Strategic management a case study of wal mart inc

Extensions to Wal-mart's supply chain management retail applications from HP and Oracle, and contracts with the social networking company, Bazaarvoice have not brought anticipated benefits.

Wal-mart's online presence has fallen behind competitors like Amazon and Target. Wal-mart's systems may be victims of their initial success, i. Wal-mart has generally won its many court actions over alleged infringements of labor laws, pricing policies, health insurance and unfair competition, but arrival of a Wal-mart store is still seen as a mixed blessing: increased employment opportunities but competition that many local businesses cannot survive without major restructuring.

Supply chain management here more a private industrial network requires changes throughout a company. Wal-mart's obsessive commitment to lowest prices. Continuing profitability of Wal-mart. Net income has risen steadily in the last five years.

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The growth on sales that Wal-Mart reported during the s and the beginning of the s will be difficult to repeat, especially considering the ever-changing marketplace in which it competes. In an interview, Bill Fields, President of the Stores Division said, "Wal-Mart is now seeing price pressure from companies that once assiduously avoided taking it on. These include specialty retailers such as Limited, category killers like Home Depot and Circuit City, and catalogue companies like Spiegel.

I think everybody prices off of Wal-Mart. You've got Limited reaching levels we'd thought they'd never get to. The result is that everyday low prices are getting lower" Saporito,p. In addition, the baby-boomers are reaching their peak earnings years, when financial and personal priorities change.

Thus, savings, not spending, will likely take precedence because most baby-boomers are approaching retirement. Based on Wal-Mart's position inwhich was considered a year of expansion for the company, Wal-Mart added new discount stores, 38 "Super-centres", warehouse clubs, and 94, case study strategic human resource management wal mart stores associates interest debt increased The cost paid by Wal-Mart to finance property plants and equipment forced the company to increase long term debt by 4.

If Wal-Mart continues its expansion plans based on more debt acquisition at levels, the company may not attain forecasted gains by as early as Operating expenses will be a key strategic issue for Wal-Mart in order to maintain its position in the market.

The challenge is how to run more stores with less operating expenses. According to Bill Fields,".

Case study strategic human resource management wal mart stores

Trends indicate that operating expenses have been growing at a rate of However, Wal-Mart should reap the benefits of its investments in high technology, and be able to operate more stores without increasing its expenses. Cost of sales historically has been equal to the level of sales.

If the company continues to take advantage of its buying power, Wal-Mart can expect to lower its cost of sales. Wal-Mart's future will depend on how well the company manages its expansion plans.

For the coming years, the company will need to justify its expansion plans with consistent growth in 7. What Problems are ahead for Wal-Mart? What Risks? Wal-Mart accomplished this goal in But Wal-Mart's current strong competitive position and its past rapid growth performance can't guarantee that the company will remain as the industry leader or maintain its strong business position in the future.

Carol Farmer, a retail consultant, told the Wall Street Journal that, "One little bad thing can wipe out lots of good things" Trimble,p. Every move in its business operation ought to be well thoughtout and executed. Wal-Mart needs to address two major areas in order to maintain or to capture an even stronger long term business position: 1 Single-business strategy -- Wal-Mart's success is mainly based on its concentration of a single-business strategy.

Strategic management a case study of wal mart inc

This strategy has achieved enviable success over the last three decades without relying upon diversification to sustain its growth and competitive advantages. Given its current position in the industry, Wal-Mart may want to continue its singlebusiness strategy and to push hard to maintain and increase market share. In other words, if the retail industry stagnates due to an economic downturn, Wal-Mart might have difficulty achieving past profit performance.

Also, if Wal-Mart continues to follow Sam Walton's vision of expansion, Wal-Mart will reach its peak in the social issues essay near future. When it does, its growth will start to slow down and the company will need to turn its strategic attention to diversification for future growth.

Social responsibility -- Retail stores can compete on several bases: service, price, exclusivity, quality, and fashion. Wal-Mart has been extremely successful in competing in the retail industry by combining service, price, and quality. However, other merchants may object to Wal-Mart's entry into their community. Because of its ability to out-price smaller competitors, Wal-Mart's stores threaten smaller neighbourhood stores which can only survive if they offer merchandise or services unavailable anywhere else.

This makes it very hard for small businesses, such as "momand-pop" enterprises, to survive. They, therefore, fight to keep Wal-Mart from entering their locales. Founder Sam Walton, who owned several Ben Franklin franchise stores before opening the first Walmart in Rogers, Arkansas inselectively purchased bulk merchandise and transported it directly to his stores. Later, in the s, Walmart began working directly with manufacturers to cut costs and more efficiently manage the supply chain.

InWalmart was named Retailer of the Decade, with distribution costs estimated at a mere 1. Walmart has long practiced strategic sourcing to find products at the best price from suppliers who are in a position to ensure they can meet demand. The company then establishes strategic partnerships with most of their vendors, offering them the potential for long-term and high volume purchases in exchange for the lowest possible prices.

Show More. Wal-Mart does not offer these benefits. If Wal-Mart started membership cards, their customers will be more faithful towards buying on Wal-Mart. Three Threats 1 Competitors competing for the lowest prices Wal-Mart competitors such as Target, Safeway, and Costco has been slowly becoming clones of each other, wherein the differences between they goods they sell are disappearing.

Wal-Mart also sells products online at Walmart. Also, the retailer is working toward saving itself some cash by establishing its own bank -- primarily to cut its costly third-party electronic payment processing agreement. The company currently generates some million debit card, credit card, and electronic check transfer payments each month. Such reinvestments have enabled Wal-Mart to maintain its position of cost leadership. According to Baroto et al. The focus during the implementation of the cost leadership strategy according to Porter is on the stringent efficiency as well essay writing service coupon cost control in every field of operation.

This would create a higher profit margin for the company and give it more bargaining power with the national brands. As the trend toward healthier eating continues, Walmart has the opportunity to introduce special products related to this trend, including more organic and gluten-free options.

Whilst they have McDonalds in many of their locations, they could consider having their own cafes in the retail locations as well as expand their other services like optometry, spa and beauty services, and banking. Walmart has the opportunity to expand its online store and presence, including more of the emerging economies that are considering how to do their shopping online.

These retailers are working on making their organisations more efficient to shrink the price difference between them and Walmart whilst offering a more enjoyable shopping experience with friendlier service and amenities as well as higher quality products and a similar level of variety.

The supply chain and logistics of the company is only second to the capability found in the Pentagon. Due to the large volume shipping needs of the distribution centers Wal-Mart owned a fleet of more than trailer trucks and One goal of globalization is to be able to do business across borders without stress.

Similarly, as companies grow customer bases, it is important to have strategic business units in areas local to case study strategic human resource management wal mart stores customer base. It is what is required to successfully build a successful global presence.

This analysis will attempt to highlight potential issues faced by Walmart when they opened up for business in China in This analysis will also provide a set of recommendations that may have helped to avert the issues that Wal-Mart faced. Background Wal-Mart Stores, Inc. Bycase study strategic human resource management wal mart stores owned 24 stores and continued to rapid expanding. What threats and challenges is Wal-Mart currently facing? From the beginning, Walmart did not have many threats.

However, not only the competition is different, several global retailers such as Target, Carrefour, Costco, and Amazon, are working hard to keep efficiency.By Martin Murray. By achieving price leadership Walmart hopes to ward off attempts by other retailers such as Target from gaining market share. Consumables: This component is an area where Walmart is looking to reduce outlay. Changes will be made in promotional cadence, seasonal advertising, and in-store signage.

Private Label: One area where Walmart can increase revenue is to expand their private label categories. The system is quicker, less open to error and eliminated unnecessary paperwork. Wal-mart runs its own fleet of delivery vehicles 3, trucks at one time. Distribution centers has food, sleeping and recreation areas for drivers. Drivers are subject to strict control and qualifications: e. Cross-docking ensures that orders placed at Wal-mart stores are monitored throughout their passage from warehouse to customer.

The system triggers automatic warehouse replenishment and so orders with suppliers. The whole process is customer-led. Wal-mart standardizes space and layout in its stores and warehouses. Warehouse are automatically replenished to optimal levels through continuous cooperation with suppliers. Wal-mart has traditionally been a low salary payer.

Basic training is given, but staff turnover at Wal-mart stores is high. Walmart can improve its HR management standards and product quality standards to improve firm performance.

Also, the company must continue expanding its business to exploit economic opportunities in developing markets. Still, the company must implement strategic changes based on the weaknesses and threats presented in this SWOT analysis, to prepare the business for the long-term developments of a globalized and increasingly online retail market.

We use cookies for website functionality and to combat advertising fraud. Companies with more female senior managers have a higher return on equity than…. A Customers feedback in every organization is important. In Walmart they do survey and ask from the people that are they happy with their customer service. Walmart also provide online feedback forms to customers. Walmart staff go through the customers and take their interviews about their service and products and also they come to know that what the market value of Walmart is.

By doing this survey and interviews Walmart can also know about their improvements. B To run wal mart case study strategic management big organization…. He loved his job, had a few disciplinary issues here and there; absences and failure to follow rules set mostly in the use of his cell phone during operation hours. Free Essays words 2. It sets out how the organization plans to finance its homework help app operations to meet its objectives now and in the future.

Essay about Walmart: A Strategic Management Case study Financial Perspective

A financing strategy summarizes targets, and the actions to be taken over a three to five year period to achieve the targets Safe Paint Manufacturing Company Ltd analysis involves months of data, tofrom each of three retails centres. Financial data include both operating and capital costs. Severity-adjusted Paint factor are used as the measure of the Retail factory Better Essays words 5 pages. The company can share its fixed costs over many products, which makes Walmart one of the cheapest places to shop.

Efficient and effective use of resources. Walmart can use its resources, such as distribution facilities, information systems, knowledge and other capabilities and skills, more efficiently and effectively over a large number of locations.

Huge gains from implementing best practices.