MUKHTIAR AHMED

ADV RESEARCH METHOD

SPRING-22
14-04-2022
Introduction
Wal-Mart was launched in 1962 by retailer Sam Walton, who then owned a small
franchised variety store. The company was based on a simple vision; pass on the savings from
buying in bulk on to the customer and earn profits through volume. This was in sharp contrast to
other retailers, who did not change their retail prices when a discount was given by suppliers.  By
controlling payroll costs, fighting unions and hiring as little people as possible, Wal-Mart kept
growing steadily. 

Wal-Mart strategic Plan

After two consecutive years of cost cutting, Wal-Mart plans to keep on doing this for the
coming five years, by reducing operating expenses as a percentage of sales by more than one-
hundred basis points for every consecutive year. Allowing Wal-Mart to widen the price gap with
their competitors as well as aiding the International Segment in improving operating margins in
emerging markets. During 2013, Wal-Mart is aiming to add between 36 and 39 million sq. ft. of
shopping space all over the world. In the US, the main focus will be on expanding, converting
and relocating current shops. Around 210 to 235 shops will expand their retail space by around
14 to 15 million sq. ft. This increase is largely due to the larger percentage of supercenters but
also a smaller growth in the number of small and medium sized stores. The supercenters are
forecasted to be the primary sources of growth for Wal-Mart. Wal-mart has decided to compete
in retail segment keeping in mind to one o=stop place for customers. Wal-mart made rural area
as their business place. This in long run helped them to lock out competitors, helped Wal-mart to
use as entry barrier. Customers can get almost everything they want from one place saves time
and money both. Wal-Mart decided to have its own distribution network. Use of technology was
and is a big helping factor for Wal-Mart. It employed computer system and still reaping benefits
of having excessive amount of data available. Wal-Mart pushed retailed industry to have
universal bar-codes. With bar code tracking of products became easy. Data derived from these
technologies was used to plan stores, products to be sold, inventory management etc. In turn, it
helped Wal-Mart developing thin, effective supply chain and as a result ensured lowest prices for
consumers.
HRM support for Strategic Management
HRM is in a unique position to supply competitive intelligence that may be useful in
strategy formulation. Details regarding advanced incentive plans used by competitors, opinion
survey data from employees, elicit information about customer complaints, information about
pending legislation etc. can be provided by HRM. Unique HR capabilities serve as a driving
force in strategy formulation. Moreover,  HRM supplies the company with a competent and
willing workforce for executing strategies. It is important to remember that linking strategy and
HRM effectively requires more than selection from a series of practice choices. The challenge is
to develop a configuration of HR practice choices that help implement the organization’s
strategy and enhance its competitiveness.