This paper includes SWOT/TOWS analysis Essay
Here are some important numbers: ё Net sales increased from 229. 6 billion to 256. 3 billion (+ 1 1. 6%). ё Total asset increase 10. 7% to 104. 9 billion. ё When compared to fiscal year 2003, Wall-Mart stores segment experience a 9. 1% increase in operating profit and a 10. 9% increase in sales in fiscal year 2004 ё Domestic expansion resulted from the addition of 139 new discount stores, Superstructures and Neighborhood markets, as well as 130 conversion and/or relocation from Discount stores to Superstars. ё Internationally, Wall-Mart added 83 units net of clothing.
Worldwide square dotage increased approximately 46 million per square or *%. Mission Wall-Mart mission statement is: “To give ordinary folk the chance to buy the same thing as rich people. ” Sam Walton built Wall-Mart on the revolutionary philosophies of excellence on the Wall-mart case analysis. This paper includes SOOT/TOWS analysis, PEST analysis, environmental scan and strategic analysis. By kabob of the company are: 1) Respect for the individual 2) Service to our customers 3) Strive for excellence Wall-Mart strives to always do the right things in the right way.
The company does not accept the notion that business as usual is ever appropriate, and
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Wall-Mart has also a “No Solicitation and Distribution policy” (inside their stores, clubs, distribution centers and other facilities) and a “Customers satisfaction guaranteed by repair, refund or exchange Policy”. II. CASE ISSUES Company Image (CLC#l): Wall-Mart has been the subject of more than 24 complaints to the National Labor Relations Board (NELL) since November 2001. The accusations involve sex discrimination, illegal immigrant and anti-union activities. Will the company be able to sustain a good brand image? Mature Industry (CLC#2): Saturation in the US market was mainly due to the fact that
Wall-Mart already served the most desirable areas of the market with 2000 plus units. As the mass merchandise retail in general seems to be a mature industry, will Wall- Mart be able to continue its growth strategy? Multi-domestic growth (CLC#3): The initial move abroad of Wall-Mart was based on the saturation in their domestic market. However, global retailing demands a huge investment and gives no guarantee on return. As an illustration, Wall-Mart has faced legislative problems in Germany and restrictive trading practices have contributed to its constrained growth.
They earn the trust of the customers every day by providing a broad assortment of quality merchandise and services at every day low prices (EDP) while fostering a culture that rewards and embraces mutual respect, integrity and diversity. ё Wall-Mart has a high level of employee involvement : the company has been sharing profit with its employees since 1974. The employees are called associates an down 8% of the company stock. Wall-Mart recruits 70% of its management from its own workers.
Employees’ attitudes are aligned with the company corporate culture. ё Each store performs the activities in the same way and all employees get the same training. In this way, Wall-Mart is able to standardized its operations, which leads to major cost saving. 1. Marketing Mix a. Product ё Wall-Mart offers a huge line of products and services. Selective private labels and licensed brands are: Athletic Works Catalina (clothing, licensed) Disney Equate (health and beauty aids) Faded Glory Means, licensed)