The Future Success or Failure of Walmart Co - Research Paper Example

Strategic Report Project:The Future Success or Failure of Wal-Mart Stores, Inc.AbstractThe current research aims to select a major organization of choice, in this case, Wal-Mart Stores, Inc. was chosen. In the project, one will report the analysis of the organization by addressing the following points, to wit: 1. Review and analyze the vision and mission statement. Is the company following the stated vision and mission? 2. Complete an external assessment, utilizing Porter’s model for a competitive analysis. 3. Evaluate the organization’s Intensive Strategy, in the areas of Market Penetration, Market Development and Product Development. 4. Construct a SWOT analysis for the organization. 5. Review the research and based on one’s conclusions, what corporate strategy would be recommended for the next five years of operations?

The Future Success or Failure of Wal-Mart Stores, Inc.Brief Background and Mission/Vision StatementThe origin of Wal-Mart was traced in 1962 through the opening of a discount store by the founder, Sam Walton, in Rogers, Arkansas. The official inauguration date of Wal-Mart Stores, Inc. was indicated as October 31, 1969 (Walmart Corporate: History Timeline, N.D., par. 1). The instrumental and legendary success of the organization was recognized in diverse awards starting from the “Ron Brown Award for Corporate Leadership and outstanding achievement in employee relations and community initiatives by The Conference Board in 2002” (Walmart Corporate: Awards & Recognition, N.D., p. 1) to the recently recognized awards in 2011 ranging from the Corporate Environmental Excellence for Walmart Canada; Top 50 Companies for Executive Women; Best Corporate Governance for Walmart de Mexico y Centroamerica; the NGA Public-Private Partnership Award; and the Top Organizations for Multicultural Business Opportunities” (Walmart Corporate: Awards & Recognition, N.D., p. 1). These recognition attests to the orgnization’s ability and expertise in managing diverse aspects and functions of strategic operations.

As revealed from their official website, the mission of Wal-Mart is “saving people money to help them live better” (Walmart Corporate: About Us, N.D., par. 5). According to the founder, he envisioned that “if we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life” (Walmart Corporate: What We Do, N.D., par. 1). Through the products and services that the organization offers, through their policies, principles and procedures, it could be deduced that they adhere to the mission and vision designed by the founder through the years.

As validated by the research conducted by Farlan (2011), the following pertinent policies, principles, philosophies and procedures attest to the organization’s commitment to adhere to the mission and vision, as abovementioned, and as quoted below:Open Door Policy - Managers' doors are open to employees at all levels Sundown Rule - Answering employee, customer, and supplier questions on the same day the questions are received Grass Roots Process - Capturing suggestions and ideas from the sales floor and front lines 3 Basic Beliefs & Values - Respect for the Individual, Service to our Customers, Striving for Excellence 10-Foot Rule - Making eye contact, greeting, and offering help to customers who come within 10 feet Servant Leadership - Leaders are in service to their team Wal-Mart Cheer - An actual structured chant that was created by founder Sam Walton to lift morale every morningSource: [Far11]Porter’s Five Forces ModelI.

Rivalry: The industry within which Wal-Mart operates is highly competitive. As indicated by Hoover’s (2011), there are diverse competitors of Wal-mart are Ace Hardware Corporation, Albertson’s LLC, Army and Airforce Exchange Service, from among 12 listed in their profile [Hoo].More importantly, the industries identified where Wal-Mart competes are: Discount & Variety Retail, Toys & Games Retail, Gasoline Retailers, Financial Services, Retail, and Consumer Electronics & Appliances Retail [Hoo].II. Threat of Substitutes: Since Wal-Mart offers products fromvarious manufacturers and supplies, the threat of substitutes from other retail and discount stores is high.

To differentiate from other competitors, Wal-Mart has continuously focused on being the market leader in offering the lowest price of products to consumers.III. Buyer Power: Consumers have no influence in dictating the prices of products offered by the organization. In this regard, buyer power is weak.IV. Supplier Power: Since majority of the products are consumer products with different brands and diverse source alternatives, suppliers need to contend with offering the least cost through bulk purchases by Wal-Mart so that in turn, Wal-Mart can offer these products to the consumers at the lowest prices.V. Threat of New Entrants and Entry Barriers: High threat due to the amount of different competitors offering the same kinds of products as Wal-Mart.

Intenstive StrategiesI. Market Penetration: As Wal-Mart struggled to regain and sustain its market share in the industry where it operates, the Meat Trade News Daily (2011) reported that “the retailer reported its seventh consecutive quarterly decline in sales at U.S. stores open at least a year, posting a 1.8 percent drop that was much bigger than its worst forecast and showing how hard it is for a merchant that accounts for 10 percent of U.S. retail sales to overcome its own mistakes” (par. 1).II.

Market Development: To enhance its strengh and competitive advantage in the local and international markets, Wal-Mart have designed strategies that focus on more sustainable products at more affordable prices (Walmart Corporate: Products, N.D.).Product DevelopmentSWOT AnalysisI. StrenghtsII. WeaknessesIII. Opportunities IV. ThreatsConclusionReferencesFar11: , (Farlan, 2011, p. 1), Hoo: , (Hoover, Inc., 2011),