Strategic Management: Evaluation and Plan for Walmart

This report evaluates the performance of Walmart and provides a strategic plan for the company to gain a competitive advantage. It also includes a reflection on the module's contribution to career development.

Strategic Management 4

Contents
INTRODUCTION...........................................................................................................................................3
PART A (1)....................................................................................................................................................3
Critical evaluation of the company’s performance .................................................................................3
PART A (2)....................................................................................................................................................4
Strategic plan for the company................................................................................................................4
PART B.........................................................................................................................................................8
Reflection.................................................................................................................................................8
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
The strategic use of resources in a business in order to achieve its goals and objectives is
referred to as strategic management (Aguinis, Edwards and Bradley, 2017). It is an important
component for an organization as it guides and provides direction to allocate different resources
in order to implement plans in an effective manner. Effective strategic management allows a
company to gain competitive advantage against competitors. Organization chosen for this report
is Walmart, which is a multinational retail company that is based in the United States. The
company was founded by Sam Walton in the year 1962 and today, has operations across
different geographic locations across the world. The report includes an evaluation of the
company’s performance including its strengths as well as market position. A strategic plan using
relevant tools that can help it gaining a competitive advantage is also included in the report along
with a reflection on how the module can support in career development.
PART A (1)
Critical evaluation of the company’s performance
Walmart is a multinational company that operates across different geographic locations in
the world. The performance of a company provides useful insights about its customer base and
position within the market. In order to be successful in the market, it is important for the
company to have a large base of customers that are not only satisfied with the products and
services of the company, but also loyal to it. There are many factors that contribute to the overall
performance of the respective company in the industry (Ansoff and et. al., 2018). Maintaining an
overall performance is important for an organization as it can lead to an increase in the overall
profitability as well as share in the market. Walmart is one of the most competitive retail
organizations in the United States that operates in a highly competitive market.
The company serves nearly 265 million customers all over the world, which means that
the it is performing good within the retail market. It also implements various strategies to attract
potential customers from different parts of the world so as to enhance its overall performance.
The company has a lot of competitive strengths that have helped it in maintaining a strong
position in the market. One of the other strengths of Walmart is that it is a market leader in the
US retail industry. The company utilizes its resources like information technology, knowledge,

distribution facilities etc. in an efficient manner. As per the view point of Ovidijus Jurevicius,
since the respective company has an international presence, it has been able to serve the needs as
well as wants of customers across different countries (SWOT analysis of Walmart (5 Key
Strengths in 2020), 2020).
The market position of Walmart is strong as about 15% of its total sales are in grocery,
apparels, sports products, home furnishings etc. This is because it offers a wide variety of
products at lower prices. This has helped the company attract a greater number of customers as
well as retain existing ones (Lasserre, 2017). Not only this, it also operates online through
different channels. As per the view point of Karren Webster, Walmart today accounts for
approximately 8.9% of the retail market in the United States. Also, there has been an increase in
the digital growth of the company as compared to its competitors. Walmart has positioned itself
as a low-cost grocery store that has helped it maintain its performance in a competitive
environment as well as continue expanding its business operations.
Although, the respective company has a strong hold in the retail market through an
effective value chain, there are still some areas across the same where it needs improvement
(Schilling and Shankar, 2019). Thee company should invest more in implementing the latest
technology across different stages of its value chain in order to ensure that there is an increase in
the overall efficiency of the same. There are different stages in the value chain of a company.
Also, effective human resource management should be conducted to ensure that skilled as well
as qualified employees are hired for carrying out different jobs.
PART A (2)
Strategic plan for the company
In terms of gaining competitive edge in market, it is significant for respective company
like Walmart to strategically execute their plans by considering their significant tools and
techniques. For this, Walmart can enhance its online presence with the help of strategic plan in
terms of increasing competitiveness. For this, strategic plan should be formulated in Walmart so
that proper execution of plan can de done:

Mission: The mission is to offer good quality products and services to their potential
customers considering their preferences and requirements that helps in delivering good quality
products to customers in terms of developing effective customer base.
Vision: To become the great specialist of retail sector by undertaking prominent
principles and philosophies in terms of accomplishing significant goals and objectives.
Strategic Objectives:
 To enhance its online services in terms of satisfying the requirements of customers and
also increase their sales by 20% at the end of next two years. To increase the customer base by 12% in 12 months.
Strategies that can be used:
Ansoff Matrix: In terms of prominently achieving growth in the market Walmart make
effective use of Ansoff matrix in terms of identifying the ways in which company can achieve
growth in market. Market Penetration: According to this strategy current products and services of the
company are provided in the existing market by considering the low prices improve
promotions and so on. It is helpful for the company in terms of ensuring their market
share and reaching towards the large number of customers in terms of increasing sales
(Makadok, Burton and Barney, 2018). It is considered as the less risky growth strategy
which is useful buy Walmart in order to improve their market share and growth. By
offering prominent products at the low prices Walmart can reach and require large
number of customers in the market area. Market Development: Undertaking this is strategy for and products are offered in the
new Marketplace by which maximum number of customers can be reached in the various
market. It is helpful for the company in order to gain the Economics of scale by reaching
towards the white market in terms of enhancing the globalization of a company and
global brand image that can be developed by company in the market (Sullivan, Thomas
and Rosano, 2018). In terms of Walmart they can enter into the emerging market by
increasing their market reach which is helpful in order to enhance the profitability.

 Product Development: Undertaking this strategy company can offer new products and
services within the existing market as it is helpful for the company and order to reach to
the new customer base and also achieve growth in Strategic manner. This can be done by
the company with the help of proper research and development of other companies and
Rivals. In relation with Walmart they can use this strategy by enhancing their product
like making improvement in them at the online platform so that different services can be
offered to their customers in order to enhance the customer satisfaction.
 Diversification: Considering this strategy and Organization tends to offer new products
and services in the market as it is considered as the riskiest strategy which is it include
both the market and product new and it takes lot of investment in terms of entering in the
new market and developing a new product (Teece, 2019). It is helpful for the company in
order to achieve competitive advantage in the market area by considering the requirement
of customers that leads to offer innovative products. Walmart can use this strategy in
terms of expanding in the emerging market and also offer diverse varieties in their
products.
Walmart can make effective use of above discuss strategy as it leads to increase their
customer base and market reach by offering prominent competitive products to their potential
customers. Walmart can make effective use of product differentiation in terms of improving the
development of its concerning products by undertaking the preferences and requirements of
customers.
Porter’s Generic Model: In terms of gaining competitive advantage in the market area
porter’s generic model can be obtained as it is helpful for the company in order to deciding the
effective approach for targeting the market. Significant strategies that are helpful for Walmart are
discussed as underneath: Cost leadership: This strategy depicts that company develop its products and services at
the low prices which is useful for company itself to acquire large market area and attract
customers towards them (Meyer and Xin, 2018). This is strategy can be obtained by
Walmart by a frame its product at the discounts and sale which is useful for them in order
to attract large number of customer base as comparison to its competitors so the high
profitability can be achieved by company.

 Cost focus: According to this strategy company try to achieve cost advantage in terms of
opting the small market so that company can become the cost leader in the specific
market area. It is helpful for company in order to become competitive within the specific
market so that high profitability can be achieved. Differentiation leadership: Undertaking this strategy company tends to target the
requirements of large market considering the competitive advantage by offering different
products and services to their customers (Simandan, 2019). With the help of concerning
strategy prominent changes are undertaken regarding the requirements and needs of
customers that can be fulfilled only by offering them unique products and services by
which company can become competitive in-market and survival becomes smooth.
 Differentiation focus: In this strategy company can focus on the basic requirement of
small segment customers by which they can become highly competitive in terms of
meeting the requirements of target market segment. This strategy offer opportunity to
organization in terms of providing different products in comparison to their competitors
within the market.
Therefore, in terms of Walmart they can opt differentiation leadership strategy in terms of
improving their online services considering the preferences and wants of customers that can be
achieved in a prominent way. It can be enhancing the requirement of customers by offering easy
and fast services that can save their time and provide them quality products.
Action Plan:
Budget allocation: In terms of prominently implementing the strategies selected by the
company it is essential that effective budget is developed undertaking the activities that are
required for the whole process (Ferreira, Mueller and Papa, 2018). It is helpful for the company
to enhance the efficiency and effectiveness of desired result as it tends to execute the strategy for
enhancing the online services of Walmart by considering the prominent budget that can be
effectively used by company.
Particulars Amount (£)
Marketing 2300
Human resources 7000

Technological advancements 180000
Raw materials 35000
Controlling and Monitoring: It is significant that prominent controlling and monitoring
practices are executed under taking the implementation procedure of strategy so that expected
goals and objectives can be accomplished. With the help of key performance indicators and
benchmarking tools it can be done so easily considering the differences of actual and estimated
result and also efficiently make improvement during the execution of strategy.
PART B
Reflection
Undertaking this module has been a learning and enriching experience for me as I got to
understand how can the overall performance of a company be evaluate. Not only this, I got an
opportunity to learn that it is very important for an organization to maintain a high level of
performance as it can contribute to its overall profitability as well as position in the market. I
understood the importance of a strategic plan for the company and its role in helping the
company achieve its goals and objectives in an effective manner. I got a chance to develop a
better understanding of one of the leading retail organizations, Walmart in an efficient way. My
overall thinking skills have progressed while observing a strategic view of a company within its
market.
The module will definitely contribute to my overall career development in the future
because I want to build my career in the retail industry. There are other skills that I have learned
by undertaking this module, like my overall written communication has improved and I am able
to present my thoughts in a much more effective way. I can say that undertaking this module has
only contributed to building my overall thinking skills and increasing my ability to understand
different concepts faster. Therefore, the module will help me in my career as it has helped me in
learning new concepts.

CONCLUSION
From the above report, it can be concluded that strategic management plays an important
role within an organization and helps it achieve its goals and objectives. It allows organizations
to develop and formulate effective strategies and make informed decisions. Walmart is a leading
company operating within the US retail market. It has been able to maintain a strong hold of the
market because of its strengths and effective strategic management. Therefore, if a company
wants to retain its customers and remain competitive, it should adopt various strategies that allow
it to conduct its business operations smoothly and effectively.

REFERENCES
Books & Journals
Aguinis, H., Edwards, J. R. and Bradley, K. J., 2017. Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods. 20(4). pp.665-685.
Ansoff, H. I. and et. al., 2018. Implanting strategic management. Springer.
Ferreira, J., Mueller, J. and Papa, A., 2018. Strategic knowledge management: theory, practice
and future challenges. Journal of knowledge management.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal. 39(6). pp.1530-1545.
Meyer, K.E. and Xin, K.R., 2018. Managing talent in emerging economy multinationals:
Integrating strategic management and human resource management. The International
Journal of Human Resource Management. 29(11). pp.1827-1855.
Schilling, M. A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Simandan, D., 2019. Iterative lagged asymmetric responses in strategic management and long-
range planning. Time & Society. 28(4). pp.1363-1381.
Sullivan, K., Thomas, S. and Rosano, M., 2018. Using industrial ecology and strategic
management concepts to pursue the Sustainable Development Goals. Journal of Cleaner
Production. 174. pp.237-246.
Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective. New Zealand Economic Papers. 53(1). pp.1-43.
Online
SWOT analysis of Walmart (5 Key Strengths in 2020). 2020. [Online]. Available through:<
https://strategicmanagementinsight.com/swot-analyses/walmart-swot-analysis.html>.