Republic of the Philippines

CAVITE STATE UNIVERSITY

Indang Campus
www.cvsu.edu.ph

In Partial Fulfillment of the Requirements in

Human Behavior in Organization

Title of Case:
A Case Analysis
Submitted by:

Yien Lay-ann Sally Almazan

Stephen Ralph N. Briones
Danica Gayle F. Hernandez
John Paul M. Lemita
Syrah Mae L. Mercado

Submitted to:

Ms. Cheyne L. Banogon

Date
 TABLE OF CONTENTS

Page

I. Facts of the Case

Background
Company Profile
TOWS Analysis
II. Objectives of the Case
III. Behavioral Issue
IV. Stakeholders
V. Alternatives Courses of Action
VIII. Discussion of Results
IX. Implementation Plan
X. References
1. Facts of the Case
a. Company Profile
 The first Wal-mart store opened in July 02, 1962 Rogers,
Arkansas the founder of the store is Sam Walton. He is 44
years old when he established the Wal-mart .
 In 1967 the Walton owns 24 stores training up $12.7 million in
sales
 1969 the company officially incorporates as Wal-mart stores
inc.
 1970 Wal-mart becomes publicly traded company the first stock
is sold at $16.50 per share
 1971 the first distribution center and own office opened in
Bentonville, Arkansas
 1972 Wal-mart is listed on New is listed on New York Stock
Exchange (WMT). With 51 stores, Wal-Mart records sales of
$78 million.
 1975 inspired by a visit to a Korean manufacturing facility, Sam
Walton introduces the Wal-mart cheer.
 1979 the Wal-mart foundation is established.
 1980 the Walton Family establishes the Walton Family
Foundation. Wa-lmart reaches $1 billion in annual sales,faster
than any other company at that time. Wal-mart has 276 stores
and employs 21,000 associates.
 1983 the first Sam’s Club opens in Midwest City,Oklahoma.
Wal-mart replaces cash registers with computerized point-of-
sales systems, enabling fast and accurate checkout.
 1984 Sam Walton does the hula on Wall Street, making good on
a promise to associates after the company achieves a pre-tax
profit of 8% for the previous fiscal year.
 1987 tha company installs the largest private satellite
communication system in the U.S , linking the company’s
operations through voice, data and video communication.
 1988 the first Wal-mart Supercenter opens in Washington,
Missouri ,combining general merchandise and a full
supermarket to provide one stop shopping convenience David
Glass is named chief executive officer
 1991 through a joint venture with cifra, a Mexican retail
company ,wal-mart goes global, opening a sam’s club in
mexico.
 1992 while receiving the medal of freedom, Sam Walton
articulates the company’s mission of the saving people money
so they can live better ,shortly before passing away at age 74
Rob Walton becomes the chairman of the board. Wal-mart
employ’s 371,000 associates in 1,928 stores and clubs
 1993 Wal-mart celebrates its %1 Billion sales week.
 1994 Wal-mart expands into Canada with the purchase of 122
Woolco stores
 1996 Wal-mart opens its first stores in china
 1997 the company celebrates iots first $100 billion sales year.
 2014 Greg foran becomes President and CEO of wal-mart US
 2015 the company employs 2.3 million associates wolrdwide
 2019 John Furner named president and Ceo of Wal-mart U.S
 B. Background
 Sam Walton used a strong cultural values and norms to
assist him in encouraging his employee’s to endorse his
goal of total customers satisfaction .some norms are simple ,
such as always greeting customers and make eye contact
with them. others were more complicated, such as striving to
answer customer requests by sundown the day they were
made. He also used stories to indicate wal-marts concern for
customers

b. TOWS Analysis

TOWS ANALYSIS
EX OPPORTUNITIES
T Walmarts opportunities are mainly about
E
expansion and improving business
R
N practices these opportunities are linked to
AL the global economic situation in the
organization presents issues that are
actually opportunities for the firm to
improve. In this portion Walmart
opportunities are;
THREATS
The threats to Wal-marts’s business are
linked to the retail market condition and
the changes in consumer perceptions
about the products they buy. These
factors should compel the company to
make some competitive strategic
changes. In the context of this TOWS
analysis, the threats to Wal-mart are:

*Expansion in developing countries *Healthy lifestyle trend

*Improvement in human resources *Aggressive competition
practices to develop competitiveness in the *Online retailers of various sizes
labor market
*Improvement in quality standards
 I STRENGTHS
NT Wal-mart’s strengths are all related to the
E sizes of its business. Theses competitive
R strengths enable the company to withstand
N threats despite its weaknesses as a low-
AL cost retailer. For exploiting global expansion
opportunities , Wal-mart’s strengths for
further global growth are:
*Global organizational size
*Global supply chain
*High efficiency of supply chain
WEAKNESSES
Wal-mart’s weaknesses impose
challenges on the firm’s ability to
withstand the threats also identified in this
TOWS analysis. These weaknesses are
directly related to the company’s generic
strategy and its implications in business
development, capabilities, resources, and
profit margins. Wal-mart’s uses the cost
leadership generic strategy, which leads
to the following weaknesses.
*Thin profit margins
*Easily copied business model
*Competitive disadvantage against high-
end specialty sellers
The TOWS are discussed in greater detail below:

Threats

● Healthy lifestyle trend

The healthy lifestyle trend is a treat and an opportunity. It threatens Wal-

mart’s business because many of the company’s goods are perceived as
not healthful, not organic or not natural. It is an opportunity for the
company to improve its quality standards. However, this factor is more of
a threat because the retail giant currently does not prioritize healthful
products in its stores.

● Aggressive competition

Aggressive competition is another threat because other large retailers

could use aggressive marketing strategies to capture Wal-mart’s
customers. Also, small-scale and large online sellers are a threat against
the company’s retail business. Through the internet, small sellers or
individuals are able to compete and bypass the company’s presence by
using their own websites to sell products to online consumers. Similarity,
in this part of the TOWS analysis of Wal-mart Inc., large online retailers
have the ability to attract and satisfy consumers, especially those who
prefer the convenience of online transactions.

Opportunities

● Expansion in developing countries

Walmart’s opportunity to expand in developing countries is based on their

high-growth economic condition. On the other hand, the opportunities in
HR practices directly relate to the criticisms on the company’s
employment practices. Improving these practices can attract higher
quality workers relative to other retailers.

● Improvement in Human resources practices to develop competitiveness in

the labor market

Walmart’s opportunity to improve quality standards addresses consumers

concerns on the health effects of using low-cost and sometimes low-
quality products. This part of the TOWS analysis present s some ways for
addressing the company’s weaknesses and the threats to its retail
business.
Strengths

● Global organizational size

Walmart’s global organizational size gives the business deep pockets to

fund growth and expansion. The Global supply chain also provides
business resilience form market-specific risk, such as disruptions in local
supply chain.

● Global supply chain

Walmart’s supply chain has high efficiency because of advanced

technologies for monitoring and controlling the movement of the products
from the suppliers to its stores. In this analysis, such organizational and
business strengths provide competitive advantage, especially against
smaller retailers.

Weaknesses

● Thin profit margins

Thin profit margins are a typical effect of using the cost leadership
strategy. Because Walmart minimizes selling prices, it also needs to
minimize profit margins and rely more on sales volume.

● Easily copied business model

The cost leadership strategy also makes Walmart’s business model easy
to copy. The firm does not have significant competitive differentiators,
except for its business size and prices. Furthermore, high-end specialty
retailers have the upper hand in attracting quality-seeking buyers who
have low sensitivity to price.
2. Objectives of the Case
 Providing the customers what they want ,when they want it ,all at
value
 Treating each other as we would hope to be treated, acknowledge
our total dependency on our associate partners to sustain our
success.

3. Behavioral Issue:
1) Some employees are not implementing or having a hard time to apply those
core values and culture to improve their customer satisfactions.
2) There are criticisms regarding very low wages that pose challenges for
Walmart’s employees when it comes to improving their lives.

4. Stakeholders

Stakeholder Group Impact on the Stakeholder

INVESTORS Investors are mainly interested in profits.
CUSTOMERS Customers are interested in low prices or
the affordability of goods, as long as these
goods have acceptable quality.
EMPLOYEES Job Security and High Wages
SUPPLIER Interested in getting more of their
products sola at Walmart stores in a
profitable way.

5. Alternative Courses Of Action

● Increase of Wages

The company can make a small but significant increase in wages across the
board.

● Improve Supplier Relation

Walmart can improve supplier relations by meeting the suppliers in the middle of
insisting on excessively low prices.
6. DISCUSSION OF RESULTS
- These recommendations might lead to a slight increase in selling prices at
Walmart store. They can improve the company’s standing as a corporate
citizen and in stakeholder management. Employees can now easily
implement and follow what Sam Walton culture is regarding on customer
satisfaction. Working hands-on on their duties and responsibility because
they are being paid with right amount of wages by Walmart.

7. REFERENCES
http://panmore.com/walmart-swot-analysis-recommendations-case-study

https://corporate.walmart.com/our-story/our-history

https://www.google.com/search?client=ms-android-oppo&ei=YCaxXRWWjq-
8D57ajKgL&q=implementation+of+plan+of+Sam+walton&oq=implementation+of
+Sam+walton&gs_I=mobile-gws-wiz-
serp.3..0i71I5.15576.26231..26870...0.1..0.0.0.......0....1.k5caCXxKniw

https://www.google.com/search?
q=strong+cultural+values+of+sam+walton&oq=strong+cultural+values+of+sam+
walton&aqs=chrome..69i57j33.13433j0j7&client=ms-android-
oppo&sourceid=chrome-mobile&ie=UTF-8