copy of walmart case study

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JAN 8, 2010



By: R1804.(G2)

JAN 8, 2010

PIYUSH

JAIN



� Overview of WAL-Mart

� History

� BCG� Their Mission and Vision

Statement� New Mission and Vision

Statement

� External Opportunitiesand Threats

Internal Strengths and

Weaknesses

� Analysis

± SWOT Matrix± SPACE± Grand Strategy Matrix

�

� Update!� References

� Questions?



� There are 4 different segments� Wal-Mart Stores- sales amounted to 64.3%

± Discount Stores- 1,568 U.S± Supercenters- 1,258 U.S± Neighborhood Markets- 49 stores U.S

� Sam¶s Club- sales amounted to 13.0%± 525 stores U.SIs a member only, cash and carry operations

� International- sales amounted to 16.7%± Discount stores- 942 Sam¶s Clubs- 71± Supercenters- 238 Neighborhood Market- 37

� Other - amounted to 6.1%± McLane is the nation¶s largest distributor of food and merchandise to

convenience stores



Wal-MartStores

International

Other

Sam¶sClub



Histor y of Wal-Mart� In 1945 Sam Walton opened

the first Ben Fr anklin fr anchise in Newport Arkansas and oper ated them with his wife,Helen and brother , Bud.

� These were small chains that were ver y successf ul.

� In November of 1962 Wal-Mart was opened.� Wasn¶t until mid 1970¶s that

Wal-Mart began to grow.

� 1st IPO in 1970.� Then 100 shares were worth

$1,650 dollars and now the same 100 shares are worth more than $6 million dollars.

� In 1999 named #1 stock on the Dow.



Histor y«««

� 1987

± 2 new concept implemented

� Hyper markets, which sellever ything including food

� Supercenters which are scaled down super markets

� Also David Glass named new

CEO of Wal-Mart

� In 1992 Sam Walton Died and in 1996 Bud Walton died.

±

In 1995 Wal-Mart¶s AnnualReport was dedicated to Bud.

� New president and CEO H. Lee Scott states that

³While our histor y is rich with success, there¶s no question that our best years are yet to come.´



� Co-founders, Sam and James ³Bud´ Walton started 1st Wal-Mart in Rogers, Arkansas, 1962

� David Glass was named president 1984, in 1988 he became chief executive officer

� S. Robson Walton named chair man of the board in 1992

� President and CEO in 2000- H.Lee Scott

� Vice President- Laur a Philips



Mission Statement

� They don¶t have a for mal mission statement

� They are most interested in the customers needs

� The culture consists of

± Respect for the individual

± Ser vice to our customers

± Strive for excellence

� If they did have a for mal mission statement it

` would be,³To provide quality products at an ever yday low price and with extended Customer ser vice«always.´



Vision Statement

` "The secret of successful retailing is to giveyour customers what they want. And really, if you think about it from your point of view as acustomer, you want everything: as

� A wide assortment of good-quality merchandise;the lowest possible prices

� Guaranteed satisfaction with what you buy;

friendly, knowledgeable service;� Convenient hours; free parking; a pleasant

shopping experience."

` - Sam Walton (1918-1992)



New Mission Statement

� Their mission is to provide goods and services for their customers at everyday low prices.

� With their innovative technology they strive to havemerchandise ranging from food, clothes, music, etc,

on hand 24 hours a day 7 days a week.� They are committed to the growth of Wal-Mart and

challenge thereselfs to be better.

� They strive to have the best, be the best, and providequality and assurance to their customers

� Their employees are a huge asset to their company,and they would not be the without them.



� They have a huge impact on what their company

was, what it is, and what it will be.

� They also feel it is important to give generously to

those who are less fortunate than others, which is

why Wal-Mart donates thousands of dollars a

year to different organizations.



�

Our vision is to provide good quality andservices to our customers while remaining

the market leader and striving daily to be

the most admired company.



� McLane¶s

� Neighborhood Markets

� International

� Sam¶s Club

� Supercenters

� Distribution Centers



McLane¶s

� Nations largest distributor of food and merchandise to

convenience stores.� In 2003 was sold to Berkshire Hathaway,Inc. so Wal-Mart could

focus on core retailbusiness.



Neighborhood Markets

� Began in 1998

� Located in market with Wal-Mart Supercenters

� Offers customer groceries,phar maceuticals &gener al merchandise.

� Provides 28,000 items to customers.



International

� Wal-Mart expanded so that customers ever ywhere would associate its name with low cost, best value,greatest selection of quality merchandise and highest standards of

customer ser vice.� Wal-Mart focused on

Global Positioning.



Sam¶s Club

� Membership-only, cash-and-carr y oper ations.

� Financial ser vice credit card progr am(Discover Card) available at all clubs.

� Annual membership fee is $35; the Elite Membership is $100.

± Elite membership has additionalbenefits like automotive ser vice contr acts, roadside assistance,

home improvement, auto brokering and phar macy discounts.

� Bulk displays and name br and

merchandise.



JAN 8, 2010

Stores in US and Wor ld

U.S. Totals 1568 1258 525 49

GrandTotals

2510 1496 596 86



JAN 8, 2010

BCG analysis



External Factors



Key External Factors� Opportunities

± Agreement with Berkshire Hathaway, Inc. acquired McLane Company, Inc.

± Fortune¶s number one Most Admired Company and largest company in nation

± Wor ld¶s largest private satellite communication systems

± Ron Brown Corpor ate Leadership Award

� Threats±

³Buy American´ policy± Target± A solution to the monopoly that Wal-Mart has created



Internal Factors



Key Internal Factors� Strengths

± Stores in all 50 states± New concepts:� Hyper markets, super markets

± Wide variety of merchandise±

Nationally advertised merchandise± Limited lines of merchandise ± made in USA± Point-of -sale bar code scanning± Great employee benefits

� Weaknesses± No for mal mission statement

± Management resisted putting women on board of directors± Hiring illegal minorities to clean± Growth for employees only in division



JAN 8, 2010

Increase the amount of hypermarkets, supermarketsin 50states as well as connect to the private satellitesystems(S2, SO)

Create mission statements for all of the acquiredcompanies and the different divisions of Wal-Mart(O1, W1)

Use the Most Admired Company award as leverageto advertise the wide variety of merchandise (S3, O2)

Use the Buy American policy to advertisenationally how American Wal-Mart is (S3, T1)

Increase minority sales through buying minority products and selling them in discount stores (T1, W3)

Use point-of-sale bar code scanning asleverage over competitors like Target (S5, T2)

Offer more merchandise that is not apart of the"Buy American" policy to attract more customers (S3,T1)

Find a solution to the monopoly that has been createdand come up with a new concept to beat the problem.(S2, T3)



� Add more hyper markets and super markets to establish more growth

� Buy products from other countries to have more of

a variety of merchandise and better quality merchandise for customers



� Begin adding more hyper markets to towns with populations large enough to support them.

� Increase the amount of hyper markets by one in ever y state (50 stores)

� Increase revenue by Debt Financing per EPS/EBIT analysis



� http://www.walmart.com

� http://finance.yahoo.com

� Str ategic Management Concepts and Cases

� http://galenet.galegroup.com.prxy6.ursus.maine.edu/ser vlet/BCRC?locID=maine_fortkent

� Tony Gauvin¶s presentation on Kroger¶s

� http://www.target.com



` Thank you

copy of walmart case study

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