Presented to : Sir Liaquat Presented by: Abu Zar Khan 10-NTU-5007 M. Ali Anjum 10-NTU-5037 Ateeq-ur-Rehman 10-NTU-5017

History of Wal Mart
 In 1945 Sam Walton opened the first Ben

Franklin franchise in Newport Arkansas and operated them with his wife, Helen and brother, Bud.  These were small chains that were very successful.  In November of 1962 Wal-Mart was opened.  First distribution center opens at home office in Bentonville, Ark, also first time stock is traded publicly

Opens its first pharmacy and jewelry dept.650 dollars and now the same 100 shares are worth more than $6 million dollars .  1979 First company to reach $ 1 billion in sales in 12 month period.  Then 100 shares were worth $1. Mohr- Value stores  1978 Acquires Hutcheson Shoe CO. 1975 Wal-Mart buys its first store.

 In 1987 two new concept implemented   Hypermarkets.  In 1995 Wal-Mart’s Annual Report was dedicated to Bud  In 1999 named #1 stock on the Dow . which sell everything including food Supercenters which are scaled down supermarkets  In 1992 Sam Walton Died and in 1996 Bud Walton died.

 1999 now the largest employer in the world. 1.  2000 H.43 billion dollars . Inc. Lee Scott named president and CEO of Wal-Mart Stores.  2002 Wal-Mart ranked #1 on the Fortune 500 list.  Thanksgiving Day 2002 largest single sales day in history.

. contributing $18 million and 2.450 truckloads of supplies to victims of hurricanes Katrina and Rita. 2005 Walmart took a leading role in disaster relief.  2006 Walmart introduced its $4 generic-drug prescription program.

. Walmart entered Chile with the acquisition of a majority stake in D&S S. enabling customers to make a purchase online and pick up merchandise in stores.com launched Site to Store service.A. .  2008  2009 Mike Duke became CEO. 2007 Walmart.

opened its first store in India. Walmart launched a global commitment to sustainable agriculture. aiming to strengthen local farmers and economies. high-quality food . 2010 Bharti Walmart. Walmart committed $2 billion through the end of 2015 to help end hunger in the United States. while providing customers access to affordable. a joint venture.

 2011 With the acquisition of MassMart in South Africa. . The first Walmart Express stores were introduced in Arkansas.000 retail units around the world. Walmart surpassed 10. mobile and global platforms.Walmart established @walmartlabs. a hub for developing social.

000 stores in 27 countries.2 million associates worldwide and serves 200 million customers each week at more than 10.The company employs 2. . 2012 Walmart celebrated 50 years of helping people save money so they can live better.

convenient hours. if you think about it from your point of view as a customer. .Vision statment  “The secret of successful retailing is to give your customers what they want. the lowest possible prices. you want everything a wide range of good-quality merchandise. free parking and a pleasant shopping experience. guaranteed satisfaction with what you buy. friendly knowledgeable service. And really.

Strive for excellence  If we have a formal mission statement it would be “To provide quality products at an everyday low price and with extended customer service… always” . Service to our customers 3. Their culture is based on three basic believes of Sam Walton 1.Misson Statment  Wal-Mart does not have a formal mission statement. Respect for individual 2.

Our values revolves around our customer so that we can satisfy them in all ways. We are devoted to the growth of Wal-Mart & challenge ourselves to be better .Proposed mission Statment  Our mission to fulfill the need of our customer at every day low price (EDLP). Which is available round a clock whole week. Our employees are valuable assets of a company what we are today is because of them. It is obligatory duty of us to devote funds for the social and environmental betterment of the public. pharmacy etc. . Through our modernize technology we have wide range of merchandise of food. cloths. electronics.

Division of Wal Mart Sam’s Club Supercenters Neighborhood markets International .

the Elite Membership is $100. roadside assistance. cash-and-carry operations. .  Financial service credit card program (Discover Card) available at all clubs.Sam's Club  Membership-only. auto brokering and pharmacy discounts. home improvement.  Bulk displays and name brand merchandise  At the end of 2009 Wal Mart have 602 sam’s club in operation.  Annual membership fee is $35.  Elite membership has additional benefits like automotive service contracts.

 The average size of supercenters is 186000 sq feet. . They usually employ between 200 and 550 associates.  Wal Mart likes to locate supercenters near the strongest food retailers so their facilities will “either get better or be run out of town”  The company has gained market share more quickly then planned. giving customer one stop shopping.Supercenters  It combine groceries with general merchandise. contingent on store size and consumer needs.

 Located in market with Wal-Mart Supercenters  Offers customer groceries.  In 2009 there were 153 neighborhood markets.Neighborhood Markets  First began in 1998  There markets are 42000 sq feet and usually employ 80 to 100 associates. .000 items to customers. pharmaceuticals & general merchandise.  Provides 28.

. greatest selection of quality merchandise and highest standards of customer service.International  There are 318 Wal-Mart brands in Canada.  Wal-Mart focused on Global Positioning. best value.  Wal-Mart expanded so that customers everywhere would associate its name with low cost. 1197 in Mexico and 56 in Puerto Rico.

50 Neighborhood low 0.Boston consulting group(BCG)Matrix Relative market share position High 1.0 High +20 Sales growth rate Medium 0 low -20 Medium .0 Supercenters •Sam’s •International .

Strategy farmolation analysis frame work Input stage Process Matching stage Decision stage .

Stage One Input stage EFE IFE CPM .

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merge with or form alliances with global retailers focusing on specific market such as Europe and China  Target the untapped market  Customer loyalty  Best availability of Logistics .External Factor Evaluation (EFE) opportunities  Use the online store  Availability of vast merchandising items  New line of organic products  Take over.

External Factor Evaluation (EFE) Threats  Being a leader it faces a lot of competition  Effect on Local retailer  Vanishing monopoly .

36 0.11 Weight 0.10 0.40 0.09 0.36 0.12 0.27 0.15 .09 0.30 0.12 0.18 0.00 Rating 3 4 3 2 3 3 4 Rating 4 3 2 Weighted Score 0.36 0.09 1.10 0.10 0.EFE Matrix Opportunities Online store Merchandising items Alliances with farms Target the untapped market Customer loyalty Organic Products Best availability of Logistics Threats Face competition Effect on Local retailer Vanishing monopoly Total Weight 0.09 0.18 3.44 Weighted Score 0.30 0.

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supermarkets Wide variety of merchandise Nationally advertised merchandise Limited lines of merchandise – made in USA Point-of-sale bar code scanning Great employee benefits  .Internal Factor Evaluation (IFE) Strength  Stores in all 50 states  New concepts:      Hypermarkets.

Internal Factor Evaluation (IFE) Weaknesses  No formal mission statement  Management resisted putting women on board of directors  Hiring illegal minorities to clean  Growth for employees only in division .

58 .09 Hiring illegal minorities Growth of employees only in division Total 0.10 Weight 0.12 0.09 0.12 0.30 Weighted Score 0.20 0.09 0.10 0.30 0.09 1.10 0.00 1 2 0.09 Rating 3 4 3 3 4 3 Rating 2 1 Weighted Score 0.18 0.10 0.18 2.27 0.IFE Matrix Strength Stores in States Hypermarkets Variety of merchandise Nationally Advertise Barcode system Great Employee benefit Weakness No mission statement Appoint woman not allowed Weight 0.10 0.48 0.48 0.

Competitive Profile Matrix .

08 0.14 0.35 0.12 0.24 0.Loyalty Fin.06 2 3 3 3 0.48 0.00 3.Competitive Profile Matrix Wal-Mar Weight Rating Score Target Rating Score Kmart Rating Score Market Share Cus.14 3 2 2 3 0.21 0.24 0.12 0.07 0.36 0.06 0.21 Management Logistics Distribution Ch. Position Online System 0. Benefit 0.07 3 3 4 2 0. Advertising Cus.16 2 2 3 2 0.11 0. Service Tech.16 0.16 0.18 .36 0.18 2 2 2 3 0.12 0.17 2.09 0.08 4 4 3 3 0.22 0.08 0.06 0.24 3 3 2 2 0. Adoption 0.18 0.12 0.44 2.33 0.12 Total 1.16 Global Expn.12 0.12 0.44 0.16 0.28 .32 0.18 2 2 2 2 0.27 0.14 2 3 3 2 0.24 0.12 0.27 0.24 0. Emp.21 0.

• 3. • 2.Findings of Input Stage EFE IFE • 3. CPM .15 shows that our organizational external response is outstanding.17 shows that our competitive matrix is more stronger than our competitors.58 shows that our organizational internal response is Good.

Stage Two Matching Stage SWOT Matrix SPACE Matrix IE Matrix Grand Strategy Matrix .

Limited lines of merchandise – made in USA 6. No formal mission statement 2. Stores in all 50 states 2.SWOT MATRIX Opportunities 1. Hiring illegal minorities to clean 4. Nationally advertised merchandise 5. Target the untapped market 6. Customer loyalty 7. Great employee benefits Weakness 1. Wide variety of merchandise 4. merge with or form alliances with global retailers focusing on specific market such as Europe and China 5. Availability of vast merchandising items 3. supermarkets) 3. Use the online store 2. New line of organic products 4. Growth for employees only in division SO Strategy •S1O6 •S3O5 WO Strategy •W4O5 •W1O4 Threats 1. Point-of-sale bar code scanning 7. Vanishing monopoly ST Strategy •S3T1 •S1S3 •S5T2 WT Strategy •W1T1 . Effect on Local retailer 3. New concepts (Hypermarkets. Best availability of Logistics Strengths 1. Take over. Management resisted putting women on board of directors 3. Being a leader it faces a lot of competition 2.

+6 Best) Return on equity Revenue increase Liquidity Earning per share 5 4 4 3 Cash flows Leverage Inventory Turn over Total 4 4 6 30 .Space matrix Financial strength (FS) Ratings(+1 Worst .

Space matrix Industry strength (IS) Growth potential Ratings(+1 Worst . +6 Best) 5 Financial stability Technical know how 4 3 Resources utilizations Producing capability utilizations Profit potential Ease to enter in to market Total 4 5 5 3 29 .

-1 Best) -2 Product quality Customer loyalty Brand image Customer service Product life cycle Total -1 -2 -1 -2 -4 -12 .Space matrix Competitive Advantage (CA) Market share Ratings (-6 Worst .

-1 Best) Competition pressure Competing product price Rate of inflation Demand variability Technology changes Price elasticity of demand Total -2 -3 -2 -3 -1 -2 -13 .Space matrix Environmental Stability (ES) Ratings (-6 Worst .

9 • Y-axis FS+ES = 4.1 .1) = 2.Space matrix  FS average (30/7)=4.2  ES average (-13/6)=-2.1 CA average(-12/6)=-2 = -2+4.2+(-2.1 = 1.1  X-axis CA+IS IS average(29/7)=4.

FS +6 Space matrix Conservative +5 +4 +3 +2 +1 Aggressive CA -6 -5 -4 -3 -2 -1 -1 0 + 1 + 2 +3 + 4 + 5 + 6 -2 -3 IS Defensive -4 -5 -6 Competitive ES .

0 to 1.58) II Wal-Mart (1) I III IV V VI VII VIII IX .0 to 2.0 2.15) Average 2.Internal-External Matrix (IE) Strong 3.99 Weak 1.99 1.99 (3) (2) (IFE Score 2.0 to 4.99 (4) (3) (1) (2) (EFE Score 3.0 to 1.0 to 4.0 (4) High Low Medium 3.0 to 2.

Grand Strategy Matrix Rapid Market Growth ii) iv) Market development Market penetration iii) Product development Forward. Backward & Horizontal integration i) Quadrant II Week Competitive position Quadrant III Quadrant I Strong Competitive position Quadrant IV Slow Market Growth .

Stage Three The decision stage Quantitative Strategic Planning Matrix (QSPM) Cost Effective Strategy Promotion Strategy .

10 0.12 0.10 0.10 AS TAS AS TAS Growth of employees only in division 0.00 .10 AS Weakness No mission statement Appoint woman not allowed Hiring illegal minorities Weight 0.09 0.09 0.09 Total 1.12 0.Quantitative Strategic Planning Matrix Promotion Strategy Strength Stores in States Hypermarkets Variety of merchandise Nationally Advertise Barcode system Great Employee benefit Cost effective Strategy TAS AS TAS Weight 0.09 0.

10 0.09 0.09 0.09 0.12 0.Quantitative Strategic planning Matrix Promotion Strategy Opportunity Stores in State Hypermarkets Variety of merchandise Nationally Advertise Barcode system Great Employee benefit Cost effective Strategy TAS AS TAS Weight 0.09 AS TAS AS TAS Total 1 .12 0.10 0.10 AS Threat Face competition Effect on Local retailer Vanishing monopoly Weight 0.