Wal Mart

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Management of Strategy
BSM 3114
BM 304
Ms. JAYANTY A/P KUPPUSAMY

Case Study
Wal-Mart
No| Name| Student ID|
1| CHIN YOKE MOI| 1081106543|
2| CONNIE HOO KHIR EARL| 1081106292|
3| LIANG QIU WEN| 1081105521|
4| TAN CHEN HO| 1081100212|
5| ENG YIT TING| 1091103752|
6| MOGALE MMABATHO| 1061109586|

Wal-Mart Stores
Tutorial 2
1. Key Question: What are the current environmental factors facing Wal-Mart and the fit of its current strategies with these factors?

2. General Environmental Factors:
Demographic| * Level of income increase * Female worker increase * Education level higher than before * Gender and ethnic diversity in US rising * Number of senior citizen increase| Economic| * Free-trade agreements * Unemployment rate rising * Labor cost increase * Currency exchange * Price elasticity, lower switching cost, but a higher sensitivity to brand reputation * Economic recession/ inflation| Political/legal| * Government tax increase * Law suits for working hours, labor abuse issues * Free trade agreements * Some countries have rejected Wal-Mart expansion plans| Sociocultural| * Not enough parking lots/ not support convenience to customer * Busy lifestyle pattern (people are lazy to go out/busy on work) * Discrimination of female workers * Environmental friendly strategy * Customer are more particular about purchase| Technological| * Bar code and supply chain * E-commerce * Inventory management system * Radio frequency identification (RFID)| Global| * Joint venture with China * International market * Competitors * Free-trade agreement * Technology issues| Physical Environment| * Wal-Mart facilities * Parking lots * Too many goods ( hard to find them) * Hygiene * Corporate policy * Open new superstore|

3. Primary factors impacting Wal-Mart’s strategy, grouped by stakeholders: Product Market Stakeholders|
Strengths| Low price|
| Technology expert|
| Assortment products provided|
| Efficient and innovative supply chain (replace stock)|
| Location and convenient|
|
Weaknesses| Online business is lagging|
| Sam Club’s membership is low|
| Parking lots problem and not enough for customers|
| Strategy fail to segmentation|
| Poor quality on product (customer doubt on low price has good quality)| | It doesn’t support credit card services|
| Poor store image (cleanliness)|
|
Opportunities| Online business able to meet customer’s needs and provide information to them| | Improve strategic and add on the Sam Club’s membership| | Technology (logistic)|
| Population is high|
| Financial service (e.g., convenience in transacting payment)| |
Threats| Too many competitors, causes the Wal-Mart’ sales growth drop| | Economic situation (recession/inflation) will cause consumer purchases| | Cost of goods|

Capital Market Stakeholders|
Strengths| Wal-Mart has active, high caliber, powerful BOD in terms of decision making, or come out better strategic and environmental factors.| | Good management and capability experience|
| Total shareholder equity rising|
|
Weaknesses| Stock price drop 27% and its stock price is lagging from competitors-Costco and Target| | Overall profit and revenue are not content although profit rising| |
Opportunities| Strategic alliance with BOD|
| Reputation is high since Wal-Mart is the number one retailer in US| |
Threats| Similar product pricing strategy (many competitors low cost strategy)| | Facing law suits, causes its reputation and has side effect impacting on consumer purchases| | Competitor’s stock price increase ( many competitors fight with Wal-Mart)| | Conflict between shareholder and company|

| Environment Issues (hazardous waste)|

Organizational Stakeholders|
Strengths| Wal-Mart has a good leadership that capable...
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