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Wal-Mart Stores Strategic Audit Team Presentation. Columbia College Jessica Kauten, Siveicea Love-Guarganious, William Montague, Scott Randall, Marchelle Robinson, and Judith Rosado Strategic Management 479 Alexander Furla. Current Situation. Current Performance

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wal mart stores strategic audit team presentation

Wal-Mart StoresStrategic Audit Team Presentation

Columbia College

Jessica Kauten, Siveicea Love-Guarganious, William Montague, Scott Randall, Marchelle Robinson, and Judith Rosado

Strategic Management 479

Alexander Furla

current situation
Current Situation

Current Performance

  • Divided in 3 Business Segments: Wal-Mart Stores, Sam's Club, and the International Division.
  • Largest Company with $245 billion in sales.
  • $11.2 billion net income, up 9.4% to $2.68 per share.
  • Stock price of $46.11.
  • Over 6,100 stores worldwide.
strategic management
Strategic Management

Board of Directors

  • 13 members, 4 affiliated, 9 independent, 3 women, 2African Americans, 2 Hispanic Americans.
  • S. Robson Walton, Chairman of the Board.
external environment swot analysis
External EnvironmentSWOT Analysis

Natural Environment

  • Raw materials availability.
  • Land availability.
  • Electricity usage.
  • Oil and Gas usage.
  • Water scarcity.
  • Hazardous waste storage, transportation and disposal.
external environment
External Environment

Societal Economy


  • Interest rate increases (T).
  • Economic deterioration (O)
  • Increasing commodity costs. (T)
  • Increasing transportation costs. (T)
  • Currency fluctuations. (T)


  • Usage of RFID (O)
  • Internet presence (O)
  • Information technology increasingly important. (O)
external environment1
External Environment


  • Regional trade pacts making free trade available (O)
  • Differing laws may evoke compliance issues. (T)
  • Potential unionization of workforce. (T)
  • Many legal proceedings. (T)
  • Defendant in numerous cases containing class action allegations (T)


  • 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)

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)
internal environment
Internal Environment

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)

Corporate Resources


  • Advertising costs are expensed as incurred and were $1.6 billion in 2006. Advertising costs consist primarily of print and television advertisements.
internal environment1
Internal Environment


  • $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. (S)
internal environment2
Internal Environment


  • More involved with the development side. (W)
  • Focused on expansion and development. (W)


  • Wal-Mart USA. Intent on driving comparative store (S)
  • Sam’s Club. Remain committed to serving the needs of our members (S)
  • Wal-Mart International. Approach to ensuring continued profitable growth. (S)
internal environment3
Internal Environment

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. (W)

Information Systems

  • Leader in RFID technology. (S)
  • Good internet presence. (S)
  • Utilizes satellite communications, data centers, and handheld devices. (S)
analysis of strategic factors
Analysis of Strategic Factors


  • International brand name.
  • Financial position.
  • Market leadership.


  • 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.
analysis of strategic factors1
Analysis of Strategic Factors


  • International expansion.
  • Environmental leadership.
  • Worker’s rights leadership.
  • Community involvement.
  • Social initiatives.


  • Strong U.S. competition.
  • Changing demographics.
  • Economic uncertainty.
  • Current litigation.
  • Employee unionization.