Strategic management can be explained as the process whereby the evaluation of the performance of the corporation along with the context in which it operates for the purpose of achieving long-term objectives of the organization is identified…
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It is to mention that the company that has been chosen for the study is Wal-Mart. The purpose of the study is to recognize the Wal-Mart’s strategy and further create an argument to verify if the strategy that has been adopted by the company is appropriate or not. About Wal-Mart Wal-Mart Stores, Inc is a company that is in America and belongs to the category of public corporation. It operates numerous chains of the discount department based stores and also warehouse stores. The company outperformed in the year 2010 and was successful at becoming the biggest corporation in the world in terms of revenue as per the Forbes Global 2000 for that particular year. It was incorporated in the year 1969. It is worthy of stating that because of the strategic actions taken by the company, it has been successful at expanding its operations in 15 countries with 8500 stores and 55 numerous names (Scribd, 2011). Wal-Mart’s Low Cost Strategy The Wal-Mart’s stores are present in almost every ‘nook and corner’ of the world. The obvious question that arises in the mind relates to the reason behind the successful operation of the company. The reason behind is the low prices that the company maintains for the purpose of attracting the customers. ...
The main objective of the store is to maintain low prices so that the customers are happy with Wal-Mart. However, these corporations don’t take into concern the happiness of the workers in 48 different countries (Bauer, 2005). It can be argued that the company’s strategic move towards the maintenance of low price seems to be immoral and immaterial. Although by maintaining low prices, it can attract its customers and keep them happy and satisfied but it seems to be negligible towards the society. Wal-Mart Expansion Strategy It is apparent that the company has been successful at expanding its operation in various countries of the world for the purpose of rejuvenating the sales growth. It tried to expand its operation in Germany, however it was not successful at maintaining long term survival in that particular country where Wal-Mart tried to make the store profitable for many years. The reason behind the malfunction had been the company’s inconsideration towards the German competitors, shoppers as well as the rules, cultural differences and labor unions whose strength impeded the success of the company in Germany. The same strategy has been quite successful in the United States. At this instance, it is important to assess the cause behind the disappointment of the company’s strategy of expansion in Germany. It is to be stated that different countries have dissimilar cultures and different perceptions regarding the purchase of a product. The companies need to adopt the strategies accordingly. A particular strategy that helped the organization to outperform its operation in one country may take the business to failure in another country (DePamphilis, 2009). Competition at
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(Strategic Management of Wal-Mart Stores Essay Example | Topics and Well Written Essays - 1000 Words)
“Strategic Management of Wal-Mart Stores Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/management/1425212-strategic-management-of-wal-mart-stores.
Strategic thinkers look not just at day-to-day activities, but also on the bigger picture of tomorrow because their role is to create the organization a practical dream. Thus, the only way to survive in this rapidly changing environment is to create an approach that is useful in the formulation and implementation of competitive strategies.
The emphasis of the case is on the problems faced by the Wal-Mart in the international markets. Few years back, Wal-Mart entered into the China’s market and this example has been quoted to study the problems faced by Wal-Mart in its supply chain when it expands its operations in the international markets.
The author states that Wal-Mart uses a perpetual inventory system wherein a good deal of technology is required. In this system, inventory quantities are updated continuously and subsidiary ledgers are updated after each transaction. Perpetual inventory provides a high degree of control, aids the management inventory levels.
There must be an environment that the organization operates in. The business organization contains both internal and external factors that affect the day to day running of organizational activities. The external environment consists of customers, competitors, technology, laws, regulations and resources.
Wal-Mart has been growing rapidly in the Canadian market. It faces direct collision with the Target. The two companies have been fierce rivals and have recently celebrated their 50th anniversaries. The two have similarities in the range of merchandize and store sizes.
Upon review of the information in the study, it is clear that the company has a focused strategy regarding cost management. In fact, Wal-Mart specifically seeks innovative and aggressive ways to control costs within its own operating systems, as well as aspiring to be the market leader in low-cost product offerings to the public.
While in today's context it can be said for sure that the retail business has become quite competitive all across the world, the situation was quite different during the formative years of Wal-Mart. As per a study carried out by Plunkett Research Ltd. considering the number of businesses and the number of employees, the retail business with over 15 million employees happens to be one of the largest industries in US.
“Recently, Wal-Mart actually pulled out of Germany and South Korea. In other important countries, such as China, Wal-Mart is behind in market share to European competitors like Tesco and Carrefour” (Problems at Wal-Mart). Some people argue that the major
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