Strategic Planning for Walmart: Reducing Costs and Maximizing Profits

An organization needs to prepare a plan to reduce costs and maximize profits. To achieve this, it is essential to consider various factors while making the plan, such as strategic position, environmental audit, and new strategies. This report explores these aspects and presents a new strategy for Walmart, using direct marketing to enter the market. It also discusses how to make a plan, implement it, and evaluate its effectiveness. The report draws from various academic sources to provide insights on business strategy, competitive advantage, and organizational performance.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 assess how business missions, visions, objectives, goals and core competencies inform
strategic planning........................................................................................................................3
1.2 analyse the factors that have to be considered when formulating strategic plans.................4
1.3 evaluate the effectiveness of techniques used when developing strategic business plans....4
TASK 2............................................................................................................................................5
2.1 analyse the strategic positioning of a given organisation by carrying out an organisational
audit.............................................................................................................................................5
2.2 carry out an environmental audit for a given organisation...................................................6
2.3 assess the significance of stakeholder analysis when formulating new strategy..................7
2.4 present a new strategy for a given organisation....................................................................7
TASK 3............................................................................................................................................8
3.1 analyse the appropriateness of alternative strategies relating to market entry, substantive
growth, limited growth or retrenchment for a given organisation..............................................8
3.2 Justify the selection of a strategy..........................................................................................9
TASK 4............................................................................................................................................9
4.1 assess the roles and responsibilities of personnel who are charged with strategy
implementation............................................................................................................................9
4.2 analyse the estimated resource requirements for implementing a new strategy for a given
organisation...............................................................................................................................10
4.3 evaluate the contribution of SMART targets to the achievement of strategy
implementation in a given organisation....................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategies are make to achieve the success of the business. It means to achieve
the desired goals and objectives with the help of proper planning. Strategies for any firm or
organisation are made to achieve the long term success. Walmart's business strategy is to provide
goods and products at a lower price to their consumers and achieve long term success
(Montgomery, 2011). The purpose of this project is to know the mission, vision, objective and
goals of the Walmart. Analyse which factors have to be considered when strategic plan is made
and how to develop strategic business plan. Also understand the environment audit and
importance of stakeholders. Analyse of appropriate strategy which is relating to market growth
and how selection is made for an strategy. In this report there is also a description of roles and
responsibilities of personnel with strategic implementation and also describes that how to
implement the chosen strategy (Peteraf, Gamble and Thompson, 2014).
TASK 1
1.1 assess how business missions, visions, objectives, goals and core competencies inform
strategic planning
There are following mission, vision, objectives and core competencies of Walmart as given
below:
Mission: Walmart is a retail store its mission is to provide high quality of product to the
customer in low prices. Walmart has their store in all over the countries. The firm's mission is to
save money of people to fulfil it they provide goods and services at a lower price.
Vision: Walmart provide goods to consumers at a lower prices so that they can be in mind of
consumers. They want to be the best retailer in the whole world. Walmart gives financial benefits
to their consumers and employees by providing them good quality of products at a low prices
(Ackermann and Audretsch, 2013).
Objectives: Walmart's objective is to increase the knowledge and skills of their employees. They
want to develop their stores globally and want to fulfil needs to customers. They want to
maintain their quality and quantity of their products and services and all want to provide their
customer full satisfaction.

Goals: Firm want to achieved the desired goals within a given time period. Goals are made for
company for long term success. Goals of firm should be measurable, realistic, consistent and
challenging. It also helps to increase the image of firm and also helps to maintain the goodwill.
Core – competencies: It is strength for a firm and also help to take advantage of a business. It
helps to firm to expand the business and provide benefits to their customers (Acquaah, 2011).
1.2 analyse the factors that have to be considered when formulating strategic plans
Factors that have to be considered when formulating strategic plan: There are some factors that
should be take into consideration while making strategic plan for the firm, these factors are
mentioned as below-
Communication: Strategic plan is more successful if there is proper communication between
both employer and employee. It is necessary for all the level of management. Employer or
manager of the firm has to share the strategic plan with their employees or workers for the best
execution of plan.
Innovation: If any firm or organisation wants to survive for long term or wants to achieve long
term goals and success then they should be innovative. They should plan some strategies to
develop or create new product or make any alteration in existing product.
Culture: Every people has their own culture and in organisation every employees has their own
values, beliefs, attitudes. Some people can accept the change but some can resist or fear from the
change (Elliot, 2011). If employee of the firm thinks and believes that change is worthy and
increase growth of the firm and employee, then every employee take it as a responsibility and do
their best.
Project management: Every firm or organisation wants to develop and achieve more success. It
is very difficult to identify that which or what type of project is required to achievement of more
success and development. If employees involvement is high then employer can get rid of many
problems.
1.3 evaluate the effectiveness of techniques used when developing strategic business plans
Techniques used in development of Business plans: Plan for any business is very
important for any fir or organisation irrespective of their size or industry. Techniques which are
more effective firm has to take that and it will help them to achievement of desired results. There
are some techniques which is used to development of business plan mentioned as below-

SWOT analysis: Whenever an organisation or firm make a business plan then they need to
analysis their strength, weakness, opportunities and threats. Strengths and opportunities involve
proper planning which is internally and threats and weakness are externally (Wang and Verma,
2012).
Nominal ranking: It is a process in which there is a long list of products or items. In this
participants have to vote for their available products or items. Through this employer can easily
identify the top ranked product.
Team facilitation: The team facilitator plays an important role and he or she has to ensure that
process is going smoothly or not. In this it includes listening, positivity, constructive feedback. It
follows the step, i.e. forming, storming, norming and performing. Each and every step required
skills and abilities.
TASK 2
2.1 analyse the strategic positioning of a given organisation by carrying out an organisational
audit
It is important for a business organisation is that to scan their internal environment so that
they can determined their strength and weaknesses. In the context of Walmart, there are various
internal, factors which can influenced the business operations and its performance. In order to
understand factors cited business unit required to conduct SWOT analyses which as given below:
Strength World wide presence across Europe, South America, North America, and
other Asian countries.
They having multi store departments such as super market, hypermarket,
discount store and so on (Higgins, Omer and Phillips, 2015).
They provide a large number of goods at the lower cost which can provide
competitive advantage over its rival companies.
Walmart is highly valuable brand across the globe which can attract large
number of customers.
Weaknesses They having weak presence in various emerging markets.
The recent economic crises and global economic slowdown having a
negative impacts on the future growth and development.
Their profitability and market share are going down which can influenced

its future expansion plan.
Opportunities There are various emerging market in the world such as India, China,
Indonesia which can provide huge market opportunities for the Walmart.
Threats There are tough competition in the retail industry in the United Kingdom
market. It can leads to decrease the marker share and profitability of the
company (Tsamenyi, Sahadev and Qiao, 2011).
2.2 carry out an environmental audit for a given organisation
Business environment having a large influenced the business operation of the company.
Such environment change over a period of time which can leads to increase uncertainty in the
business operations and profitability. There are various factors which affects negatively and
positively on the business growth. PESTEL analyses of Walmart as given blow which can
understand the external environment in a effective way.
Political factors: This is one of the key factors which is related with the government stability
and business policies of a particular country. United Kingdom is one of the leading economy in
the world with $2.8 trillion. This country politically stable which can provide consistency in the
economic and business policies (Acquaah, 2013).
Economic factors: This is another key factor which is related with the economic policies and
growth indicators of the country. These factors having a large impact on the demand of goods
and services. In the context of UK, the GDP rate is 2.5 percent which is quite good as compare to
other European countries. It can provide a good opportunities for Walmart.
Social factors: It involved per capita income of the household which having a positive relation
with the demand of the products. UK per capita income is approx. 40000 which is larger as
compare to other countries. It can provide a consistent growth to the Walmart.
Technological factors: This is another factor which is related with the innovation and
technology. The cited business unit can use social media platform in order to promote firm's
products and services.
Environmental factors: Customer is more aware towards the environmental issues. Therefore,
Walmart required to use recycle packaging which can reducing the environmental impact and
create a ideal image of the company.

Legal factors: There are various laws and legislation which can be influenced the business
operations such as environmental act, competition act, minimum wage act etc.
2.3 assess the significance of stakeholder analysis when formulating new strategy
Stakeholders played a vital role in the formulating of a new strategy in order to provide
consistent growth to the business. It can involved customers, employees, suppliers, government
and society. There are the stages of stakeholders analyses which is given below:
Stage1 In the first stage of stakeholders analyses where the higher authorities required to
identifying their key stakeholders. In the context of Walmart, they having
various stakeholders such as investors, shareholders, suppliers, community,
customers and employees (Köseoglu and et. al., 2013).
Stage2 In this stage the organisation can determine interest, power, role and objectives
of their stakeholders. This is the responsibilities of the Walmart is maintain the
relationship with them.
Stage3 This is the final stage of stakeholders analyses which is related with the their use
various tools and provide relevant information to them on a regular basis.
2.4 present a new strategy for a given organisation
It is important for a business organisation is that to make their future plan and strategy in
a effective manner. In the context of Walmart, the higher authorities can use Ansoff Matrix
which can provide consistent future growth. In this strategy there are four important part which
are given below:
Market penetration: This is one of the major strategy which is related with the existing product
development. According to the Walmart case study, the marketing manager required to develop
their existing product range in a innovative way in their existing market. The main aim of this
strategy is to increase marker share (Montgomery, 2011).
Product development: In this strategy the cited business unit develop new products in to their
existing market.
Market development: This is one of the key strategy where the business organisation introduce
their products and services in to new market. Walmart required to enter in to the emerging
market like India and China so that they can maintain their profitability and market share.

Diversification: It is related with the diversifying the business into various sectors which can
help to sustain in the market. The cited business unit can diversify their business in to food and
cafe which can help to increase market share in a effective way (Peteraf, Gamble and Thompson
2014).
TASK 3
3.1 analyse the appropriateness of alternative strategies relating to market entry, substantive
growth, limited growth or retrenchment for a given organisation
Strategies relating to market entry: There are lots of strategies available to enter in the
foreign market. There are lots of ways through which an organisation can enter in market, these
are mentioned as below-
Direct exporting: In this organisation can sell their products or goods direct to the other
countries.
Buying a company: It is the best way to enter into the market, organisation can buy a company of
the same business. It is a costly method but it provide status and helps to increase market share.
Strategies related to substantive growth: Every business or organisation want more
growth but for this they do not want to use amount and more risk. If company grows very fastly
then they have to maintain all their costs, resources, quality and quantity of their products. If
company grows then there market share price is also increases. If organisation or company want
growth then they need to develop their products and reduce the cost.
Strategies related to limited growth or retrenchment: If an organisation or company
want limited growth then they provide their more services to their existing customers only.
Strategies related to retrenchment: Any company or organisation use this strategy to reduce
their one or more operational activity. They do that because they want to cut down the expenses
and want to be more stable in finance (Ackermann, Sand Audretsch, 2013).

3.2 Justify the selection of a strategy
As per the above mentioned strategies the cited business organisation can be select direct
exporting. It can help to enter in to the new market which can help to sustain in the market in a
effective manner. Direct exporting is the best way to enter in the market and company can sell
their products according to the customer wants and needs. The person or organisation who is
engaged in the direct exporting is liable for everything such as research, distribution, shipment
etc. It help to eliminate the intermediaries and helps to increasing more profit. There is no
interference of any other people (Acquaah, 2011). The person or organisation who export
directly their customers know them very well and personally. And customers also know the
person to whom they purchase the goods and products. The person is only liable for his or her
products and services. Person or organisation can direct get the feedback from their customers. It
helps to create trust and better understanding among them. They are doing direct exporting so
that they can appoint some people also in foreign country for help. This method is very useful to
enter in the market. People can also take help of social sites such as – Facebook, Instagram,
Pinterest etc.
TASK 4
4.1 assess the roles and responsibilities of personnel who are charged with strategy
implementation
In the any type of organization manage the all activities and works by the HR manger. In
the wall mart company's of manager has manage and control all employees and activities. HR
Illustration 1: Retrenchment strategy

manger play a key role in the organization development and increase productivity of the
company (Montgomery,2011). There are some roles and responsibilities of personnel in the
strategy implementation those are follows:
Administrative role: Administrative role include various role and activities those play by the
HR mangers like policy formations, implementations, records and maintenance records, welfare
of employees etc. (Elliot, 2011).
Policy maker: HR mangers through make some rules and policies those have to be follow by the
all employees in the company. It should be require to be effective in the nature.
Administrative experts: They are also experts in the keeping records and maintain time to time
data. Administrative experts the also help to answering the questions and try to remove all
rejected data from the company's records (Peteraf,Gamble,and Thompson 2014).
Advisor: HR mangers are also a advisor for the managers, head of the company and also for the
employees. Those are give the advices to the employees if their has any issues and problems.
Operational Role: Operational roles include activities like recruiting, training, selecting, and
developing the employees for the organisation and achieve the targets and set a broad image in
the market of wallmart. Operational role are reps rent the identification and selection of the
employees for the work in the company and help to increase working efficiency and
productivity.
4.2 analyse the estimated resource requirements for implementing a new strategy for a given
organisation
For the development of the wall need various types of resources those are help to be
increase productivity and efficiency of works. So it can be improve image in the market and easy
to beat competitors. So resource are the important in the organization development. We have to
be decide a new and effective strategy for the wallmart then we can implementation in the
organization the achieve the targets and objectives. There are few resources those are require to
implement a new strategy in the wallmart:
Human resources and manpower: Human resources and man power through done all activities
and works on the decided time period. Human resources are help to achieve targets and
objectives of the company and increase productivity also. Human resources and man power are
important element for the any type of organisation. Without human resource a company can not

be survive in the market and can not be produce any type of goods (Ackermann, Sand Audretsch,
2013).
Financial resources: Financial resources are the another resources to implement a new strategy
in the wallmart. So, its a require to does any activity and survival in the market. Capital of the
company, Total revenue, cash flow, fund flow, profits etc. are represent then company status.
With finance we cannot purchase any machine, resources and materials for the increase
production of the wallmart company (Business Strategy, 2016).
Information and knowledge resources: Information and knowledge resources through
understand properly and adopt actual or useful strategy for the wallmart.
4.3 evaluate the contribution of SMART targets to the achievement of strategy implementation in
a given organisation.
SMART targets to achieve of strategy in the wallmart, SMART targets means clarify and
identify the actual objective and goal of the company after that adopt a new strategy for
improving the productivity and increase the efficiency of the work. SMART target help to decide
a way to achieve the objective of the company and by this target their has more chances to
achieve it.
S- Specific: Strategies should be specific, simple and significant in the nature. Because strategy
for the wallmart its help to define and easy to understanding them.
M- Measurable: Strategies should be specific and simple also it should be measurable or
motivating for the company and employees (Corporate and Business Strategy, 2017).
A- Achievable: companies objectives and goals should be in the nature achievable and attainable
by the employees.
R- Relevant: Strategies should be relevant and realistic in the nature. If in case its fake in the
nature so its not applying in the company.
T- Time bound: strategies are time bound and also cost limited by the company. If that strategies
has time limits are not that much large so that type of strategies are easy to understand by the
employees.

CONCLUSION
As per the above mentioned report it has been concluded that to attain the goals and
objectives of any company organisation has to prepare a plan to reduce the cost and maximise
the profits. In this report, it is mentioned that what factors has to be considered while making the
plan for the organisation. Techniques which can be used by firm to development. About the
strategic position and environmental audit and also make new strategy for this organisation
(Walmart). By which method an organisation or firm can enter into the market i.e. Joint venture,
Franchising, Exporting, Licensing etc. and in this we choose direct marketing strategy to enter in
the market. In this it is also described that how we make a plan and implement and evaluate it.

REFERENCES
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Online
Business Strategy. 2016. [Online]. Available through:
<https://www.mooc-list.com/tags/business-strategy>. [Accessed on 12th April, 2017].
Corporate and Business Strategy. 2017. [Online]. Available through:
<http://www.ricardo.com/en-GB/What-we-do/Ricardo-Strategic-Consulting/Service-
Offering1/Strategy/>. [Accessed on 12th April, 2017].