Walmart Analysis Project 10 Tyrell ✓ Solved

WALMART ANALYSIS PROJECT 10 Wal-Mart Analysis Project Tyrell S Grant Liberty University BUSI 601 Walmart Analysis Project

Analyze Walmart's business strategy, including SWOT and balanced scorecard analyses, addressing financial, customer, learning and growth, and business process perspectives. Discuss the critical success factors selected for the company and evaluate whether Walmart is achieving these CSFs based on available data. Conclude with insights on how Walmart can sustain or improve its competitive position, supported by credible references.

Sample Paper For Above instruction

Walmart Inc. stands as a formidable force in global retailing, with a history spanning over five decades of strategic growth and market dominance. Its ability to adapt to changing economic landscapes and consumer preferences has been critical in maintaining its competitive edge. This paper conducts a comprehensive analysis of Walmart's business strategy through SWOT and balanced scorecard frameworks, examining its internal strengths and weaknesses alongside external opportunities and threats. The goal is to elucidate the key factors driving Walmart's success and to evaluate its performance against critical success factors (CSFs) to suggest avenues for sustained growth and competitiveness.

Introduction and Business Overview

Founded in 1962 by Sam Walton, Walmart has grown into one of the largest retail chains worldwide, operating hypermarkets, discount department stores, and grocery stores across multiple countries. Its core business strategy revolves around cost leadership, leveraging economies of scale and advanced supply chain management to offer low prices to consumers. Walmart’s global footprint fosters significant revenue streams, which fuel expansion initiatives. Despite its success, Walmart faces intense competition, evolving consumer trends, and operational challenges that require continuous strategic adjustments.

SWOT Analysis of Walmart

Strengths

  • Extensive global presence and large market share
  • Efficient and technologically advanced supply chain
  • Strong financial resources and brand recognition

Weaknesses

  • Narrow profit margins due to cost leadership strategies
  • Business model susceptible to replication by competitors
  • Negative public perception regarding labor practices

Opportunities

  • Expansion into developing nations with growing middle classes
  • Enhancement of employee training and development programs
  • Growth of online and omnichannel retailing

Threats

  • Intense competition from e-commerce giants like Amazon
  • Changing consumer health and lifestyle trends favoring healthy lifestyles
  • Increasing regulatory scrutiny and local market challenges

Balanced Scorecard Analysis

Financial Objectives and Performance

Walmart aims for an 8% increase in return on investments (ROI), a 5% increase in revenue per worker, and a 5% increase in revenue from assets over two years. Recent financial data shows ROI at 11.22% in Q3, slightly below previous levels, indicating an area needing strategic focus. Revenue per worker has increased minimally, highlighting the importance of workforce efficiency. The marginal decline in asset revenue suggests room for optimizing asset utilization.

Customer Perspective

Customer satisfaction has been improving, with recent surveys showing a 75% satisfaction rate — an upward trend since 2013. Walmart’s efforts to improve store aesthetics, product variety, and service quality contribute to increased loyalty and customer base growth.

Learning and Growth Perspective

Investments in employee training, offering raises, and career development are central to Walmart’s strategy. External instructors and job rotation are used to enhance workforce skills, fostering adaptability and innovation within the organization.

Business Process Perspective

Walmart’s adoption of advanced information technology systems has streamlined supply chain management, order fulfillment, and inventory control. Automation and technological integration have reduced lead times and operational costs, maintaining efficiency at scale.

Critical Success Factors and Organizational Performance

Key CSFs include maximizing ROI, improving customer satisfaction, and enhancing employee competencies. Walmart’s financial metrics indicate that while ROI exceeds targets, asset utilization and revenue per worker need improvement. Customer satisfaction metrics show progress, but Walmart must continue refining its service quality to sustain growth. Employee development initiatives have fostered a more skilled and committed workforce, positively impacting operational effectiveness.

In terms of business processes, Walmart’s technology investments have helped reduce costs and improve accuracy, aligning with their strategic goals. However, competitive pressures necessitate ongoing innovation in supply chain capabilities and customer experience management.

Discussion of CSFs and Organizational Success

The chosen CSFs—financial returns, customer satisfaction, employee training, and process efficiency—are critical in assessing Walmart’s strategic health. Financial metrics such as ROI and revenue from assets directly influence shareholder value, making these factors vital for long-term viability. Customer satisfaction is crucial for retention amid fierce competition, especially from online retailers. Investing in workforce training and technological upgrades ensures operational excellence, which underpins all other areas of performance.

Achieving these CSFs requires aligned strategic initiatives, continuous performance monitoring, and adaptive management practices. Walmart’s recent performance indicates successes in customer satisfaction and financial performance but highlights the need for further improvements in asset utilization and employee productivity.

Conclusion

Walmart’s strategic management approach, reflected through robust SWOT and balanced scorecard analyses, demonstrates a resilient organization capable of adapting to market dynamics. Continued focus on technological innovation, expanding global footprint wisely, and investing in human capital are key to maintaining its industry leadership. By refining its CSFs and leveraging its strengths, Walmart can sustain competitive advantage, enhance profitability, and meet evolving consumer demands in an increasingly digital economy.

References

  • Blocher, E., Stout, D., Juras, P., & Cokins, G. (2015). Cost Management: A strategic emphasis (7th ed.). McGraw-Hill Education.
  • Hassan, S. M., Sistani, A. J., & Raju, R. S. (2014). Top online shopping e-companies and their strengths and weaknesses (SWOT). Research Journal of Recent Sciences, 3(6), 2502-2510.
  • Smithson, N. (2017). Walmart SWOT analysis & recommendations. Panmore Institute. Retrieved from https://panmore.com/walmart-swot-analysis-recommendations
  • Stock Analysis. (2017). Walmart financial position, assets. Retrieved from https://stockanalysis.com
  • Wahba, P. (2017). Walmart customer satisfaction scores on the rise. Fortune. Retrieved from https://fortune.com
  • Santos, N., & Laczniak, G. (2015). Marketing to the poor: A SWOT analysis of the Market Construction Model. Social Business, 5(2), 121-135.
  • Hassan, S. M., Sistani, A. J., & Raju, R. S. (2014). Top online shopping e-companies and their strengths and weaknesses (SWOT). Research Journal of Recent Sciences, 3(6), 2502-2510.
  • Bloomberg. (2022). Walmart Financial Data. Retrieved from https://www.bloomberg.com
  • Intelligence, F. A. (2021). Walmart’s global expansion strategy. Financial Analysts Journal, 77(4), 12-25.
  • Harvard Business Review. (2019). Supply chain innovations at Walmart. HBR.org. Retrieved from https://hbr.org

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