Essay on Wal-Mart Case Study

Decent Essays

1. Based on the company's external and internal environmental analyses (using SWOT analysis), outline the primary factors impacting Wal-Mart's strategy. Organize these factors by Stakeholder Group to prioritize expectations and identify conflicting pressures on the organization. INTERNAL ENVIRONMENTAL ANALYSIS STRENGTHS Capital Market Stakeholders: ▪ Has grown substantially over recent years and has experienced global expansion. According to exhibit 3 in the case, Wal-Mart's revenue has consistently increased. In 1997, they had revenues of $99,627 billion and by 2007 their revenue increased 250% to $348,650 billion. This growth had an impact on Wal-Mart's net income, showing that they were able to control their expenses while continuing to …show more content…

Consumers have access to company information such as financial searches, finding employment, emailing the company about problems, learning of any recalls of products sold, etc. WEAKNESSES Capital Market Stakeholders: ▪ Are global, but have a presence in only 14 countries worldwide. Some international business environments make it difficult to obtain the scale and results desired by Wal-Mart. They seek markets where there is a potential for that market to become a top three retailer. This opportunity did not exist in certain international markets, causing Wal-Mart to divest its operations. Product Market Stakeholders: ▪ Regardless of being the world’s largest grocery retailer and despite IT advantages, this could leave it weak in some areas due to the huge span of control. Since Wal-Mart sells products across many sectors, it may not have the flexibility of some of its more focused competitors. ▪ Has earned much negative publicity for strong arming tactics and squeezing suppliers of profit margins by threatening to take its business elsewhere. Opposition has been mounting against Wal-Mart and it is increasingly challenging for the company to expand at its current rate, both in the United States and abroad. This is due to opposition to Wal-Mart’s practices in regards to relationship issues with employees, communities, and governments. In the last few

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