Walmart Strategy

Strategic Analysis on Management of Wal-Mart

Word Account: 2, 951

Table of Content

1.0 Introduction 3

2.0 Introduction and Business Policy of Wal-Mart 3

2.1 Brief Introduction on Wal-Mart 6

2.2 Business Policy of Wal-Mart 7

3.0 Strategic Management Analysis on Wal-Mart 5

3.1 Introduction of the Strategic Management of Wal-Mart 6

3.2 Strategy Evaluation 7

4.0 Suggestion and Advice about the Management 6

5.0 Conclusion 8

Reference 9

1.0 Introduction

Strategic management is considered as the main way to enhance the performance of the firms by utilizing the resources and give the direction of the development. It can help the firms achieve the objectives by developing the business polices and plans. Some famous companies such as Dell, DHL, Microsoft, and Carrefour all have a successful strategic management can make sure that they can achieve a good development in the business. Therefore, study and analysis on the strategic management are quite meaningful in the business operation. The report will make an analysis on the strategic management of famous Wal-Mart through the introduction of Wal-Mart and its business plan, polices and other aspects because the importance of business policy and strategy has surged to the forefront of the business world. Internationalization of business, deregulation, mergers, acquisitions, strategic alliances, and international joint ventures - coupled with a new emphasis on shareholder value - contribute to a feeling of uncertainty in the global marketplace. On top of this, the constantly changing e-commerce environment makes strategic planning even more essential. Students need to know how to function in this business environment. (Harold C. Bason, 2000) Meanwhile, the report gives out some suggestions about the management.

2.0 Introduction and Business Policy of Wal-Mart

2.1 Brief Introduction on Wal-Mart

Wal-Mart is established Arkansas in 1,962 and the largest private retailer in the world. It has become the famous brand known by almost all the people from the world. Its business scope includes supermarkets, clubs and neighbourhood markets etc. They follow the three core values of respect for the individual, service to the customer, and striving for excellence, and stick to the Wal-Mart tradition of building our business one store and one customer at a time, so as to fulfil our core mission -- save people money, so they can live better, and continue to make a difference in the lives of our customers, members and associates. Today, with over 2.1 million associates worldwide, Wal-Mart operates more than 8,400 units in 15 countries under 55 different banners, and serves more than 200 million customers per week. Wal-Mart had $405 billion in annual sales in fiscal year 2010 (Wal-Mart Global Information Websites, 2011) It is quite easy see that the Wal-Mart's goal is to become a globalization organisation. However, we all know that this very time is meeting the third economic crisis all over the world. For example, inflation results in the cost increase even lack in the stock. In the former days, there increase the price increased of some brands of instant noodle and mineral water. In addition, there exist too many powerful competitors such as Carrefour and more and more local retailers which bring great challenge to the business and the management of Wal-Mart. Meanwhile, Wal-Mart is facing more and more different investment situation. How the Wal-Mart can be the most popular retailer in the foreign country is also a difficult problem facing the different government policy and different customers. This is the very internal and external situation of the Wal-Mart market. Of course, there is specific business policy in Wal-Mart to run the firm to face these situations.

2.2 Business Policy of Wal-Mart

Business policy means the guiding procedure, philosophy or course of action for an enterprise or company organized for commercial purposes (RHW, 2010) Business policy is the direction of the firms and it matters a lot. It plays important role in the decision of manager. It must be understood by all the working stuff of the firm. It involves rules, regulations and objectives. Regarding the Wal-Mart, it goes without saying that the low price and best service given to the customer everyday are the guiding policy or the basic business management philosophy seen from its mission of saving people money. As the customer, we can easily find the price is low almost everyday. It is full of customers because of the attractive prices. There are always discount products because the low cost stock channel and ways. In order to keep the promise of low price, the Wal-Mart performs the large amount cargo purchase and large sales every day. Large amount of purchasing can make Wal-Mart get the discount or lower price form the manufacture. Meanwhile, it advocates that the purchaser stuff should make great barging from the manufacture to guarantee the cargoes the lowest. Therefore, the items in Wal-Mart can be sold at a more competitive price so that they can get a large amount of consumers. In addition, it adopt the strict cost control in the other aspect. For example, it rarely makes advertisements and promotions to save the cost. Meanwhile, they have a wide steady supply channel. Regarding the same product, they establish business relationship with different brands manufactures to avoid the shortage in supply. Secondly, besides the low price, the best service is the important business policy. When we enter the Wal-Mart, we can find a huge poster about the service 'Customer is always right' and the customer is the real boss!" etc. Sam Walton said many times that customer service distinguishes our Company from all others. In his words, "Give customers what they want - and a little more. Let them know you appreciate them. Make good on all your mistakes, and don't make excuses, apologize. Stand behind everything you do. The two most important words I ever wrote were on the first Wal-Mart sign - 'Satisfaction Guaranteed'."(Wal-Mart Global Information Websites, 2011) This is the demand to the work stuff in the Wal-Mart. Almost all the working stuff can fully recognize that only good service