I.

Statement of the Problem

Walmart has called low operational and overhead costs, but the pressure is on employees
and suppliers. Walmart's insistence on procuring products at lower prices from suppliers
means that suppliers must find ways to make their products for less money, or else they
could be forced to take losses if they choose to sell through Walmart. Walmart also
increased its hourly wages for employees and improved work conditions. Earlier they
were subjected to very high-pressure work conditions and paid lower salaries.

H. Lee Scott was understandably concerned about the raft of issues that threatened to mar
Wal-Mart’s reputation and raise questions about the company’s efforts to secure the
lowest prices for its customers.

The question is how will they continue the growth and avoid increasing negative issues in
recent years.

II. Objectives

A. Productive Objective
 To provide safe, affordable food and other products to people around the
world.
 To enhances economic opportunity, environmental and social
sustainability, and local communities creates value for our business and
for society.
B. Marketing Objective
 To improve the price, type products, and the access of their products for
all consumers across their stores.
 To concentrate on their customer satisfaction and then make sure demand
remains for their products.
C. Business Objective
 To focus in increasing on customer services
 To enhance the flexibility of the shopping experience

III. Areas of Consideration

 A. Strength
 Walmart offers customers an extensive range of products that range from
grocery to electronics.
 Technology (the company was the one that developed the bar code, Scan
& Go application, and order tracking services).
 Cost leadership strategy

B. Weaknesses
 Poor treatment of the employees
 Lack of any differentiation strategy in comparison to the competitors
 Strategy and operation relate to the declining margins and prices

C. Opportunities
 Investing into International operations
 Associated with the higher demand for healthy products
 Improving the online shopping services offered by the company

D. Threats
 Increase of the power of the competitors
 Faces on a regular basis is associated with the resistance exhibited by the
local communities
 Conflict of interest when it comes to becoming a ‘green’ corporation

IV. Alternative Courses of Action

 Sustain the organization culture introduced.
 Change the organizational culture
 Expansion through partnership in retailing businesses in Southeast Asia

V. Final Decision
I chose the ACA #3 because Walmart have a potential in increasing profit and
sales and it can avoid competitors when it comes to retailing businesses.

1. What is the overall business aim of Walmart? How is this achieved?

 -Able to produce safe and good quality product for customers.
-They achieved it through being competitive and leading their success to their motto of
EDLP (Every Day Low Price).
2. Why has Walmart occasionally been less successful outside the USA?
- The company could not make it due to multiple reasons – culture, competition, supply
chain and, of course, Amazon.
3. Why do some companies like Walmart decide to expand beyond boundaries of their “home”
countries?
-The global expansion strategy of Walmart is provision of goods at low prices that could
raise the living standards of people around the world.
4. What is the reason why Walmart remain competitive? What do you think is the kind of
strategy they are using to do business?
-Walmart motivates its employees so that they can perform at their best, which further
helps the company to sustain its competitive advantage.
- Walmart Inc.'s generic strategy is cost leadership strategy that focuses on achieving low
costs.