ESSAY: Wk 4 Individual: Strategy Formulation

Please write assignment about Wal-Mart.

The Week 4 individual assignment is the second part of a three part strategic management plan for the company selected by the student in Week 3. The purpose of the assignment is for students to establish long-term goals and objectives; indicate, specify and discuss strategies; and investigate, consider and describe specific business strategies including vertical integration and strategic alliances, to achieve competitive advantage in the industry. The student also generates an appropriate organizational chart in alignment with the stated strategies.
Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 2 of the three part Strategic Management Plan.

Assignment Steps

Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:
Establish Long-term Goals and Objectives
Strategy Formulation.
Indicate the markets that the company will pursue.
Specify the unique value the company will offer in the selected markets.
Discuss the resources and capabilities that are required.
Analyze how the company will capture value and sustain competitive advantage over time.
Business Management Strategy
Consider Cost and Differentiation Advantages.
Describe the Corporate Strategy.
Investigate Vertical Integration.
Describe Strategic Alliances.
Detail the Company Competitive Advantage.
Generate an Organizational Chart of the company you selected.

Cite at least 3 scholarly references.

Format your paper consistent with APA guidelines.

ANSWER

Wal-Mart Strategy Formulation

Wal-Mart instituted deliberate objectives at the beginning of 2016 that it seeks to achieve by the year 2025. The goals, as presented by CEO Doug McMillion are founded on the need for increased trust and transparency on the business practices. Among the most notable targets set out in 2016 include the goals of realizing zero waste to landfill in the USA, Japan, Canada, the UK. The company also sought to double the sales of produce grown locally as well as expanding the sustainable sourcing in 20 commodities such as coffee, grapes, bananas and tea (Walmart, 2017). The company also seeks to ensure that more than 50% of the energy used is obtained from renewable sources as well as achieving a 100% use of recyclable packaging for private label brands (Rice, Ostrander & Tiwari, 2016). The company also seeks to increase its employee training programs, ensure equal pay for the same work for both women and men and enhance predictability and stability through predictable scheduling and paid-time-off (Walmart, 2017). In seeking to reduce the number of landfills in the four stated markets, the company will significantly contribute to the overall goal of ensuring environmental sustainability (Dai, Cantor & Montabon, 2017). Such measures will require…

Wal-Mart utilizes various strategies to gain competitive advantage and sustainability through its cost leadership strategy. Based on the low pricing strategy, enabled through technology and online shopping experiences have been essential in enhancing the business strategy for the organization (Spicer & Hyatt, 2017). The organization has continuously sought to…

The Business Management Strategy

One of the most notable reasons for the continued growth and competitiveness of Wal-Mart is its cost-differentiation contained in its ‘everyday low prices’ slogan (Tan, 2017). The retailer focuses on providing the least price for its products compared to the competitors without compromising on quality. The strategy targets to attract a high number of customers with the cost differentiation strategy and keep them engaged with convenient shopping experience and discounts. The company utilizes four essential factors to drive its growth; large volumes of sales, an effective supply chain system, low overhead and operational costs and the use of bargaining power to obtain the least prices from the suppliers (Spicer & Hyatt, 2017). The ability of the organization to buy products in huge quantities enables it to form economies of scale, bargain with the suppliers to lower their costs and when these factors are combined with extremely efficient stock control and management system, the company realizes lower operating costs. The corporate strategy is informed by the business strategy and functional strategy, which includes the human resource function (Tan, 2017). For Wal-Mart, the corporate strategy is to ensure low costs in operations as well as …

Vertical Integration

Vertical integration is a business strategy to grow through the utilization of economies of scale. Such aspects as producing raw materials, manufacturing, marketing, and retailing are performed by a single organization (Spicer & Hyatt, 2017). Wal-Mart has been making critical steps towards realizing vertical integration to enhance their value. Such actions as cutting the business relationship with Murphy USA Inc. who had a number of gas stations built in front of the Wal-Mart stores in 2016 and building of their gas …

Strategic Alliances

The organization has also focused on building partnerships and strategic alliances with stakeholders to enhance their strategy. The organization understands that collective action is at the core of transformation of the system (Walmart, 2017). For instance, Wal-Mart has continued to partner with leaders and stakeholders such as the Sustainability Index and the Consumer …

Wal-Mart’s Competitive Advantage

Wal-Mart uses four main methods to realize the competitive advantage; creating the economies of scale through huge sale volumes, maintaining a highly efficient stock control and management system, low operational costs and the bargaining power with its suppliers (Stadtler, 2015). These four factors are responsible for Wal-Mart’s low-cost leadership model and corporate strategy (Tan, 2017). The company is able to penetrate the market by establishing the largest market share by providing a wide array of products meaning that customers can find almost any product within one store and at a lower price. Wal-Mart also uses continuous innovation in the supply…

Organizational Chart

The following diagram represents the organizational chart of Wal-Mart.

References

Dai, J., Cantor, D. E., & Montabon, F. L. (2017). Examining corporate environmental proactivity and operational performance: A strategy-structure-capabilities-performance perspective within a green context. International Journal of Production Economics, 193, 272-280.

Rice, M. D., Ostrander, A., & Tiwari, C. (2016). Decoding the development strategy of a major retailer: Wal-Mart’s expansion in the United States. The Professional Geographer, 68(4), 640-649.

Spicer, A., & Hyatt, D. (2017). Walmart’s emergent low-cost sustainable product strategy. California Management Review, 59(2), 116-141.

Stadtler, H. (2015). Supply chain management: An overview. Supply chain management and advanced planning, 3-28.

Tan, Z. (2017). Application of Discounted Cash Flow Model Valuation–Wal-Mart. Available at SSRN 3100702.

Walmart., (2017). The 2017 global responsibility report. Retrieved from https://corporate.walmart.com/2017grr