Business Strategy and its Applications

This assignment delves into the complexities of business strategy, examining various approaches like resource-based, evolutionary, and network models. Students analyze case studies involving Walmart, Carrefour in China, and public sector organizations to understand how strategies are implemented across different contexts. The focus extends to strategic decision-making, incorporating aspects of sustainability, customer orientation, and global market dynamics.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
1.1 Business missions, visions, objectives, goals and core competencies.............................3
1.2 Factors that Wal-Mart need to consider when formulating strategic...............................4
1.3 Techniques used when developing strategic business plans............................................5
TASK 2 FORMULATION OF NEW STRATEGY..................................................................5
2.1 Strategic positioning of Walmart by carrying out an organizational audit......................5
2.2 Environmental audit for Walmart by using PESTEL and Porter’s Five Forces analyses6
2.3 Role of stakeholder analysis in formulating new strategy for organization.....................7
TASK 3......................................................................................................................................7
3.1 Alternative Strategy for Walmart.....................................................................................7
3.2 Justification for Selected Strategies.................................................................................8
TASK 4......................................................................................................................................9
4.1 Roles and Responsibilities of different Personnel...........................................................9
4.2 Resource Requirement...................................................................................................10
4.3 SMART objectives.........................................................................................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Planning can be define as a most important business concept on the basis of which
any firm can easily make sure its top brand position. All those firms who planned out their
business strategies effectively reaches to at top position (Kourdi, 2010). In this concern, the
present report is prepared on Walmart’s business strategy as it is one of largest retails firms of
the world. They are the best retailers due to their effective application of strategies to reach
the company’s vision and mission. Further, this report presents all those factors and
techniques which company need to use whole formulating any business strategy. It also
defines all those people’s role who are responsible for proper implementation.
TASK 1
1.1 Business missions, visions, objectives, goals and core competencies
In terms of revenues Walmart is founded as one of the biggest retailers in the world.
In order to carry out their set image they have set their mission and vision needs to be achieve
in future.
Vision and Mission
Vision statement of Walmart is keeping its image as one of the largest retailers of the
worlds. (Li and Solis, 2013) They need to maintain this image in front their consumers as
well as employees. They aims to achieve a top position in the market and put positive
remarks in mindset of their customers.
Mission statement of Walmart is to save the money of people by providing the best
prices for products. By keeping low selling prices they can enhance their consumer base.
Objectives
All different organizations are having their certain objectives which act as a guidance
for for them to work in appropriate manner. Walmart also defines certain targets and
objective to implement most appropriate strategy for their business purpose.
Main objectives & goals of Walmart are as follows:
 They wants to provide best rates to their customers and save their money so that they can
live better life.
 Wants to provide personalized shopping experience where consumer can shop 24/7 as
per their convenience.
 They are looking forward to develop their best presence on social media by promoting
their new business through television.

Core competencies of Walmart as as follows:
 One of the largest retailers of the world
 Biggest departmental store
 Better relations with both customers and employees
 Efficient supply chain
 Low pricing strategy
With the help of all above set vision, mission, core competencies as well as objectives
Walmart pertains better strategic plan and try to achieve these objectives (Kourdi, 2010). By
having all these advantages company can effectively achieve larger market share.
1.2 Factors that Wal-Mart need to consider when formulating strategic
At the time of formulating any strategic plan it is highly important for Walmart to
consider several factors i.e.
Internal Factors: These are all about their firms inside factors such as culture,
policies, strategies, core of ethics etc. All these factors may affect their strategic plan and plan
according to their culture and ethics they usually follow.
Stakeholders: They are considered as most important part of any organization in
which customer, suppliers, community, government are all their major factors (Clulow,
2005). They affect their business strategy as Walmart need to plan according to their
customers needs and demands.
External Factors: These factors contains political, social, environmental and
technological factors which affects the overall business plan.
Political Factors: Due to these factors prices of Walmart may gets affected as they as
government has imposed duty and VAT on several eatable items as well. Making any type of
decision highly affected by political and legal environment.
Economical Factors: These factors impact the total consumer spending decision and at this time
Walmart might face some loss (Immordino, 2009). Considering this factor only they need to
develop their business strategy so that they can effectively makes their consumers satisfied.
Social Factors: Due to the changing needs and demands of customer company should plan
accordingly and

Technological Factors: Walmart is currently making its presence in entire world with the help of
proper branding. For this, they are endorsing and promoting their business with the help of
selecting appropriate technologies such as social networking sites, television etc.
All the above given factors are must which need to be considered while making any
business plan so that objectives can be attained effectively.
1.3 Techniques used when developing strategic business plans
One of the most important task for any organization is just to develop best strategic
for their business to grow. While developing their strategic business plan, Walmart can use
various techniques (Kambil, 2008). With the help of using all different techniques they can
ensure that plan will be implemented effectively and they will get best results. Various
techniques they can use are as follows:
SWOT Analysis: This is considered as a most effective brainstorming process through which
company can effectively analyze its strength and weaknesses. With the help of this they can
review and prioritize top items under each category. It is a best planning tool through which
Walmart can easily find its future goal. It also helps them in minimizing their weaknesses.
Market Research: It is another most important technique through which company can
analyze current market trends and issues of any retail business firm (Linn, 2008). Through
this, they can plan more effectively as per the changing needs and demands of customers.
Feasibility Study: Walmart can also assess its goals and objectives on the basis of their
outcomes. With the help of this they can check the feasibility of any project they carry out
and find its suitability.
TASK 2 FORMULATION OF NEW STRATEGY
2.1 Strategic positioning of Walmart by carrying out an organizational audit
Organizational audit refers to the practice in which auditors review different business
activities on regular basis in order to ensure that there are no loopholes or gaps in the
operations of any business. Main objective behind this is to identify business risk and manage
it effectively, ensuring that employee stick to the rule sand regulation of organizations and
also to ensure optimum utilization of resources. Organizational audit of British Petroleum is
undertaken by SWOT analysis.

STRENGTH
 One of the largest retailers of the world
 Strong financial as well as consumer base
 Employees are in high trust
 Offer low prices as compare to others
 Domestic presence in USA is very strong
WEAKNESS
 Only selective categories are available
 Staff is part time
 Carry out large inventories
 Dependent on bulk sale only
OPPORTUNITY
 To improve local community perception
 Business expansion into Asian markets
 Adopting new marketing and internet
based models (John, 2005)
THREAT
 Regional Competitors
 Current economy
 Employee Union
 Increasing online competitors
2.2 Environmental audit for Walmart by using PESTEL and Porter’s Five Forces analyses
PESTLE Analysis:
Political Factors
 Political support for globalization as well as higher stability of politics
 Approximately 5% lower income tax
Economic factors:
 Walmart is facing huge pressure due to changing economic conditions
 Continues growth of developing countries
Social factors
These factors basically looks for the cultural diversity change as well as healthy lifestyle
trends. This mainly affects the consumer perception and their preferences (Eshun, 2009).
Technological factors
All technological changes need to be addressed by Walmart so that they can increase their
consumer base. With the help of online marketing and selling their revenues gets increased.
Porters Five force model
 Bargaining power of consumer: Low
 Bargaining power of suppliers: Medium Low
 Barriers to entry: Medium High
 Power of substitute: High

 Potential competitors: High
As per this model, it can be clearly define that Based on Walmart’s generic strategy is cost
leadership. They mainly focus on keeping their product prices low just to attract more
number of customers.
2.3 Role of stakeholder analysis in formulating new strategy for organization
Involvement of every stakeholder is one of the most important step for any specific
project or company. Analysis of stakeholder helps in achieving numerous benefits at the time
of differences. Significance of stakeholder analysis for Walmart is as follows:
Marketing Analysis: With the help of appropriate market analysis Walmart can easily
go with the interest of the society and plan their campaigns according to needs of
society.
Motivating Employees: While formulating any business strategy it is highly important
to develop various plans on the basis of which company can easily motivate their
workers and provide high quality services to their customers (Bryson, 2011). For this,
they requires good working environment for their workers.
Corporate Citizenship: In order to sustain in market company requires proper balance in
between their social responsibility and profit margin. Further, company also support different
government activities for charity purposes. It helps them making their firm’s brand image at
top.
TASK 3
3.1 Alternative Strategy for Walmart
Walmart being a global organisation need to consider varied set of strategies in order
to enhance its competency in an effectual manner. In this context, there are several options
available as part of alternative strategies. These have been enumerated below with respect to
Walmart:
 Market entry: This is a strategy through which Walmart can make the presence in
market in which it is not having any operation. For this, it can take support from
tactics like joint venture, licencing, franchising etc. in order to enter unexplored
market. Presently, this strategies can be applied for entering market like India, Italy,
Tanzania, Germany and related (Casadesus-Masanell and Ricart, 2010).
 Substantive Growth: It can be refer to fundamental growth that aids in boosting the
overall position of the company. In this context, Walmart can expand through

horizontal or vertical integration. From this, monopolistic power will be attained to
company that aids in boosting the overall share of the company. It can initiate an
online store and even open supply chain company. These two options possess huge
potential with respect to Walmart.
 Limited Growth Strategies: It is a strategy where business can attain limited set of
growth. In this respect, product development or innovation can be focused by
Walmart in order to attain growth (Montgomery, 2011). Under innovation, attractive
discounts and schemes can be offered in order to boost sales and hence can increase
the market share.
 Retrenchment: This strategies can be employed as part of remedial actions where
company faces decline in sales. For Walmart, this strategies can be employed through
asset reduction and cost reduction. Asset can be sell out to recover loss or even
employees can be lay off for reducing overall cost of operations (Hiebeler, Kelly and
Ketteman, 2012).
3.2 Justification for Selected Strategies
From the analysis, it is evident that Walmart possess huge potential for growth and
also possess high sales volume. Additionally, it has high revenue generation source that can
support company in expanding further. Based on this evidence, it is highly recommend that
cited organisation must incorporate the strategy of market position. Most suitable country that
Walmart can consider on priority for expansion is India and Tanzania. This is so because,
India possess a population of around 1.311 billion and growth rate of 7.6% annually (India:
World Bank. 2017). Additionally, Tanzania has growth rate of 7% annually with population
of appox. 53.47 million (Tanzania: World Bank. 2017). Hence, these are two huge market for
Walmart which can help in boosting its market share further.
Additionally, retail sector in these countries are not very much organised which offers
high room for Walmart in sustaining in the market. Beside this, government has positive
approach for foreign players in these countries that will even support the company in entering
into mentioned markets. From the case, it is found that Walmart follows cost leadership
strategy, hence, this strategy will help the company in gaining high amount of attention from
India and Tanzania. This is so because people of these countries are focused to buy products
at cheap price (Auzair, 2011). Moreover, there are no big players in these markets which is
another positive point for Walmart. Hence, cited organisation must adopt the strategy of
market expansion by entering into India and Tanzania with the help of licensing as a mode of

entry. From this, mentioned firm will able to get rid of fierce competition and threat of
substitute product.
Government of Tanzania and India are developing liberal policies for foreign
investors so that more of export can be done. However, there are few restrictions from the
government of both the countries for taking out the profit from the country. Still, business can
enter into these markets as these possess significant portion of world population. From this,
sales of the company will surely increase and support from normal customer will attained.
Walmart being a brand name will help in attracting more of customers towards it (Verbeke,
2013). Also, by entering into India and Tanzania, other unexplored region of Asia and Africa
can be touched. Hence, these countries can act as a base for further expansion as well. Hence,
it is highly recommend to enter these market as part of boosting its market performance.
TASK 4
4.1 Roles and Responsibilities of different Personnel
As part of applying the strategies, it is required to complete different set of roles and
responsibilities of key personnel of Walmart. In this context. Following are the role and
responsibilities:
 Board of Directors: It is key responsibility of Board of Directors to appoint most
skilled and competent manager as part of managing whole expansion projects. It is
essential to have unity of command, therefore a key personnel is required for this
work. Further, sufficient budget must be written in order to open the store within
different region of India and Tanzania (Esty and Simmons, 2011).
 Chief Operating Office: Further, COO fulfils the role of developing strategies to
enter into different market so that large market share can be captured. Additionally,
team of competent person need to be developed by COO in order to implement the
expansion projects.
 Chief Financial Officer: Additionally, Walmart’s CFO need to focus of financial
aspects of business at the time of implementation. Through financial management and
techniques, budget must be prepared along with estimating the time to attain return on
investment. This helps in framing sound strategies to enter into huge markets like
India and Tanzania (Chuang and et.al., 2011).
 Marketing Manager: Marketing is a key aspect of business which aids in boosting
the brand awareness. Marketing manager of cited organisation possess a role of
framing strategies to increase the brand awareness in mentioned countries. Through

this, high amount of attention will attain from customer that aids in achieving break
even point in shorter time span. Further, decisions related to pricing and segmentation
are also part of responsibilities of marketing manager (Meskendahl, 2010).
 Operation Manager: Beside this, operation manager need to frame strategies with
regards to location, operation, supply chain, procurement and other related aspects of
business. Through this, operation in new market can be organised with ease and aids
in achieving smooth flow of goods. From this, varied need of customers can be
fulfilled by Walmart.
4.2 Resource Requirement
In order to implement the strategies of expansion in two more countries i.e. Tanzania
and India, varied set of resources are required. One of the foremost requirement for expansion
is sufficient finance and same can be attained either by shareholders or from bank loan.
Hence, these two set of sources of finance will be used so that business expansion can be
undertaken accordingly. It is required that proper budget must be developed and accordingly
finance should be arranged in order to manage the cost of finance. With the help of this
resource, set up of location can be done, infrastructure can be developed, procurement of
material will be done, marketing expenses can be met and initially operation can be
supported. Apart from it, human resource is also of key importance (Tate, Ellram and
Gölgeci, 2013). To arrange the same, recruitment in both the countries can be initiated to
appoint local staff and manager. This is so because local staff possess high knowledge about
the market and hence can tackle the customer in an effective manner. Through human
resources, strategies can be developed and same can be implement to attain short and long
term gaols. On an average 30 staff members will be required in one store and therefore
recruiting will be done considering the same.
Beside this, technology is required to implement in the process in order to make the
operation more smooth. Walmart need to adopt high technologies in order to attain high
benefits. This can be used in almost every part of business such as supply chain, inventory
management, billing, marketing, CRM practice, after sell service and other related (Auzair,
2011). All these resources will help the company in attaining business objectives.
4.3 SMART objectives
Walmart need to specify SMART objectives with a motive to lead towards attainment
of objectives. Same has been enumerated below:

 Specific: Walmart need to expand its operation into India and Tanzania and these
countries huge population along with high growth rate. This will support the company
in boosting its market share further.
 Measurable: It is required that Walmart must increase its market share by 10% and
profit margin by 15% following the expansion strategies.
 Attainable: Walmart must open around 15 stores in India and 10 in Tanzania
initially. This will help Walmart in developing base in both the countries through
which it can expand further.
 Realistic: Cited organisation need to focus first on metropolitan cities of both the
countries as it possess huge population. Also, standard of living of these areas are
quite high than that of rural areas. After sustaining in this market, Walmart can
expand in cities where the population is more than 1 million.
 Time frame: Time frame for whole expansion process to complete is determined as
18 months. Hence, strategies must developed accordingly in order to attain the
objectives with ease.
CONCLUSION
On the basis of this report, it is evident that Walmart must adopt the policy of
expanding into unexplored markets like India and Tanzania. Through this, it can able to get
rid of fierce competition and can also boost the market share. Further, these set of market
possess huge scope in terms of sales and expansion which will aid Walmart in fulfilling its
vision in appropriate manner.

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Online
India: World Bank. 2017. Available through: <http://data.worldbank.org/country/india>.
[Accessed on 27th April 2017].
Tanzania: World Bank. 2017. Available through:
<http://data.worldbank.org/country/tanzania>. [Accessed on 27th April 2017].