Professional Documents
Culture Documents
Franklin franchise in Newport Arkansas and operated them with his wife, Helen and brother, Bud. These were small chains that were very successful. In November of 1962 Wal-Mart was opened. First distribution center opens at home office in Bentonville, Ark, also first time stock is traded publicly
Value stores 1978 Acquires Hutcheson Shoe CO. Opens its first pharmacy and jewelry dept. 1979 First company to reach $ 1 billion in sales in 12 month period. Then 100 shares were worth $1,650 dollars and now the same 100 shares are worth more than $6 million dollars
Hypermarkets, which sell everything including food Supercenters which are scaled down supermarkets
Walton died. In 1995 Wal-Marts Annual Report was dedicated to Bud In 1999 named #1 stock on the Dow
1999 now the largest employer in the world. 2000 H. Lee Scott named president and
CEO of Wal-Mart Stores, Inc. 2002 Wal-Mart ranked #1 on the Fortune 500 list. Thanksgiving Day 2002 largest single sales day in history; 1.43 billion dollars
2005
Walmart took a leading role in disaster relief, contributing $18 million and 2,450 truckloads of supplies to victims of hurricanes Katrina and Rita. 2006 Walmart introduced its $4 generic-drug prescription program.
2007
Walmart.com launched Site to Store service, enabling customers to make a purchase online and pick up merchandise in stores. 2008
2009 Mike Duke became CEO.
Walmart entered Chile with the acquisition of a majority stake in D&S S.A.
.
2010
Bharti Walmart, a joint venture, opened its first store in India. Walmart committed $2 billion through the end of 2015 to help end hunger in the United States. Walmart launched a global commitment to sustainable agriculture, aiming to strengthen local farmers and economies, while providing customers access to affordable, high-quality food
2011
With the acquisition of MassMart in South Africa, Walmart surpassed 10,000 retail units around the world. The first Walmart Express stores were introduced in Arkansas.Walmart established @walmartlabs, a hub for developing social, mobile and global platforms.
2012
Walmart celebrated 50 years of helping people save money so they can live better.The company employs 2.2 million associates worldwide and serves 200 million customers each week at more than 10,000 stores in 27 countries.
Vision statment
The secret of successful retailing is
to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything a wide range of good-quality merchandise, the lowest possible prices, guaranteed satisfaction with what you buy, friendly knowledgeable service, convenient hours; free parking and a pleasant shopping experience.
Misson Statment
Wal-Mart does not have a formal
mission statement. Their culture is based on three basic believes of Sam Walton 1. Respect for individual 2. Service to our customers 3. Strive for excellence If we have a formal mission statement it would be To provide quality products at an everyday low price and with extended customer service always
customer at every day low price (EDLP). Through our modernize technology we have wide range of merchandise of food, cloths, electronics, pharmacy etc. Which is available round a clock whole week. Our values revolves around our customer so that we can satisfy them in all ways. We are devoted to the growth of Wal-Mart & challenge ourselves to be better . Our employees are valuable assets of a company what we are today is because of them. It is obligatory duty of us to devote funds for the social and environmental betterment of the public.
Sam's Club
Membership-only, cash-and-carry operations. Financial service credit card program (Discover Card)
available at all clubs. Annual membership fee is $35; the Elite Membership is $100.
Elite membership has additional benefits like automotive
service contracts, roadside assistance, home improvement, auto brokering and pharmacy discounts.
Bulk displays and name brand merchandise At the end of 2009 Wal Mart have 602 sams club in
operation.
Supercenters
It combine groceries with general merchandise, giving
customer one stop shopping. Wal Mart likes to locate supercenters near the strongest food retailers so their facilities will either get better or be run out of town The company has gained market share more quickly then planned. The average size of supercenters is 186000 sq feet. They usually employ between 200 and 550 associates, contingent on store size and consumer needs.
Neighborhood Markets
First began in 1998
There markets are 42000 sq feet and usually employ 80 to 100 associates.
International
There are 318 Wal-Mart brands in Canada, 1197 in
Wal-Mart expanded so that customers everywhere would associate its name with low cost, best value, greatest selection of quality merchandise and highest standards of customer service. Wal-Mart focused on Global Positioning.
Supercenters
Sams International
Process
Matching stage
Decision stage
EFE
IFE
CPM
focusing on specific market such as Europe and China Target the untapped market Customer loyalty Best availability of Logistics
Threats
Being a leader it faces a lot of
EFE Matrix
Opportunities Online store Merchandising items Alliances with farms Target the untapped market Customer loyalty Organic Products Best availability of Logistics Threats Face competition Effect on Local retailer Vanishing monopoly Total Weight 0.12 0.10 0.10 0.09 0.12 0.09 0.11 Weight 0.09 0.10 0.09 1.00 Rating 3 4 3 2 3 3 4 Rating 4 3 2 Weighted Score 0.36 0.40 0.30 0.18 0.36 0.27 0.44 Weighted Score 0.36 0.30 0.18 3.15
Hypermarkets, supermarkets Wide variety of merchandise Nationally advertised merchandise Limited lines of merchandise made in USA Point-of-sale bar code scanning Great employee benefits
women on board of directors Hiring illegal minorities to clean Growth for employees only in division
IFE Matrix
Strength Stores in States Hypermarkets Variety of merchandise Nationally Advertise Barcode system Great Employee benefit Weakness No mission statement Appoint woman not allowed Weight 0.09 0.12 0.10 0.09 0.12 0.10 Weight 0.10 0.09 Rating 3 4 3 3 4 3 Rating 2 1 Weighted Score 0.18 0.48 0.30 0.27 0.48 0.30 Weighted Score 0.20 0.09
0.10
0.09 1.00
1
2
0.10
0.18 2.58
Market Share
Cus.Loyalty Fin. Position Online System
0.11
0.12 0.12 0.08
4
4 3 3
0.44
0.48 0.35 0.24
3
3 2 2
0.33
0.36 0.24 0.16
2
2 3 2
0.22
0.24 0.36 0.16
Global Expn.
Advertising Cus. Service Tech. Adoption
0.09
0.07 0.08 0.07
3
3 4 2
0.27
0.21 0.32 0.14
2
3 3 2
0.18
.21 0.24 0.14
3
2 2 3
0.27
0.14 0.16 0.21
Management
Logistics Distribution Ch. Emp. Benefit
0.06
0.06 0.08 0.06
2
3 3 3
0.12
0.18 0.24 0.18
2
2 2 3
0.12
0.12 0.16 0.18
2
2 2 2
0.12
0.12 0.16 0.12
Total
1.00
3.17
2.44
2.28
EFE
IFE
3.15 shows that our organizational external response is outstanding. 2.58 shows that our organizational internal response is Good. 3.17 shows that our competitive matrix is more stronger than our competitors.
CPM
SPACE Matrix
IE Matrix
SWOT MATRIX
Opportunities
1. Use the online store 2. Availability of vast merchandising items 3. New line of organic products 4. Take over, merge with or form alliances with global retailers focusing on specific market such as Europe and China 5. Target the untapped market 6. Customer loyalty 7. Best availability of Logistics
Strengths
1. Stores in all 50 states 2. New concepts (Hypermarkets, supermarkets) 3. Wide variety of merchandise 4. Nationally advertised merchandise 5. Limited lines of merchandise made in USA 6. Point-of-sale bar code scanning 7. Great employee benefits
Weakness
1. No formal mission statement 2. Management resisted putting women on board of directors 3. Hiring illegal minorities to clean 4. Growth for employees only in division
Threats
1. Being a leader it faces a lot of competition 2. Effect on Local retailer 3. Vanishing monopoly
WT Strategy W1T1
Space matrix
Financial strength (FS) Ratings(+1 Worst , +6 Best)
Return on equity
Revenue increase Liquidity Earning per share
5
4 4 3
Cash flows
Leverage Inventory Turn over Total
4
4 6 30
Space matrix
Industry strength (IS)
Growth potential
Financial stability
Technical know how
4
3
Resources utilizations
Producing capability utilizations Profit potential Ease to enter in to market Total
4
5 5 3 29
Space matrix
Competitive Advantage (CA) Market share Ratings (-6 Worst , -1 Best) -2
Product quality
Customer loyalty Brand image Customer service Product life cycle Total
-1
-2 -1 -2 -4 -12
Space matrix
Environmental Stability (ES) Ratings (-6 Worst , -1 Best)
-2 -3 -2
-3 -1 -2 -13
Space matrix
FS average (30/7)=4.2
ES average (-13/6)=-2.1
X-axis CA+IS
IS average(29/7)=4.1 CA average(-12/6)=-2
FS
+6
Space matrix
Conservative
+5 +4
+3
+2 +1
Aggressive
CA
-6 -5 -4 -3 -2 -1
-1 0 + 1 + 2 +3 + 4 + 5 + 6 -2 -3
IS
Defensive
-4
-5 -6
Competitive
ES
(3)
(1)
III
IV
VI
VII
VIII
IX
ii)
iv)
Market development Market penetration iii) Product development Forward, Backward & Horizontal integration
i)
Quadrant IV
Promotion Strategy
Weight
0.09 0.12 0.10 0.09 0.12 0.10
AS
Weakness
No mission statement Appoint woman not allowed Hiring illegal minorities
Weight
0.10 0.09 0.10
AS
TAS
AS
TAS
0.09
Total
1.00
AS
Threat
Face competition Effect on Local retailer Vanishing monopoly
Weight
0.09 0.10 0.09
AS
TAS
AS
TAS
Total