Wal-mart - 2000

Wal-Mart - 2000

Vision Statement To become the worldwide leader in retailing

Mission Statement Components 1. Customers 2. Products or services 3. Markets 4. Technology 5. Concern for survival, profitability, growth 6. Philosophy 7. Self-concept 8. Concern for public image 9. Concern for employees

Mission Statement Our fist responsibility is to provide all consumers (1) the best products and services with guaranteed satisfaction under one roof. Wal-mart provides a wide array of products like toys, electronics, groceries, jewelry, ladies, men, and children’s apparel, and hard goods (2) at reasonable prices. We will continue to offer scholarships to deserving high-school graduates (8) in hopes of providing students with a well-deserved education.

Consumers have been conveniently provided not only with the use of on-line shopping (4) to show without ever leaving home, but also with the concept of “one-stop shopping.” The Wal-mart team is devoted to everything that Wal-mart has accomplished as a universal competitor (3). We are dedicated in recruiting rewarding, and retaining employees of good moral standing (9) by providing benefits for excellent performance, providing clean environments to work in, and by providing equal-opportunity for all individuals (7).

We will continue to offer the highest quality products at the lowest price (6) to strive to be the best in the retail industry (5).

Opportunities Consumers want ease of shopping Internet shopping growing Dollar value increasing Similar shopping patterns worldwide Retail sales expected to increase Environment conscious consumers Elderly population growing Asian market virtually untapped by retail European Market untapped by retail

Threats Regulation of Wal-Mart pharmacies Small towns do not want entry of Wal-Mart Bad media exposure for Kathie Lee Brand Variety of competition nationally, regionally and locally Substitute products more easily because of intense competition

Competitive Profile Matrix

Critical Success Factors Market Share Price Competitiveness Financial Position Product Quality Consumer Loyalty Total

Weight 0.20 0.30 0.10 0.20 0.20 1.00

Wal-Mart Rating Weighted Score 3 0.60 4 1.20 4 2 2

0.40 0.40 0.40 3.00

K-Mart Rating Weighted Score 2 0.40 2 0.60 2 2 2

0.20 0.40 0.40 2.00

JC Penny Rating Weighted Score 2 1

0.40 0.30

2 3 2

0.20 0.60 0.40 1.90

External Factor Evaluation (EFE) Matrix Key External Factors Opportunities Consumers want ease of shopping Internet shopping growing Dollar value increasing Similar shopping patterns worldwide Retail sales expected to increase Environment conscious consumers Elderly population growing Asian market virtually untapped by retail European Market untapped by retail Threats Regulation of Wal-Mart pharmacies Small towns do not want entry of Wal-Mart Bad media exposure for Kathie Lee Brand Variety of competition nationally, regionally and locally Substitute products more easily because of intense competition TOTAL

Weight

Rating

Weighted Score

0.12500 0.17500 0.01250 0.00625 0.00625 0.01250 0.05000 0.01250 0.10000

4 2 2 3 2 3 3 1 2

0.50 0.35 0.03 0.02 0.01 0.04 0.15 0.01 0.20

0.10 0.05 0.05 0.05

2 3 3 1

0.20 0.15 0.15 0.05

0.10

2

0.20

1.00

2.30

Strengths Customer oriented SAM’S Club customers able to buy in bulk Supercenters offer one stop shopping Satisfaction guaranteed programs promoting customer goodwill Buy from local merchants when possible Stock ownership and profit-sharing with employees Leads industry in information technology Ongoing development of its employees Strong community involvement

Weaknesses No formal mission statement Membership only for SAM’S Club Keep poor performing employees on hand Old fashioned store policies Few women and minorities in top management

Internal factor evaluation Model (IFE) Matrix Key Internal Factors Strengths Customer oriented SAM’S Club customers able to buy in bulk Supercenters offer one stop shopping Satisfaction guaranteed programs promoting customer goodwill Buy from local merchants when possible Stock ownership and profit-sharing with employees Leads industry in information technology Ongoing development of its employees Strong community involvement Weaknesses No formal mission statement Membership only for SAM’S Club Keep poor performing employees on hand Old fashioned store policies Few women and minorities in top management TOTAL

Weight

Rating

Weighted Score

0.250 0.100 0.100 0.025

4 3 4 3

1.00 0.30 0.40 0.08

0.025 0.025 0.025 0.100 0.025

3 4 4 4 3

0.08 0.10 0.10 0.40 0.08

0.012 0.100 0.100 0.013 0.100 1.00

2 1 1 2 1

0.02 0.10 0.10 0.03 0.10 2.88

TOWS Analysis Strengths 1. Customer oriented 2. SAM’s Club consumers able to buy in bulk 3. Supercenters offer one stop shopping 4. Satisfaction guaranteed programs promoting customer goodwill 5. Buy from local merchants when possible 6. Stock ownership and profitsharing with employees 7. Leads industry in information technology 8. Ongoing development of its employees 9. Strong community involvement

Weaknesses 1. No formal mission statement 2. Membership only for SAM’S Club 3. Keep poor performing employees on hand 4. Old fashioned store policies 5. Few women and minorities in top management

TOWS Analysis continued Opportunities 1. Consumers wan ease of shopping 2. Internet shopping growing 3. Dollar value increasing 4. Similar shopping patterns worldwide 5. Retail sales expected to increase 6. Environment conscious consumers 7. Elderly population growing 8. Asian Market virtually untapped by retail 9. European Market untapped by retail Threats 1. Regulation of Wal-Mart pharmacies 2. Small towns do not want entry of Wal-Mart 3. Bad media exposure for Kathie Lee Brand 4. Variety of competition nationally, regionally and locally 5. Substitute products more easily because of intense competition

S-O Strategies 1. Advertise more for shopping on-line (S8, O2) 2.

Expand internationally because of similar shopping patterns (S3, O4, O8)

S-T Strategies 1. Buy from local merchants to promote unity in the community (S5, T4) 2.

Build more Supercenters for the increased demand for one stop shopping (S3, T4)

W-O Strategies 1. Improve employment techniques to hire and keep the best performing employees (W3, W5, O6)

W-T Strategies 1. Allow consumers to buy in smaller bulk without having membership to SAM’S Club (W2, T5)

SPACE Matrix Internal strategic position Financial strength Environmental stability

+5 -2

+1 best to +6 worst -6 worst to –1 best

Y axis: 5 + (-2) = 3

External strategic position Competitive advantage Industry strength

-2 +6

-6 unstable to –1 stable +1 best to +6 worst

X axis: 6 + (-2) = 4

Conservative

FS

Aggressive

CA

IS

Defensive

ES

Competitive

Grand Strategy Matrix RAPID MARKET GROWTH Quadrant II

Quadrant I

Wal-Mart WEAK COMPETITIVE POSITION

STRONG COMPETITIVE POSITION

Quadrant III

Quadrant IV SLOW MARKET GROWTH

2. Market penetration 3. Product development 4. Forward integration 5. Backward integration 6. Horizontal integration 7. Concentric diversification

The Internal-External(IE) Matrix The IFE Total Weighted Score

High

Strong

Average

Weak

3.0 to 4.0

2.0 to 2.99

1.0 to 1.99

I

II

III

IV

V

VI

3.0 to 3.99

Medium The EFE Total 2.0 to 2.99 Weighted Score Low 1.0 to 1.99

GROW AND BUILD

Wal-Mart

VII

VIII

IX

Quantitative Strategic Planning Model [QSPM] Key Internal Factors Weight Strengths Customer oriented SAMS’S club consumers able to buy in bulk Supercenters offer one stop shopping Customer goodwill Buy from local merchants when possible Stock ownership and profit sharing with employees Leads industry in information technology Ongoing development of its employees Strong community involvement Weaknesses No formal mission statement Membership only for SAM’S Club Keep poor performing employees on hand Old fashioned store policies Few women and minorities in top management SUBTOTAL

0.25 0.10 0.10 0.03 0.03 0.03 0.03 0.10 0.03 0.01 0.10 0.10 0.01 0.10 1.00

Strategic Alternatives Build additional Improve Supercenters SAM’S Club nationwide and operations worldwide AS TAS AS TAS --------1.00 0.10 4.00 0.40 4.00 0.40 1.00 0.10 ------------------------2.00 0.05 3.00 0.08 2.00 0.20 1.00 0.10 ----------1.00 1.00 1.00 1.00

--0.10 0.10 0.01 0.10 1.06

--2.00 2.00 2.00 2.00

--0.20 0.20 0.02 0.20 1.30

QSPM continued Key External Factors

Improve SAM’S Club operations

0.13 0.18 0.01 0.01 0.01 0.01 0.05 0.01 0.10

Build additional Supercenters nationwide and worldwide AS TAS 4.00 0.50 3.00 0.53 3.00 0.04 4.00 0.03 3.00 0.02 --------4.00 0.05 4.00 0.40

AS 3.00 4.00 2.00 3.00 2.00 ----3.00 3.00

TAS 0.38 0.70 0.03 0.02 0.01 ----0.04 0.30

0.10 0.15 0.08 0.15 0.03

2.00 3.00 --3.00 ---

1.00 2.00 --2.00 ---

0.10 0.30 --0.30 ---

Weight

Opportunities Consumers want ease of shopping Internet shopping growing Dollar value increasing Similar shopping patterns worldwide Retail sales expected to increase Environmental conscious consumers Elderly population growing Asian Market virtually untapped by retail European Market untapped by retail Threats Regulation of Wal-Mart pharmacies Small towns do not want entry of Wal-Mart Bad media exposure for Kathie Lee Brand Variety of competition nationally, regionally and locally Substitute products more easily because of intense competition SUBTOTAL SUM TOTAL ATTRACTIVENESS SCORE

1.00

0.20 0.45 --0.45 --2.67 3.72

2.17 3.47