Today, More Than Ever, The Ceo Of Wal-Mart Has To Undertake

As the leading discount retailer in the United States, WalMart (NYSE:WMT) has consistently shown an exceptional ability to master the complexities of logistics, supply chain management, retailing and pricing management. The WalMart supply chain is among the most advanced and sophisticated in its use of analytics and information systems globally, often computing pricing variation and analysis literally overnight based on satellite uploads of information (WalMart Investor Relations, 2013). WalMart has also successfully taken a capital-intensive business model and transformed it into a retailing business capable of generating high profitability from low margin products based one efficiency alone (Zhu, Singh, Manuszak, 2009). WalMart is also one of the most-researched companies in the world, and continues to provide in-depth financial data on their Investor Relations site (WalMart Investor Relations, 2013). The purpose of this analysis is to evaluate the mission, vision, and overall strategy of WalMart and also define three objectives for improving the organization's financial position, showing how the objectives defined relate to the mission, vision and strategy of the company. In addition for each objective, meaningful performance measures are provided in addition to defined expected level of performance as well. For each of the objectives chosen at least one new

The evolution of Wal-mart from the early 1960s to the present day has set a benchmark that few can achieve. Wal-mart executives have been successful nationally as well as globally. The knowledge and expertise in economics have made Wal-mart a global giant. The research completed is the final recommendations by the members of research team C and will address questions regarding global competition and issues of the organizations ability to expand or reduce current operations.

Wal-Mart is one of the world's greatest assets to most people. It provides consumer's a place they can go to virtually get anything they need from, car repairs, to groceries, prescription's, even the latest toys and electronics. With all that said, this paper relates to the different forces in business that affects business: competitive, economic, political + legal + regulatory, technological, cultural + social, demographic, and natural forces. Although there are technically seven we are going to focus on competitive, political, technological, and natural forces.

Using the framework, seven internal factors will be considered. These include strategy, structure, system, shared values, style, staff, and skills. An analysis of Walmart using these internal factors will determine if the organization is ready for a change. The framework will also help strategizing means of improving the company’s performance, examining future likely effect of undergoing a change, the right process during merger acquisition alignment, and formulating the best means of implementing strategy proposed.

In business, three major strategies comprising of cost leadership, differentiation, and focus strategies exist. The focus strategy emphasizes on providing services and products to a specified buyer group or market segment within a given geographic market. The differentiation approach is often defined as provision of services or products that are perceived to be unique in the market place. Wal-Mart emphasizes on the long-term strategy of cost leadership. Through this strategy, the company ensures that it offers customers with quality products at relatively lower prices than other providers in the industry. Through overall cost leadership strategy, Wal-Mart has been offering better quality products at a lower price than any competitor can offer. For the organization to achieve this goal, it has developed long-term supply chain management, which ensures that products are made available to the market at the required time (Enz, 2010).

Wal-Mart is a company that has taken its core competencies, which are the capabilities the firm emphasizes and performs especially well while pursuing its vision (Ireland, Hoskisson, Hitt, 2008), and turned them into competitive advantages. Core competencies must satisfy four characteristics in order to be a competitive advantage. These advantages, according to our text, include: *valuable, *rare, *difficult to imitate,*nonsubstitutable.

Industry Analysis In the retail industry there are many fierce competitors, who want to dominate the retail market, for our case study we will be analysing the Wal-Mart company. Wal-Mart competes in several retail categories such as Target in the general merchandise retailing, where “Target had 1681 domestic stores including 239 Super Targets and ranked 28th on the fortune 500 list. Target has gained the competitive advantage over Wal-Mart because it offers more upscale and fashionable merchandise than that of Wal-Mart.” We also have K mart who used to be a fore runner with Wal-Mart but due unforeseen events they declared bankruptcy and shut down many of its stores, but under new management they were able to re-open but now it operates as a subsidiary of Sears Holding and follows target in third place among discount retailers.

The analysis carried out with the help of McKinsey's 7-S Framework shows that Wal-Mart has instituted effective business management policies and strategies to keep its market leadership intact and gain a competitive edge over other competitors. The business strategies, staffing policies, skills development, leadership styles, organizational structure, and organizational culture; all business affairs, activities, and strategies are aligned with

Market Trends for Wal-MartWal-Mart has to face ever changing market trends. A few of these market trends may change the market conditions of Wal-Mart. Research is compiled on trends such as market structure, the impact of new companies entering the market, prices, technology, productivity, cost structure, price elasticity of demand, competitors, supply and demand analysis, and the impact of government regulations. By discussing these market trends one can see how Wal-Mart will change or will not change, in order to continue to thrive and grow in tomorrow's economy.

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

Even though at an individual level, core competencies of Wal-Mart might offer only a temporary competitive advantage but in unison they form a sustainable core competency driving revenue growth and profitability. Scale of operations along with capital investment in integrated supply chain coupled with a strong logistics system gives Wal-Mart necessary bargaining power over suppliers. Strong general management

Wal-Mart Stores, Inc. the World’s largest retailer, has a bullseye on its back in all different directions from supermarkets cutting prices to match Wal-Mart’s price, to Costco leading the warehouse market and online retailer beating out Wal-Mart.com. In addition, 2008 brings an economic slowdown and reduction of feet through the doors of Wal-Mart Stores. Added to this, Wal-Mart has received negative publicity relating to employee compensation and benefits, forcing pricing challenges for suppliers resulting in the loss of U.S. jobs and opening stores putting locally owned retail outlets out-of-business. Wal-Mart has over 6,8001 stores worldwide with a strong internet presence supported by over 66,000 suppliers.

Walmart has slowed its growth in the United States. To continue to grow and to remain a competitor in the retail discount industry Walmart has to become a global market. For Walmart to be successful in becoming a global company the following strategies will be discussed:

“Wal-Mart was established by Sam Walton in Rogers Arkansas in 1962. “Today Wal-Mart employs over 2.1 million people. There are 8,500 stores around the world.” (GoldMan, 2011) “Wal-Mart has a hierarchical functional organizational structure. This structure has two features: hierarchy and function-based definition. The hierarchy feature pertains to the vertical lines of command and authority throughout the organizational structure. The main effect of Wal-Mart’s hierarchical functional organizational structure is the ability of corporate managers to easily influence the entire organization”.

Successful corporations in today’s business world must be able to employ different levels of planning in order to achieve goals put in place by senior management. Wal-Mart has many different levels of management planning in place to follow through on its goals and objectives. There are many factors that influence Wal-Mart’s strategic, tactical, operational and contingency planning. Although Wal-Mart has been a very successful corporation throughout its existence, it has had to absorb the impact of legal issues, ethics, and corporate responsibility in its management planning.