Lecturer Wal-Mart is a large chain, departmental store a household name in the United States but also has subsidiaries in Mexico, Brazil, Japan and a few other countries. Wal-Marts mission is
Our first 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 childrens apparel, and hard goods
(2) At reasonable prices. We will continue to offer scholarships to deserving high-school graduates in hopes of providing students with a well-deserved education
Adapted from httpfaculty.uwstout.eduadekolaaSTRAMGTpowerpointsWal-Mart20-202000.ppt.
As aptly stated in its mission statement, Wal-Mart offers a whole assortment of goods and services at very low prices. In most cases prices are much lower than the prevailing prices you would find in most shops in the area.
Marketing and Management Strategy
Michael Porter described three ways in which a company can be at a competitive advantage these are product leadership, customer intimacy and operational excellence. Wal-Marts marketing strategy is centered on aggressively cutting down working costs and passing the cost savings to the client. The frugal culture, established by Walton, also plays into Wal-Marts success. The company has been criticized for the relatively meager wages and health care plans that it offers to rank-and-file employees. It has also been accused of demanding that hourly workers put in overtime without pay. Store managers often work more than 70 hours per week. Wal-Marts competitive advantage therefore lies in operational excellence. Wal-Mart aims for market leadership in the retail market, expansion in the US and abroad, fostering a positive brand and diversification to other retail and service sectors.
Financial Performance
Based on financial data from MSN Money central Wal-Mart has recorded a steadfast growth in profit for the past 5 years. In general its financial data is very impressive as depicted below
20052006200720082009Total Revenue284,310.0312,101.0348,368.0378,476.0 405,607.0 change911877Gross Profit64,656.071,296.080,780.087,957.095,086.0 change1013987Net Income after Tax10,731.011,732.012,614.0 13,269.013,753.0 change77565Operating Expenses17,300.018,713.0 20,497.021,952.0 21,952.0 change89678
Based on Wal-Marts financial data obtained from MSN Finance, Wal-Marts financial objectives will include
Reduction of costs and increasing productivity
Expansion into new markets
Bigger bargaining role with suppliers
From the balanced scorecard, the achievement of these four objectives will ensure that Wal-Mart operates in line with its mission statement, to offer low prices and reduce costs. Bigger bargaining roles with suppliers will put Wal-Mart in the position to demand lower prices from suppliers, and thus suppliers will cut their costs as well. Further use of technology to improve efficiency in internal operations will help to cut costs as well.
In conclusion, Wal-Mart continues to be a market leader in the United States retail industry. It has built and maintained its position through cost cutting measures and expansion and diversification to new markets. In the future Wal-Mart will have to find more apt methods of cutting costs as their costs continue to increase relative to their gross profit. This can be achieved through further application of technology to make operations efficient.
Our first 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 childrens apparel, and hard goods
(2) At reasonable prices. We will continue to offer scholarships to deserving high-school graduates in hopes of providing students with a well-deserved education
Adapted from httpfaculty.uwstout.eduadekolaaSTRAMGTpowerpointsWal-Mart20-202000.ppt.
As aptly stated in its mission statement, Wal-Mart offers a whole assortment of goods and services at very low prices. In most cases prices are much lower than the prevailing prices you would find in most shops in the area.
Marketing and Management Strategy
Michael Porter described three ways in which a company can be at a competitive advantage these are product leadership, customer intimacy and operational excellence. Wal-Marts marketing strategy is centered on aggressively cutting down working costs and passing the cost savings to the client. The frugal culture, established by Walton, also plays into Wal-Marts success. The company has been criticized for the relatively meager wages and health care plans that it offers to rank-and-file employees. It has also been accused of demanding that hourly workers put in overtime without pay. Store managers often work more than 70 hours per week. Wal-Marts competitive advantage therefore lies in operational excellence. Wal-Mart aims for market leadership in the retail market, expansion in the US and abroad, fostering a positive brand and diversification to other retail and service sectors.
Financial Performance
Based on financial data from MSN Money central Wal-Mart has recorded a steadfast growth in profit for the past 5 years. In general its financial data is very impressive as depicted below
20052006200720082009Total Revenue284,310.0312,101.0348,368.0378,476.0 405,607.0 change911877Gross Profit64,656.071,296.080,780.087,957.095,086.0 change1013987Net Income after Tax10,731.011,732.012,614.0 13,269.013,753.0 change77565Operating Expenses17,300.018,713.0 20,497.021,952.0 21,952.0 change89678
Based on Wal-Marts financial data obtained from MSN Finance, Wal-Marts financial objectives will include
Reduction of costs and increasing productivity
Expansion into new markets
Bigger bargaining role with suppliers
From the balanced scorecard, the achievement of these four objectives will ensure that Wal-Mart operates in line with its mission statement, to offer low prices and reduce costs. Bigger bargaining roles with suppliers will put Wal-Mart in the position to demand lower prices from suppliers, and thus suppliers will cut their costs as well. Further use of technology to improve efficiency in internal operations will help to cut costs as well.
In conclusion, Wal-Mart continues to be a market leader in the United States retail industry. It has built and maintained its position through cost cutting measures and expansion and diversification to new markets. In the future Wal-Mart will have to find more apt methods of cutting costs as their costs continue to increase relative to their gross profit. This can be achieved through further application of technology to make operations efficient.
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