Wall Mart Mission - Essay Example

Wall-Mart Wall Mart Show the impact of the firm’s mission, vision, and also primary stakeholders on the companys overall Success. The company’s mission and vision provide a tool for communicating the company’s purpose and its entire values to the major shareholders (Bonaich, 2004). Stakeholders are the vital parties who have enormous influences over the company in the firm’s future. The primary stakeholders of the company include; customers, employees, investors and the suppliers (Chazen, 2002). How marvelous the employees understand the company’s purpose, through the company’s mission and vision, the better they will e able to comprehend the company’s strategy and also its implementation (Ruta, 2009). The mission and vision provide a target for the company’s strategy development. This means that a single criterion of a careful strategy is how efficiently it assists the firm in achieving its mission and vision (Bonaich, 2004). Strategies are clear on what the company will do and not do in order to achieve the mission and vision. The company’s vision also gives a bridge between the strategy and the mission. Wall-mart vision and mission enhance the spirit of continuous innovation of products and also their improvement (Edward, 2006). The mission and vision give a top notch guide, and the company’s strategy provide a more certain guide, to the company’s goals and objectives (Chazen, 2002). This shows both the successes and the failures of the set strategy, and at the same time, the satisfaction of the set objectives found in the mission (Bonaich, 2004). The stakeholders are the pillar of the organization they are essential during the starting period of the company, but once the firm became functional it was the customers who keep the business going (Fishman, 2006). Customers are influential in generating revenue which is crucial for running the company (Ruta, 2009). Customers of Wall Mart are, therefore, the most influential stakeholders of the company. Employees give the necessary human resources that move the engine of production of goods and marketing of the produced goods (Chazen, 2002). Without them, the company is unlikely to function even if there exists customers and shareholders ready to purchase the goods offered by the company. Employees of Wall Mart are highly treasured since they are the ones selling and marketing the products to consumers (Bonaich, 2004). Suppliers of the goods and services are vital as they provide the goods which the company depends on to produce or sell its outputs. Without them, marketing and production become rendered null and void. Society impacts the organization in a big way (Ruta, 2009). Even though, they gain economically from the company, they require protection from unethical, unjust, illegal and irresponsible acts by the company. Through the use of pressure groups, protests, and also the legal system, the community regulates the company’s behavior. 2. Analyze the five (5) forces of competition to determine how they impact the company. Wal-Mart has a unique, competitive environment. Although the company’s primary competition emanates from general merchandise retailers, a number of warehouse clubs and also, supermarket retailers (Bonaich, 2004). The discount retailing industry remains huge in size and is always experiencing a number of growths and changes (Chazen, 2002). The main competitors compete both in the national and international market. There is massive competition on the pricing, layout, location, store size, environment and also technology and innovation. The market Wall mart gets characterized through using economies of scale in business (Bonaich, 2004). Top ranked retailers vertically integrate a number of functions, such as, manufacturing, purchasing advertising, and shipping of the finished commodities (Ruta, 2009). This kind of large scale functions provide the leading competitors a significant advantage on the cost over the small-scale competition. In the general merchandise retailing, main competitors of Wal-Mart’s remain as Target and Kmart (Edward, 2006). Retail superstores like the Bath, Circuit City plus Bed, and beyond, also provide sufficient retail competition (Chazen, 2002). A survey carried out established that a number of the respondents were in favor of Wal-Mart over other stores like Kmart and Target. According to the respondents, Wal-Mart offered better commodity variety and selection, lower prices, and also superior quality. Consumer needs are a valuable economic feature in all of the existing competitive environments (Chazen, 2002). What prompts the buyers to choose one retailer over the other is an essential feature in the competitive landscape. Wal-Mart remains in direct competition with a number of supermarket retailers. The production capacity in the given grocery industry as it becomes highly populated, and then Wal-Mart poses a threat to a number of supermarket retailers (Ruta, 2009). The supermarkets are finding it hard to compete with its low prices. Using the Five Forces Model, Wall Mart position is strong in the market since it remains as the largest retail store worldwide. Rivalry among the company’s competitors is weak. The market dealing with the same products becomes fairly crowded, but Wal-Mart offers the lowest prices, incurs low costs, but still manages to make profits, and also the market share (Chazen, 2002). Wall- Mart faces weak threat on the substitute products. The company ensures they are highly innovative, and they meet the consumers demand. Suppliers bargaining power is not a threat at all to the organization. For a number of producers, Wal-Mart is their largest buyer. This means that they would do nearly whatever Wal-Mart does (Ruta, 2009). On the same note, the buyers bargaining power is at levels weak. Wall Mart has a vast consumer base, therefore, a growing demand for the products low prices (Ruta, 2009). Another one is the new entrants’ threat is low. Wall-mart has enormous scale of operation making it hard for any organization to come into the market and try to compete on the same platform with Wall Mart. Majority of successful companies would also find it difficult to compete with Wall Mart. 3. Create a SWOT analysis for the company to determine its main strengths, weaknesses, opportunities, plus threats. Strengths 1. A strong brand name 2. Strong financial base 3. Economy of scale 4. Pricing advantage over rivals 5. Good customer service 6. Effective supply chain management 7. Wide geographic coverage Weaknesses 1. High turnover rate 2. Management under tight scrutiny 3. Anti union 4. Does not survey its customers Opportunities 1. Rising consumer demand 2. Serving new market segments 3. Increased on line sales 4. Acquisition of rival firms 5. Technological advancements 6. Forming mergers Threats 1. Increasing competition 2. Entry of new firms 3. Loss of sales to substitutes 4. Restrictive trade policies 5. Increasing bargaining power of suppliers 6. Increasing bargaining power of buyers 7. New regulatory requirements 8. Slow market growth 4. Using the SWOT analysis, show a strategy for the firm to capitalize on its major strengths and opportunities, and also minimize its weaknesses and threats. The important strategy that the company can use to capitalize on its strengths and opportunities is offering and continuing to offer superior service to its customers (Ruta, 2009). The company should always offer their consumers high services like; handshaking or greeting them at the entrance, showing them around the store where the items they look for, get located (Edward, 2006). According to Sam Walton’s rule number eight for building a successful business organization, exceed the customers’ expectations (Chazen, 2002). If you do that, they’ll come back again and again. 5. Discuss the different levels and the types of strategies, the company may use to maximize its competitiveness and profitability. Offering their goods at low price is one of the firms strategies to maximize its competitiveness and profitability (Fishman, 2006). Wall Marts value chain enables it identify activities how the company obtains these strategies. The supply chain of Wall Mart is highly cost effective. The firm can track the movement of their commodities through the value chain (Chazen, 2002). It does not matter where the product is, whether inside the in store inventory, shipment, at the cash register, the company can track it (Ruta, 2009). The firm’s ability in streamlining the supplies among the warehouses and suppliers has enabled them maintain adequate stock and tracks what sells plus what does not sell (Edward, 2006). The firms distribution and operations strategies, have enabled Wall Mart obtain lower prices, increasing their profitability and competitiveness. The strategy is to put stores outside key cities including 200 miles of the existing stores. Putting the stores together in small regions, the firm relies in the word of mouth, to get consumers in the large cities (Ruta, 2009). Since the stores are close together, the distribution costs are low. Wal-Mart also seeks to meet their different customers’ wants with four unique retail options; these are discount stores, Sam’s Clubs, supercenters, and neighborhood markets (Edward, 2006). 6. Give a communications plan the organization could use to ensure the strategies recommended above known to all stakeholders. Divide the stakeholder audiences. The stakeholders should be listed by categories such as customers, investors, employees and others. This is in order to target the intended communication properly. Developing the vital messages. The communication should have any corporate vital information and additional information regarding the situation at hand. Select the spokesperson. The CEO can be selected, or the human resource managers or even the sales manager. Executing the communication. The execution of the information needs to be organized centrally with significant selected people for the follow up. 7. Select two (2) corporate governance mechanisms that become used by this organization and show how useful they are at controlling managerial actions. Board of Directors A key corporate governance mechanism that Wall Mart uses is the Board of Directors. This selected Board of Directors represents the shareholders (Ruta, 2009). A number of characteristics affect how the board controls the managerial actions this includes; board size, composition and its independence (Chazen, 2002). The independence of the board of directors and its subsequent monitoring abilities, that is, the audit committee is vital to investors and regulatory boards (Edward, 2006). The board of directors through the various committees ensures that the managers are in line with the company’s core rules (Fishman, 2006). Charter provisions This is an essential governance mechanism. These are by laws, set rules and procedures that a firm operates on (Chazen, 2002). Wall Mart ensures that every individual from the employees to the governing body follow all the rules placed in place. 8. Show the effectiveness of the firms’ leadership and make at least one (1) recommendation for improvement. Wal Mart under Sam Walton, a highly charismatic and merchandising leader, grew at a rapid pace extending all over America and also in the international scene (Ruta, 2009). Sam’s effective leadership skills and management skills developed the company to a global name. The post Sam leadership has also been extremely effective (Bonaich, 2004). They managed to employ highly competent logistic people. Through this, they were able to gain control over the supply chain. The leadership also fought for technological advancement that has enabled the company collects and disperses information (Chazen, 2002). The leadership should ensure that the company’s workers become treated with respect and not discriminated against. The leadership should also ensure fair remuneration. 9. Assess the efforts by this organization to be a responsible (ethical) corporate organization and show the impact these efforts possess on the organizations bottom line. Give specific examples to back up your response. Early in 2005, Lee Scott placed three fundamental, environmental targets for Wall Mart (Ruta, 2009). One was to develop zero waste, use renewable energy and also sell sustainable products. The Environmental Defense Fund has decided to work with the company in these areas (Bonaich, 2004). Wall Mart should reduce the high levels of emissions coming from the firm into the atmosphere (Edward, 2006). This is from both the manufacturing and transportation of the goods it provides. The company has also tried to push for the innovative and environmentally friendly sound technologies and goods (Ruta, 2009). Some products of the company have become found to possess some harmful chemicals that could harm the consumers or the environment. For the company to meet all these, it is not a secret that they have to increase their production costs (Bonaich, 2004). References Bonacich, E. (2004). Inside the Worlds Largest Company. Frontline, 1-8. Chazen, L. (2002). What Investment Managers Need to Know About Charters and Bylaws. ISSue Alert, 14-24. Edward, F. (2006). The Stakeholder Theory of the Modern Organization. Ethical Theory and Business. New Jersey: Prentice Hall. Fishman, C. (2006). The Wal-Mart Effects. New York: Penguin Group. Ruta, G. (2009). New Wal-Mart Leadership: Seemingly Small Town Change Has Big Time Impact. Management Forum, 15-18. Read More