Strategic Management of Wal-Mart

Strategic Management of Wal-Mart

Length: 1002 words (2.9 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Introduction
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.

Vision Statement
Wal-Mart has been one of the most successful companies in the world. The success of Wal-Mart can be traced with its vision statement concerning globalization. According to Hitt, Ireland, and Hoskisson in their text book, "Strategic Management," a vision statement is a statement that describes the organization and points out what the organization wants to get in the future (19). Thus, vision statements focus on implementation of strategies and decisions which pave the way to a successful business in the future.
Wal-Mart is now operating globally, and its main vision is for additional global expansion of operation and "promotion of ownership of ethical culture" to all of its stakeholders worldwide (www.walmartstores.com). The idea of Wal-Mart’s vision on ethical culture is key in globalization. Wal-Mart has had good reputation and competitive advantage worldwide because it has been able to embrace culture and diversity in its operations across nations. In promoting ethical culture, Wal-Mart helps its customers and stakeholders to take the right decisions and to do the right thing.

Mission Statement
Currently, Wal-Mart does not have a formal mission statement, but its main mission can be tied to its (3) basic beliefs which are Respect for the Individual, Service to Customer, and Strive for Excellence (www.walmartfacts.com). Thus, based on its core values and beliefs, Wal-Mart’s mission is focused on providing exceptional services and "everyday low prices" to its customers.

How to Cite this Page

MLA Citation:
"Strategic Management of Wal-Mart." 123HelpMe.com. 25 Jan 2020
    <https://www.123helpme.com/view.asp?id=168100>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay Strategic Management of Wal-Mart

- Introduction 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....   [tags: Strategic Management]

Free Essays
1002 words (2.9 pages)

Achieving A Sustained Competitive Advantage : Online, Mobile, And Store Purchase

- Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees....   [tags: Strategic management, Amazon.com, Wal-Mart]

Research Papers
1558 words (4.5 pages)

The Business Environment Of Lidl Essay

- Introduction UK’s exit from the European Union following the Referendum on 23rd June 2016 has exerted tremendous and profound impact on UK grocery industry. Many experts warn that devalued sterling will force the prices to go up and bring a tough time for the industry. However, Lidl, a German no-frills supermarket, has emerged to be the fastest growing supermarket with a 12.2 percent increase on sales from June to August (Denton, 2016). In the early 90’s, Lidl opened its first UK store. Insisting on providing qualified products with low prices, it has expanded rapidly in UK and owns more than 640 stores now....   [tags: Marketing, Strategic management, Wal-Mart]

Research Papers
943 words (2.7 pages)

Essay on Swot Analysis : Marketing Plans

- Q 6. (a). Within the topic of marketing plans, define and discuss SWOT analysis and their application/significance in building marketing plans. (b). By using data/Websites such as Value Line, S&P NetAdvantage, and Yahoo Finance, analyze one firm from the 2016 Fortune Global 500 list and discuss its SWOT analysis (see Textbook p. 470 & Figure 14.6). In our textbook, SWOT analysis has a role to document all present and possible future influence on performance, negative or positive. (Best, 2013, p 473)....   [tags: Marketing, Brand, Strategic management, Wal-Mart]

Research Papers
1245 words (3.6 pages)

Essay on Case Study : Costco Wholesale 's Mission

- 1. Does the company’s strategy reflect the company’s mission. Explain. In order to compare Costco Wholesale’s mission to its strategy, it is essential to determine exactly what Costco’s mission is and how they plan to accomplish it through their business strategy. Costco’s mission is: The company will continue to pursue its mission of bringing the highest quality goods and services to market at the lowest possible prices while providing excellent customer service and adhering to a strict code of ethics that includes taking care of our employees and our members, respecting our suppliers, rewarding our shareholders, and seeking to be responsible corporate citizens and environmental stewards in...   [tags: Strategic management, Management, Wal-Mart]

Research Papers
805 words (2.3 pages)

Costco 's Business Model And Daily Essentials Essay

- In the current market situation where the economy is constantly on a downfall and people are doing everything that is necessary to reduce cost and save money. Food products and daily essentials are one the major contributors of cost for everyone. Especially younger generation are willing to lead a simplistic and cost effective life style to save money. Despite being the second largest retail chain in the world, 2015. And also one of the cheapest retailer in the market it is finding very hard to attract the Millennials in to their stores....   [tags: Strategic management, SWOT analysis, Wal-Mart]

Research Papers
1786 words (5.1 pages)

Wal-Mart Strategic Analysis Essay

- Identify Wal-Mart’s corporate mission. According to the Wal-Mart’s 2008 annual report from 22 Oct 2008, their mission statement is "We save people money so they can live better". Identify what you believe the organization’s strategic mission is. I believe in a strategic sense that Wal-Mart has chosen to make their stores the "one stop shop" for everything the common American household needs. To do this, they have developed strategically over the years by growing from their initial platform of "Wal-mart" (offering common retail merchandise at the lowest price available in a given area) to the stores they have today, which are all-inclusive supercenters that sell groceries, electronics, appare...   [tags: Strategic Management]

Free Essays
936 words (2.7 pages)

Analysis of Wal-Mart in Japan Essay

- Executive Summary The case study focuses on the hurdles and strategic failures that Wal-Mart faced during its expansion and entry into Japan and its hugely attractive Retail Market. The study throws light on the rise of the world’s major Retailers “Wal-Mart”. In course of their expansion with the time they benefitted from success as well as disastrous results in their journey to “Go Global” Wal-Mart got in to Japan’s smart retail market as a joint venture with “Seiyu” which was a very mistaken step at first....   [tags: Wal-Mart in Japan Case Study]

Research Papers
1358 words (3.9 pages)

Wal Mart : Company Overview Essay

- Introduction – Company Overview Wal-Mart is the largest global retailer in U.S. and also one of the biggest multinational companies of any kind in the world. It is a well-known American company offers its products through various retail formats that include: supercenters, supermarkets, hypermarkets, warehouse clubs, cash & carry, home improvement, specialty electronics, restaurants, apparel stores, drug stores, and convenience stores, as well as digital retail. The company relies heavily on their Every Day Low Price (EDLP) strategy which seeks to provide consumers with the lowest prices on many common goods....   [tags: Wal-Mart, Supermarket, Revenue, Hypermarket]

Research Papers
707 words (2 pages)

How Albertson's can beat Wal-Mart Essay

- 1) Albertson's has created some positive effects within it's value chain. Johnston has recognized that it is important to keep prices as low as possible. One thing he has done to achieve this is consolidate distribution centers. They are also using the web to coordinate shipments and reduce billing & invoicing costs. Albertson's has also upgraded several IT systems including its financial and human resource software. The use of RFID tags on product shipments has also helped to decrease their costs....   [tags: Business Strategic Management]

Free Essays
960 words (2.7 pages)

Related Searches

Wal-Mart has been able to sustain its business for a long time in the retail industry due to its top level management and executives working hard and implementing strategies in line with the company’s beliefs.
Its mission and vision have provided management the main foundation to take effective decisions and to implement them. Also coming up with a competent and challenging mission is very key since it steers and directs the affairs of the organization.

Values And Code of Conduct


Corporate Governance
According to the text, “Strategic Management,” Corporate governance can explained as the ways the relationship among stakeholders are managed in order to check and control the strategic direction and organization performance (302). Corporate governance ensures that effective and efficient strategies are taken. Directors, Executive Management, and Stakeholders of
Wal-Mart will be discussed in this section.

Directors, Committee, and Executive Management of Wal-Mart
Wal-Mart has been a successful company because of its organizational leadership. The top leadership is mainly composed of the Chief Executive Officer (CEO), Board of Directors, and Senior Officers. Scott Lee is the CEO and the President of Wal-Mart. Among some of the Board of Directors are Aida Alvarez, James Breyer, Michele Burns etc. In addition to the Board of Directors, there are also Senior Officers and included are the Executive Vice Presidents of different Divisions (www.walmartstores.com). One interesting fact about the leadership is the use of human capital. Also, Wal-Mart has been criticized years ago of not having women in its top leadership. However, now some women are given the opportunity to be part of the top management.
Good relationship needs to be built between the top executive management in order for the organization to be effective in its strategy implementation. Thus, top executive management is paid awesome amounts of money to better serve the needs of the firm and its shareholders. For instance, Mr. Scott Lee Jr., 58, CEO and Chairman of Executive Committee according to research on Yahoo Finance website, is paid $5.23 million. Executives and Board of Directors are paid very well due to the scope of the job and mainly to act in the best interest of the firm.
Boards of Directors are elected by shareholders to act in the interest of the firm and its owners. Wal-Mart can attribute its success to its organizational leaders with coming up with better decisions and strategies for achieving competitive advantage in its industry. With Scott Lee and the Board of Directors working hand in hand, the interest of the shareholders is achieved. Wal-Mart has seen profits and good performance in the past years of its operations, and it continues to prosper due to its management. For instance, the stock price of Wal-Mart has been fairly good which motivates people to invest in the company.

Stakeholders
The top leadership works well because they are accountable to some people. These people are the stakeholders are “individuals and groups who can affect, and are affected by, the strategic outcomes achieved and who can have enforceable claims on a firm’s performance (21).” Wal-Mart as a big company has stakeholders whose interests are taken care of by the executive management.
Stakeholders can be shareholders, primary customers, and employees who have interest in the company. Thus, Wal-Mart has a big responsibility in maintaining its stakeholders by having effective strategic leaders.

References:

“Global Ethics Office” Vision Statement. 25 Feb. 2007.


“Sustainability.”Overview. 25 Feb. 2007.


“Wal-Mart Stores Inc.” Business Summary. 2007. Yahoo Finance. 25Feb.2007


Hitt, Ireland D. et al. Strategic Management. Ohio: Thomson: 2007
Return to 123HelpMe.com