Description
company- Walmart
You and your team are required to write a strategic report on a company of your choice. The company should be operating in a ‘turbulent environment’ (i.e., an industry that is currently undergoing significant changes, Preferably a company from S&P 500). The organization that you choose needs to develop a strategic plan. The board of directors of this organization asks you to write a report, but to send specific chapters of the report to them in advance.
For the Strategic Plan Report I expect to see the following sections:
Part 1: External and internal analysis
1.1. Explaining what the company is about, what they do, and generally speaking describing their business model and revenue model
1.2. Describing their Internal environment and doing analysis of that (in SWOT analysis, S & W are about Internal Environment)
1.3. Describing their External environment and doing analysis of that (in SWOT analysis, O & T are about External Environment)
Part 2: Implementation & recommendation
2.1. After the first section in the second section I want to see your recommended strategies for their situation in the year 2020.
2.2. Describe your recommended plans for the implementation of those strategies that you recommended in the previous part.
2.3. Describe the obstacles that they possibly face in the implementation of those strategies and your solutions to overcome those obstacles.
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
2022
Strategic Plan Report
WALMART
STUDENT NAME & ID
Contents
1.
External and Internal Analysis ................................................................................................ 2
1.1 Introduction ........................................................................................................................... 2
1.2 Internal Analysis ................................................................................................................... 5
Strengths ................................................................................................................................. 5
Weaknesses ............................................................................................................................. 7
1.3 External Analysis .................................................................................................................. 9
Opportunities........................................................................................................................... 9
Threats................................................................................................................................... 10
2.
Implementation and Recommendation ................................................................................. 12
2.1 Strategies recommended for Wal-Mart ............................................................................... 12
Low Price Strategy ................................................................................................................ 13
2.2 Implementation Plan ........................................................................................................... 14
2.3 Obstacles and their Solutions to Walmart ........................................................................... 16
References ..................................................................................................................................... 18
1. External and Internal Analysis
1.1 Introduction
Retailer Walmart Shops runs a network of inexpensive department stores and warehouse stores in
the United States. Bentonville, Arkansas, is home to the company's headquarters. As of October
31, 1969, Wal-Mart had been formed by Sam Walton and was incorporated as an American
corporation. In 28 countries, there are more than 11500 locations. Wal-Mart has a wide variety of
retail outlets across the globe. The Walmart U.S., Walmart International, and Sam's Club divisions
make up the company's operations. All 50 states, Washington D.C., and Puerto Rico are served by
Walmart's retail locations, including supercenters in 45 states, discount stores in 43 states,
neighborhood markets in 41 states and Puerto Rico, and various small-store formats in 41 states
and Puerto Rico. Walmart's website, www.walmart.com, offers a wide range of products and
services for online purchasing (WalmartAbout).
Walmart is the world's largest firm by revenue, the largest private employer, and the largest
retailer, according to the 2014 Fortune Global 500 ranking. Wal-Mart is a family-owned firm run
by the Walton family, who own more than half of the company via their holding company, Walton
Enterprises. As the biggest grocery retailer in the United States, Wal-Mart is one of the world's
most valuable firms by market capitalization. As well as Walmart.com, Wal-Mart operates in
various retail formats, from supercenters to discount shops to neighborhood markets and various
small forms. Strategically located merchandise units are the company's primary focus (Mujtaba).
Walmart operates in six formats,
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Meat, vegetables, bread, dairy, frozen meals, alcoholic and non-alcoholic drinks, floral and
dry groceries, and consumables like baby products, home chemicals, paper goods, pet
supplies, and health and beauty aids are all included in the supermarket.
Toys, cameras, picture processing, cell phones, service plans, and pre-paid service for
mobile phones are all forms of amusement. Movies, music, video games, and books are all
forms of literature.
pharmacy, optical services, and over-the-counter medications are all part of health and
wellbeing
Hardware and paint, athletic goods, textiles and crafts, and seasonal commodities comprise
the hard lines.
Women's clothing, children's clothing, men's clothing, boys' clothing, and newborn
clothing fall under the umbrella term "apparel."
Bedding, housewares, minor appliances, outdoor life, and gardening are all included in
"home." Wal-Mart has three divisions, namely Walmart U.S., Sam's Club, and Wal-Mart
International (Marcilla).
Wal-Mart Stores account for about 68 percent of its yearly revenues of $300 billion, followed by
its overseas operations at 19 percent and Sam's Club at 13 percent. Wal-Mart is one of the world's
most valuable firms, with a market value of more than $250 billion and assets of more than $105
billion. With more than 8,150 locations outside the United States, Walmart also operated a total of
3,093 stores abroad as of April 2005. These locations included 815 outside the United States but
also 393 outside Japan and 322 outside of the United Kingdom, 278 within Canada, 85 outside
Germany, 54 outside the United States but also 60 located outside the United States, 293 outside
China, 16 outside of South Korea and 12 outside of Argentina. There is a steady expansion of WalMart in these nations. More than one million employees in the United States and more than half a
million people worldwide are employed by the company. Forbes' Leading 2000 Companies in the
World ranking, which considers a company's revenues, income, assets, and market value, placed
it at 10th rank (Mujtaba).
On the contrary, according to Forbes' list of the worlds 2000 Leading Companies in Forbes April
12, 2004, Wal-Mart came in first place in sales, sixth place in market value, and eighth place in
overall profits. On several fronts, Wal-worldwide Mart's business will require action to take
advantage of the global potential, from increasing its global procurement skills to expanding into
new nations. Although Wal-Mart has several hurdles, it is certain to become a genuinely global
business. If that's the case, Wal-Mart will be forced to expand into regions where it now has just a
small presence. Wal-worldwide Mart's growth will reshape and disrupt marketplaces throughout
the globe, and competitors and suppliers must be ready (Mujtaba).
1.2 Internal Analysis
Walmart's growth is dependent on its ability to take advantage of retail's strengths and
opportunities to assure its sustained leadership as the world's largest retailer, even though these
internal and external factors are not constant (Smithson).
Strengths
The vastness of Walmart's structure gives it the ability to resist certain challenges despite its
imposing flaws, one of its greatest assets. Cost leadership helps the organisation efficiently manage
its costs. Economies of scale may be reaped by Walmart because of this strategy, which emphasises
the production of large quantities of standardised commodities. As for Walmart's performance,
Tanwar believes it is a classic example of an organisation that has stayed true to its underlying
principle of cost leadership.
With a large North American customer base and some of the greatest employee perks in the nation,
Walmart has a strong foothold in the United States. Customers who have been loyal to the company
for a long time get exceptional discounts on a variety of products. Many new clients and long-term
customers alike are swayed by these deals. The majority of the company's products are affordable
to the average customer. As a result, it stands to reason that the business will do well in today's
competitive market. The supply chain is well-managed by the company's staff. This efficiency has
bolstered Walmart's expansion (Davis).
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Global Operations
Walmart is a multi-national retail company that operates worldwide. It has 10,524 locations across
the globe. Its 60 million products in its stores, which are expected to expand in diversity every
year, provide clients a wide range of exceptional and unusual products at reasonable prices. The
variety of items will continue to grow, as will the number of stores, and therefore, the revenue and
sales will also continue to grow.
In the United States, Walmart is, of course, a national chain having stores all throughout the
country. A Walmart isn't always the only store in the kingdom. In addition to its domestic success,
Walmart's worldwide activities have developed, as its stores can be found on four remarkable
continents: North America, South America, Africa, and Europe, with more than 600 stores in the
United King...