand its physical borders, it will continue to try success in a variant of countries. Among the many issues that Wal-Mart may have in entering a new country, it may…
References
StudyFinance.com. (2011). Overview: Capital budgeting. Retrieved March 28, 2011 from http://www.studyfinance.com/lessons/capbudget/index.mv?page=06
WalMart.com. (2011). About us. Retrieved March 28, 2011 from
It is also a "what" problem, however, because the major issue Mr. McNerney, (and others at the company) need to address is "what needs to be changed." It is a "why" problem, moreover, because 3M executives need to endeavor to discover how 3M "lost its groove" (so-to-speak) in the first place, and how it might now go about getting it back. So the problem of #M's organizational leadership problem is a three-part problem (or, perhaps, three separate yet related problems).
3. One strategy Mr. McNerney is using is to attempt to get everyone onboard, and in favor of the changes he envisions, rather than simply ordering change. Mr. McNerney is using persuasion with subordinates, rather than coercion. As one 3M employee, having watched McNerney in action, observes: "Jim doesn't say, 'You've got to do this.' Instead he says, '3M has this tremendous reputation and global presence and great technology, and…
The online business is completely separate. They have their own people and their own infrastructure.
Me: Does the website help your business or hurt your business? What do your customers tell you about their impressions of the website?
WMT: They love it. And I really think it helps what we do at the store level. A lot of people don't really want to buy things over the Internet. But they want to shop. That brings them to the store to make their purchase, and this is something you can't do on Amazon or eBay or sites like that. The customers buy their Christmas presents online, and shop for themselves in the store. There's other people who probably shop online exclusively -- we might see them for their groceries but that's it. I think the website offers the same high quality experience you get in store, and it makes a fantastic…
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It is also a "what" problem, however, because the major issue Mr. McNerney, (and others at the company) need to address is "what needs to be changed." It is…
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