Organization: Wal-Mart Stores, Inc.
1. Review and analyze the vision and mission statement. Is the company following the stated vision and mission?
Mission: “Our mission is to enhance and integrate our supplier diversity programs into all of our procurement practices and to be an advocate for minority- and women owned businesses.”
Since Wal-Mart store, Inc. establishment by Sam Walton, it has tried to align itself with its mission which has prompted it to establish numerous branches across American states. This is possible due to its popularity in aiming at the welfare of its clients, which is stressed by its mission. According to the core aim of a mission to an organization, is to distinguish it from other same operating businesses. This is maintained by Wal-Mart where their focal aim is to cater for the minority (mainly the average buyers) and empowering the women economically, thus developing them.
Vision: “we save people’s money so that they can live better.”
Wal-Mart besides the organization having other diverse vision declarations in other regions, it has kept this vision. Though, many times the main vision statement may not be implemented intensively, like statements which take care of welfare of its clients are deployed. These range from motivating executive via workers to the execution of their roles in service to their clients which Wal-Mart effectively complies.
2. Complete an external assessment, utilizing Porter’s model for a competitive analysis.
Suppliers’ negotiating power: low to medium pressure
Wal-Mart dominates enormous bargaining power than its competitors due to the big share it posses. It offers business to numerous wholesalers plus manufacturers opposed to its competitors. It also deals with big suppliers like Proctor and coca-cola who posses intense negotiating power than small suppliers.
Rivalry among same established enterprises: medium pressure.
In the market it has K-mart, Sears, Wal-Mart plus Target which dictates the market due to their well defined niche. Besides the Target Wal-Mart’s operations are not affected by the other three since it has advantage over them.
Client’s negotiating power: low pressure.
The client has diminutive pressure on Wal-Mart, where client’s representatives have greatly complained concerning Wal-Mart’s pricing criteria. This has prompted to some clients buying from the competitors but convenience is lost.
Substitute products:
In this criterion, it has low pressure. Since the market lacks numerous marketers who operate at low prices like Wal-Mart, thus being convenient to the clients.
Probable competitors: Average pressure.
The entry barrier is too high for other enterprises to venture into the market since Wal-Mart is well reputed with strong areas. These comprise effective distribution systems plus cost advantage over its competitors.
3. Evaluate the organization’s Intensive Strategy, in the areas of Market Penetration, Market Development and Product Development.
Wal-Mart enjoys an enormous market share which is augmenting at a rapid pace compared to other organizations especially in the corporate America. January estimates of the firm’s market penetration/share stands as 11.3% out of $3Trillion corporate retail market.
Wal-Mart’s Market development currently is increasing with diverse and effective expertise due to its competitive personnel especially the directors. Strategists targets at venturing in Europe and intensely in US neighbors.
The product development is quite advanced compared to its competitors who are almost to the verge of winning Wal-Mart over but plans are underway to improve the strategy.
4. Construct a SWOT analysis for the organization.
Strengths Weaknesses
• Good reputation for convenience, sound services and goods.
• High competence over its competitors.
• Focused strategy steered by competent human resource.
• Strong base of establishment. • Lacks flexibility in its market operations.
• Has invested in few states to boast of acquiring big market in the coming short period.
• It practices monopoly type of market.
• Unsuccessful in investing European market.
Opportunities Threats
• Diminishing global market barriers.
• Big market investment globally.
• Augmented client’s buying power.
• Organized retail. • Being at the top, Wal-Mart is the target of competition.
• Wal-Mart is global retailer hence weak to political problems once encountered.
• Has low cost of production, thus leading to compromised goods’ quality.
• Terrorism.
5. Review your research and based on your conclusions, what corporate strategy would you recommend for the next five years of operations?
Wal-Mart in its operations needs to apply sound and effective business strategy which will enable it to penetrate European market and invest intensively in the neighboring states. Since, most of its opponents have started extending in the external market where Wal-Mart is not strong.
Reference
David, F. R. (2008). Strategic management: concepts, 12 Ed. United States of America. Prentice Hall.
