沃尔玛.doc

Strategic Management Case AnalysisWal-Mart Stores IncStrategic Management Case Analysis2010-6-11ContentSection 1 Introduction2A.Company background1B.Vision Statement1C.Mission Statement2D.Objectives3Section 2 External Audit4E.PESTEL4F.Opportunities & Threats 5G.CPM Matrix9H.EFE Matrix11Section 3 Internal Audit12I.Financial Ratio Analysis12J.Strengths & Weaknesses20K.IFE Matrix23L.Core Competence25Section 4 Recommendations25M.SWOT Matrix25N.SPACE Matrix27O.BCG Matrix29P. QSPM30Q. Epilogue32Wal-Mart Stores IncSection 1 IntroductionA.company backgroundWal-Mart Stores was founded by American retail legend Sam Walton in Arkansas in 1962.Forty four years later, Wal-Mart serves more than 200 million customers per week. It is the worlds largest private employer and retailer with over 2.1 million associates worldwide and more than 8,000 stores in 15 countries under 53 different banners. The Wal-Mart culture is based on three basic beliefs of Sam Walton: respect for the individual, service to your customers and strive for excellence.Wal-Mart serves customers and members more than 200 million times per week at more than 8,000 retail units under 53 different banners in 15 countries. With fiscal year 2009 sales of $401 billion, Wal-Mart employs more than 2.1 million associates worldwide. A leader in sustainability, corporate philanthropy and employment opportunity, Wal-Mart ranked first among retailers in Fortune Magazines 2009 Most Admired Companies survey.B.Vision statement1. WMT has a vision statement: To become the worldwide leader in retailing industry.2. The vision statement of our team: To become the worldwide leader in providing convenient, quality and everyday low price products to touch the customers deep heart.Wal-Mart is one of the fastest growing companies during the last two decades with the approval of their customers. So the most important external stakeholders of Wal-Mart are their customers with who they exchange value. Suppliers are another external stakeholder of Wal-Mart. War-Mart is important for their suppliers and suppliers are important for Wal-Mart. Their competitors are also stakeholders of Wal-Mart. They observe each others steps carefully and take actions against them. Financial institutions and IRS are Wal-Marts stakeholders, too. Wal-Mart manages a huge amount of money and pays an important amount of tax.The major external opportunities of Wal-Mart include the loyal customers, employees and the individuals who own shares of common stock in company. The stock has grown considerably over the past few decades. Wal-Mart has gained a valuable reputation by striving for excellence and being dedicated to their customers needs; therefore, it has become the largest retailer in the United States. C.Mission statementWal-Mart committed to improve quality of life by providing comfortable service, quality and everyday low price products. Based on the operation philosophy of respect for the individual, service to our customers and strive for excellence, Wal-Mart tries to touch the deep heart of customers, attains rapid growth for global expansion and participates Actively in various social and economic activities to share the responsibility of the world economic development. Wal-Mart also creates a progressive corporate culture, so that simultaneous development of workers and enterprises, and take pride in the enterprise.The three main: consumers, competitors and employees. Consumers have been conveniently provided not only with the use of on-line shopping to show without ever leaving home, but also with the concept of “one-stop shopping.” The Wal-Mart team is devoted to everything that Wal-Mart has accomplished as a universal competitor and is dedicated in recruiting rewarding, and rewarding employees of good moral standing by providing benefits for excellent performance, providing clean environment to work in, and by providing equal opportunity for all individuals.D.objectives1.Being the low cost leaderWal-Mart commits to deliver quality products with the lowest possible price. Mal-mart attains this in several ways, their strategy is to have multiple store formats for the different local environments, with a pledge to have every day low prices. They also carry a wide selection of products with a big percentage being name branded merchandise. Hence, in Wal-Marts future objective, they will implement this strategy as always.2.Have the highest level of customer service for customersWal-Mart stores are “user friendly” store environments, where the goal is making the customers experience satisfactory for shopping at Wal-Mart. Innovative merchandising where displays are made in house and mass produced, thus saving them money and time, they can get their design out in thirty days. Customer satisfaction is Wal-Marts everlasting pursuit, which constitutes an enterprise life.3.Become a the low-carbon and environmental protection marketWal-Mart will be giving financial support to the competition and will transform award-winning environment and innovation schemes into applicable proposals, which will be recommend to Wal-Marts suppliers or used by themselves. This will give a strong boost to the building of Wal-Marts green supply chain. It also conforms to the sustainability principle that they have been advocating.4.Improve the companys operating efficiencyWith efficiency of management, Wal-Mart can speedily master the sales and market trends and replenish stock. This measure reduces the risk of capital stocks and accelerates the capital operation speed.5.Implement global expansion strategy and increase market shareIn order to strive for future development, Wal-Mart is implementing a pro-active strategy overseas expansion. For example, Wal-Mart seeks for long-term development strategy. Therefore, they landed on the eastern developed areas in 1996, and then headed for western. Wal-Mart also focuses on one area, while keeping other areas “acceptable.” Its success centers on being a price leader in many product areas. Quality, choice and service are adequate.Section 2 External Audit E.PESTEL Political factorsEconomical factorsl Wal-Mart expaned in a strange land need hold hearings, only be approved by local residents, government and business, it can open.l When establish Sino-foreign retail business in China, every city can only set up three shops.l Wal-Marts headquarters is in the United States, the political is stable.l Foreign investment enter retail trade in china, the approval is very strict.l Since China has taken part in the WTO，the barriers of import and export have reducedl The effect of financial crisis is lasting. In this case, the first quarter of this year, Wal-Marts sales in China, Mexico and Canada are better than the United States.l The inflation makes Wal-Mart increase costs.l Chinas labor costs is relatively low, help Wal-Mart reduce the cost.l Chinas disposable income is rising.Sociological factorsTechnological factorsl Consumer habits: consumers tend to buy inexpensive products, Wal-Mart have the advantage .l Population :China has a large population, and the population is still growing.l Attitude toward authority and brand：this is an attitude of customers about how seriously do they take to the firms authority and brandl Environmental protection: the United States and other countries have relevant provision,such as the plastic limited and so on.l Social responsibility: Corporate is asked to burden some social responsibility. Wal-Mart,have a special department responsible for the companys corporate social responsibility. l Wal-mart has a quick, science, advanced information processing techniques and highly developed logistics technology, it is Wal-mars core technologies,can help Wal-mart to reduce the cost.l Wal-Mart will launch online shopping and the e-commerce business in China and Japan to expand the market share.l Wal-Mart (Wal Mart) has the worlds largest data warehouse , the data warehouse collect the stores original transaction data. Based on the original transaction data, Wal-Mart can analyse the data.Environmental factorsLegal factorsl Today, the environmental protection has become the consensus of the world, it is also a major factor affecting human development. And now Wal-Mart is committed to green marketing to contribute to the environment.l To protect the environment, china begin to limit the use of plastic bag.l Establishment of trade unions: Corporate Law stipulates that regardless of local enterprises or multinational corporations, trade unions should be established.l In tax laws：some laws which about economy and market change may affect every firml Labor Contract Law: As multinational corporations, they must follow local labor laws, legal employment, and dismissal of employees.F.Opportunities1. The global financial crisisThe global financial crisis affects the whole world. But for WMT, it causes companys sales revenue to rise, company profit ability rises.Because of the global financial crisis, consumers behavior is changing. Followed this change, WMTs marketing strategy is also changed. And WMTs sale proves that this strategy is effective.The global financial crisis led to increased competition directly. For example, WMT, TGT including many retailing are also prepared to reduce the volume and number of brands to simplify the shopping process. SHLD was ready to place self-service check computer, customers can browse their inventory, or book store has sold out of goods. In addition, retailers increased the number of exclusive sale of goods and customer service.Because of the global financial crisis, WMT improves its marketing strategy, and its slogan from Always low prices into a lowest price guaranteed market. Most of the peoples livelihood and Wal-Mart will lower prices of goods in general, to achieve parity strategy. In addition, Wal-Mart, together with suppliers constantly optimizes the supply chain, such as fruit directly to supermarkets, from a place of production, eliminating the intermediate links. 2. The development potential of Chinese marketThe growth rate of total retail sales in china is increasing. In 2001, it surpassed 10%, in 2004, it surpassed 13%, in 2007, is 15%. And in 2008, is surpassed 20%. At the present, China is already become the worlds largest mobile phone market, the domestic tourist market, the broadband market, and is the second largest gold jewelry market, auto market, the third largest luxury goods market and the health care market.If the average annual growth is increasing in 7% to 8% per year, it can be expected that the total retail sales will reach 23.3184 trillion yuan in 2020, it is WMTs opportunity3. Internet shoping growingNow the number of people who tend to buy goods on internet is growing, we can know from this chart:And we know that Wal-Mart will launch online shopping and the e-commerce business in China and Japan to expand the market share. Because of the internet shoping growing,WMT may have more opportunities.4. The full liberalization of Chinas retailUnder the WTO commitment，China has to fully open the market for investment s retail industry, and relax the policy and the decrease merger threshold for foreign retail, lowering the entry Barriers barriers to the foreign retail. 5. Enter emerging markets.In 2010, WMT plans to enter emerging markets, such as the India and some European coutry, Wal-Mart also accelerated in emerging markets, particularly Chinas large-scale expansion.(1) In China, Brazil, Mexico and Argentina and other emerging markets and developing countries, the rate of expansion was faster than Japan, the United Kingdom and Canada and other developed countries. In Wal-Marts 2009 Annual Report ,we know that in the new fiscal year , the company plans to open 550-600 new stores overseas, most shops were choosed to be opend emerging markets.(2) Wal-Marts CEO Mike Duke said that the company is seeking to expand the international market at a faster pace, to make up for the slow growth of the U.S. market.Duke said to the employees :I want to increase customers, increase store, and develop at a faster pace. 6. Environment conscious consumersUnder the present economic environment pressure, reduce energy consumption is not only the reflect of sustainable development and social responsibility of retail firms, but also the objective requirement of reducing operating costs and improving profit. And now, the awareness of environment protection is growing.This is a reserch for Chinese conscious about environment protection:1 46% of chinese people could be classified as green focused in the ranks, these are very concerned about the change of climate, the proportion of such groups in China ranked the fourth highest in the world, behind Brazil (58 %), Mexico (56%) and India (50%), but much higher than Germany (15%) and the United Kingdom (17%).2 91% of Chinese respondents believe that Climate change will change them and their families, 93% of people believe they can contribute to solve this problem. 3 93% of Chinese respondents would tend to buy the products from the business who try to reduce the impact of global warming, the proportion of the countries participating in the survey is the highest 4 In the same price, 56% of Chinese respondents willing to buy more environmentally products in the next 12 months, and 38% of people willing to pay a little more money to buy this product. This research shows us that peoples the awareness of environment protection is growing, especially in china. And WMT has do a lot to go green, so it can get more advantage from it.Threats1. Financial crisis intensifies competitionUnder the influence of the economic crisis, peoples incomes drop. Customers flock to discount stores and dollar stores. As for a retail corporation, their profits are low, therefore, its quite important for them to gain market share rapidly. The market shares decide the profits of the corporation directly. However, the latter increasingly become a threat to the existing discount stores. Because gradually they will take part of this market. 2. Rivalry among existing competitors.（1）is Wal-Marts strongest competitor for WMT in china, and compared to the Carrefour, WMT still has many disadvantages.Carrefour came in after than WMT, but in China they do the better than WMT. Because of the difference of mode of operation, the pace WMT developed in China is slowly.(2) Some new competitors is developing faster in the global, this is also a threaten for WMT, for example, the chain supermarket Auchan is expanding in China, Russia and other rapidly growing markets, Auchan has become the new global competitors for WMT.3. Rising oil prices of the world The Rising oil prices of the world has many disadvantages for the retailers in China and overseas.The low-income people become the greatest victims of high oil prices, because the rising oil prices makes the price higher than before. The Wal-Mart and other low-cost supermarkets, the sales decline had been expected.Higher oil prices on the impact of retail logistics（物流） is to enhance its logistics costs, cost reduction is to increase profits. So it is a threaten for retailing,4.Increased Diversity awarenessWe have all heard the expression that our world is shrinking. To a large extent, the strength of our economy depends on our ability to do business with countries in other parts of the world. To stay competitive in the world market, the retails must design products that meet the needs of people from other cultures. In addition, the retail must develop strategies for marketing those products to other countries.If we do not do well on the diversity awareness we may loss the customers in other country.And in the context of economic globalization, more and more companies hire staff from different countries. And these personnel also have different color, different background, different culture and so on. If we do not deal with these, we may lose lots of customers. And the most important if we can not deal with the increased diversity awareness we may have much problem in daily work.First of all, because of the increased diversity awareness there maybe more racial discrimination and gender discrimination in the routine, and these are not conducive to the companys development. And then because of the diversity awareness we may have Communication difficulties and it will slow down the speed of company plans. 5. Union pressureAs we know, the central function union （中央工会职能）can serve is to improve local working conditions and to assure that all of their members get the true market value of their services. Forming unions could be costly, because a union could fight for higher wages and benefits and companies are required to pay 2 percent payroll dues. Whats more, if their members are being treated unequally, the union will hold a strike and demonstrations to fight with the firm. That will make a loss for the company. So, the pressure from the union can really be a threat to the retail industry. WMT once said unions are not needed in its stores. it regarded unions enemies. As we know, WMTs base salaries are lower than the industrys average. So the fight between WMT and unions is very intense（激烈）. 6. Banks interchange fees out of controlInterchange fees are charged directly to the retailer from the bank that issues the credit card, th