1. Introduction:
Wal-Mart was founded by Sam Walton, in 1962. The first Wal-Mart discount store was opens in Rogers, Ark. Wal-Mart Stores officially open on 31 Oct, 1969. Sam travelled from country to country for studying about discount retailing. He thought American customers needed a new kind of store. Sam and his wife put up 95 percent of their money for the 1st Wal-Mart store in Rogers, Ark.
2. Mission/Vision:
The mission statement is their slogan, "Always low prices, always, to give ordinary folk the chance to buy the same thing as rich people, we save people money so they can live better".
Their mission is to increase and put together their supplier diversity programs into all of the procurement practices and to be a supporter for majority- and women-owned businesses. Their Working Families are committed to devolaping open and honest dialogue with elected officials, opinion makers and community leaders that communicate the positive help of their working families. They believe that Wal-Mart provides value to its customers, to its colleague and to the communities.
They are vision is to be the "Worldwide leader in retail." Their mission of "Saving peoples money so they can live better" was build on the idea of their founder, the founder believed that colleague should treat customers the way management should treat colleagues. Wal-Mart's goal to always supply their customers with great retail products at reasonable prices along with a smile as well as always being of assistance is another reason they are able to stay ahead of their competitors. Wal-Mart's competitive advantage lies largely in their goal to providing their customers with the "Everyday Low Prices" that they have grown to expect. Sam Walton called his idea the "3 Basic Beliefs". The first is defined as Respect for the individual, believing "Our people make the difference". No matter what colour, background, or lifestyle, each employee is treated with respect. The second belief is service to our customer.
3. Competetiors:
Wal-Mart's competitors are Kmart, Target, ShopKo, Meijer, Canada's Zellers, The Real Canadian Superstore, Giant Tiger, Mexico's Comercial Mexicana and Soriana. Competitors of Wal-Mart's Sam's Club division are Costco, and the smaller BJ's, dollar stores, Family Dollar and Dollar General, Carrefour, Costco, Wholesale, Target, Kohl's Corporation, Dollar Tree, Macy's, J.C. Penney Company, Holding Company, Sears Holdings Corporation, big lots, BJ's Wholesale Club, Dillar's, Saks Incorporated, 99 Cents Only Stores, Price Smart, Retail Ventures, Maidenform Brands, Fred's, Big Lots,
4. Strengths:
4.1. They offer a wide selection to coustomers, all the things from groceries to electronics to hunting tools. This is what attracts so many customers to come to their shop.
4.2. It is creating awareness that prices are lower than they really are.
4.3. It is a powerful retailer. It has a reputation for value for money, convenience and a wide range of products all in one store.
4.4. Wal-Mart has grown actualy over recent years, and has experienced global opening (in United Kingdom their shop call ASDA).
4.5. The company has a centre quliffication involving its use of computer to support its international valid system. For example, it can check how each products are performing country-wide, store-by-store at a gliter. IT also supports Wal-Mart's active sourcing.
4.6. A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them.
5. Weakness:
5.1. It serves poorly four out of five stakeholders.
5.2. Recently Wal-Mart has gone with the no -action of shoplifter's plan, which has considerably increased the amount of shop lifters that target the place... Since it has a guaranteed monopoly on the kind of service it offers.
5.3. The worse weakness the company has is a lack of customer service. They look at profits to much, and do not hire enough staff, especially around the holidays to support the amount of shoppers it will have.
5.4. Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.
5.5. Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.
5.6. The company is global, but has a presence in relatively few countries.
6. Opportunities:
6.1. They have opportunities to take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.
6.2. They are currently only trade in a small number of countries. They can spred their stores to many other countries.
6.3. They have so many opportunities for future business in incresing coustomer markets, such as China and India.
6.4. New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.
6.5. Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.
7. Threats:
7.1. Because their in number one it means that they are the target of competitors, locally and globally.
7.2. They are global retailer that why they are exposed to political problems in the countries that they operate in.
7.3. The cost of producing many coustomers products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.
7.4. 'Wal-Mart Stores, Inc. is the world's largest retailer, with $256.3 billion in sales in the fiscal year ending Jan. 31, 2004. The company employs 1.6 million associates worldwide through more than 3,600 facilities in the United States and more than 1,570 units.
8. Stakeholder:
The two important stakeholders of Wal-Mart are one customer and two employees. Through the years Wal-Mart has had to reorganize their business but they have done so efficiently, always changing and growing but making the customer feel as if they are first. Their unique way of treating employees helps to make this company stand out. Stakeholder engagement is a core part of the Ethical Standards Program of Wal-Mart. It is vital to learn from the knowledge of others and apply the learning to strengthen their efforts. They believe that more can be finished when stakeholders collaborate together and work toward resolution of a complex problem than for each party to deal with the problem in separation. Stakeholder engagement has allowed Wal-Mart and industry stakeholders to build a degree of trust with one another and to begin to work collaboratively on issues regarding labour and environmental practices in factories. Wal-Mart values the opportunity for productive dialogue and work with stakeholders, and they look forward to continuing collaborative interaction. A cornerstone of the corporate social responsibility discipline is the concept of stakeholder management. Firms must recognize their relationships with, and their responsibilities to, a multiplicity of stakeholders, not only the firms' shareholders; and manage those often conflicting stakeholder demands and pressures.
9a. Strategies:
Wal-Mart's strategies are:
9a.1. Stay informed on a timely basis about the Company's financial status.
9a.2. Evaluate the Company's capital structure and develop recommendations based upon that information.
9a.3. Advise management and the Board regarding financial matters including global financial policies and practices, capital structure, annual financing plans, reformation, gaining position and withdrawal from investment.
9a.4. Analyze and recommend basic financial goals to be achieved by the Company.
9a.5. Review significant relationships with analysts, banks and investment banks.
9a.6. Review the Company's performance on major capital investment projects versus original projections.
9a.7. Review and recommend a bonus policy for the Company.
9a.8. Review and recommend the annual budget to the full Board for approval.
9b. Strategic planning functions:
Wal-Mart has some strategic planning functions they are:
9b.1. Provide input from the Board to management in the development of the Company's strategic plan.
9b.2. Serve as a resource in assisting management in the development of the Company's strategic plan.
9b.3. Act in an advisory capacity in assessing the strategies and action plans designed to meet the Company's strategic objectives.
9b.4. Serve as representatives of the Board in evaluating the Company's strategic planning process.
9b.5. The Committee review and reassess the capability of the Charter annually and recommend any proposed changes to the Board for approval. The Committee annually review its own performance.
