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Business Assignment: Influencing Organizational Strategy

   

Added on  2020-05-28

16 Pages3977 Words43 Views
Running head: INFLUENCING ORGANIZATIONAL STRATEGY Influencing Organizational StrategyName of the Student:Name of the University:Author Note:

1INFLUENCING ORGANIZATIONAL STRATEGYTable of ContentsIntroduction................................................................................................................................21. Performance of Wal-Mart and the Extent of Competitive Advantage...................................22. Wal-Mart’s Principal Functions and Activities that Determine its Competitive Advantage.43. Sustainable Competitive Advantage of Wal-Mart.................................................................64. a. Current Challenges Faced By Wal-Mart............................................................................9b. Measures for Overcoming Challenges.................................................................................11Conclusion................................................................................................................................12References:...............................................................................................................................13

2INFLUENCING ORGANIZATIONAL STRATEGYIntroductionThe report gives an overview of Wal-Mart based on a case study. Wal-Mart Storeshas been the biggest company in comparison of revenue in the year 2015. The companyattained this position in the year 2000 and maintained it for years. Since its publicity in theyear 1972, the profitability and growth of the company has been remarkable (www.Wal-Mart.com 2018). There is discussion about the performance of the company, functions thatleads to its competitive advantage, sustainability of the competitive advantage and thechallenges faced by Wal-Mart1. Performance of Wal-Mart and the Extent of Competitive Advantage The revenue of Wal-Mart have increased every year and whose return on equity isnever below 19 percent in spite of the tumult created by the war, economic recessions , rise ofthe e commerce and political crisis. Wal-Mart expanded its good and services range byventuring into fashion clothing, groceries, online prescription drugs, financial services, musicdownloads and health clinics which placed it on a platform for greater competition. . Wal-Mart faced no competition in terms of price. However, the retailer faced competition in termsof more stylish products, increased emphasis on quality, increased service orientation andinnovative product range. In the traditional method of discount retailing, target proved to bean enhanced formidable competitor. The success of Wal-Mart rests solely upon the ability of combining its huge size withresponsiveness and speed. The shorter chain for command and the closeness between the topmanagement and the individual store managers defined the agility of Wal-Mart. Over theyears, the retailer became image conscious and portrayed enthusiasm in adopting means that

3INFLUENCING ORGANIZATIONAL STRATEGYensured environmental and social responsibility (Hopkins 2012) The Wal-Mart store adoptedvarious store formats. This included the convenience stores launched in the year 2013 andspread across a square foot area of 12000 square feet. The store had built a substantial onlinebusiness through the website www.Wal-Mart.com and at the same time extended its musicdownload and online pharmacy service. The primary feature of the online strategy of Wal-Mart was the integration of web-based transactions along with its presence physically thatallowed customers in picking up items at the local Wal-Mart store. The international expansion of Wal-Mart started in the year 1991 along with a jointventure with the largest retailer of Mexico, Cifra SA for opening of several discount stores.By the year 2000, the expansion of Wal-Mart extended to overall six overseas countries. Theoverseas expansion of Wal-Mart did not follow any fixed pattern (Mun and Yazdanifard2012). This is because; sometime the store entered the international market through theGreenfield entry, sometimes through joint venture and sometimes by acquiring existingretailer. However, the overseas operation of the Wal-Mart also remained successful. The countries in which Wal-Mart entered had forced the store in adapting the retailingsystem to the preferences and habits of the customers, competitive situation, infrastructureand regulatory and political environment (Baines 2012). However, the management style andstrategy of Wal-Mart has been unique in defining its success. Wal-Mart based its foundationon three basic beliefs. This included service to the customers, respect for every customer,community member and associate and to strive for excellence. Thus, the Wal-Mart stores ensure in helping people save money and thereby lead abetter life. The store through various innovation methods helps in creation of an experiencethat is customer centric and that which integrates with the physical and digital shoppingexperience. The store nearly serves around 260 million customers (Prieto, Phipps and Addae

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