The world s largest public corporation by revenue  The largest private employer in the world The largest grocery

retailer in the USA The largest toy seller in America Each year 93% of the American households do shopping in some Wal-Mart store at least once In 2006 around 7,2 billions of people will enter some of the Wal-Mart stores

 MISSION

Wal-Mart s mission is to help people save money so they can live better.

 VISION

To become the worldwide leader in retailing

2. Service to our Customers

1. Respect for the Individual

3. Striving for Excellence

Strength
Cost advantage Low price & customer-oriented Strong supply chain People are key to success

Weakness
Ignore store decoration Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.

Opportunity
Build its own brand Put efforts on social welfare better image New locations and store types Overseas markets

Threat
Other competitors Intense price competition

Based in Shenzhen, China Third busiest port in the world Employs several hundred 80% of Wal-Mart s 6000 global suppliers are located in China Wal-Mart venture & China are a joint

In Wal-Mart s strategic planning stage, they are highly regarded as visionaries. they develop planning processes that enable the company to understand where they want to go, how they want to get there, and what things they must focus on along the way to drive the plan. Part of their tactical planning was to figure out how to get customers to buy more once they were in the store. they wanted to make sure that they

Two key factors helped with the success and expansion -knowledge and technology.

 If we work together, we ll lower the cost of living of everyone we ll give the world an opportunity to see what it s like to save and have a better life (Wal-Mart, 2010).

Wal-Mart s success grew rapidly, extending throughout America and into several international markets (Wal-Mart, 2010). Effective leadership stimulates associates to perform to lofty standards, in so doing, promoting outstanding achievement. Leadership is an integral part of effective management, which Bateman and Snell (2009) define as the process of working with people and resources to accomplish organizational goals .

Sam Walton believed in the importance of control systems in an organization; as he established certain strategic control systems in the company. Walton wanted everyone within the organization to be committed to Wal-Mart's goal "total customer satisfaction", and the strategic control systems were set accordingly.  Wal-Mart has a sophisticated satellite system used for their output control systems. The company is using a linking performance to reward strategy in order to raise performance; where managers' performance and ability to meet goals and targets are linked

To control store operations, WalMart has created a vertical operating structure Based on clear definition of authority and responsibility Decision making is highly centralized Each store manager has the same book of rules and procedures and accounting standards. Store managers are still given some flexibility allows store managers to make decisions on their own. Higher levels of management also rely on mutual adjustment when they have to decide on

 Making decisions on the basis of

experience, feelings, and accumulated judgment. It acknowledges both subjective and objective
thinking and blends analytical with intuitive thinking. It requires only as much information and analysis as is necessary to resolve a particular dilemma. It encourages and guides the gathering of relevant information and informed opinion.

 Introduction to operations management  Operations strategy

INPUT Material Machines Labor Management Capital

TRANSFORMATION PROCESS

OUTPUT Goods Services

INPUT Material Machines Labor Management Capital

TRANSFORMATION PROCESS

OUTPUT Goods Services

Feedback

      

Industrial Revolution Scientific Management Human Relations or the lack thereof Advent of Management Science Quality Emphasis Globalization of Supply Chains Information Age/Internet Revolution

Output Productivity = Input Productivity improves when firms:

 Become more efficient  Downsize  Expand  Retrench  Achieve breakthroughs

y y y y

Define a primary task Assess core competencies Determine order winners & order qualifiers Positioning the firm

 Provide support for overall strategy of a firm  Serve as firm s distinctive competence  Must be consistent  Must be consistent with overall strategy

Products

Services

Processes and Technology

Capacity

Human Resources

Quality

Facilities

Sourcing

Operating Systems

y Make-to-Order
y

products and services are made to customer specifications after an order has been received products and services are made in anticipation of demand products and services add options according to customer specifications

y Make-to-Stock
y

y Assemble-to-Order
y

y Project
y

one-at-a-time production of a product to customer order systems process many different jobs at the same time in groups (or batches) large volumes of a standard product for a mass market used for very high volume commodity products

y Batch Production
y

y Mass Production
y

y Continuous Production
y

y Professional Service
y highly customized and very labor intensive

y Service Shop
y customized and labor intensive

y Mass Service
y less customized and less labor intensive

y Service Factory
y least customized and least labor intensive

For the fiscal year ending January 31, 2009, Wal-Mart reported a net income of $13.6 billion on $404 billion of revenue(3.4% profit margin). Amidst the worst ever economic recession, Wal-Mart had a very strong quarter with sales being $97.6 billion, an increase of 7.5% over the same period last year. One of Wal-Mart financial performance highlights has been to ensure that inventories grow at the half pace of sales. Total sales increased by 6.1% in U.S
HOME DEPOT DELL TARGET WAL MART COSTCO KROGER

Wal-Mart s Win-Play-Show merchandising strategy went a great way in improving the sales particularly in apparels, electronics such as Flat TV,GPS units etc.
There was a decrease in sales in Sam s club segment due to rapid development of new stores in the International and Wal-Mart stores segments. The major increase in sales is attributed to inflation in food prices which led to people spending less on eating out and concentrating more in eating at home.

There was an increase in diluted earnings per share from $2.92 in 2007 to $3.16 in 2008. This increase is attributed to decrease in capital expenditures. The company paid a dividend of $0.88 per share in this fiscal year an increase of 31.3% with respect to previous year.

Financial ratios are used by managers within a firm, by current and potential stockholders (owners) of a firm, and by a firm's creditors. Values used in calculating financial ratios are taken from Wal-Mart s balance sheet, income statement, cash flow statement and statement of equity.

2004 2005 2006 2007 2008

2009

Current Ratio

0.98

0.91

0.90

0.90 0.90

0.81

Quick Ratio

0.14

0.17

0.17

0.19 0.20

0.16

Cash Ratio

0.09

0.14

0.13

0.13

0.15

0.10

It measures how well the firm controls its expenses to generate an acceptable rate of return or profit. 2004 Gross profit margin Operating Margin Return on Equity Return on Assets 2005 2006 2007 2008

23.17% 23.72% 23.86% 24.24% 24.36% 5.81% 5.93% 6.00% 5.88% 5.81%

21.85 22.61% 22.88 21.97% 21.06% % % 15.17% 15.33% 14.67% 14.34% 14.15%

It measures the firm's ability to repay long-term debt.

2004 Interest Burden Ratio Interest Coverage Ratio(Times Interest Earned) Debt Ratio

2005 2006 2007 2008

0.952 0.946 0.93 0.92 0.9165 0 0 82 54 20.84 18.51 16.19 13.41 11.97

0.59

0.59

0.62 0.59 0.60

 Skill levels required  Degree of autonomy  Policies  Profit sharing  Individual or team work  Supervision methods  Levels of management  Training

Wal-Mart employment problems are :

Illegal immigrants mopping its floors Sex discrimination Low wages lead worker strike Unions and community groups. They were not being able to pay for health insurance and other benefits. Wal-Mart workers generally gave the company high performances, but they never get proper pay and benefits.

y What services are provided by HR

Employee screening and selection y Training classes offered y Compensation levels y Healthcare benefits
y

y The speed and utility of these services

y y y y y

Time to hire new employees Time to deliver training to employees Time-to-performance for new hires Response to information requests Employee satisfaction with HR

y Human resources staff per FTE y Program administration costs

y Advertising for recruiting y Travel time for interviews y Test costs y Training materials y Compensation and benefits outlays

y Managerial time performing HR administration y Litigation and settlement expenses

y Job satisfaction y A pleasant feeling from doing work that fulfills one s goals y Organizational commitment y A desire to work towards your organization s goals and objectives y Stress y A feeling of psychological arousal that comes from pressure, deadlines, expectations, etc. y Absenteeism y Failing to report for work as scheduled y Turnover y Voluntary and permanent departure from an organization

y Productivity/task performance y Effectiveness

y

Achieving assigned goals consistently Minimizing resource use Finding new ways to do work, or defining new goals for work

y Efficiency
y

y Creativity
y

y Organizational citizenship behavior (OCB) y Behavior that enhances the social and psychological environment y Firm performance y Increased productivity y Decreased costs y Increased agility

v Employees v Benefits

2,100.000

Store Associate Positions Medical Coverage Exclusive, Everyday Savings Grow Your Future Wal-Mart Success = Your Success Store Careers Store Management Positions Stores Training & Development Driving Careers

Key strategies for growing Locate store in isolated rural areas and small towns (population 5000~25000) Pattern of expansion Always push from inside out Mid-1980s One third were located in areas that were not served by any of its competitors

National Promotion Overlay Dream girls Dream girls VIP (Movie Premier) Sweepstakes National Print Advertising Internet Banner Advertising National Publicity Viral Marketing Retail Micro-site Wal-Mart TV Red Carpet Correspondent Four-market Top-spin Activities Dream girls Dream girls In-store Kiosk Community Marketing Regional Publicity Urban Radio & Print Advertising

Lower price

Promotional strategy Everyday-low-prices Few promotions 13 major circulars per year 1993

Minimize expenses

Maximize sales volume and industry turnover

Satisfaction guaranteed policy

Marketing slogan Lower price Store managers set up prices 2-4% pricing differential between Wal-Mart and its best competitors in most markets in early 1990s

The company utilizes product differentiation approach as their marketing strategy to ensure that with these new entrants their product will still be different, unique and full of quality to satisfy their target market. it appeals directly to its customers with a basic price message and plays by its own marketing rules. Wal-Mart ranked 57th in total broadcast and print advertising. Wal-Mart has been able to adapt to the marketing environment because of its strong commitment of providing quality products and services for both of their business operations.

These include cost leadership, differentiation, focused cost leadership and integrated cost leadership/differentiation. Much of Wal-Mart's success has been ascribed to its stockless warehouse JIT distribution system. The marketing concept has been defined as the key to achieving organizational goals and the marketing concept rests on market focus, customer orientation, coordinated marketing and profitability .

Existing Products Existing Markets

New Products

Wal-Mart focuses on selling Wal-Mart introduces new existing products into existing markets. These are products that are available products into existing markets. These could be products that are unique

also in the other branches only to the Chinese market. of Wal-Mart. New Markets Sell its existing products into new markets, e.g., introduce Wal-Mart online shopping in China. Wal-Mart markets new products in new markets. This can be done by offering new products that

First, understanding competitors will facilitate the firm s management to understand their competitive advantage and disadvantages in relation to their competitors. Second, understanding competitors will also generate understanding of the past, present and future strategies of the firm.  Third, it offers the firm an informed basis to develop strategies in order to gain or maintain competitive advantage against their competitors in the future. Lastly, understanding competitors will also facilitate the firm in forecasting or predicting the financial returns that they made from future investments.

WAL-MART STRATEGIC BUSINESS GOALS AND OBJECTIVES Wal-Mart has always aimed at increasing sales through its friendly prices. This image has stuck with the company for a very long time. Not only is the company associated with low prices, but it has a variety of items under one roof. These qualities favor the rural clientele. STRATEGIC MARKETING PROGRAM MARKETING OBJECTIVES, TARGETING AND POSITIONING The Company needs to change its marketing objectives in such a way that they can attract a different market segment Affluent clients tend to shy away from the retail giant due to the misconception that Walmart's products are of lower quality

PRODUCT:
The company should not abandon its idea of attracting the affluent client Company had introduced Metro 7 stalls in 1,500 stores The company should introduce expensive products only in stores located in affluent neighborhoods. The focus should be on electronics.

PLACE
The focus should be on international markets. Wal-Mart should choose economically secure countries

PRICE
The pricing aspect of Wal-Mart's marketing mix is part of the reason why the company has done so well so far The company should maintain their low pricing strategies but they should merge this with product choices. They need to improve on the quality of service and their items

PROMOTION One of the most notable promotional strategies in Wal-Mart is the use of public relations. The company takes part in charitable events and has marketed itself as a community based institution they could offer their employees access to the in-house clinics

Wal-Mart's success as based solely on its "Everyday Low Prices focus,". Fast, Friendly, Clean" demonstrates Wal-Mart's renewed focus, ensuring associates are friendly and providing a less cluttered shopping experience. Wal-Mart New Statement Now more than ever