Strategic Business Analysis: A Case Study of Walmart's Strategy

This report offers a comprehensive analysis of Walmart's business strategy, beginning with an overview of its mission, vision, objectives, and core competencies. It delves into the internal and external factors influencing Walmart's strategic planning, including political, economic, social, and technological considerations, and explores the techniques used in developing strategic business plans, particularly SWOT analysis. The report then examines Walmart's strategic position through organizational audits, PESTLE analysis, and stakeholder analysis, assessing the role of stakeholders in formulating new strategies. It proceeds to evaluate the appropriateness of alternative strategies, with a focus on Walmart's intensive strategies, and discusses the roles and responsibilities for strategy implementation, the resources required, and the contribution of SMART targets. The analysis highlights Walmart's competitive advantages, its responses to market dynamics, and its strategies for sustained performance within the retail industry, providing a deep dive into the company's strategic decision-making processes.

Business Strategy
of
Wal Mart

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
Q.1 Assessing Wal Mart mission, visions, objectives, goals and core competencies......................3
Q.2 Factors that are consider by Walmart need to formulate strategic plans...................................3
Q.3 Techniques used to developing strategic business plan............................................................4
TASK 2.................................................................................................................................................4
Q.4 Strategic position of Walmart by carrying out Organisational audit.........................................4
Q.5 PESTLE analysis of Walmart...................................................................................................5
Q.6 Role of stakeholder analysis in formulating new strategy........................................................6
TASK 3.................................................................................................................................................6
Q. 7 Appropriateness of alternative strategies.................................................................................6
Q.8 Justification of Walmart's Intensive Strategies........................................................................7
TASK 4.................................................................................................................................................8
Q.9 Role and responsibility for implementing strategy...................................................................8
Q.10 Resources required for making strategic planning..................................................................8
Q.11 Contribution of SMART target for strategy implementation..................................................9
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
Strategic planning and analysing of strategies take a emerging view of performance and by
making an effective strategic plan it will set up an objective and creating a sustained performance
according to the condition of the organisation. By making an effective business strategy, it achieve
advantage of organisation, to accept the challenges of resources so that it will meet the need of
markets.
By follow up such business strategy in Walmart stores, which is an international retailing
corporation that provides many products such electronic, movies, home & furniture, clothing,
footwear, health care products , toys , craft and grocery or party items etc. Walmart also provides
Walmart-2 walmart, WalmartMoney card services to there customers. It was founded in Arkansas in
1962. Its annual revenues is increases and now it have 485 billion dollar is 2015(Parnell, 2010).
TASK 1
Q.1 Assessing Wal Mart mission, visions, objectives, goals and core competencies
Walmart is the largest retailer in the world which having high revenue and large number of
employees. Walmart mission in to save people's money so that they can live better. Consumers also
save there money because they have offer low selling prices. The company also have there vision,
that Walmart have an aim to achieve top position in the retail industry The company also make an
eye set to the customers mind on the basis of financial benefit.
Walmart main objective is to focus in cost. Firm focus in maintaining low prices of goods
and services. So that it make the operating cost low. Walmart also has there competitive advantage
because of many core- competencies. In core competencies of Walmart, it mainly focus on
providing products at lower prices. Another advantage is that Walmart have employed hard
working, efficient and process oriented employees and also using better techniques which help to
connect the supplier and partners. It implement in time inventory process to decreases the cost of
managing inventory at Warehouses. Walmart also uses there intensive strategies by using market
penetration, to developing the market and also develop the products(Grover and Kohli,2013).
Hence Walmart have there core-competencies like employees, cost efficient process and
relationship with suppliers and partners by using new technologies(Nordqvist and Melin, 2010).
Q.2 Factors that are consider by Walmart need to formulate strategic plans
There are two type factors such as internal factor and external factor. In Internal factors in
includes all those things which are related to the organisation internally such as organisation culture,
ethics, policies and strategies. But in External factors, it includes all those factors which make an
affect the effective planning by outside. It includes:
Political factors- To formulate an effective strategic plans political factors such as Govt.
rules and law are effected in it. Government can increase the tax rate, VAT or decreases also. So that
all this political factors will also affect the formulation of strategic plans.

Economical factors- In economical factors it includes wealth of the country and also the
ability of customers to buy the particular products. It also include the exchange rate of currency, all
this factors are related to economy of the country. So that Walmart also considered such factor to
make an strategic plan.
Social factors- Social factors include the taste and demand of customers that what there
preference to the products, culture and beliefs of society and there size etc. are factors which
Walmart have to considered to make a strategic plan.
Technological factors- While making an effective strategic plan Walmart also considered the
technological factors because organisation is always related to changing environment. So that due to
change in technology will also make an impact of organisational activity. For example: using of
GPRS phone is also a technological factor that affect the strategic plan of Walmart
company(Liedtka,2010).
Q.3 Techniques used to developing strategic business plan
To developing the strategic business plan best techniques used by Walmart is to analysis
there SWOT. In SWOT analysis it include there strength, weakness, opportunity and threat. So that
Walmart can develop an effective business plan.
Strength- Walmart have a experience of 70 years and has been one of the largest retailer in
the world. Walmart also provide products in low price to the customer. It also make there
diversification to large super centre to local and mall based sites.
Weakness- Walmart faces lack of loyalty because employees work in Walmart with lower
benefit, so there will be high labour turnover. Nowadays Walmart also face criticized by giving
negative publicity.
Opportunity- Walmart have opportunity to make a global growth to enter into a new market.
They haver also an opportunity to make an approaches in online shopping sectors by providing
convince of shopping for there customers at homes. They also produce healthy and organic products
to achieve high opportunity chances.
Threats- Walmart have to face in future some kind of political problems and intense price
competition is a threat of Walmart. Many small business dislike Walmart activity so that it will also
create the threat for the Walmart.
Hence, by focusing on this techniques Walmart can make an effective business strategic
plans for there growth(Verreynne and Meyer,2010).
TASK 2
Q.4 Strategic position of Walmart by carrying out Organisational audit
At present Walmart follow three main strategies and also make changes in there strategy
which are as follows:
Investing in customer services- Walmart try to make a better place so that to do a effective

work. In this way, company is raises there minimum wage to 9 dollar an hour and also provide 6
month training too. Company also declared fix workers schedules so that they give more time to
them. Company also increases its checkpoint promises also.
Improving groceries- Walmart is working to offer fresh produce and organic options because
consumers is more health conscious.
Letting customers shop on their terms- Walmart is working to implement its physical stores
with the digital business. In this way, Walmart also increases its grocery delivery and pick-up
tests(Nordqvist and Melin, 2010)
Above such strategies are followed by Wall mart and such strategies are now make the
company in a high rate of profits. Now a days Walmart also focus on there customers based strategy,
in this Walmart provide customer oriented products in a lower price. Hence, in such a way strategic
position of Walmart by carrying out organisational audit.
Q.5 PESTLE analysis of Walmart
Economical factors- Stability of economies or opportunity, continued growth of developing
countries and decreasing rate of unemployment in US , all such economical factors which affect the
Walmart to make growth from given opportunity.
Social factors- Healthy lifestyle trend, culture diversification and urban migration are the
social factors which give an opportunity to the Walmart. So that company also provides various
products to securing its growth.
Technological factors- It includes increasing business automation and also increasing mobile
devices which is uses among the customers are the factors which make an opportunity to the
Walmart.
Environment factors- Business sustainability trend and products which environmental
friendly are the factors which affect the Walmart activities.
Legal factors- It include food safety regulations, employment regulation and tax law reform
etc. are the legal factor which affect the Walmart activity.
Walmart Porter's five forces analysis
Intensity of competitive rivalry- There are many factors such as large number of firms in the
retail markets, large variety of retail firm and high aggressive of retail firms are the three factors that
Walmart experience in competitive rivalry in the retail industry environment(Hsieh and Chen, 2011)
Bargaining power of buyer- Walmart also analysis the such factors of large population of
buyers, high diversity of buyers and small size of individual purchases etc. are all type of weak and
strong forces which can be analysis in it.
Bargaining power of Suppliers- It includes large population of suppliers,tough competition
among suppliers and high availability of supply, all this factors are analysis by Walmart.

Threat of substitutes- It include lower variety of substitutes and there higher cost etc. are
factors which are considered by Walmart for making an strategic business plan.
Threat of new entry- It includes low cost of doing business, equal capital costs and equal
cost of brand development are the factors which are create the new entry threat of Walmart.
Q.6 Role of stakeholder analysis in formulating new strategy
Stakeholder analysis is a way to identify, analysis and responds the critical
interdependencies. It shows the active approaches to achieve the organisation's purpose.
In Walmart, manager are highly expected to relates a growing number of stakeholders that it
will help to formulate and implement the strategy easily. In this, it also analysis the degree of time
and participation of stakeholders in taking decision process. So that to make an effective strategic
plan, Walmart should always focus on that which kind of stake holder's interest is more important,
which stakeholder give the loyalty in the organisation, Walmart also look that if there is any
conditions to negotiate a compromise and should stakeholder can be replaced or not? So that in
Walmart, the role of stakeholder is important in making effective new strategy(Hamel, 2012).
TASK 3
Q. 7 Appropriateness of alternative strategies
Market entry strategies- It included following:
Merger, Acquisitions and Joint Venture- Acquisitions is also known as takeover, in which
friendly buying of one company by another is to be used. But in mergers two or more company are
merged together in way of absorption. Joint venture is a venture by a partnership to share risk or
knowledges.
Franchising- It is a process in which one person (franchiser) gives the right to other person
(franchisee) to take there name, so that it will full fill the need of customers.
Organic Growth- This is a strategy which occurs that a company can achieve by increasing
output and sales.
Substantive Growth- This include horizontal and vertical integration and diversification.
Horizontal Integration- This strategy is used when a company merges with a competitors or
minimum another company operating at the same period in the added value chain.
Vertical Integration- It is occurs when a corporation becomes its own suppliers or
distributors.
Diversification- This strategy is done when a company is decide to launch its products in a
new markets(Eccles and Krzus, 2010).
Limited Growth- It include market penetration, market development, product development and
innovations.
Market penetration- In this type of strategy organisation uses there existing products in a
existing markets.

Market Development- In this type of strategy, company can use there existing products in a
new market, it means that products are same but it will be presented in a new market.
Product Development- In this type of strategy company can replace its old product with its
new one and after that it will be marketed to the new customers.
Innovation- This strategies includes some alternation or changes in a product or services.
Disinvestment Strategies- It include retrenchment, Divestment.
Retrenchment- This strategies is focus to cut down or reduce something in a business. It
means company can grow and increases there scale but sometimes it will be cut- down there
activities also.
Divestment- This is a such type of strategy in which a part of firm's operation are sell out of
certain product market areas.
Hence, in which we can choose Walmart's Intensive strategies also know as Intensive growth
strategies, which include Market penetration, Market development, Product development and
Innovation strategies.
Q.8 Justification of Walmart's Intensive Strategies
Market penetration- This strategy is a main intensive strategy of growth, it involves selling
of more goods and services to the current target market. Wall mart also selling more goods and
services to there consumers by giving discounts, promotion and packaging. For example, company
provide wholesale packaged goods for the consumers.
Market Development- In this Walmart entering into the new market to sell there products to
the customers other than the company those who were already has. For example, Walmart develop
new stores in a new market.
Product Development- Walmart only minimum uses of products development as an intensive
strategy of growth. In this Walmart does not invest for developing a new products, they always
trying to invest in sales and marketing. So that, product development is not an important intensive
strategy of Walmart.
Innovation- In innovation strategies, new ideas were developed in it, in this way Walmart
always try to innovate there ideas by changing there packaging, colour of the products, to achieve
there customers in large level. For example, Walmart also provide online shopping stores so that it
help to the customers to buy there products sitting at home. In this way, Walmart make many
innovation in there marketing strategies(Dong-Hun, 2010.).
So that Walmart and there strategies mainly focuses on there mission and vision statement.
In this way, company keep there mission and vision by keeping there cost at lower price, because
this is based on cost-leadership strategy. Walmart can take the pressure of global competition by
aggressive growth and expansion of the business. growth and expansion of the business.

TASK 4
Q.9 Role and responsibility for implementing strategy
Board of Director- BOD is act on behalf of shareholders to run operational work of an
organisation. They can direct the company's affair and deal with challenges and issue to corporate
governance and take the corporate responsibilities.
Leaders- Leader focus on critical task and control all over the organisation activities and
also make a co-ordination between employers and employees.
Manager- Manger is a person who manage all the activity like performing managerial
function such as planning, organizing etc.
Government- Govt. also plays an important role in making strategic plan. Govt. frame the
rules and legal procedures such as taxation policy etc.
Customers- According top the taste, preference and demand of customers, it will help to
create an effective planning.
Q.10 Resources required for making strategic planning
Human Resources- HR plays an important role in implementation of strategic
planning. Staffing level, degree of experience, flexibility, distributions, predicted turnover,
motivation, level of morale are included in human resources.
Financial resources- It includes funds, budget, cash flow that will meet the demand of
activities are included in it.
Marketing and Distribution- To make promotion of the products marketing and distribution
is important, but to make promotion of any product it will need to revenue, grants, government
funds or other sources, to help to implementation of any strategic planning.
Intangible Resources- This include goodwill. reputation and brands. All these resources are
not seen but they have there some specific value which is needs for implementing the strategic
planning in Walmart.
Monetary resources- It includes all the monetary term such as wages, salaries, bonus,
remuneration etc. which help to work by employees more effectively and efficiently in Walmart.
Front-line physical resources- For manufacturing organisation this will insure production
facilities, plant, equipment, and so on. In Walmart, the condition and capability of physical
resources inn such production and services areas must require to meet the demand. So that such
physical resources are also considered to make an effective strategic planning of an organisation.
Location- For an organisation it is not easy to change its location , so that location is also a
resources which considered in implementation of strategic business planning. (Burlton, 2010)
Prioritising Resources- It include all such type of resources which are required for a priority
issues such as human resource, policies, systems etc. All this resources which is used in prioritical
sectors are used in it.

Q.11 Contribution of SMART target for strategy implementation
In Smart target it includes specific, measurable,attainable, responsible person and time
specific in it.
Specific- In this, there were be need of such goals which are specific in manner. In Walmart,
there specific goal is to provide products and services to there customers at lower prices. It include
how much and what kind of goal are required in it.
Measurable- It refers to such goal in which goals of a company must be measurable in
quantitative manner (Scholes, 2015). For example, Walmart mainly focus on providing products at a
lower price, in this way they decide to reach at lest 20% profit by selling this kind of products.
Attainable- In this Walmart's goals can be stretch that inspire people to aim higher. In this
goal are those which are achievable.
Responsible person- In this Walmart should have to assigned a specific person who have
complete knowledge of it.
Time specific- Walmart company always focus on time that in a given period of time goal
can be accomplished by the manager. For example, in one year, two year etc.
CONCLUSION
By making this report it will be concluded that Walmart stores tries to give there best for
there customers, in this way they will create good quality of products in affordable price, so that it
will provide customers for better life.

REFERENCES
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