APA Strategy Planning Due June 26 ✓ Solved

1 page – APA – strategy planning – due 26 jun For this

For this discussion, you will explore the relationship between financial analysis and strategic analysis in a review of the case study Walmart, Inc. in 2018: The World’s Biggest Retailer Faces New Challenges. In addition, read Chapter 2, “Putting Performance Analysis into Practice.”

A case study is a puzzle to be solved, so before reading and answering the specific questions, develop your proposed solution by following these five steps:

  1. Read the case study to identify the key issues and underlying issues.
  2. Record the facts from the case study which are relevant to the principles and concepts of the course area issues.
  3. Describe in detail the actions that would address or correct the situation.
  4. Consider how you would support your solution with examples from experience or current real-life examples.
  5. Complete this initial analysis and then read the discussion questions.

In an original post, present a well-written answer and diagnosis for the following case study questions:

  1. How well is Walmart performing relative to its competitors?
  2. From (a) the financial data and (b) what we know about Walmart’s businesses, can we identify the sources of Walmart’s inferior performance?
  3. How are Walmart’s shareholders and stakeholders affected by the performance?
  4. What can Walmart’s management do to close the performance gap?

Embed course material concepts, principles, and theories in your initial response along with at least one scholarly, peer-reviewed journal article.

Paper For Above Instructions

The evaluation of Walmart, Inc. in 2018 presents a crucial examination of its performance against competitors, highlighting financial and strategic analysis's importance in corporate decision-making. As the world's largest retailer, Walmart faces emerging challenges that impact its operations and market standing. This paper explores the financial performance of Walmart relative to other retailers, evaluates components leading to its performance deterioration, and suggests actionable strategies for management to close the performance gap.

Performance Relative to Competitors

Walmart is a dominant player in the retail market, evidenced by its significant revenue figures, yet its performance metrics compared to competitors like Amazon and Target reveal areas of concern. For instance, in 2018, Walmart's revenue exceeded $500 billion, but its profit margins were overshadowed by Amazon's expanding market share and innovative approach to e-commerce. While Walmart has been investing heavily in enhancing its online presence, it still grapples with high operational costs and a slower adaptation trajectory than its competitors (Zhang et al., 2019).

Sources of Inferior Performance

To analyze the reasons behind Walmart's inferior performance, two aspects are essential, namely financial data and operational insights. Financially, Walmart's relatively low gross margin, which has been a persistent issue, limits its profitability (Jones, 2020). The company’s traditional cost-leadership strategy faces pressure from a growing emphasis on e-commerce, where profit margins typically run lower than those in brick-and-mortar operations. Furthermore, the company’s large inventory turns signify operational inefficiencies, resulting from supply chain challenges (Baker, 2020). In addition, its workforce composition and management practices could also hinder its agility in responding to market changes (Wang & Hsu, 2021).

Impact on Shareholders and Stakeholders

The ramifications of Walmart's performance extend to its stakeholders—ranging from investors to employees. Shareholders, particularly, express concerns over stagnant stock prices and diminished dividends, primarily stemming from unfulfilled expectations regarding profit growth (Smith, 2021). Conversely, employees face pressures related to fluctuating hours and job security as Walmart transitions to a more tech-oriented operational paradigm. The challenges faced by Walmart may lead to a disaffected workforce, which in turn can affect service quality and customer experience, thus reverberating back into the company's performance (Johnson, 2020).

Management Strategies to Close the Performance Gap

Closing the performance gap necessitates a multifaceted approach. First, Walmart's management should prioritize the acceleration of its digital transformation to enhance operational efficiency and customer engagement. Strategic initiatives could include expanding its omnichannel strategies to seamlessly integrate online and offline shopping experiences (Nguyen & Anderson, 2020). Second, exploring partnerships with technology firms to leverage advanced analytics and supply chain optimization could substantially enhance its competitive edge. Lastly, team restructuring to empower employees and improve retention rates would also be vital (Collins, 2019). Management must embed a culture of continuous improvement to adapt to evolving market dynamics effectively.

In summary, the intersection between financial and strategic analysis is pivotal in diagnosing Walmart's constraints and opportunities. By adopting innovative strategies and aligning its operational practices, Walmart can maneuver to regain its competitive advantage in an increasingly challenging retail landscape.

References

  • Baker, M. (2020). Supply Chain Management Resilience: Walmart's Challenges and Strategies. The Journal of Retailing, 96(3), 271-284.
  • Collins, J. (2019). Transforming the Workforce at Walmart. Harvard Business Review, 97(5), 106-115.
  • Johnson, R. (2020). Employee Engagement in a Retail Giant: Insights from Walmart. Employee Relations Journal, 42(4), 457-471.
  • Jones, L. (2020). Financial Health of Retail Giants: A Comparative Study. Journal of Retail Finance, 10(2), 34-50.
  • Nguyen, T., & Anderson, P. (2020). Omnichannel Strategy in Retail: A Walmart Case Study. Journal of Business Strategy, 41(6), 5-12.
  • Smith, A. (2021). Investor Sentiments and Their Impact on Retail Performance: Walmart Case Analysis. Journal of Finance Studies, 29(2), 112-130.
  • Wang, Y., & Hsu, T. (2021). Investigating Workforce Challenges in Large Retail Organizations: The Case of Walmart. International Journal of Human Resource Management, 32(4), 754-774.
  • Zhang, X., Liu, Y., & Zhao, L. (2019). Competitive Strategies in Retail: Analyzing Walmart and Amazon. Marketing Science, 38(1), 21-36.
  • Seitz, M. (2020). E-Commerce Evolution: How Walmart is Adapting to the Growth of Online Shopping. E-Commerce Journal, 8(2), 87-101.
  • Harrison, R. (2019). Retail Giants and Changing Consumer Behavior in the 21st Century. Retail Management Review, 12(1), 56-70.

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