Wal-Mart Stores, Inc. Team B Michelle Barnes Sharl Flowers Alex Layton Andrew Miller Anh Linh Tran. STRATEGIC AUDIT. CURRENT SITUATION STRATEGIC MANAGERS EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT ANALYSIS OF STRATEGIC FACTORS ALTERNATIVE AND RECOMMENDATION IMPLEMENTATION
ANALYSIS OF STRATEGIC FACTORS
ALTERNATIVE AND RECOMMENDATION
EVALUATION AND CONTROL
Declining Share Price, good financials, decline in quarterly profits for first time in 10 years, limited growth potential in domestic market.
Continous growth in sales and earnings
Declining share prices
Great international expansion
B. Strategic Posture
Saving people money so they can live better regardless of background or where they may live and to build a better life.
“Increasing sales with low prices under one roof. “
“To be the very best in the business by putting the associates first.”
“Emphasis on everyday low prices, corporate growth, concern for people, and loyalty to the company.”
Board of Directors
13 members, eleven are outsiders.
2 board members controlled close to 41% of the shares outstanding.
Each director attended at least 75% of meetings.
2. Top Management
Lee Scott was only the third CEO in the entire history of Wal-Mart when he was selected to the position.
During the 12 years the David Glass, the previous CEO held the position, sales grew from 16 billion to 16.5 billion annually.
Uniquely qualified individuals
One of the first retailers to embrace the idea of “green” marketing.
With quarterly losses in 2006, things still looked impressive for Wal-Mart stores as international growth increased.
Rising fuel prices and terrorist attacks have cut into profits for the global giant.
Global Markets continue to combine into the U.S. domestic market, giving Wal-Mart a variety of options to carry out overseas activities.
Most sophisticated inventory control system
Carefully selected distribution centers that were also used as a network to carefully analyze buying trends.
3. Task Environment (Industry Analysis)
Structured into three business units, Wal-Mart Stores USA, Sam’s Club, and Wal-Mart International.
Down to earth, and committed to being the very best there is from top to bottom
Culture comes from the Sam Walton spirit, or known as the philosophy that people are the way to success from top to bottom.
Buying out companies overseas seems to be a way into international markets for Wal-Mart.
Financially Stable and buying power
Logistics, inventory management, trucking fleet
Innovation and expansion strategy
Reputation and Brand name
E. Core Competencies
Key Internal and External Strategic Factors (SWOT)
Review of Mission and Objectives
Strategic Alternatives – pros and cons