Wal-Mart: Staying on

Top of the Fortune 500

A Case Study on Wal-Mart

Stores Inc.
 I. BACKGROUND OF THE CASE

• 1.1 HISTORY
2002- Walmart sets a new record, with a
single-day sales total of $1.43 billon,
on Black Friday, the day after
Thanksgiving.
2005- This year brings more record
profits, with $312 billion in sales and
more that 1.6 million employees.
 1.2 CASE BACKGROUND
• The company’s legal woes date back to 1999, when Walmart
sued the nation’s leading retail worker’s union, United Food
and Commercial Workers International Union, from organizing.
The Arkansas Supreme Court wound up ruling against Walmart
in 2002.
• The next year the company was sued over charges it didn’t
offers worked paid overtime, leading to a class-action lawsuit.
• The same year a group of Wal-mart workers in one of its meat
departments voted to unioniz. Wal-mart quickly responded by
opting to eliminate the meat department in 179 of its outlets,
deciding instead to sell packaged meat. In 2003, a court ruled
against Wal-mart for closing down its meat departments
without proper consultation of workers.
 1.2 CASE BACKGROUND
• In 2006, the company had to pay out $78
million to employees in violation of a
Pennsylvania state law that mandated
workers must be paid for overtime work, and
work completed in an “off the clock manner”.
• a wrongful death lawsuit filed against Wal-
mart made the headlines, with a store service
employee, Jdimytai Damour, killed in a
consumer shopping stampede on Black
Friday in a Valley Stream, N. Y. Walmart
Store.
II. POINT OF VIEW
• THE WAL-MART STORES

III. TIME FRAME

• The Case will start from to
year 2001 up to year of 2006
 IV. STATEMENT OF THE PROBLEM
• The problem at Wal-mart is how to be more
competitive in the e-commerce in order to
maintain and grow their share of the retail
market. Wal-mart has been able to get people to
come in their stores and shop, but now is a good
time for Wal-mart to start doing more online
transactions to reach the customers that are not
near a Wal-mart. Wal-mart is one of the biggest
brick and mortar retailers, but customers are
starting to shift to more online shopping. In order
to compete with their competitors, Wal-mart will
need to do more online transactions
 IV. STATEMENT OF THE PROBLEM
• Wal-Mart was drawing increasing flak from
organized labor about the company’s low wages
and anti-union posture. It was confronting 6,000
lawsuits on a variety of issues, including one
claiming that it discriminated against female
employees. .
• Lee Scott was understandably concerned about
the raft of issues that threatened to mar Wal-
Mart’s reputation and raise questions about the
company’s efforts to secure the lowest prices for
its customers. The problem for Wal-Mart now is
how it can continue to grow and diminish the
increasing negative issues about the company
held through the years.
 VI. MAJOR PROBLEM
• Market has a host of difficulties,
include intense competition, a poor
image, limits in business
acquisitions and joint ventures,
and stringent cultural values in
world markets. Other retail stores
that have embraced a low-price
strategy confront stiff competition.
 VI. SUB-PROBLEMS
• Negative public's view,
environmental sustainability
problems, stiff competition,
government regulation in global
markets, and cultural differences
are one of the business's issues.
Its longer service strategy allows it
to dominate the business.
 V. STATEMENT OF OBJECTIVES
• Wal-mart's statement of purpose is "to help
people all over the world save money and live
better – anytime and anywhere – in retail stores
and through e-commerce." It is a great motivator
both for its employees and customers.
• Wal-mart's mission is to provide people across
the world access safe, affordable food and other
products. It creates value for our organisation
and clients if you do so in a manner that benefits
economic opportunity, environmental and social
sustainability, and local communities.
 VI. AREAS OF CONSIDERATION
SWOT
• The SWOT analysis determines Wal-
martInc.strength, weaknesses, opportunities, and
threats with a TOWS analysis.
• This SWOT analysis of Wal-mart shows that the
company can have higher long-term success
potential through aggressive global expansion,
especially in retail markets in developing countries.
The company’s internal strategic factors (strengths
and weaknesses) represent capabilities for this kind
of expansion.
 VI. AREAS OF CONSIDERATION
TOWS
• analysis put actionable tactics together for Wal-mart Inc.
by combining:strengths and opportunities, weaknesses
and opportunities, strengths and threats, and
weaknesses and threats. The PESTLE analysis helped
Wal-mart Inc. scan for any political, economic,
sociological, technological, legal, and environment
external threats. The Competitive Profile Matrix helped
Wa-lmart Inc. analyze competitor’s strengths and
weaknesses to inform Walmart Inc. about their
competitor’s advantages. With Wal-mart Inc. having a lot
of liabilities the Current Ratio analysis helped them verify
if they can meet all their current liabilities.
 VI. AREAS OF CONSIDERATION
• Wal-mart Inc.’s SWOT analysis. A SWOT
analysis helps business see where their
company strengths, weaknesses,
opportunities, and threats are in their
industry SWOT and TOWS analysis are great
together because they give a company a look
at their SWOT, as well as, putting together
different approaches to enchansing wal-mart
making the corporation better with TWOS
analysis
 STRENGTH AND THREATS
• Walmart’s Strengths (Internal Forces)
• In this part of the SWOT analysis, Walmart’s
strengths are all related to the size of its
business. These competitive strengths
enable the company to withstand threats
despite its weaknesses as a low-cost retailer.
For exploiting global expansion
opportunities, Walmart’s strengths for further
global growth are:
• Global organizational size
• Global supply chain
• High efficiency of supply chain
 WEAKNESSES AND THREATS
• Wal-mart’s weaknesses impose challenges on the
firm’s ability to withstand the threats also identified
in this SWOT analysis. These weaknesses are
directly related to the company’s generic strategy
and its implications in business development,
capabilities, resources, and profit margins. Walmart
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
 VII. ALTERNATIVE COURSES ACTION

• The company will be able to

maintain and uphold it values and
traditions.
• Management do not have to spend
additional effort and resources to
implement the new culture.
• The company will be able to keep
their small family culture for that
they have been known.
 VIII. RECOMMENDATION
• Improving their image will
then be a by-product of their
fair treatment of their
business associates
workers.
 IX. DETAILED ACTION PLAN
•