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Analysis Of Walmart And Strategic Recommendations For The Next Five Years. (Memo Format)

3013 words - 12 pages

AnalyTo: H. Lee Scott - CEO Company: Wal-MartExecutive Summary: First of all, I would like to thank you for giving me the honour to analyse you're dominant and successful organisation. In this memo, I am going to discuss the strategic factors facing Wal-Mart, the current strategies that the organisation has been following, and give a clear understanding and analysis on Wal-Mart's own resources and objectives. In addition I will examine the external factors to the organisation and its impacts. Ultimately I will demonstrate my recommendations and opinions on how the organisation can sustain success into the future.My report begins with a SWOT analysis to examine the strength, weakness, opportunities, and threats of Wal-Mart in order to identify the way the organisation is operating correctly, what it needs to work on and the strategic options it may be recommended to succeed in the market.Strengths•Largest retailer in the US with several operating divisions. Wal-Mart Stores Division, Wal-Mart Discount Stores, Wal-Mart Supercentre, Wal-Mart Neighbourhood Market and Sam's Club.•Wal-Mart is the largest employer in the United States and the company is one of the few places left for people to get a decent job without a college education.•They attribute to large amount of sales in the world to the fact that they have stores all over the world.•One of Wal-Mart's competitive advantages is their remarkable logistics system. They are able to ship merchandise from any of their numerous distribution centres in order to provide the cheapest and most efficient route.•Technology involvement, has allowed for increased sales domestically and globally. This not only provides convenience for customers, but with a logistics system like the one Wal-Mart has in place, online orders have become a breeze to fill.•Strong strategic planning attributes with the ability on identifying, knowing, and understanding what exactly customers want from a retailer.•They are paying particular close attention to environmental issues and have "vowed to increase use of renewable energy, reduce waste and carry environmentally sensitive products.Weaknesses•Some view Wal-Mart as a retailing giant that has taken over the retail industry.•Low price product is the result of huge number of sales, whipping out smaller retailers. This has created a monopoly feeling.•Many environmentalists are concerned with the large scale buildings that are not sensitive to the environment.•They have not been able to dominate in foreign countries.•Even though sales figures are in the green, overall profits are lowering.•Wal-Mart has a tendency to overstock and therefore reduce gross margins when they sell products for reduced prices.Opportunities•To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.•Wal-Mart currently only operates in...

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