Walmart Canada: Strategic Plan Project

Analysis of current vision/mission and proposal for updated vision/mission. Comment by Jeffrey O'Leary: An introduction to this report is needed – what will it cover?

Walmart current mission is: “Saving people money so they can live better.” As for the Vision, it is “To be the best retailer in the hearts and minds of consumers and employees.” According to me, Walmart’s mission is not effective enough. That is because an organization can save customer’s money by selling sub-standard products. So, I propose Walmart’s mission should be “providing people with high-quality products at an affordable price so as to better their lives. Still, I think Walmart’s vision is not considering the fact that a firm can be regarded as “best” after employing illegal strategies so as to look good in the eyes of the consumer and employees. For instance, a firm can avoid to pay taxes and instead use the money to increase employees’ salaries and reduce products’ prices. So, the proper vision for Walmart should be: “To be the best retailer in the hearts and minds of consumers and employees using legal strategies. Comment by Jeffrey O'Leary: Make better use of course concepts here.

External factor evaluation matrix and porter’s 5-forces analysis.

External factor evaluation matrix allows for examination of culture, political and economic information. It indicates the ability of Walmart to take advantage of an opportunity while minimizing threats. Porter’s model shows implications of five external factors and how to address them. The five forces by which strategies need to be developed to counteract them include strong competition, weak powers of bargaining from both buyers and sellers, weak substitution and strong threats created by new products and businesses (“Walmart’s ,” 2017. Walmart could increase internal processes automation in its supply and develop human workforce to address company competitive advantage. Comment by Jeffrey O'Leary: More depth on Porter is needed.

Walmart’s Porter’s 5-Forces Analysis

Internal factor evaluation matrix

Strengths and weaknesses in a business, say Walmart are examined using internal factor evaluation matrix tool that is strategically formulated. Factors included are thoroughly understood then intuitively judged in order to develop IFE matrix. Strengths and weaknesses are listed, weights assigned from 0.0-1 with more weight assigned to those that greatly influence the organization (“Internal Factor Evaluation (IFE) Matrix,” n.d.). A third column indicates rating 1-4 in order of increasing strength hence major weakness has one score. The score is then multiplied with weight and adding up all the ratings gives the total weighed score. A total of less than 2.5 implies the organization is weak internally and above 2.5 shows it has strong internal structure.

Walmart’s internal position is better since its attractiveness is 3.22 (Capps, 2012).

SWOT Matrix.

SWOT matrix shows all forces that affect development and growth on a firm. Strength helps a company to withstand weakness (“SWOT Analysis,” n.d.). Organizational size and supply chain efficiency are some internal strength for worldwide growth. Walmart uses leadership strategy that is cost generic and causes low profits and the model is prone to copying by other businesses. Walmart enjoys market expansion, improved quality standards and human workforce opportunities. This allows it to boost Walmart economic status. Changing consumer tastes of product and market condition leads to fierce competition, online selling for a retail business threats. Walmart does not produce natural healthful products hence the healthy lifestyle trend poses a threat to their sales.

Walmart’s SWOT matrix

Boston Consulting Group matrix (BCG)

BCG matrix enables an organization to identify business areas that merit more investments. The matrix analyzes products in accordance to their market. Comparison with larger competitors is always done to explore market growth. A BCG chart having four quadrants could be used where horizontal lines represent market share and vertical line shows growth rate (Marmol & T, 2015). Walmart has been utilizing BCG matrix giving it the reason why it outmatches other competitors (Hylton, n.d.).

Walmart’s BCG matrix

KEY

The vertical line shows an increase of market growth rate (from low to high)

The horizontal axis shows a decrease in relative market share (from high to low)

Walmart is fallen under (STAR) deodorant. To maintain the position in the next three years, Walmart should employ various strategies. One, it should increase advertisements. Two, should aim at penetrating markets, cities and countries where it does not operate.

Based on Walmart’s Porter’s 5-Forces Analysis, the company should use the strategy below too, in order to survive in the Canadian market for the coming three years. Walmart must figure out new strategies that will help it to develop and sustain its long-term competitive advantage. Emphasis on competitive advantage will help it to address concerns of highly competitive and the threat of entry of new firms. For instance, Walmart can invest a lot in automation of its internal processes in the supply chain. Improving its human resource development can as well boost Walmart’s company’s competitive advantage (David, 2011).

Strategic direction choice and rationalization.

Walmart should increase its sales through e-commerce and technological advancement. Transacting over online would promote products and boost sales. In regards to external Factor Evaluation matrix, e-commerce would enable the business to take advantage of creating awareness to new potential customers. The different ways to use e-commerce would be analyzed using internal factor evaluation matrix. Advantages and disadvantages associated with each way; that is either creating mobile application or strictly a computer run operation could be listed, assigned weights, and total scored weight considered (“Walmart’s,” 2017). The one with highest score would be used. BCG could then be used to identify which products needs the e-commerce program. The program would then be established. Comment by Jeffrey O'Leary: Are they not doing this now – how is this different?

References

Hylton, J. (n.d.). Walmart. Encyclopedia of Global Studies. doi:10.4135/9781452218557.n550

Internal Factor Evaluation (IFE) Matrix. (n.d.). Retrieved from http://mba-lectures.com/management/strategic-management/929/internal-factor-evaluation-matrix.html

Marmol, & T. (2015). BCG growth-share matrix.

SWOT Analysis. (n.d.). SpringerReference. doi:10.1007/springerreference_2640

Walmart's Vision, Mission, Generic & Intensive Strategies - Panmore Institute. (2017, March 25). Retrieved from http://panmore.com/walmart-vision-mission-statement-intensive-generic-strategies

Capps III, C. J., & Glissmeyer, M. D. (2012). Extending the competitive profile matrix using internal factor evaluation and external factor evaluation matrix concepts. Journal of Applied Business Research, 28(5), 1059.

David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall