Analysis Introduction to Management 2022

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Running Head: INTRODUCTION TO MANAGEMENT 0
Introduction to Management
(Student Name)
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INTRODUCTION TO MANAGEMENT 1
Table of Contents
Introduction......................................................................................................................................2
Customer Base.................................................................................................................................2
Mission, Vision and Core Values....................................................................................................2
Corporate-Level Strategies..............................................................................................................3
Business-Level Strategies................................................................................................................4
SWOT Analysis...............................................................................................................................4
Organizational Structure of Wal-Mart.............................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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INTRODUCTION TO MANAGEMENT 2
Introduction
Wal-Mart is one of the American international retail corporations, consist a chain of
hypermarkets, concession department’s stores, and grocery stores. It was founded by Sam
Walton in 1962 and built-in in the year 1969 in Arkansas, United States. The main purpose
behind establishing Wal-Mart was to serve customer’s needs (Martínez, Galván & Alam, 2017).
Wal-Mart conducts retail and wholesale business and a type of Merchandise Company. The
company offers a wide variety of products of different categories such as grocery items,
pharmacy products, household items and many services like financial, photo lab services;
wireless services etc. Wal-Mart ensures every customer for best quality products with affordable
prices. Moreover, they are very sincere towards their core values and follow them strictly
(Hwang & Park, 2016).
In the following part there be detailed figure out of Wal-Mart mission, vision, its core
values and strategies which they adopted to survive in the market. Moreover, there will be
SWOT Analysis of Wal-Mart in which its strength, weakness, opportunities and threats are
discussed.
Customer Base
Wal-Mart has huge number of stores such as supermarkets, stores of discount division
and grocery stores. It servers the customers who are middle class or below which are lined and
just above the middle class line. Their main customers do not include wealthy people or higher
class people. The age groups who are main shoppers of Wal-mart are between the ages of 35 to
48 and include both male and female. This age group customer is kind of main and perfect
customers. At America, it is found that an individual of 46years old and white is the main
shopper of Wal-mart whose annual income is above $76,000. The urban and suburban, both area
people can shop from Wal-mart. From the statistical average data it is shown that almost 3500-
4000 customers in a week shop at Wal-Mart (Ramanathan, Subramanian & Vijaygopal, 2017).
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INTRODUCTION TO MANAGEMENT 3
Mission, Vision and Core Values
The mission of Wal-Mart is to “save people money so they can live better.” The mission
is very simple and clear. Even the mission statement is similar with the company’s slogan that is
“save money”. Wal-mart Inc. believes to provide customer’s all services at one place and make
their lives easy.
The vision statement of Wal-mart is to “be the destination for consumers to save funds,
no matter what and how they want to shop.” Their vision represents that they want to be the
retailer leader. To accomplish the statements there is required to follow some core values. The
Wal-mart adhere to some core values like to serve the customer, respect each and everyone,
strike for excellence and be honest and loyal. Even Wal-mart has its own policies and principles
to do business which are followed strictly. Each and every values practiced daily can result a
better future and high image in the market. Moreover, Wal-mart values their employee’s efforts
and provides them many rewards and benefits (Peters & Bodkin, 2018).
Corporate-Level Strategies
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INTRODUCTION TO MANAGEMENT 4
It is a plan which states the corporate overall goals and directions. It is an important
aspect of business controlled and managed by top level department. If the decision is good than
business will grow otherwise, it will affect adversely. It aids in allocating resources, improving
position and making expectations. There are mainly three types of corporate level strategies are
growth, stability and renewal. Growth strategy occur when the company expands the number of
markets that is served or product offered through current or new business. Stability Strategy
include when the company makes no significant changes as well as continues to do what it is
currently doing. Furthermore renewal strategies sues by the company when there is a decline in
the overall performance of a company, managers are required to develop new strategies (Lu &
Zhang, 2016).
Therefore, in order to analyze the corporate strategy of Wal-Mart, it has been identified
that the company has adopted growth strategy due to the reason in some countries where it is not
yet operational; Wal-Mart is opening new stores. The company's growth in new markets is one
important strategic goal. Its goal requires a retail presence online. The generic marketing
approach supports the strong market growth strategy for low-price retail creation, which draws
customers in the emerging Wal-Mart markets. Throughout turn, the organization relies on the
marketing and sales that is at the core of the retail business. Nevertheless, this strong growth
policy contributes to the strategic objective of spending more in R&D to introduce new offerings
or improve existing Wal-Mart goods. Product development needs the conventional cost
management strategies to focus on new goods that are not expensive (Jorgensen, 2018).
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INTRODUCTION TO MANAGEMENT 5
Business-Level Strategies
It is a bunch of competitive moves and actions that focuses to attract customers and
compete in the market. There are number of business strategies named as cost, leadership,
differentiation and focus strategies. These strategies are known by Porter’s Generic Strategies.
Wal-Mart is at the point of the industry's maturity stage of cycle. Only lately have
concentrate firms, such as fruit, clothes and automotive parts shops, fought with them. Any Wal-
Mart items could not be supplied by any new entrants at low price. Several retailers have also
closed shops, including Kmart, Target, and Pamida. With its major rivals, Wal-Mart is battling
pricing particularly Aim. Wal-Mart will stay ahead of the market in the mature period by
retaining its low cost by selling more items than anyone else.
Wal-Mart has an integrated approach for market control and distinction. These are
distinguished by offering a broader selection of goods than their rivals. Wal-Mart's shipping,
distribution and computer services reduced prices. Wal-Mart's robust commitment to expense
control and competition contributes to large entry barriers for competitors. The selling of
alternatives is often challenging. With its vendors, Target also has negotiating power. Wal-Mart
has a number of value-chain cost leadership activities overall. It has less staffing ratios than its
rivals, raising overhead costs. With the use of just-in-time supplies, Wal-Mart has efficient
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INTRODUCTION TO MANAGEMENT 6
inbound logistics. We reduced outbound transportation costs by raising their truck fuel
efficiency, putting more pallets on the trailer and raising their Lorries' empty miles. By buying
in large blocks, Wal-Mart also reduces costs (Bratton & Boak, 2020).
SWOT Analysis
Strengths of Wal-Mart
Recognition of Brand: Wal-Mart is one of the most recognized brands in the world. There
are over more than 50 million products that are delivered by the company to its
consumers.
Global Expansion: Wal-Mart has recently acquired ASDA which is one of the UK based
retailer as well as the company has also acquired Flipkart which is one of the e-commerce
giant in India. Furthermore, the company has also created joint venture with other
companies. Such global expansion has recognized to be a countless achievement for the
organization.
Global Presence:
In 2017, WalMart opened 47 new businesses in Central America, fifteen in Chile, eleven
in the United Kingdom and four in China.
Every Day Low Price Strategy: Wal-
Mart can offer low prices based on the economic scale agenda due to the reason
for thousands of products, it has fixed costs. It's therefore one of the cheapest places to sh
op on Earth.
Weaknesses of Wal-Mart
Working Condition and Employee Treatment:
Walmart has faced criticism and lawsuits about his staff many occasions. About all the is
sues discussed widely include low pay, limited health care, and poor working conditions.
Large Span of Control:
Walmart may be weak in certain areas due to its very large size and massive range of con
trol.
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INTRODUCTION TO MANAGEMENT 7
Thin Profit Margin:
The focus of Walmart's strategy is cost management. It leads to small margins of profit fo
r the company.
Gender Discrimination:
In 2007, Walmart was sued for allegedly discrimination against gender in employment op
portunities in Walmart. The promotion of women and pay as set out in this lawsuit is disc
riminated against against for female employees (Chang & Hu, 2020).
Opportunities of Wal-Mart
Expansion to other market:
By extending its business to the markets that are still not being avenged, Walmart can tak
e the opportunity. These include China, the countries of the Middle East,
Canada and Latin America
Strategic Alliance:
Walmart has the prospect to establish tactical businesses with key companies or combine
with further retailers worldwide. Walmart can also profit from the purchases of small co
mpanies.
Enhancing Practice of Human Resource:
Walmart could be a good prospect to strike advanced improvements in human
resource practices. Because it relies heavily on its employees, innovation in the managem
ent of human resources is a critical opportunity.
Threats for Wal-Mart
Impeach 45 Controversy: Wal-Mart was recently published on the controversy "Impeach
45." They marketed t-shirts with' Rope' printed words. Tree. Tree. Reporter. Some of the
Assembly was required. Such shirts were supposed to encourage abuse. However, Wal-
Mart overturned the argument that the T-Shirts had been sold on Wal-Mart’s marketplace
by non-partisan sellers rather than by Wal-Mart.
Primary Target of competition: Wal-Mart is the largest retailer of grocery products in the
world. Equal though better quality goods are sold by Wal-Mart, a direct competitor.
Costco also offers clients the opportunity to buy bulk goods. Such businesses have also a
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INTRODUCTION TO MANAGEMENT 8
relatively good image when opposed to Target to treat their employees properly. Both
enterprises in these areas also receive public support (David, Creek & David, 2019).
Organizational Structure of Wal-Mart
Wal-Mart has an organizational structure with hierarchical features. There are two
aspects in this structure: hierarchy and functional description. The structure is linked to the
internal command lines and control of the entire organization. Every staff has a clear boss, for
example, other than the CEO. Guidelines and mandates from the highest levels of management
of the company are being implemented by the middle managers to Wal-Mart employees. On the
other hand, the functional definition feature of the corporate structure includes employee groups
that perform certain tasks. Wal-Mart, for one, has a human resources operations team. The
business also has an information technology team and a different marketing group (Caraway,
2016)
Conclusion
From the above analysis it can be concluded that Wal-Mart is one of the leading company
in the international market. the company manage different segment of stores such as
hypermarkets, discount department as well as grocery stores. It majorly target middle class
people. The company has adopted growth strategy to grow in the market at greater level. They
are planning to extent its business where they are not operating right now that helps them to
grow in the market in an effective manner. It has also adopted cost leadership strategy that made
them possible to grow in the market. The company has adopted hierarchical as well as functional
organizational structure to main the discipline in the company to the certain extent.
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INTRODUCTION TO MANAGEMENT 9
References
Bratton, J., & Boak, G. (2020). STRATEGIC MANAGEMENT, INNOVATION AND
LEADERSHIP. Organizational Leadership, 35.
Caraway, B. (2016). OUR Walmart: A case study of connective action. Information,
Communication & Society, 19(7), 907-920.
Chang, Y., & Hu, J. (2020). Analysis on the Mode of Multinational Retail Enterprises Entering
Chinese Market—Take Walmart, Carrefour and Metro as Examples. Modern
Economy, 11(01), 17.
David, F. R., Creek, S. A., & David, F. R. (2019). What Is the Key to Effective SWOT Analysis,
Including AQCD Factors. SAM Advanced Management Journal, 84(1), 25.
Hwang, M., & Park, S. (2016). The impact of walmart supercenter conversion on consumer
shopping behavior. Management Science, 62(3), 817-828.
Jorgensen, J. T. (2018). The Foreign Corrupt Practices Act Turns 40:" Reflections on Walmart's
Enhanced Ethics & Compliance Program". Texas A&M Law Review, 5(1), 237-252.
Lu, Y., & Zhang, X. (2016). Corporate sustainability for architecture engineering and
construction (AEC) organizations: Framework, transition and implication
strategies. Ecological indicators, 61, 911-922.
Martínez, A. B., Galván, R. S., & Alam, S. (2017). Financial Analysis of Retail Business
Organization: A Case of Wal-Mart Stores, Inc. Nile Journal of Business and
Economics, 3(5), 67-89.
Peters, C., & Bodkin, C. D. (2018). Community in context: Comparing brand communities and
retail store communities. Journal of Retailing and Consumer Services, 45, 1-11.
Ramanathan, U., Subramanian, N., Yu, W., & Vijaygopal, R. (2017). Impact of customer loyalty
and service operations on customer behaviour and firm performance: empirical evidence
from UK retail sector. Production Planning & Control, 28(6-8), 478-488.
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