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Organizational structure
Organizational structure
Organizational structure
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Wal-Mart Stores, Inc. Analysis Part I Strategic Direction Mission: Wal-Mart is an American based discount retailing store that implements that lower prices will result in higher sales volume, so to continue to provide customers with quality goods at everyday low prices will keep our customers satisfied and coming back. Objectives: Short Range: · To have 90% of the customers leave the store satisfied with their experience at the store. Long Range: · To be the world's largest low cost store that carries all types of merchandise for all possible consumers. · To maintain strong customer loyalty. · To increase the amount and type of stores internationally, as it is in the United States. Industry Environment - Porter's five forces of competition Rivalry of Existing Competitors: · Wal-Mart has a strong competitive advantage against its competitors Kmart and Target. · Rivalry in this industry is not as strong for the competitors compared to Wal-Mart. Barriers to Entry: · High because it is hard to form a large organization that will be competitive at the same size as Wal-Mart with such low prices. · This industry has high barriers because it is too expensive for new firms to enter and to be competitive. Substitutes: · Medium because it depends on where you live and what type of Wal-Mart stores are closer to you. · Substitutes would be going to another grocery store, a toy store, a hardware store; basically going to specialty stores instead of going to one store that has everything in one, as a Wal-Mart can. POWER of Buyers: · Weak because basically the prices are low from the beginning so there would not be any potential for buyers to bargain with. POWER of Supplies: · Weak because Wal-Mart uses its own distribution centers that are located close to its stores. · Wal-Mart is also far and away the biggest customer of virtually all of its suppliers. It's scale of operation allowed it to bargain hard with suppliers and get their bottom prices. SWOT Analysis General Strengths · Provides customers with everyday low prices. · Wal-Mart has various domestic and international stores that were served by 108 regional general merchandise and food distribution centers. · New stores were usually clustered within 200 miles of an existing distribution center so that daily deliveries could be made cost-effectively. · Wal-Mart always expands into adjoining geographic areas, saturating each area with stores before moving into new territory. · Quick to imitate good ideas and merchandising practices employed by other retailers. · Much of management's time was spent talking to vendors, employees, and customers to get ideas for how to improve the store.
Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last dime from its thousands of suppliers, who are left with no profit margin unless they adopt the Wal-Mart model of using nonunion labor and shipping production to low-wage hellholes abroad." (The Nation, March 4th 2002 www.thenation.com/doc.mhtml?i=20020304&s=hightower).
The success of Wal-Mart is so great, that many people believe that Wal-Mart is becoming a monopsony . Suppliers are forced to deal with Wal-Mart because of the large percentage of sales at Wal-Mart cash registers. As such, Wal-Mart also has the ability to dictate prices of the goods it receives from the suppliers. Every day, more and more retail stores close their doors for good because Wal-Mart controls such a huge margin of the retail sector.
Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years.
Wal-Mart now operates retail stores around the globe in three different facets: Wal-Mart Stores, Sam's Club, and International.
Walmart is the largest retailer in the world operating in various formats worldwide (including; discounts stores, supercentres, neighbourhood markets and Sam’s Club), with 3,615 stores today. Leading to consumer awareness and customer loyalties.
"Wal-Mart Stores, Inc. is the world's largest retailer, with $285.2 billion in sales in the fiscal year ending Jan. 31, 2005. The company employs 1.6 million associates worldwide through more than 3,700 facilities in the United States and more than 2,400 units in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea, and the United Kingdom. More than 138 million customers per week visit Wal-Mart stores worldwide." (Walmartfacts.com)
Walmart can give businesses success over night if they comply with all Walmart’s requests. Walmart does not care what the suppliers say or want, suppliers can only follow the Walmart rules. While they can also drop companies in seconds which have a huge impact on businesses. Rubbermaid can serve as an example of how much Walmart have control over their suppliers. The Rubbermaid company was almost put out of business because their prices were too high for walmart. Walmart does not endorse the economy, but instead they only care about whatever they can make the most profits with.
Wal-Mart supercentre has different locations like that of Garden centre, Pet shop, Pharmacy, Optical centre and Photo processing lab etc.
Wal-Mart is the world's largest retailer and second largest corporation. It is the largest private employer in the United States and Mexico. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, and the largest toy seller in the United States, with an estimated 45% of the retail toy business, having surpassed Toys"R" Us in the late 1990s. Wal-Mart has 1,929 stores which as of 2005 sales figures totaled about $155,477,000,000 in sales. Wal-Marts revenue as of 2006 was an estimated $315,654 billion USD, net income $11.231billion USD, and employs more than 1.8 million employees.1
In reference to the Five Forces Model, being the largest retailer in the world, Wal-Mart’s position is strong overall. Rivalry among competitors is fairly weak.
Another reason why thrifty and busy consumers love Walmart, is because they offer more than 5,000 locations all
The second biggest Skeleton Wal-Mart has is how their store property is un safe for employees and even customers. Over the years their has been multiple shootings, assaults , kidnaping, and rapes in the Wal-Mart aria, mainly 80% of which were in their Parking lots. But yet have done nothing to protect the customers or employees their. Also trying to cover it up and failing to turn it over in law suits.
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
for your hard earned money. Although Wal Mart and Publix both offer comparable grocery items
Wal-mart has a reputation for caring for its customers, of course their employees, and for the prospective public. So Wal-Mart can be an industrial leader for the world of shoppers with an eye for lower affordable prices, company decision makers would continue it's systematic strategies that it's founder and president established years ago. Sam Walton believed in three guiding principles in his strategy planning they were to provide the customer with good value and service, to have a good relationship with its associates, and to be involved with the community.