STRATEGIC MANAGEMENT

ASSIGNMENT NO 1

GROUP MEMBER: -

TOOBA SIDDIQUI (22523)

SUBMITTED TO:

SIR USMAN ALEEM

Q: Based on the organizations vision, mission, and core values (culture), find how these

organizations board of directors or CEO analyze part is done by them.?

Ans: I choose Walmart company for this assignment which is primarily involved in the

secondary sector.

“WALMART”

INTRODUCTION:

Walmart is a multinational retail corporation that operates a chain of discount department stores,

grocery stores, and hypermarkets. It was founded in 1962 by Sam Walton and is headquartered

in Bentonville, Arkansas. Walmart is the largest company in the world by revenue, with over

11,000 stores in 27 countries. Walmart is known for its low prices and wide range of products,

which include groceries, electronics, clothing, and more. Walmart has made significant

investments in e-commerce in recent years, including acquiring Jet.com, an online retailer, and

expanding its online offerings to compete with companies like Amazon. Walmart is also known

for its philanthropic efforts, including its commitment to sustainability and its efforts to provide

disaster relief. Overall, Walmart is a major player in the retail industry and has had a significant

impact on the way people shop and live.

Walmart is primarily involved in the secondary sector, which involves the manufacturing and

production of goods. Walmart operates in the retail sector, selling a wide range of products to

customers in stores and online. They are known for their low prices, large selection of goods, and

commitment to customer service. Walmart has expanded its business over the years to include
grocery stores, pharmacies, and other services, but their core business remains retail sales. They

purchase goods from manufacturers and then sell them to customers in their stores and online.

MISSION STATEMENT:

Walmart operates with the following Mission:

“To save people’s money so they can live better”

This statement reflects the ideals of the company’s founder, Sam Walton. Strategic decisions in

the business are a direct expression of this mission statement, which is synonymous to the

company’s slogan, “Save money. Live better.” Based on this statement, it is clear that

Walmart’s business strategies involve using price as a selling point to attract target consumers.

Walmart fulfills the “save people money” component of the mission statement through its “low

selling prices”.

VISION STATEMENT:

Walmart operates with the following Vision:

“Be the destination for customers to save money, no matter how they want to shop.”

This vision was officially articulated in the company’s 2017 investment community meeting.

The company’s previous vision statement was “To be the best retailer in the hearts and minds

of consumers and employees.” The change in the corporate vision reflects strategic changes that

Walmart implements in response to changes in the competitive landscape and the overall

condition of the retail industry

CORE VALUES:
Walmart's core values are respect for individuals, service to customers, striving for excellence,

and acting with integrity. Respect for individuals means that Walmart values diversity and

inclusion and treats everyone with respect and dignity. Service to customers means that Walmart

is committed to providing high-quality products and services at low prices. Striving for

excellence means that Walmart is constantly working to improve its operations and provide the

best possible experience for customers. Acting with integrity means that Walmart is committed

to doing the right thing, even when it's difficult or unpopular. These core values guide everything

Walmart does and help the company stay true to its mission of helping people save money and

live better.

EXTERNAL ANALYSIS:

An external strategic analysis of Walmart would involve examining the market and industry

trends that could impact Walmart's performance. This could include analyzing the competitive

landscape and identifying emerging trends in the retail industry, such as the growing importance

of e-commerce. It may also involve assessing the impact of economic and political factors, such

as changes in consumer behavior or shifts in trade policy. By understanding these external

factors, Walmart can make more informed decisions about how to allocate resources, develop

new products and services, and respond to changing market conditions. Overall, an external

strategic analysis is an important tool for any company looking to stay competitive and adapt to a

rapidly changing business environment.

 How Boards of directors or CEOs handle external analysis part?

The CEO or Board of Directors of Walmart would likely conduct an external strategic analysis

by examining factors outside of the company that could impact its performance. This might
include analyzing the competitive landscape, identifying emerging trends in the retail industry,

and assessing the impact of economic and political factors on Walmart's business. To analyze the

external environment, the board of directors and CEO would likely conduct a PESTEL analysis.

PESTEL stands for Political, Economic, Sociocultural, Technological, Environmental, and Legal

factors that affect a business.

1. Political:

 Walmart operates in a variety of countries around the world, which means it is subject to

a range of political risks.

 Changes in government policies, such as trade tariffs or labor laws, can have a significant

impact on Walmart's operations.

2. Economic:

 Economic factors, such as changes in interest rates or consumer spending patterns, can

have a major impact on Walmart's financial performance.

 Walmart is also affected by currency fluctuations, as it operates in many different

countries.

3. Sociocultural:

 Changes in consumer preferences and social trends can have a significant impact on

Walmart's business.

 Walmart must also consider cultural differences when operating in different countries.

4. Technological:
  Walmart has made significant investments in technology, such as e-commerce and supply

chain management systems.

 Technological advancements can also create new opportunities for Walmart to improve

its operations and customer experience.

5. Environmental:

 Walmart has faced criticism for its environmental impact, particularly in terms of its

supply chain and use of plastics.

 Walmart has made efforts to improve its sustainability practices, such as by setting

ambitious goals for reducing emissions and waste.

6. Legal:

 Walmart is subject to a range of legal risks, such as lawsuits related to labor practices or
product safety.
 Changes in laws and regulations, such as new data privacy laws or trade agreements, can
also have a significant impact on Walmart's operations.

INTERNAL ANALYSIS:

An internal strategic analysis of Walmart would examine factors within the company that could

impact its performance. This might include analyzing Walmart's strengths and weaknesses,

identifying areas where the company could improve its operations, and assessing the

effectiveness of its current strategies. By understanding these internal factors, Walmart can make

more informed decisions about how to allocate resources, develop new products and services,
and improve its overall performance. An internal strategic analysis is an important tool for any

company looking to identify areas for improvement and develop strategies to achieve its goals.

 How Boards of directors or CEOs handle internal analysis part?

The internal strategy analysis of Walmart can be conducted by the CEO, the board of directors,

or other executives and managers within the company. The goal of an internal strategic analysis

is to identify areas where the company can improve its operations and develop strategies to

achieve its goals. By analyzing factors such as the company's strengths and weaknesses, its

current strategies, and areas where it could improve, the CEO and other leaders within the

company can make more informed decisions about how to allocate resources and develop new

products and services. Overall, an internal strategic analysis is an important tool for Walmart to

identify areas for improvement and develop strategies to achieve its goals.

SWOT ANALYSIS

A SWOT analysis of Walmart involves analyzing the company's strengths, weaknesses,

opportunities, and threats.

1. Strengths:

 Walmart is the largest retailer in the world, with a strong brand and a reputation for

offering low prices.

 Walmart has a large and diverse product portfolio, with offerings in categories such as

grocery, electronics, and apparel.

 Walmart has a large and efficient supply chain, which allows the company to keep costs

low and offer competitive prices to customers.

2. Weaknesses:

 Walmart has faced criticism in the past for its labor practices, including low wages and

poor working conditions.

 Walmart has struggled to gain a foothold in some international markets, where local

competitors may have a stronger presence.

 Walmart has faced challenges in adapting to the rise of e-commerce and the shift to

online shopping.

3. Opportunities:

 Walmart has an opportunity to expand its e-commerce offerings and compete more

effectively with companies such as Amazon.

 Walmart can continue to expand into new international markets, where there may be

opportunities for growth and expansion.

 Walmart can continue to innovate and develop new products and services to meet the

changing needs of customers.

4. Threats:

 Walmart faces intense competition from other retailers, both online and offline.

 Walmart is vulnerable to economic downturns and changes in consumer spending

patterns.

 Walmart may face regulatory challenges in some markets, which could impact its ability

to operate and expand.

Overall, a SWOT analysis can help Walmart identify areas where it can improve its operations

and develop strategies to achieve its goals.