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Wal-Mart Strategic AuditBy Team Two

Jessica Kauten, Siyeicea Love-Gurganious,

William Montague, Scott Randall,

Marchelle Robinson and Judith Rosado

Strategic Management 479

Columbia College

Alexander Furla

May 8, 2011

Wal-Mart Strategic Audit 2

Wal-Mart History

Wal-Mart was founded in 1962 by Samuel Moore Walton. He was considered “one of

the most influential retailers of the century” (Wheelen & Hunger, 740). Sam Walton started his

retail career in management in 1940 with J.C. Penney Co. His training and hard work at J.C.

Penney Co. led him to his great Wal-Mart idea. He decided that small town populations would

welcome, and make profitable, large discount shopping stores. When Sam Walton created Wal-

Mart in 1962, he declared that three policy goals would define his business: “respect for the

individual, service to customers, and striving for excellence” (Walmartstores.com).

Wal-Mart stores “sold nationally advertised, well-known-brand merchandise at low

prices in austere surroundings” (Wheelen & Hunger, 738). The 1970’s marked significant

growth for Wal-Mart with its first Wal-Mart Distribution Center as well as the Wal-Mart Home

Office. By the end of 1979, there were 276 Wal-Mart stores in 11 states and in 1991; the firm

had 1,573 stores in 35 states to include the international market. Wal-Mart sales growth

continued into the 1980s. Wal-Mart was divided into three business segments: Wal-Mart stores,

Sam’s Clubs, and the International Division.

In 1983 the company opened its first three Sam's Wholesale Clubs and began its

expansion into bigger city markets. Wal-Mart Supercenters were large combination stores that

included a full-line grocery center, a general merchandise discount store, banks and some even

offered a food court of restaurants. Wal-Mart’s international expansion accelerated

management’s plans for expansion and notoriety. In 2000, Fortune magazine named it as one of

the “100 Best Places to Work” and in 2002, “Wal-Mart officially became the world’s largest

company based on its $245 billion in sales” (Wheelen & Hunger, 731).


Wal-Mart’s winning strategy in the United States was based on selling brand products at

low cost while still offering the customer a quality product. Wal-Mart is in the business of

selling what customers need in their everyday lives. This includes the consumer goods listed

above as well as food-service items. Wal-Mart took pride in its domestic strategies and

programs that were based on a set of two priorities: 1) “Customers would be provided with what

they want, when they want it, all at a value”. 2) “Treating each other as we would hope to be

treated, acknowledging our total dependency on our Associate-partners to sustain our success”

(Wheelen & Hunger, 747).

In the year ending January 31, 2006, Wal-Mart’s financials reflected the following:

(all dollar amounts are in millions)

Total revenue - $315, 654

Net income - $11,231

Total assets - $138,187

Total liabilities - $48,826

Total shareholder’s equity - $53,171. According to the 2006 consolidated balance sheets

total liabilities and shareholders’ equity equaled $138,187 not just totals shareholders’

equity as previously shown.


Wal-Mart Strategic Audit

I. Current Situation

A. Current Performance

Wal-Mart (WM) is divided into three business segments: Wal-Mart Stores, Sam's Club, and

the International Division. In 2002, “Wal-Mart officially became the world’s largest

company based on its $245 billion in sales” (Wheelen and Hunger 19-1). As of January 31,

2006, the company had over 6,100 stores worldwide, bought products from 70 countries, and

20% of its business was generated outside of the United States (Wheelen and Hunger 19-2).

1. 2006 fiscal year sales of $312.4 billion, a 9.5% year over year increase.

2. $11.2 billion net income, up 9.4% to $2.68 per share.

3. Stock price of $46.11, down from $56.98 on January 31, 2002. (Likely due to better

competition and future expected growth slowdown.)

B. Strategic Position

1. Mission

Wal-Mart Stores, Inc. is a global retailer committed to improving the standard of living

for our customers throughout the world (Annual Report 2006).

2. Objectives

Comparative store sales indicates the performance of our existing stores by measuring

the growth in sales for a time period corresponding to the prior year period

Operating income growth greater than net sales growth has long been a measure of

success for us.


Inventory growth at a rate less than that of net sales is a key measure of our

efficiency.

With an asset base as large as ours, we are focused on continuing to make certain our

assets are productive. It is important for us to sustain our return on assets (Annual

Report 2006).

3. Policies

We earn the trust of our customers every day by providing a broad assortment of

quality merchandise and services at everyday low prices (“EDLP”) while fostering a

culture that rewards and embraces mutual respect, integrity and diversity. Putting Our

Customers First.

EDLP is our pricing philosophy under which we price items at a low price every day

so that our customers trust that our prices will not change erratically under frequent

promotional activity.

Our focus for SAM’S CLUB is to provide exceptional value on brand-name

merchandise at “members only” prices for both business and personal use.

Internationally, we operate with similar philosophies (Annual Report 2006).

4. Strategies

We have developed several initiatives to help mitigate this pressure and to grow

comparable store sales through becoming more relevant to the customer by creating a

better store shopping experience, continual improvement in product assortment and

an aggressive store upgrade program to be instituted over the next 18 months.


Our expansion programs consist of opening new units, converting discount stores to

supercenters, relocations that result in more square footage, as well as expansions of

existing stores.

Sam’s Club - We believe that a greater focus on providing a quality in-club

experience for our members will improve overall sales, including sales in these

categories.

International – A shift in the mix of products sold toward general merchandise

categories which carry a higher margin (Annual Report 2006).

II. Strategic Managers

A. Board of Directors

Thirteen members, four affiliated with the company, nine independent, three women, two

African Americans, two Hispanic Americans.

Chairman of the Board, S. Robson Walton (son of founder.)

B. Top Management

Eduardo Castro-Wright Executive Vice President, President and Chief Executive Officer,

Wal-Mart Stores Division U.S.

M. Susan Chambers Executive Vice President, People Division

Patricia A. Curran Executive Vice President, Store Operations, Wal-Mart Stores Division

U.S.

Douglas J. Degn Executive Vice President, Food, Consumables, and Hardlines, Wal-Mart

Stores Division U.S.

Linda M. Dillman Executive Vice President, Risk Management and Benefits

Administration


Johnnie Dobbs Executive Vice President, Logistics and Supply Chain

Michael T. Duke Vice Chairman, Responsible for Wal-Mart International

Joseph J. Fitzsimmons Senior Vice President, Treasurer

John E. Fleming Executive Vice President, Chief Marketing Officer, Wal-Mart Stores

Division U.S.

Rollin L. Ford Executive Vice President and Chief Information Officer

David D. Glass Chairman of the Executive Committee of the Board of Directors

Mark D. Goodman Executive Vice President, Marketing, Membership and E-commerce,

SAM’S CLUB

Craig R. Herkert Executive Vice President, President and Chief Executive Officer, The

Americas, Wal-Mart International

Charles M. Holley, Jr. Senior Vice President, Finance

Thomas D. Hyde Executive Vice President and Corporate Secretary

Lawrence V. Jackson Executive Vice President, President and Chief Executive Officer,

Global Procurement

Gregory L. Johnston Executive Vice President, Club Operations, SAM’S CLUB

C. Douglas McMillon Executive Vice President, President and Chief Executive Officer,

SAM’S CLUB

John B. Menzer Vice Chairman, Responsible for U.S.

Thomas M. Schoewe Executive Vice President and Chief Financial Officer

H. Lee Scott, Jr. President and Chief Executive Officer

Gregory E. Spragg Executive Vice President, Merchandising and Replenishment, SAM’S

CLUB


S. Robson Walton Chairman of the Board of Directors

Claire A. Watts Executive Vice President, Product Development, Apparel and Home

Merchandising, Wal-Mart Stores Division U.S.

Eric S. Zorn Executive Vice President, Wal-Mart Realty (Annual Report 2006).

III. EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREAT

(SWOT)

A. Natural Environment

Raw materials availability.(O)

Land availability. (O)

Electricity usage. (T)

Oil and Gas usage. (T)

Water scarcity. (T)

Hazardous waste storage, transportation and disposal. (T?)

B. Societal Economy

1. Economic

Interest rate increases may signal end of economic expansion (T).

Economic deterioration may mean more frugal shopping habits. (T)

Increasing commodity costs. (T)

Increasing transportation costs. (T)

Currency fluctuations. (T)

Slowing national economy (T)

2. Technology

Increased usage of RFID for inventory management. (O)


Internet presence allows for customer options. (O)

Information technology increasingly important. (O)

3. Political-Legal

Regional trade pacts are making free trade available between countries. (O)

Differing laws between countries may evoke compliance issues. (T)

Potential unionization of workforce. (T)

The Company is involved in a number of legal proceedings. In accordance with

Statement of Financial Accounting Standards No. 5, “Accounting for Contingencies,”

the Company has made accruals with respect to these matters, where appropriate,

which are reflected in the Company’s consolidated financial statements (Annual

Report 2006). (T)

The Company is a defendant in numerous cases containing class action allegations in

which the plaintiffs have brought claims under the Fair Labor Standards Act

(“FLSA”), corresponding state statutes, or other laws (Annual Report 2006). (T)

4. Sociocultural

Aging U.S. demographics. (O)

Slowing U.S. population growth. (T)

Wal-Mart seen as a reason for closing of mom and pop stores. (T)

International cultural differences. (T)

Green environmental movement. (O)

C. Task Environment

United States market saturation. (T)

Expansion into Europe, China, South America, Canada, and Mexico. (O)


Rivalry High. Target, Sears, K-Mart (T)

Chance of new entrants low. (O)

Purchasing power high. (O)

Substitute power high. (T)

Government regulations power medium. (T)

IV. Internal Environment

A. Corporate Structure

Three business units, Wal-Mart Stores USA, Sam’s Club, and Wal-Mart International

(Wheelen and Hunger 19-12). (S)

o Wal-Mart Stores unit had 3,289 locations and included the company’s

supercenters, discount stores, Neighborhood Markets in the US, and

walmart.com.

o Sam’s Club unit had 567 locations and included the warehouse membership

clubs in the US plus samsclub.com.

o Wal-Mart International had 2,285 locations in 10 countries. The International

total was increased in February 2006 by purchasing a majority control of

CARHCO with 360 locations in five Central American countries (Wheelen

and Hunger 19-12).

B. Corporate Culture

In-depth employee involvement in company affairs. (S)

Trained employees to be merchants by being responsible for the performance of their

own departments. (S)

Reflection of the founder’s values. (S)


Conservative values create some problems when expanding to larger cities. (W)

Non-Union stance is viewed unfavorably is some areas. (W)

Offered $8.5 million worth of grants from its “Safe Neighborhood Heroes” program

to recognize emergency professionals. (S)

Donated $3 million in supplies when Hurricane Katrina devastated America’s Gulf

Coast. (S)

C. Corporate Resources

1. Marketing

Advertising costs are expensed as incurred and were $1.6 billion in 2006. Advertising

costs consist primarily of print and television advertisements (Annual Report 2006).

Buy American campaign. (S)

Green marketing offers the option of buying products which were better for

environment. (S)

Offers quality brand names at lower-than-competitive prices (Wheelen and Hunger

19-19). (S)

Introduced a “Value Plan” benefits plan to its employees at premiums ranging from

$11 to $65 a month. (S)

2. Finance

$312.6 billion in annual sales. (S)

$11.2 billion net income. (S)

$2.68 earnings per share. (S)

8.9% return on assets. (S)


11.4% increase in sales and operating income for the international business (Wheelen

and Hunger 19-24). (S)

3. R&D

More involved with the development side. (W)

Focusing on expansion and development of already established business model. (W)

4. Operations

Wal-Mart USA. We are intent on driving comparative store sales by being relevant to

our broad customer base and by improving our cost structure and inventory flow to

strengthen return on investment. (S)

Sam’s Club. We remain committed to serving the needs of our members – where

pennies matter – by leveraging productivity improvements and lowering expenses, so

that we can provide the products and services they want at the lowest prices in the

industry. (S)

Wal-Mart International. Our approach to ensuring continued profitable growth

includes three dimensions – new markets with multiple formats, new store growth in

existing markets and increasing sales at existing stores (Annual Report 2006). (S)

5. Human Resources

Employees are called associates. (S)

Employee stock ownership and profit-sharing program. (S)

Decentralized approach to retail management development. (S)

Utilizes the Total Quality Management approach. (S)

Discourages unionization (Wheelen and Hunger 19-23). (W)


6. Information Systems

Leader in RFID technology. (S)

Good internet presence. (S)

Utilizes satellite communications, data centers, and handheld devices. (S)

V. Analysis of Strategic Factors

A. Situational Analysis

1. Strengths

International brand name.

Financial position.

Market leadership.

2. Weaknesses

Market saturation.

Public opinion.

Adjustment to cultural differences after entering a foreign market.

Supplier alienation.

Past employee discrimination.

Employee health benefits.

International supplier employee violations.

3. Opportunities

International expansion.

Environmental leadership.

Worker’s rights leadership.

Community involvement.


Social initiatives.

4. Threats

Strong U.S. competition.

Changing demographics.

Economic uncertainty.

Current litigation.

Employee unionization.

VI. Strategic Alternatives and Recommended Strategy

A. Strategic Alternatives

Adopt a friendlier corporate attitude and image

o Pro. Improved customer service

o Pro. Business growth

o Pro. Stronger relationships with its suppliers and customers

o Con. The negative image tarnishes their moral and ethical image

Con. Popular image is that Wal-Mart comes to town and “locally-owned retailers

shrivel up and die” (Parnell, 2008).

Ease into foreign and domestic markets instead of barging in

o Pro. Create a more positive corporate image by not devouring every business

in sight.

o Pro. Creates an image with integrity

o Pro. Customer loyalty

o Pro. Increase friendlier competition

o Con. Creates ill-will among smaller businesses


o Con. Viewed as a bully corporation

Expansion

o Pro. Provides a new source of tax revenue for the community

o Pro. Creates more jobs

o Pro. Promotes community expansion and individuals who will patronize from

other communities

o Pro. Opportunities for employee growth in the organization

o Con. Associates may receive unjust wages due to the compensation of lower

cost products

o Con. Purchasing practices require most suppliers to manufacture goods in

third world countries

o Con. Reduces the value on competing businesses

B. Recommended Strategy

Continue to expand the brand and operations in to urban & rural areas and foreign

countries. The company’s reputation of being a bully needs to be eliminated by

implementing social awareness/advancement programs similar to Boys and Girls

clubs or the Police Athletic League. The goal of such a program will be to invite the

community to take part in Wal-Mart’s growth by mentoring, providing training,

internships and/or jobs that will aid the community.

“Mom and Pop” establishments should not be taken for granted. It is not the intention

of Wal-Mart to take from anyone’s dream, but to it is Wal-Mart’s goal to provide cost

savings to its consumers. A possible strategy for easing the anxiety of many small

business owners on the onset of Wal-Mart entering the community is offering these


owners the opportunity to become a part of Wal-Mart staff in a capacity that would

provide them sense of security. Offering small business owners a position will not

only eradicate the discontent of loyal customers but will display Wal-Mart’s

willingness to enter a community and enhance it.

With the attitude of “business is a dog eat dog world”, Wal-Mart has been able to

enter the market “eat” stores that have tried to follow its precedence but have not

been able to attain Wal-Mart’s recognition. Entering into foreign markets may be

extremely difficult, as many nations are known for their loyalty and enriched cultures.

Unlike the United States, countries like China and Japan are accustom to living with

less, so the attractiveness of buying more due to cost savings may not be received as

well as in the United States. It is in the best interest of Wal-Mart to establish stores in

foreign markets, but to adopt the culture of the area and continue to maintain its

mission of enhancement not degradation.

VII. Implementation

Management needs to be open to change regarding clashes with “grass-roots”

movements that push to keep new construction of Wal-Mart stores in rural America.

While many residents welcome a new Wal-Mart, there will always be opposition and

by developing ways to appease those that oppose the giant retailer, they will be more

welcome to the neighborhood.

Wal-Mart has been steadily reaching into every corner of the earth, but not always

with successful results. Upper management is making the assumption that every

culture will welcome box stores and the American culture of which Wal-Mart is


known. As has been proven time and again, this is not always true. There needs to

be committees established that can perform thorough research.

Several lawsuits have been filed regarding the treatment of employees. Wal-Mart

needs to develop a way to ensure employees are getting the right benefits that are

equal to the retail industry’s average worker.

VII. Evaluation and Control

Wal-Mart needs to develop “scout” teams that can visit locations of opportunity and

solicit the communities concerns if Wal-Mart builds nearby.

Implement incentivized customer satisfaction surveys and employee surveys, which

will increase the chance of them being completed.

Monitor industry trends in foreign countries of interest.

Shift from monopolizing to publicly displaying how important “Mom and Pop”

establishments are to our society and how Wal-Mart can effectively and efficiently

incorporate these individuals and there keen sense of business into the large picture of

providing consumers cost savings.


EFAS (External Factor Analysis Summary)

Key Internal Factors Weight Rating Weighted Scores

Comments

OpportunitiesInternational expansion .20 3 .60 Required to remain

competitive & #1 in marketEnvironmental leadership .05 2 .10 Will take time Worker’s rights leadership .05 2 .10 Will take time and initiative to

steer towards a win - winCommunity involvement .10 2 .20 Ensures community buy-in

and acceptanceSocial initiatives .10 2 .20 Fosters relationshipsThreatsStrong U.S. competition .15 4 .60 Kmart and Target are

capturing an opposing niche while Wal-Mart remains a catch all of convenient shopping

Changing demographics .10 3 .30Economic uncertainty .05 3 .15 Domestic recession, lower

discretionary spending, increasing unemployment

Current litigation .10 3 .3Employee unionization .10 3 .3Total Scores 1.0 2.85

IFAS (Internal Factor Analysis Summary)

Key Internal Factors Weight Rating Weighted Scores

Comments

StrengthsInternational brand name .15 4 .60Financial position .15 4 .60Market Leadership .15 4 .60 Grew stronger as the

economy grew weakerWeaknessMarket saturation .15 3 .45 Embarking on international

opportunitiesAdjustment to cultural differences .10 3 .30Supplier alienation .20 3 .60Past employee discrimination .05 2 .10Employee health benefits .05 2 .10Total Scores 1.0 1.55

SFAS (Strategic Factor Analysis Summary)


Key Strategic Factors Weight Rating Weighted Score

Duration S I L

Comments

International brand name .15 4 .60 X X X Name Recognition

Market saturation .15 3 .45 X XSupplier alienation .20 3 .60 X X XInternational expansion .20 3 .60 X X XSocial initiatives .10 2 .20 X X X Community

outreach programs

Strong U.S. competition .15 4 .60 X X X Kmart and Target are capturing an opposing niche while Wal-Mart remains a catch all of convenient shopping

Economic uncertainty .05 3 .15 Domestic recession, lower discretionary spending, increasing unemployment

TOTAL SCORES 1.00 3.20


Wal-Mart, Inc.Executive Summary

An in-depth strategic audit was conducted on Wal-Mart, Inc. by Strategic Audit Team

Two and several recommended alternatives and strategies have been recommended. The

purpose of this executive summary is to detail those strategies and recommendations that are

discussed in three different phases: Strategic Alternatives and Recommendations,

Implementation and Evaluation and Control.

Strategic Alternatives

In order for Wal-Mart to maintain its course to becoming the global retail leader, we have

determined several Strategic Alternatives as well as Recommended Strategies. For this

summary, we will examine the pros and cons of the three alternatives we have decided as having

the most importance.

Many towns and communities see Wal-Mart as an aggressive corporation that has done

nothing to the community except destroy existing small businesses. One strategic alternative is

to develop a friendlier corporate image in dealing with the public as well as its employees.

Management could get more involved with community charities or provide employees with

better benefits. Employees that are more content on the job will likely provide better customer

service. Wal-Mart will also be accepted into the communities more easily, rather than having to

struggle against grass-root movements, petitions and lawsuits.


A negative side-effect could be lower profits as employee wages and benefits increase as

well as prices. Everyone comes to expect low prices but in order to appease employees and the

community, prices will have to rise.

The second strategic alternative that our team has agreed upon is incorporating changes

into the methodology of Wal-Mart’s expansion in global markets. In the past, Wal-Mart has

made bad decisions regarding product choices in a foreign country. For example, certain

products didn’t sell well in countries like Mexico and Argentina. Mistakes were also made upon

entering the foreign markets and trying to maintain a presence. German Wal-Marts were

managed by American executives who caused German managers to quit. Brazilian Wal-Marts

were not wholly accepted by the local populace due to unfamiliarity with the Wal-Mart brand.

Wal-Marts in China were tightly managed and highly restricted by local laws which did not

allow for growth. And South Korean Wal-Marts simply closed their doors when they were

deemed unsuccessful with consumers. By taking the time and assigning a task force to research

the new market, Wal-Mart would be able to ease into a new global market instead of its common

method of simply “barging in” and buying up chains of existing retail stores and simply

“slapping” the Wal-Mart brand onto the store. This easement would allow time for the local

populace to accept Wal-Mart as just another retail store instead of a retail bully. This in turn

would create a more positive corporate image in the foreign market. Also, by slowly

establishing itself it could allow for friendlier competition with existing retail firms.

The downside of slowly easing into a new market is not being able to establish its place

in the retail business. Large chains will still have the advantage of loyal customers that may stay

clear of Wal-Mart which would quickly cut into profits. Many foreign consumers may not be

familiar with the Wal-Mart brand and by not establishing a solid foothold in their country, they


never will. Also, the supply chain that Wal-Mart is well known for is not as established in the

global market.

The last strategic alternative is Wal-Mart’s future expansion. In order for Wal-Mart to

stay competitive against its nearest rival, Target, and other big box type retailers, it must

continue with building new stores. Even though many communities do not approve of Wal-Mart

moving in, many residents agree that the new store provides jobs and in some rural areas where

joblessness is high, this is a big benefit. Many large companies, Wal-Mart included, provide tax

revenues that allow the community to grow and develop. Without a large company, smaller

communities do not have the resources to put towards new parks or infrastructures. Wal-Mart

stores provide competition which allows lower prices for common, everyday items, and in times

of recessions, this is always a big plus in areas where mid to lower income families live.

Unfortunately, there are many disadvantages to expansion. By building too many new

Wal-Mart stores, the market will become saturated and stores will earn less profit per location.

Local businesses will always suffer in the shadow of a new Wal-Mart which will bring some

community resentment. New stores will provide many jobs, but usually at the lowest pay

allowed by law. Wal-Mart will always have to deal with petitions, lawsuits and other legal

issues prior to and during any construction.

Recommended Strategies:

Wal-Mart needs to continue to expand the brand and operations into urban and rural areas

as well as foreign countries. The company’s reputation of being a bully needs to be eliminated

by implementing social awareness/advancement programs similar to Boys and Girls clubs or the

Police Athletic League. The goal of such a program will be to invite the community to take part


in Wal-Mart’s growth by mentoring, providing training, internships and/or jobs that will aid the

community versus hinder it.

“Mom and Pop” establishments should not be taken for granted. It is not the intention of

Wal-Mart to take from anyone’s dream, but it is Wal-Mart’s goal to provide cost savings to its

consumers. A possible strategy for easing the anxiety of many small business owners on the

onset of Wal-Mart entering the community is offering these owners the opportunity to become a

part of Wal-Mart staff in a capacity that would provide them a sense of a security. Offering

small business owners a position will not only eradicate the discontent of loyal customers but

will display Wal-Mart’s willingness to enter a community and enhance it.

With the attitude of “business is a dog eat dog world,” Wal-Mart has been able to enter

the market and “eat” stores that have tried to follow its precedence but have not been able to

attain Wal-Mart’s recognition. Entering into foreign markets may be extremely difficult, as

many nations are known for their loyalty and enriched cultures. Unlike the United States,

countries like China and Japan are accustomed to with less, so the attractiveness of buying more

due to cost savings may not be received as well as in the United States. It is in the best interest

of Wal-Mart to establish stores in foreign markets, but to adopt the culture of the area and

continue to maintain its mission of enhancement not degradation.

Implementation:

Management needs to be open to change regarding clashes with “grass-roots” movements

that push to keep new construction of Wal-Mart stores in rural and urban America. While many

residents welcome a new box style retailer, there will always be opposition. By developing ways

to appease those that oppose the giant retailer, they will be more welcome to the neighborhood.


Wal-Mart has been steadily reaching into every corner on earth, but not always with

successful results. Upper management is making the assumption that every foreign culture will

welcome box stores and the American culture for which Wal-Mart is known. As has been

proven time and again, this is not always true. Management needs to develop executive steering

committees with a single goal of researching the host country to establish the local customs.

Otherwise, Wal-Mart will continue to experience local opposition on foreign land.

Several lawsuits have been filed regarding the treatment of Wal-Mart’s employees, as

well as local communities. Some of the employee key issues are pay and benefits. Human

Resource Management should develop a strategy that would evaluate the pay and benefits of

employees to ensure fair treatment. Studies should be conducted that would evaluate the average

pay and benefits being offered at other competing retailers and make changes as necessary. This

would greatly increase Wal-Mart’s image in local communities just by providing better than

“minimum wage” to associates.

Evaluation and Control:

In order for Wal-Mart to continue its global growth, “scout” teams should be developed

that could visit locations of opportunity and solicit the community’s concerns if Wal-Mart builds

nearby. This may require surveys or town-hall meetings.

Implement incentivized customer satisfaction surveys as well as employee surveys.

These surveys will encourage completion which would be able to help Wal-Mart to better serve

its customers as well as its employees. This holds true in both the United States and other

countries. Surveys would greatly help establish what needs are required to be met to have a


successful store built domestically as well as in a foreign country. Customer surveys would also

helpful in determining products, layouts and demands of the customers.

As industries shift here in the United States as well as overseas, trends need to be

monitored to ensure future strategies can be developed. If trends are not monitored, production

and operations could shift which could affect overall sales.

Shift from monopolizing local markets to publicly displaying how important “Mom and

Pop” establishments are to our society. Wal-Mart can effectively and efficiently incorporate

these individuals and their keen sense of business into the large picture of providing consumers

cost savings.

A continuous evaluation of strategic systems, such as production and distribution, will be

required to ensure all goals are being met. For example, product placement is the key in

determining what sells and what the customer wants/needs. There may also be laws governing

particular regions in regards to what products might be restricted to sell.


Works Cited

Parnell, John A., and Donald L. Lester. Competitive strategy and the Wal-Mart threat:

positioning for survival and success. Bnet. Web.

Wheelen, Thomas L., and J. David Hunger. Strategic Management and Business Policy:

Achieving Sustainability. Upper Saddle River: Prentice, 2010. Print.

Walmart 2006 Annual Report

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