wal mart study case

BPP4133STRATEGIC MANAGEMENT

CASE STUDYPRESENTATION

Team Members

NABILAH BINTI MOHAMAD PB08028

MAIMUNAH BINTI AMANAH PB08063

NURUL NAJWA BINTI ABDULLAH

PB08078

IBRAHIM BIN KASIM

PB08030

YUSMIN BIN JAFFAR

PB08049

QUESTION 1How can Wal-Mart Stores and Sam’s Club

increase same-store sales?

• Maintaining the strength of the provided services or items to be sold in each location between these 2 stores

• Program expansion for each segment regarding to their product or services to be sold to customers (product/services variety)

• Implementing the proposed strategies:

Wal-Mart Stores Sam’s Club

Mimicking competitor’s Reinvigorating the brand

Localizing selections Improve inventory management

Appealing Optimize the “in-club experience”

 Question 2

How should the company capture share of middle- and upper-income wallets?

- sell inferior goods for which demand increases when income falls (low price).

- provide substantial services

- provide appropriate products for each location

- strategic leaders – 8leaders

- always take initiatives in order to satisfy customers

- creates value for customers – highly efficient and innovative supply chain management operation

- put customers first (prime focus) – customer-focused strategies

Question 3 Should Wal-Mart Stores fully retreat from

fashion- forward merchandising and marketing?

No. as mentioned, they moved too quickly in this strategy. They should make it slowly to see the response from the customers. So, they only have to retreat partially.

Question 3 Will it’s neighborhood-store-localization strategy increase sales enough to offset

the associated cost?

• Neighborhood store localization will increase sales and should be enough to offset the associated costs.

• Launched 6 different types of customized stores to attract difference demographic.

• More to “store of the community”• Reflect the individual needs of each neighborhood.

Question 3 What should it do to make it’s new 3-types-of-customers segmentation strategy work?

• Have more of a neighborhood feel to it.• Provide better quality items.• Developing unique, innovative product and

providing distinguished brand.• Reduce the product on shelves and widen the

aisles.• More UPC scanners in the store.

QUESTION 4Should company spin off Sam’s Club? If not, what should it do to compete more

effectively against Costco?

In desperate times, spinning off Sam’s Club can be considered as a good idea to give Wal-Mart the room to breath as Wal-Mart is already have stores in U.S and fast-growing international operations. Due to the stock price soared for the last few years under the leadership of Lee Scott, spinning off Sam’s Club can help to increase stock price a little bit plus allowing Wal-Mart to focus more on its other fast-growing marketing segmentation.

QUESTION 5

ls Wal-Mart expanding the right kind of new stores at the right pace and in

the right places?

• Yes, because Wal- Mart’s international’s U.K. – based Asda subsidiary brings in the largest share of the company’s international revenue, at 37.4 percent. Then, Wal- Mart de Mexico provides the next largest share, at 23.6 percent of Wal- Mart International sales.

• Unfortunately, Wal- Mart face difficulties to obtain the scale and results that targeted such as in Germany and South Korea due to providing inappropriate products for that location.

QUESTION 5

How and where should the company continue to grow internationally?

• Prioritize “where the greatest growth and greatest return exist”- called “majoring in the majors” include the America primarily, followed by U.K. and Japan, as well as China and India over the long term.

• Two types of strategy which are “focused portfolio execution” and global average or “taking full advantages for their worldwide assets, including formats, Information System, purchasing organizations, category expertise, and shared best practices.

QUESTION 5

Should Asda buy J. Sainsbury?

• Yes, because as the second –largest in U.K., Asda should acquiring the third- largest U.K. retailer, the J. Sainsbury to better compete with U.K. leader- Tesco.

QUESTION 6

What will it take to restore the company's reputation in the United

States?

• Pursuing two key strategy to overcome external issues affecting the company, including environmental and community-impact issues, among others.

• Strategies include “sustainability efforts” and “localized charitable” which giving show it as being a responsible corporate citizen and a good neighbor.

• Launched its global environment sustainability initiative in 2004.

• Wal-Mart has beefed up pro-community, pro-sustainability, , and pro-health information on its website, television ads, and annual report.

• For example: launched In Front with Wal-Mart a 30-minutes television show arising on the lifetime and USA networks that give Wal-Mart a chance to show case its incredible associates and the variety of ways they give back to their communities, bettering the lives of America’s working families and shed light on some of Wal-Mart eco-friendly practices.

• Stresses its benefit to suppliers and communities, as well as its commitment in providing affordable health care and competitive wages for its associates.

Should Lee Scott change Wal-Mart’s course? If so, how?

QUESTION 7

• Diversify products, merchandising and marketing strategy based on their strength as one of the top ten global retailer- Large scale of operations, powerful retail brand, pricing advantage, efficient logistic system

• Overcome weaknesses - Continuous product recall, community relations problems, environmental issues

• Opportunities- IT development, opportunities in developing countries such as Asia

• Effectively manage threats- Intense competition, foreign currency fluctuation, recession, expansion issues

SWOTSTRENGTH

•Large scale of operations•Powerful retail brand•Pricing advantage•Efficient logistic system

WEAKNESSES

•Continuous product recall•Community relations problems•Environmental issues

OPPORTUNITIES

•IT development•Opportunities in developing countries such as Asia

THREATS

•Intense competition•Foreign currency fluctuation•Recession•Expansion issues

Lee scott?

replace

Rob Walson

Should

If so, when and with whom?

As of 2004 Wal-Mart was the world's most-sued entity, after the U.S. government. The company's lawyers faced an astonishing array of legal challenges from tort cases—often referred to as "slip-and-fall" suits—to large, class-action suits filed by employees.

WHEN?

WHO?

Michael T. Duke

• Michael T. Duke is a longtime Scott’s protege. As such, Duke is not expected to veer far from the course set by Scott.

• Given his previous role as head of international operations, Duke is likely to expand Wal-Mart's presence in Russia and China to offset slowing growth at home.

• Risk taker and strategic thinker• Moreover, Duke is the best candidate there is as he

have similarities with Lee Scott that can benefit Wal-Mart in many ways.

• Plus, Duke is more of people person rather than Lee Scott and this might actually help to overcome issues concerning employee-employer relationship

Memo by Rob Walton regarding the retirement and replacement of Lee Scott

with Michael T. Duke to Wal-Mart employees on November 21st 2008

“Mike has had broad experience throughout the company, having successfully led the Logistics Division, U. S. operations and International operations. Many of you have worked for Mike, and know first-hand why he is a highly respected executive both domestically and internationally. He understands retail and appreciates the complex global environment in which we operate. Mike is committed to our company's culture, its mission and to our associates and customers, and he has built strong teams wherever he has led”