Strategic Management Report: Walmart's Strengths and Weaknesses

This report provides a strategic management analysis of Walmart, a multinational retail corporation. It begins with an introduction to strategic management and its importance, followed by an analysis of Walmart's strengths and weaknesses at national and global levels. The report then identifies key issues facing companies in the industry, national, and global contexts, including ethical, competitive, and management challenges. It explores innovation, the internal and external environments, and their influence on Walmart, including a SWOT analysis and a PESTLE analysis. The report also includes an evaluation of Walmart's performance, strategic plan proposals, and a reflection on the module. Overall, the report examines Walmart's strategies, challenges, and opportunities in the dynamic business environment.

Strategic
management

Table of Contents
INTRODUCTION...........................................................................................................................1
Advise 1...........................................................................................................................................1
Walmart organisation along analysis of its strength and weaknesses at national and global
level..............................................................................................................................................2
Advise 2...........................................................................................................................................3
Key issues that are facing by companies at an industry, national and global level ....................3
Key issues facing by company at an industry, national and global level...................................3
Advise 3...........................................................................................................................................5
Innovation, internal and external environment and influence ....................................................5
Assessment 2....................................................................................................................................7
PART A (1)......................................................................................................................................7
Critically evaluation of the performance of selected company by highlighting on competitive
strength, market position and areas .............................................................................................7
PART A...........................................................................................................................................9
Propose of strategic plan by using appropriate tool ....................................................................9
PART B..........................................................................................................................................12
Reflection on module ................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCE ................................................................................................................................14

INTRODUCTION
Strategic management is defined as important activity of organization that involves
various functions and task which are required to be complete on time and develop the
organizational performance. This is important for all organization to analysis the activities then
bring the changes which can help to develop the company productivity and profitability. A
business is started with minimum resources and capital where a person is required to adopt
innovation as well as changes that develop the business organization and attain the higher
productivity (Schilling and Shankar, 2019). To understand about strategic management Walmart
has been selected that is American multinational retail corporation, operating business by
formulating effective plan and strategies which can help to operate the business and attain the
competitive advantages. The report is categorised in two assessment where first is about
discussion of company, skills in analysing key issues, innovation by involving internal and
external environment. The assessment two covers performance of selected company, evaluation
of strategic plan and online learning activities.
Advise 1
Walmart organisation along analysis of its strength and weaknesses at national and global level
Walmart is large retailing firm which operated at global scale. It is affected by both
national and intentional business environment at wider approach. It is essential for them to be
aware about areas which are strong & which needs improvements at larger scale. At both level,
they uses different strategies, resources depending upon geographical locations. So, strength &
weakness of Walmart has been discussed below-
At national level
Strength-
Main strength of Walmart is that it is easier for them to market their brand due to excess
of information abut their targetted market for business. This is because of their large network
channel in home country ( U.K) (Colacicco, 2018).
Another strength of company is that they have high level of efficient supply chain.
Through this, they are able to distribute their products in most efficient manner.
Weakness-

Due to changing needs and demands, shift of customers towards other brands like Tesco,
Sainsbury, it is difficult for them to increase their profit margin at higher scale. It also leads to
wastage of resources.
Another weakness of chosen firm is that it is not possible for them to expand their
business at wider scale to access new opportunities due to increased changing frequency level of
market.
Furthermore, with enhanced entrants of new businesses in home country, they are loosing
their customers. It leads to low generating of profit and sales revenue (Courtemanche, 2019).
At global level
Strength-
At international aspects, company is able to gain more new information regarding
retailing industry & access to new opportunities effectively as they have skilled employees in
business.
Then, they have strong financial resources within international market which are used by
them for future business expansion of activities (Muda, 2018).
Main strength of company in international level is that they uses international expansion
strategy for their business through which they are able to grow and develop in effective manner.
It also makes it easier for them to achieve goals as well as objectives in appropriate way.
Weakness-
As they operate at international level, their weakness is that it is difficult for them to
change their HR policies on their own because in different countries different laws are being
applied according to which rules, regulations are being followed.
Furthermore, due to international marketing activities they have to carry out recruitment
activities abroad which increases their cost structure & disturbs work environment. Therefore, it
is seen that they have to more financial resources for business which is difficult for business.
Moreover, due to ongoing pandemic situations they are unable to make decisions for
employees appraisal, promotions, etc. It is also increasing their employee turnover rate because
of laving of jobs by subordinates at higher scale (Salman, 2018).
Therefore, above discussed paragraph states that chosen firm is multinational firm
that operates at both national as well as international level. Also, it is duty of manager to make

assure proper analysis is being made which helps in making effective decisions within business
environment.
Advise 2
Key issues that are facing by companies at an industry, national and global level
In business environment, there are many organizations which are running at global,
domestic and national level by managing all functions and arranging the human resources which
helps to develop the organizational productivity.
Key issues facing by company at an industry, national and global level
In both national and global level Walmart has faced several issues and criticize by groups
of the people and individuals for different reason. In context of selected firm, it is facing the
ethical, competitive & management issues in prospect of different factors at national and global
level. In ethical terms it has been criticized or accused for the sexual discrimination, off clock
work, child lobar and etc. in global level chosen entity has faced the businesses existences and
survival problem. In some cases firm is accuse for the poor work environment along with the
lake of techniques for understaffed stores. In Japan and china, company has faced major issues to
compete and survive at competitive market, one of the issue was unsatisfactory product and
services for customers (Salman, 2018).
Allegation of predatory pricing strategy's: In Germany, selected firm was criticize for
its low cast pricing strategy, in 2003. From the 1995 to till now there are the multiple cases of
accused on organisation for their low cost pricing strategy. In 1995 The chosen corporation is
accused by American Drugs, inc., they accused that enterprise is selling their product at very low
price for the destruction of competition from the market. In 2006, company was accused for the
use of monopoly power where they use it for forcing their suppliers in order to self defat
(Xinyang, 2019).
Wages: In relation of selected entity, they uses the lower labour pay strategy's and
manger define the payroll according to the ability of workers. It has been reported that
employees of Moreover, company in 2006 earned the average amount of salary $ 10.11 per hour,
and according to the human rights watch it has been analysed that it is below to the average
salary of other discount department stores. The worker of super centers and grocery stores are
estimated to earn the average salary between $10.56 to $11.13. In China on 1 of July 2016

undertaken entity faced the unofficial strike from the side their workers. That strike was against
the company working hours scheduling system, where they protested for its 174 hours of
working without extra pay of their overtime work. 2016 in the revert of China firm workers
strike management agreed to consider their protest. In 2018 Walmart decided to provide the
increased minimum wages for their U. S. workers at the range of $11 per hours (Yang, 2019).
Child labour: In US, entity is accused for the child labour, where it was blamed for the
young age children’s working at the firm of Burberry supply, where it supply to the enterprise
company. Then corporation paid the fine charges of $135,540 in the case of child labour.
Gender and sexuality discrimination: Organisation was accused for gender-
discrimination in 2007. It was criticize for discrimination in the females salary and promotion
strategy's. Chosen organisation faced the issues for its promotion and salary structure for their
employees in terms of their gender. So, in case of managing this accused selected entity
announced that female and gay employees can meet in headquarters of firm in Bentoville in
order to discus the company promotion strategy's.
Advise 3
Innovation, internal and external environment and influence
Innovation is the main activity of organization which can help to influence the number of
customers by introducing variety of products and services. It is important for business industry to
analysis the internal and external environment that helps to increase the insights as what factors
might be affect the organizational performance In relation to Walmart, management is playing an
important role as they analysis the environment and bring the changes accordingly which can
help to develop the business productivity (Wang, Wang, Liu, Cheng and Chen, 2020).
Innovation introduced by organization
Walmart is large size supermarket that is providing variety of products and services in
changing environment that helps to increase sales and productivity. The organization is using
new technology and innovation such as Mobile Upgrades that make easier way for customers to
booking products and get the home delivery. This increases the satisfaction level of people who
buys the products and services on regularly. The management are also introducing chatbots
feature to their customers which can be used by putting the query and getting the answer
instantly which increases organizational performance (Rustamadji and Omar, 2019).

Internal environment
This environment is composed of elements in the organization by involving current
employees, management, customers and others who are playing important role as they perform
their all functions and activities accurately. The internal environment analysis in relation to
Walmart is defined below:
SWOT analysis of Walmart
Strength Weakness
 Walmart is maintaining leading
position in international retail industry
that provides variety of products.
 The management is bringing innovation
and new technology that can help to
operate the business.
 This is maintaining high efficiency of
supply chain by delivering better
quality of products.
 The organization is earning less profits
as adoption of cost leadership strategy.
 The business model is so much easy to
copy that might be create the challenge.
 This reflects on business vulnerability
to innovative competitor and
disruptions in the industry environment.
Opportunities Threats
 The organization is having global size
as it is operating as multinational
country (Sax and Andersen, 2019).
 The business is expanding in
developing countries by focusing on
innovation and growth.
 This helps to bring the quality
standards in their products that
influence number of customers.
 Less focus on healthy lifestyle trend
that might be switch the customers
towards other brand.
 Online retailers at various size that
reduces the customers attraction.
 Changing in customers demand and
needs.
External environment -
This can be explained as sum of important outsider factors which arises while operating
the business and know which factor have negative impacts. It has been seen that business must

act or react to keep up its flow of operations. This environment influence the environment of
Walmart as it operating business at international level that are as explained:
PESTLE analysis: Number of factors and activities are involved in Pestle analysis that should be
involved by organization while operation as it helps to know how factors are affecting
organizational performance.
Political: This involves tax rates, fiscal rate, government stability and regulation which
are decided by government of different country. Walmart is taking opportunity by following this
factor as it is operating its business in U.S and other country by following the all trade regulation
that are formulated by government which can help to operate the business effectively.
Economical: This factor is related to inflation, interest, GDP and other factors which are
affecting the business. As Pandemic (Covid-19) has occurred in whole world where government
has stopped to continue their all selling and marketing activities. This factor has influenced the
Walmart and other business negatively as their sales and profitability has been reduced due to
Pandemic. Moreover, employment rate in country has been reduced which has created the
problem for customers to buy the products as resulting lower sales.
Social: The needs and wants of customers are changing where it is important for
organization to provide the products and services accordingly. Walmart is affected negatively as
it operated business in multiple country and store where people belongs to different culture. So it
is difficult for organization to operate their business (Opałka and Jarosiński, 2019).
Technological: By using this factor Walmart is introducing new products and services
such as chatbots, digital entry, mobile upgrading which make easier way for customers to buy
the products and services. This can help to develop the organizational productivity and sales by
increasing number of individuals.
Legal: In this factor, all regulations which are formulated by government of country
where Walmart is operating their business, following that have given the opportunity to regulate
and operate the business effectively by managing all functions and activities (Mungi, 2020).
Environmental: This can be explained as important factor which is following by
Walmart by reducing carbon emission, increasing number of plant, and maintaining ethical
practices which supports to run the business and attain the competitive advantages effectively.

Thus, from the above analysis it has explained that Walmart is driving innovation and
changes in their dynamic environment which influences the number of customers and develop
the organizational performance.
Assessment 2
PART A (1)
Critically evaluation of the performance of selected company by highlighting on competitive
strength, market position and areas
Walmart is larger size supermarket that is providing variety of products and services to
their customers which fills their demand and develop the organizational performance. For
organization it is important to measure their performance by using different tools and techniques
which can help to formulate the planning and strategies to bring the change and attain the higher
profitability. To analysis the performance of Walmart by knowing competitive strength and
market position are researched by management that can help to operate and manage the all
functions as well as activities in competitive environment (Yoder, 2019).
Competitive strength
It is America's favourite brand in retail sector as it is selling the better quality of products
at lower prices than their competitors. This has continued its operation globally as having more
than 11,700 stores where it is employing more than 2.3 million people. The financial strength in
2014 was 2.4 billion that is increasing continuously as in 2017 it was 2.9 billion that means sales
and profitability ratio of organization is increasing. The market share of organization are
increasing as it is providing good quality of products at low prices and delivering better customer
services which helps to maintain the good position in market.
Financial performance of Walmart

From the above ratio analysis, and financial statement such as income statement and
balance sheet it has explained as quick ratio of Walmart is 0.23, current ratio is 0.84 and interest
coverage ratio is 11.98 which is higher than last years. Other than this, Debt/Equity ratio of
organization is 0.84 that helps to increase organizational sales and profitability. The management
are operating their business by offering better quality of products and services in changing
environment. This can be explained as by knowing the financial performance of company,
management formulated different strategies which helps to bring the new changes and develop
the business productivity. Having good current ratio and quick ratio is beneficial for organization
as it states the current assets and liquid assents of organization which are available and
influencing the number of people by operating the business effectively (Financial performance
of Walmart, 2020).
It has been seen that Walmart is having higher position and brand image which provides
the sustainability in changing environment by offering better quality of products and services.
The profitability ratio of selected organization is increasing as it is generating sales by

influencing number of people and maintaining low pricing strategy which deliver the higher
productivity (Raymond and et.al., 2019).
PART A
Propose of strategic plan by using appropriate tool
Strategic plan can be defined as important document and strategy of organization which
is formulated by management in order to operate their business and increase the organizational
performance in competitive environment. In above area, it has analysed that financial strength of
company is good as marketing manager conduct the proper research and bring the innovation and
new products that influences number of people and deliver the higher profitability. A strategic
plan is formulated by management of Walmart for the purpose of increasing brand awareness so
organization is planning to introduce robotics functions in store collecting information, making
sure prices of products is up to date, knowing products which are out of stock, shelf tags are
accurate and others that will help to manage all functions effectively. Thus, a strategic plan is
stated below:
Executive Summary Walmart is American multinational company which is providing
variety of products and services which can help to develop the
organizational performance. The organization is planning to introduce
Robotics in their organization by using new technology that will help
to collect information about stock, checking availability, tags
updating and tracking the overstock items which maintain higher
sales and productivity.
Vision “To be the best retailer in the hearts and minds of consumers and
employees” To be the top player in retail industry.
Mission “To save people money so they can live better”
Objectives  To increase the number of selling products in large
geographical area within 2022.
 To attain the higher market share than competitors within
2022.
 To operate the business continuously by introducing new

technology and innovation.
 To maintain good position in retailing sector and manage the
all performance.
Strategy
 Low pricing strategy: This is effective strategy which can be
use by Walmart in order to influence the number of people
and increase the organizational sales in competitive market.
As customers are price sensitive who wants better quality of
products at low prices so, this strategy is beneficial for
organization.
 Marketing mix: This is another strategy which can be used by
chosen organization by introducing new and innovative
products, at different places, by using different channel of
promotion and at reasonable prices which helps to reach the
targeted customers and attain the profitability (Abdullah,
2020).
 Communication strategy: This can be explained as important
strategy which can be use by management to share the
information and messages which are related to new products
and innovation that attracts the large number of people and
attain good image.
Measuring KPI : This is effective tool which can be uses by organization in
order to measure and evaluate the performance of company. In this,
researcher is analysis financial and non financial performance of
company which can help to take right action and increase the
organizational performance (Kerridge and Simpson, 2019).
Benchmarking: This is another tool which can be use by
organization to analyse the performance by comparing with other
company that can help to formulate the planning accordingly and
attain the competitive advantages. Such as Walmart can be use such
strategy by comparing with Sainsbury, Amazon, and others that

provide effective results and develop higher performance.
Controlling After comparing the strategic plan which are formulated by
management can be control by management that supports to complete
the task in certain time and attain the competitive advantages.
Porter's Five forces: This is a model which can be uses by organization to analysis the
competition and bring the uses of effective strategy which can help to operate the business and
develop higher performance.
Bargaining power of buyers – This means how easy customers are buying the products
by reducing the prices of products and services. In relation to Walmart, bargaining power of
buyers is low as organization is providing better quality of products and services in changing
environment. This provides the good business opportunity as number of customers increases in
changing environment.
Bargaining power of suppliers – This means how suppliers are providing products and
influencing the number of customers or distributors. In relation to Walmart, bargaining power of
suppliers is moderate, as it is operating business in American country where is less suppliers who
are providing products by maintaining quality standard. In case, prices of products have
increased by suppliers then selected organization can face the challenge of high paying amount
for running their business.
Threat of substitutes – This means availability of substitution of products which are
providing by organization. There is moderate threat of substitution in case of Walmart, that can
be opportunity and threat for organization to run their business in competitive environment
(Tatoglu and et.al., 2020).
Threat of competitors – This states how many competitors are exists in changing
environment and how all activities are running which can help to operate the business
effectively. The competitor of Walmart are Amazon, Sainsbury, Tesco and others that might be
create the challenge for business.
Threat of new entrants – This can be explained as important aspect that involves
entrance of new comers in market that can create challenge for organization. In relation to
Walmart, threat of new entrance is average that can help chosen organization to run their

business by introducing new products and retain their potential customers effectively (Krutova
and et.al., 2020).
Therefore, Walmart is using the porter's model by analysing the all information and
formulating effective planning which can help to develop the business. To reduce the threat of
competitor and substitution, organization is formulating the lower pricing and promotional
strategy that will attracts the number of customers and profitability.
PART B
Reflection on module
The module which I learn while studying, improved my knowledge and skills in the area
of running a business. I started to take part in workshop and e-learning activities which
developed own skills and capabilities that provide the opportunity to get good future
employment. I learnt from this module that how to analysis the performance and formulate the
effective planning which can help to develop the organizational performance. To know the
holistic view of organization in different market different models can be used by me which
increases the insights how I can provide the competitive advantage to organization.
I analysed that my communication and thinking skills are good as I managed the all
activities and functions which is assigned by my tutor while learning. I learnt that strategies are
very important for any person as it provide the understanding how individuals and group of
people can develop their area of knowledge and how all performance could be manage
effectively. This learning is most beneficial for me as whenever I will apply in any organization
or establish own business my knowledge and practice could help to operate the all activities
effectively and manage all functions. Learning is the part of increasing personal and professional
skills in business field that make confidence of people that they are able to work. From this
learning, my confidence skills and motivation skills have been improved which was not good
before learning. Thus, learning has created the many opportunity for me that will provide good
opportunity in future by focusing on goals and task.
CONCLUSION
From the report it can be concluded that strategic management is the important activity
which should be formulated by management after analysing the performance and activities which
can help to develop the performance. If all functions and activities are organised effectively then

it would be opportunity to attain the higher performance. For analysing internal and external
environment PESTLE, and SWOT analysis is uses by management that increases the insights
that which factor have negative impacts on organization.

REFERENCE
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Competitive strength and market position of Walmart. 2020. [Online]. Available through:
<https://notesmatic.com/2018/03/11711/>
Financial performance of Walmart. 2020. [Online]. Available through:
<https://www.morningstar.com/stocks/xnys/wmt/financials>