ASSIGNMENT III

Case – Wal-Mart

Submitted By:

Ramraj Sharma
C.R.N: 167085
Section: A

KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT (KUSOM)

PinchheTole, Gwarko, Kathmandu

Submitted To:
Mr. Jayakar Vaidya
Faculty of Strategic Management

Bachelor of Business Administrative (BBA honors)

Date: 2nd April, 2020

a. Prepare EFAS table, IFAS Table by identifying at least five SWOT factors and
finally SFAS table by identifying eight to ten most relevant SWOT factors.

Answer: The analysis table of the external environment factors of Wal-Mart is presented
below:

External Factor Analysis Summary Table

External Factors Weight Rating (1-5) Weighted Remarks

scale Score

OPPORTUNITIES

European and Asia 0.10 3 0.3 There are market not

market explored in Europe and
Asia for business

Increasing online sales 0.20 3 0.6 The e- commerce

advancement and
changes in business

Differentiation through 0.05 4 0.2

“Every Day Low Price”
strategy

Bargaining power over 0.05 2 0.1

suppliers
Growth of International 0.10 4 0.4 Sales enhancement
sales through its
international markets.

THREATS

Threat of tariffs and tax 0.10 3 0.3 The government and

policies other regulatory
policies in
international markets
differ.

Competition in the U.S 0.10 4 0.4 High competition

market exists within the
market where the
company operates.

Sustainability of market 0.10 3 0.3 Competitors and new

leader position entrants can risk the
existing leadership
position in the market

Existing competitors like 0.15 3 0.45 Major competitors

Target and Costco with similar strategy

Cultural and practice 0.05 1 0.05 .

differences

TOTAL =1 = 3.1
Interpretation

Since the weighted score of the external environment factors is above 3, we can say that the

organization is aware of the opportunities around it and threat for the company and the

company is taking steps to take care of the opportunity and threat. The company does not

have to act impatiently or in rush to change their strategy.

The analysis table of the internal environment factors of Wal-Mart is presented below:

Internal Factor Analysis Summary Table

Weight Rating Weighted Remarks

(1-5) score

STRENGTH

Strong Brand name 0.15 4 0.6 Know the system and service

Strong culture 0.05 4 0.2 Have perceived image in the

market

Capable top management 0.10 3 0.3 inventory system and supplier

and associates relationship is good and

unique
IT and financial resources 0.15 4 0.6 Proper IT and information

system

Good supply chain 0.05 3 0.15

management

WEAKNESS

Research and development 0.10 3 0.3 They are trying for new

projects but not sufficent

Global presence and 0.15 4 0.6 Has more presence in some

positioning part such as canada then other

places

Target market only price 0.05 2 0.1 Aware yet, no initiation

sensitive shoppers

Human resource 0.05 1 0.05 Has gender discrimination in

top management

Lack of Product and 0.15 2 0.3 Less variety then the

services variety and competitors, competition in

options product expansion

TOTAL = 1.00 = 3.2

 Interpretation

Since the weighted score of the internal environment factor analysis in table is above 3, we

can say that the company is aware about its strength and weakness. The company taking steps

to overcome its weakness and utilize its strength for the betterment. The company does not

have to act impatiently or in rush to change their strategy.

The strategic factor analysis summary table of Wal-Mart is presented below:

Strategic Factor Analysis Summary Table

SWOT Factors Weight Rating (1-5) Weighted Remarks

scale Scores

Strength 1: Strong Brand 0.15 4 0.6 Well-equipped and advanced

Name record keeping management

which gives instant

information.
Strength 2: IT and 0.10 3 0.3 Customers can either buy

Financial resources online or by visiting the

stores, as per their

convenience.

Weakness 1: Global 0.15 3 0.45 Affects the brand image and

presence and positioning goodwill of the company.

Weakness 2: Lack of 0.15 2 0.3 Presence of multiple outlets

Product and services variety in nearby locations within

and options the same country.

Opportunity 1: Increasing 0.15 4 0.6 Strong power over suppliers

online sales for making the necessary

purchases

Opportunity 2: Growth of 0.10 3 0.3 Acquiring the wider scope of

International sales the markets with this strategy

as most of the consumers

tend to be price-sensitive.
Threat 1: Existing 0.10 4 0.4 International markets have

competitors like Target and their own rules and

Costco regulations regarding their

operations which might not

always be favorable.

Threat 2: Competition in 0.10 3 0.3 High competition within the

the U.S market competitors which has

similar kind of strategies.

TOTAL =1 = 3.25

Interpretation

Since the weighted score of the strategic factor analysis is more than 3, the company is well

aware of its strength, weakness, opportunity and threat (SWOT) factors therefore, there is no

urgent situation to revise and create new strategy by the organization

b. Prepare TOWS matrix by selecting and putting one most important strength,

weakness, threat and opportunity. Identify the four strategic positions based on

TOWS matrix. Analyze and explain which position do you think Walmart has

presently occupied.

Answer: The TOWS matrix of Wal-Mart is presented below:

TOWS Matrix Table of Wal-Mart

Internal factors Strength Weakness

IT and financial resources Global presence and

External factors positioning

Opportunity Using IT and financial resource to Capturing the global market

expand the services in e commerce of effectively, through the online

Increasing online sales
Wal-Mart sales.

Threat Using IT and strong financial resources Improving the global

to improve and differentiate from positioning alliances and joint

Existing competitors like
competitors ventures and look for new
Target and Costco
market segments