Due 8/19/22 6p,m EST
BE ON TIME, ORIGINAL WORK, APA Format. 1
APA Minimum 10 References About: You will write one 13-page strategic analysis of WAL-MART. WAL-MART is going through some tough times or is struggling with some key
strategic issues. ***You should imagine yourselves as part of the company’s top management team or as a team of consultants. You will conduct an in-depth study of the firm, and apply the concepts, analytical tools and frameworks of this course to analyze its external and internal environments, identify the firm’s strategic options, and
come up with a set of recommendations to maximize the firm’s long-term performance. PAPER SHOULD INCLUDE THESE HEADINGS…
*Introduction *Literature Review
*Body of your…Your Organization *Conclusion
References MINIMUM 10
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Course Objective* The course will introduce you to several models, methods, and techniques which can be used to identify strategic issues as well as generate future oriented action plans to address those issues and implement change. An important goal of the course is for you to understand the need to review a firm’s strengths and weaknesses as the basis for formulating the firm’s strategy for exploiting environmental opportunities and coping with the environmental threats. Since the overall pedagogical objectives are to sharpen your ability to “think strategically” and to diagnose situations from a strategic perspective, the course will focus on models used to analyze the internal and external environments of an organization. The course will also focus on the industry and competitive environments of a company and examine how they are used in the formulation, implementation, and control of competitive strategy.
Key terms* A competitive advantage is an attribute that enables a company to outperform its competitors. It allows a company to achieve superior margins. Barriers to Entry Innovation Scope Scale Cost Differentiation Cost Quality Flexibility Time Sustain Value Proposition Alignment Agility Adaptability Product Life Cycle
Walmart Incorporation: Overview
Walmart was founded in 1962 by a single store in Arkansas by Sam Walton. By 1969, it had officially incorporated Walmart Stores and has since then made several strides in the business industry. The headquarters of Walmart Incorporation is in the USA, at 702 SW 8th St. Bentonville, Arkansas. It is estimated that across all its branches, it has about 2, 300,000 employees. In the year ending 2021, it registered a 2.4% increase in revenue, of about $572.8 B while its net profit margin was substantially reduced by 1.2%. A comparative analysis by Global Data revealed that there has been a gradual decrease in deals as well as the deal values, most prominently from 2018 to 2022.
Walmart Incorporation is classified as a retailer that majorly deals in grocery stores, hypermarkets, supermarkets, and other discount stores and neighborhood markets. It is also diversified in other areas such as health and wellness, office and entertainment, technology, hardlines, and home appliances at affordable prices. Some of their products are sourced from private and licensed brands such as George, Parent’s Choice, Bonobos Fielder, Mainstays and No Boundaries. In addition to its retailing, Walmart has also invested in the provision of services such as fuel, and consumer appreciation through gift cards, financial services and related transactions including prepaid cards, bill payments, and money orders. Technology played a vital role in merchandising its products, as, through e-commerce portals, accessibility spread throughout the whole US, Canada, China, Mexico, India, and various parts of Africa.
The biggest competitors of Walmart are Amazon and Costco Wholesale Corporation, all located in the US. They are also public entities. On the other hand, some of their differences are with the number of employees, where Costco Wholesale has a significantly lower number of employees at 288,000 and Amazon at 1, 608,000.
Walmart- Supply Chain Issues
The dismal performance of Walmart Inc in recent years can be attributed to major factors that have resulted in hitches in the supply chain. It is renowned for its purchasing power from manufacturers such as Disney, Kellogg’s, Procter & Gamble, and Sara Lee. It also has an enabling program to facilitate supply partnerships with any manufacturers across the globe after passing the suppliers’ assessment and evaluation test.
Suppliers are an essential component in any retail business. In this light, Walmart has a 46-page rule book on their relations with each supplier. This is in a bid to keep all suppliers profitable on their sales, and in return, keep their shelves stocked with an assortment of products favorable to their customers. They also offer webinar pieces of training to their suppliers on using the capabilities score card which is part of Walmart’s supplier rule book.
Nonetheless, the drawback occasioned by this purchasing power is in the supply chain. There has been a lack of balance between demand and supply, which has led to massive losses for the retail company. Supply chain issues in Walmart revolve around a lack of management support in optimizing end-to-end supply chain processes, and a severely inconsistent supply and optimization process. For instance, inconsistency can be deduced from the inadequate and incomplete end-to-end information to the supply chain business unit, as well as the loose information system that strains the communication between different stores leading to poor supply chain visibility. It has also alluded that the supply chain is rigid to new products in both external and internal environments. Generally, the supply chain network in Walmart Inc. is complex to facilitate substantive material flow.
Walmart’s Ethical Issues and Discrimination
In as much as Walmart may seem to be doing fine due to the subsidized prices, it has been highly criticized due to how it treats its employees and some shareholders. There have been myriads of questions regarding the politics on price subsidies, with feminists and some members of the community premising their dissatisfaction on misconduct and the negative effects on the community.
The greatest ethical issue against Walmart is its predatory business culture. Predatory behaviors are basically activities or strategies taken by one company that makes other companies unable or trade-in difficulty. For instance, it is alleged that Walmart is behind the closure of some businesses within the areas it operates, which may have been potential competitors. Another ethical issue against Walmart is low wages. This issue has severally and repeatedly been challenged in court, and this fact alone is a bad name for the company. In their defense, the money is recovered through the consumers who get to have high-quality products for cheaper prices. It also claimed that the price cuts are due to a reduction in costs of repackaging by the suppliers, which equally gives them a better chance to lower their prices in the market.
The treatment of employees and associates of Walmart Inc. regarding employment benefits is also another criticism against the company. More than 60% of the employees do not benefit from insurance benefits and other employment allowances. Walmart employees are also discouraged from joining trade unions that could have advocated for their employment rights, as it was against the founder’s wishes. For instance, it was forced to compensate approximately 100,000 employees for routine lunch breaks. However, Walmart disputed this fact by raising the wages of its employees based on each person’s performance, to allow them to cater for these expenses on their own.
From Average To Agile: How Companies Can Thrive In A Dynamic And Volatile World
Lisa Ower from Forbes articulated the various strategies that companies could undertake to overcome hurdles occasioned by unanticipated events. She reinforced the significance of flexibility and adaptability to level any competition by their rivals. Agility, speed, innovation and the ability to adapt fast mitigates the natural tendency of the company to diminish due to hostile business environments. Thus, she suggested that there was a need for companies to do more than simply execute their roles to their consumers. They need to set out strategies to adapt and execute. These would constitute three key steps; Agile leadership, Agile strategy, and Agile culture.
Agile leadership is the quality of leadership where one can thrive in ambiguity and uncertainty. It is also adorned with transparency, accountability and openness. David Rock referred to agile leaders as those who are unafraid, clear, and predictable. It entails awareness of the key processes in the company, visioning according to the organizational mission and vision, engagement with employees to resonate with the company’s needs and execution of these findings.
Agile strategy planning on the other hand entails consideration of the current market trends in decision-making to maximize profits and processes. Strategy planning should also consider the SMART evaluation to ensure relevance and achievability. Other traits to consider in planning include whether the plan is optimal and whether it is feasible to bring out the desired plans.
Agile culture refers to a culture that empowers leaders to make decisions that would challenge the status quo. It can be achieved by ensuring their decisions are consistent, agile, and timely by using tools that are easily accessible in the office. This fosters the commitment of other employees to resolve their challenges due to the practicality of the decision-making process.
GlobalData. (n.d.). Company Profile. GlobalData.
Ower, L. (n.d.). Council Post: From Average To Agile: How Companies Can Thrive In A Dynamic And Volatile World. Forbes. Retrieved August 7, 2022, from
Walmart – Supply Chain Issues. (n.d.). Sites.google.com.
Walmart’s Ethical Challenges and Discrimination | Business Paper Example. (n.d.). Business-Essay.com.
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