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Ahmad Shahir Abd Aziz PBS 15111063

Yeoh Sing Yee


PBS 15111103
Ng Yin Yong
PBS 1511984

INTRODUCTION
Perform
External
Audit

Develop
Vision and
Mission
Statement

-OT
-PESTLE
-Porter 5 Forces of competition
-EFE Matrix

Establish
Long Term
Objectives

Perform
Internal
Audit

-SW
- IFE Matrix

Strategy Formulation

Generate,
Evaluate
and Select
Strategies

-Value Chain
Analysis
- McKinseys
Implemen7S
t
Strategies

-TOWS
-IE Matrix
- BCG Matrix
- SPACE Matrix
- Ansoff Matrix
- Grand
Strategy

Strategy
Implementation

Measure
and
Evaluate
Performanc
e
Strategy Map
Winning
Strategy
Ishikawa Fish
bone diagram
Pareto 80-20
Principle

Strategy
2
Evaluation

1) Prepare a SWOT analysis andjustify why the usefulness of


SWOT analysis
1.
2.
3.
4.
5.
6.
7.
8.
9.

1.
2.
3.
4.
5.
6.

STRENGTHS
WEAKNESSES
Cost leadership strategy
1. Discrimination against women and
Strong market position
minorities
Usefulness
of
SWOT
analysis:
Diversified products and brand 2. Employees were treated poorly
To identify the external
portfolios
3. High employee
turnover
and internal
Excellent customer service
4. Illegal workforce
factors
that
might
affect the future
High efficiency of supply chain
5. Violation of state laws
performance
of any business.
Possess cutting
edge technology
6. Weak response towards public
Multiple store
formatinformation useful
bashing
Provide
in matching the
Strategic locations
7. Critics from the public
firms
resources
and
capabilities to the
Customer
friendly
store
environment
competitive
environment
where
it
OPPORTUNITIES
THREATS
operates.
Increasing
population
in 1. Economic crisis and inflation

To
analyze
the
capacity
to protection
move forward
developing countries
2. Trade
by countries
Increasing and
demand
foradvancing
lower 3. Increasing
address
issues. costs of operation and
priced groceries
expansion
Penetrate foreign markets by 4. Foreign exchange risks
acquisition
5. Aggressive competition
Expansion in the US
6. Increasing manpower costs
Green initiatives
7. Volatility in commodity prices
3
Increased CSR initiatives
8. Low barrier to entry

2)Prepare the TOWS Matrix and justify the


Usefulness of TOWS matrix:
usefulness
of this Matrix
Simple
and
effective
way
to
formulate new and specific strategies
by matching internal and external
factors
Used
to
take
advantage
of
opportunities
available
while
minimizing the impact of weaknesses
and be protected against threats for
a business to remain competitive
1.
2.
3.
4.
5.
6.
7.
8.
9.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

OPPORTUNITIES
Increasing population in developing
countries
Increasing demand for lower priced
groceries
Penetrate
foreign
markets
by
acquisition
Expansion in the US
Green initiatives
Increased CSR initiatives
Improve human resource practices
Online grocery shopping
Efficient supply chain for expansion
and reduce costs
THREATS
Economic crisis and inflation
Trade protection by countries
Increasing costs of operation and
expansion
Foreign exchange risks
Aggressive competition
Increasing manpower costs
Volatility in commodity prices
Low barrier to entry
Perception of low price as low quality
Resistance on new stores opening

1.
2.
3.
4.
5.
6.
7.
8.
9.

STRENGTHS
Cost leadership strategy
Strong market position
Diversified
products
and
brand
portfolios
Excellent customer service
High efficiency of supply chain
Possess cutting edge technology
Multiple store format
Strategic locations
Customer friendly store environment

SO STRATEGIES
Growth by expansion in the US
(S1,S2,S3,S5,S7,S8,O1,O2,O4)
Increase profit margin (S1,S7,O8)
Dominate the retail market in the US
(S1,S2,O1,O2,O8)
Improve
consumers
experience
(S3,S4,S9,O6,O7)
Utilise strong brand to offer discount
and attracts new and more customers
(S1,S2,O8)
Information
system
allow
online
shopping and order (S6,O7)
Expand globally and market penetration
(S2,O1,O2,O3,O4)
ST STRATEGIES
Continue to increase market share
through
market
expansion
and
penetration (S2,S5,S8)
Increase customer loyalty through value
added services (S4,S5,S7,S8,S9,T1,T5,T8)
Win over competitors with low price
(S1,S2,S5,T1,T3,T5,T6,T7,T8
Wal-Mart can offer affordable products
compared
to
its
competitors
(S1,S2,S5,T5,T8,T9)
Leverage on technology to deliver more
product
information
to
customers

1.
2.
3.
4.
5.
6.
7.

WEAKNESSES
Discrimination against women and
minorities
Employees were treated poorly
High employee turnover
Illegal workforce
Violation of state laws
Weak
response
towards
public
bashing
Critics from the public

WO STRATEGIES
Market expansion to get more customers
and market share (W1,O1,O2,O3,O4)
Take care and improve employees
morale and benefits (W1,W2,W3,O6,O7)
Rebuild
positive
brand
image
(W1,W2,W3,W4,W5,W6,W7,O5,O6,O7)

WT STRATEGIES
Reduce employee turnover rate through
improved
employee
welfare
(W1,W2,W4,T6)
Refrain from unethical practices to
reduce negative public perception in
order to reduce resistance on market
expansion (W1,W2,W3,W5,W6,W7,T10)
Increase CSR to create positive brand
image and sustain the
brand as a
market
leader
in
retailing
4
(W1,W2,W3,W4,W5,W6,W7,T2,T4,T10)
Adapt to local culture in order to gain

Political

ro
c
Ma

en

on
r
i
v

Environment

t
en

Economic

Legal

o
r
c
Mi
Social

nm
o
ir
v
en

t
en

Technology
5

TECHNOLOGY

Booming of internet usage all over the country


Advancement in business automation & big data

LEGAL
ENVIRONMEN
T

Enhancement in employment law


New law and regulations for each countries
Tariff of taxes keep changing

Increase in environment awareness


Application on green technology in business

Increase trend in online shopping


High consumer preference of economical and quality product
Consumer preferences based on culture and location
Financial crisis in year 2007-2008
Decline of gasoline price (September November 2008)
High Infation Rate
High Unemployment Rate

Increase of labor union power


Instability of political condition
Enforce strict employment laws stop illegal immigrants into USA

SOCIAL
ECONOMIC
POLITICAL

Q3: Prepare the PESTLE analysis for the company.

Q4: Develop the


PORTER 5 forces for
the company.

Threats of New Entrants


(Low)
High capital/start-up cost
required

Bargaining Power of Buyers


(Medium)
Consumer preference is
based on price competitive
Lots of alternative available
for customers since there
are growing options in
retail industry

Bargaining Power of
Suppliers (Low)

Rivalry Among Competitors (High)


- Main competitors: Kmart &
Target
- Compete in term of pricing,
store location, merchandise mix,
store size.

Low switching cost


Increase in alternative for
the customer to buy online

Cost structure need to be


kept low in order to stay
competitive
Must use environmental
packaging
Must follow the
establishing standard
Need to use RFID
technology

Threats of Substitutes
(Low)
Online shopping

Q5: Justify the application of PESTLE and Porter 5


forces in this study and how are they interrelated.
Walmart is the largest discount retail store company that operates in
the USA and worldwide.
Although Walmart cannot control external macro-environment
factors but Walmart must be aware of the changes and understand
the different forces from external environment in order to achieve
strategic competitive.
The external factors can influence the operations of the business
either help the organization improve its performance or hinder its
performance.
8

Q6: Discuss the importance of BCG Matrix to Walmart.

BCG Matrix deals with as-is and to-be scenario.


This matrix helps Walmart determine the current
position of the company and it plans to be in the future
using market growth and market share
Thus, Walmart can determine appropriate strategies to
be adopted in order to stay competitive.

Q7: What is the current position of the company


and where it wants to be in the future.
High

Question
Mark

Market Growth

Star

Co
w

Low
High

Market
Share

Do
g
Low
10

8) Suggest which strategy does the company


should be adopting using SPACE Matrix?
FINANCIAL POSITION

+6 to
+1

STABILITY POSITION

-6 to -1

1) Liquidity

1) Rate of infation

-3

2) Profitability

2) Demand elasticity

-3

3) Cash Flow

3) Technological changes

-2

4) Leverage

4) Unemployment rate

-2

5) Earning per share

5) Price competition of product

-2

Average

5.2
Total Y-Axis score

COMPETITIVE POSITION

Average

-2.4

2.8
-6 to -1

INDUSTRY POSITION

+6 to
+1

1) Product quality

-2

1) Growth potential

2) Market share

-1

2) Financial stability

3) Customer loyalty

-1

3) Level of entry to market

4) Brand and image

-1

4) Profit potential

5) Technology know-how

-1

5) Resources utilization

11

COMPETIT
IVE
POSITION

FINANCIAL
POSITION
Market Penetration
Market Development
Product Development
Related Diversification
Conservative
2.
8

Defensive
Retrenchment
Divestiture
Liquidation

STABILITY
POSITION

Vertical/Horizontal Integration
Market Penetration
Market Development
Product Development
Diversification
Aggressive
INDUST
RY
4.
POSITIO
4
Competitive
N
Vertical/Horizontal Integration
Market Penetration
Market Development
Product Development

12

9) How does Grand Strategy apply to this case


study?
RAPID MARKET
GROWTH
Product Development
Market Development
Market Penetration
Horizontal/Vertical Integration
Liquidation Divestiture

Quadrant

WEAK
COMPETITIV 2
E POSITION Quadrant

3Retrenchment
Related/Unrelated Diversification
Conglomerate Diversification
Liquidation divestiture

Product Development
Market Development
Market Penetration
Forward/Backward Integration
Concentric Diversification

Quadrant
1

STRONG
COMPETITIV
E POSITION

Quadrant
4 Related/Unrelated Diversification

Horizontal/Vertical Diversification
Conglomerate Diversification
Joint Ventures

SLOW MARKET
GROWTH

The growth of Wal-Mart


is rapid and possesses
strong competitive
position, thus it is
positioned in Quadrant
1.
Hence, Wal-Mart could
focus on product and
market development,
new market
penetration,
forward/backward
integration, and
concentric
13
diversification

10) Develop the EFE, IFE and IE Matrix


STRENGTHS
Cost leadership strategy
Strong market position
Diversified products and
brand portfolios
Excellent customer service
High efficiency of supply
chain
Possess
cutting
edge
technology
Multiple store format
Strategic locations
Customer friendly store
environment
WEAKNESSES
Discrimination against
women and minorities
Employees were treated
poorly
High employee turnover
Illegal workforce
Violation of state laws
Weak response towards
public bashing
Critics from the public
TOTAL WEIGHTED SCORE

WEIGH RATI WEIGHTED


OPPORTUNITIES
T (%) NG
SCORE
0.10
4
0.4
Penetrate foreign markets
by acquisition
0.10
4
0.4
Expansion in the US
0.05
3
0.15
Green initiatives
Increased CSR initiatives
Improve
human
resource
0.10
4
0.4
practices
Online grocery shopping
0.05
3
0.15
Efficient supply chain for
0.05
3
0.15
expansion and reduce costs
0.05
3
0.15
THREATS
0.05
3
0.15
Economic crisis and inflation
WEIGH RATI WEIGHTED Trade protection by
T (%) NG
SCORE
countries
Increasing costs of operation
0.05
2
0.1
and expansion
Foreign exchange risks
0.05
2
0.1
Aggressive competition
0.10
1
0.1
Increasing manpower costs
0.05
2
0.1
Volatility in commodity
0.05
2
0.1
prices
Low barrier to entry
0.05
2
0.1
Perception of low price as
0.10
1
0.1
low quality
1.00
2.65
Resistance on new stores
opening

IF

WEIGH RATI WEIGHTED


T (%) NG
SCORE
0.10
0.05
0.05
0.05

4
4
1
2

0.4
0.2
0.05
0.1

0.05
0.05

3
3

0.15
0.15

0.10
4
0.4
WEIGH RATI WEIGHTED
T (%) NG
SCORE
0.10
4
0.4
0.05

0.15

0.05
0.05
0.05
0.05

4
2
3
2

0.2
0.1
0.15
0.1

0.05
0.05

1
2

0.05
0.1

0.05

0.15

0.05

EF

140.2

IE Matrix

EFE
4.00
3.0
5

1.00

I
Grow

II
And

III
Build

IV
Hold

V
And

VI
Maintain

VII
Harvest

VIII
And

IX
Divest

4.0
IFE: 2.65
0

2.6
5

1.0
0

Market
penetration
Product
development
Backward/forwa
rd/
horizontal
integration

IFE

Walmart has good control to internal factors


EFE: 3.05
Walmart possess good ability to react against

15

11) Justify the usefulness of EFE, IFE and IE Matrix


for this study.

Internal Factor Evaluation (IFE) Matrixis used to


evaluate firms internal environment and to
reveal its strengths as well as weaknesses.
External Factor Evaluation (EFE) Matrixis used to
examine companys external environment and to
identify the available opportunities and threats.
IE matrix is used to analyze the current position
of a business and suggest potential strategies for
future implementation.
16

12) Discuss the importance of Ansoff Matrix? In what way


does it help the company to make decision?
EXISTING PRODUCTS

NEW PRODUCTS

IMPORTANCE OF ANSOFF MATRIX?

EXISTIN
Market Penetration
Product Development
G
(Low Risk)
(Medium Risk)
MARKET
A strategic planning tool that links an organizations marketing

strategy
withMarket
its general
strategic direction Diversification
NEW
Development
Market
MARKET
SetsPenetration
out aims and
objectives
(Medium
Risk)
(High Risk)
Cost-efficient operations and everyday low prices
Provides framework enabling growth opportunities to be identified
Multiple store formats: Discount stores, Supercenters, Sams Club, and Neighbourhood
Analyzes
the risk associated with each quadrant
Markets
Relationships with
bargain
for bottom price,
efficient
for production
delivery
Highlights
thesuppliers:
risk that
a particular
growth
strategy
that and
cause
you
Product
Use ofDevelopment
cutting-edge technology: electronic product code (RFID system), retailing
move
to other quadrant
technologies
Astute merchandising: experimenting with new merchandising techniques, implemented in
Offers
Distribution
centre operations:
one
distribution
centre serves
75-100 stores,
high
efficiency
a structured
way
to
assess
potential
strategies
for
growth
other
stores
if
worked
well
(store
layouts,
merchandise
displays,
store
colour
schemes,
(sorting, repacking, and loading to trucks), truck feets fuel efficiency
Shows
merchandise
and sales
howselection,
to develop
a promotion
strategytechniques)
for altering market position and
Relationship with suppliers: selected those who dominant in their category and committed
improve
product range
to R&D, recyclable packaging on merchandise displays and product mix, automatic
reordering arrangement for high demand new products

Market
Development
Customer
service and pleasant shopping experience: aggressive hospitality, friendly,

folksy
attitude,
Satisfaction
Guaranteed
Expansion
into new
geographic
markets: opening stores in small towns surrounding
targeted metropolitan area before moving into itself in U.S.
Acquisitions to enter foreign country markets: Mexico, Brazil, Japan, China, South Korea,
Diversification
etc.

17

13)Which generic competitivemodel should be


adopted by the company?
Cost

SCOP
Narrow E
Broad

DIFFERENTIATION

GENERIC
COMPETITI
VE
STRATEGY

FOCOS COST

FOCUS
DIFFERENTIATION

To achieve cost savings through large


volume purchases & pass these saving
to customers.
Firm tries to reduce its overall
production & distribution costs.
It wins market share by appealing to
cost-conscious customers.
Sets the lowest prices in the target
market segment, or at least the lowest
price to value ratio.
3 ways to achieve this:
Economies of scale
Low direct & indirect operating
cost
Control over the supply chain

Differentiation

COST LEADERSHIP

Walmart use Cost Leadership Strategy


Famous for EDLP (every day low price)
by:
Developing close relationships with its
suppliers & vendors

Walmarts position

18

WALMART VALUE CHAIN ANALYSIS (Cost Leadership Strategies)


FIRM INFRASTRUCTURE

Maintain focus on brand & concept, bringing store-level concepts back to top (run from a national
headquarter).

Local store is responsible for satisfying the local customer.

SUPPORT ACTIVITIES

HUMAN RESOURCE MANAGEMENT

Focus on the individual employees empowering them as associates and equal feedback

Comprehensive benefits and competitive wages & great training program


TECHNOLOGY DEVELOPMENT

Leading-edge, highly developed IT systems completely integrated with entire supply chain

Automated distribution sites

Real-time access to sales information from all stores Electronic data interchange (EDI)

PRIMARY
ACTIVITIES

INBOUND
LOGISTICS
Use minimum

amount of links
in supply chain
Forming

strategic
partnerships
with vendors
long term
perspective &

OPERATIONS

Divided into 3
reportable
segments;
Walmart US,

Walmart
International,
Sams Club

Only real-time
inventory &
sales tracking

OUTBOUND
LOGISTIC
Runs complex

outbound lgstc
-- due to scope
& size of
operation
Strive to

optimize
outbound
routing & load

MARKRTING &
SALES
Always Low

Prices. Always.
Attempts to link

brand image
with abundant
product
assortment,
highly
competitive

SERVICES

Welcoming
environment
with Greeters
Focus on

improving
customer
service

Provide higher
wages & more
training for shop 19

PROFIT MARGIN

PROCUREMENT

Real-time connection with store inventories and supplier

Direct contact with suppliers, by-passing middle man

Best Retailer to do Business With could provide greater operating efficiencies by supplying realtime data

Question 16: Ishikawa Fishbone Analysis


Major
Issue

Potential Root Causes


When
What
Before 2008
Brand Image

How
Media

Employee complaint
Hire Illegal immigrants
Us Labour Law
Low wages
Cost Control
Discrimination
Cost Control
Poor HR management
Unfair pay
Poor HR management
Poor recruitment process
Poor HR
Lack Management
Lack Management
management
Control
Lack Management Control
Control

Who

Employees

Where

United States

Bad Image

Discrimination against Legal trouble


Poor public relationship
Hire illegal
women
Cost control
Poor HR management
immigrants
Wrong direction
Cheap labour
Lack Management
Lack of analysis

Save cost
control
Lack Management
Cost control
No standard SOP
Control
Wrong direction

Why

Bad Reputation

20

Pareto Analysis
Factors

Frequenc
y

Weight

Adj. Freq.

Percentag
e

Cumulativ
e

Lack Management Control

40

200

43%

43%

Poor HR Management

30

120

26%

69%

Cost Control

20

80

17%

86%

Wrong Direction

15

30

7%

93%

Hire Illegal immigrants

10

20

4%

97%

13

13

Others
250

86%

200
150
100
50
0

93%

97%

3% 100% 100%
100%
80%

69%

60%

43%
200

40%
120

Lack Management Control

80
Cost Control

20%
30

20

13

Hire Illegal immigrants

0%

Root Cause for Wal-Mart negative image are Lack Management21

Q17) Does Wal-Mart have a Winning Strategy?


BCBG Matrix
Grand Strategy
Ansoff Matrix

A good Strategy has to match a companys competitive


conditions, market opportunities, threats, and other
external aspects. It should also align with its strengths
and weaknesses.

Space Matrix
Value Chain Analysis

SWOT
TOWS
PESTLE
IFE, EFE, IE
Matrix

The Goodness of Fit Test

PORTERS 5
FORCES

Porters Generic Strategies


A good strategy leads to a
sustainable competitive
advantage.

Competitive Advantage
Test

Wal-Mart has a Winning Strategy .

However,
the
companys
internal
strengths need to be maximized and
leveraged to counter weaknesses.
Wal-mart also needs to fully utilize its
opportunities and eliminate threats. The
company has strong financials, great
customers satisfaction, highly innovative
BUT still needs a lot of improvements in
terms of weak in HR policies. Future
strategies
to
purse
are
Market

WINNING
STRATEGY

The Performance Test


Balance Scorecard
A good strategy should boost company
performance, companys competitive strength,
and long term market position.

22

Question 18: Stakeholder Management Analysis

Influence
Power

High

Low

Technique to identify individual or parties that need to be


give an attention by the business
Benefits:
1. Improve quality
Reduce Risk &

2. Gain support from the stakeholder


Interference

3.

Meet Their Needs


Keep Satisfied
High Power, Low Interest

Key Player
Manage Closely
High Power, High Interest

Put enough work to keep satisfied,


but not so much that they
become bored

Must fully engage & make


greatest efforts to satisfy

Government, Customers
Least Important
Monitor
Low Power, Low Interest

Shareholders,
Managements, Employees
Show Consideration
Keep Informed
Low Power, High Interest

Monitor these people, but do not


bore them with
excessive communication

Keep adequately informed, and


talk to them to ensure
no major issues are arising.

NGO, Environment Agency,


Suppliers, Competitors
Employees
Interest

23

High

Q19. If Walmart were to join venture with a local player like Giant, what would be the consideration for shared values analysis?

7S

Company

Issue

Risk

Alignment

Compliance

Strategy

Walmart

Best Cost Strategy, Wide range products

[Moderate Risk] Not


direct contradict but
need time to integrate
2 Different strategy

Let former Giant


management handle
the sales and supply of
groceries

Yes. Walmart will have


special division with
expertise to handle
groceries product.

[Low risk] identical


structure.

Minimal effort in
synchronization

Yes. Minimal downtime


from merging.

Upgrade barcode
system to RFID. Keep/
abolish storeroom

Yes. The increase in


market share
compensate for cost.

Giant
Structure

System

Shared Value

Style

Walmart

Hierarchical

Giant

Hierarchical

Walmart

Uses distribution center and RFID

Giant

Use storeroom uses barcode system.

[High risk] Significant


cost is need to up
grade NSK system

Priority on Service and Quality

[High Risk] Direct


contradiction of values

Re-educate and instil


former Giant employee
on their new priority.

No. Its is not easy to


change culture and
environment. Rehiring
might be necessary.

[Medium Risk] Not a


direct contradiction.
Time needed to
assimilate

Combine support and


result based
management

Yes. Combine best of


both world of 2
different style.

[High Risk]
Employee from both
company might have
difficulty in
communication.

Extensive training
needed for former
NSK employee along
with incentive for
good performance

No.
Rehiring might be a
cheaper option.

[High Risk]
NSK employee will
need an upgrade in
knowledge to work
effectively with
Walmart employee

More on-the-job
training must be
made available

Yes.
Employee can be
given chance to learn
more and evaluated
based on their
improvement.
24

Walmart
Giant

Priority more on volume over quality

Walmart

Support leadership style

Giant
Staff

Skill

Low Cost Strategy, More on groceries

Objective based leadership style

Walmart

Highly trained staff, reward base on


performance

Giant

Minimum training and low motivation,


mostly low education or immigrant

Walmart

Highly trained staff, wide job scope

Giant

Minimal skill set, narrow job scope

Q20. Prepare the strategy map for the new entity in Malaysia. Please
justify your vision, mission and objectives.

Vision: To be the leading grocery and general merchandise


chain retailer in Malaysia
Mission: To achieve the highest market share of all the
chain
retailer in Malaysia
Perspective Objectives
Financial

Increase Profit
Lower cost
Increase
Customer Base
Increase
Customer
Satisfaction
Increase
Service
Efficiency

Customer

Internal

Learning and
growth

Increase
Inventory
Efficiency
Increase
overall worker
skill level

25

21) Discuss what are the factors that you need to consider
from time to time in order to make the new entity remain
competitive

Cost
Price
Product Range
Product Quality
Service Quality

26

22) Discuss the importance of applying balance


scorecard to measure the performance of the new
identity
Perspecti Objective
Measure
Target
Initiative
ve
Financial

Increase Profit

Profit Margin

>20%

Lower Cost
Customer

Internal

Streamline
operation
Increase operating
efficiency

Increase
customer Base

Market
Share
Customer

> 60% in
Malaysia

Best price for quality


standard

Increase
Customer
Satisfaction

Complaint
Rate

< 0.05%

Adopt Quality
Management

Increase
Inventory
Efficiency

Inventory
Cost

< 10% of
total cost

Reduce dependency
on storeroom
Just in time
structure

Increase service
efficiency

Customer
Que time

< 3min on
average

Increase number of
counter
27
Employee

Q23. How do you relate Mintzbergs paper on


crafting strategy to the environment that the new
entity is encountering?
Strategy according to Mintzberg
Strategy In Wal-Mart
Mintzberg summed up strategy as a process wherein the
manager as a craftsman, crafts his clay which is his strategy .

Strategy as a process is clearly depicted in the way that every


CEO made specific strategic moves that were aimed at keeping
Wal-Mart's competitive advantage through the years.

Strategy was deductive not inductive, therefore strategist


recognized patterns, they didnt plan them.

As the dynamics in its environment changed, the company saw


the need to revise its strategies.

An entities strategy is influenced by the interplay of the


environment, leadership and organizational culture.

H. Lee Scotts transformation strategy was a carefully crafted


response to critics.

There should not be any barriers between the doers and the
decision makers.

Associates at all levels are expected to be an integral part of the


decision-making process.

There are Deliberate and Emergent strategies.

Evolutionary change had to be abandoned by H. Lee Scott for a


slightly more revolutionary strategy

Strategies have to be championed by the leadership

All Wal-Mart CEOs were very passionate about the strategic


direction of the company
28

Q23: How do you relate Mintzbergs paper on crafting


strategy to the environment that the new entity is
encountering?

Based on
past
experien
ce,
pattern
and
trend

Inte
n
Stra ded
teg
y

Non
realized
strategies
Environmen
t changes

Deliberate +
Emergent =
deliberately
emergent

De
l i be
rat
Str
e
ate
gy

Realized
Strategy

Em
St er
ra ge
te nt
gi
es
29

Q24) Importance of Strategy Process Flow


STRATEGY PROCESS FLOW STAGES

IMPORTANCE

Mission and Objectives

Helps outline the purpose of the new entity and


ensure that employees and other stakeholders are
working toward common goals.

Environmental Scanning

This stage helps the management team develop a


very strong understanding of their internal and
external environments.

Strategy Formulation

Help the new entity develop high level strategies


that will improve performance

Strategy Implementation

Help the management team focus their energy and


resources to ensure that set strategies are executed

Evaluation and Control

Assess and adjust the organization's direction in


response to a changing environment in order to
remain competitive
30

RECOMMENDATIONS
To develop better HR policies
Risk: Increase cost vs Better public image

To provide quality training for management


Risk: Increase cost vs Increase customer and employee satisfaction

To communicate and implement a clear direction across the


organization LOW Risk
Long term business strength

CONCLUSION

Background study Findings Tools


& Analysis Recommendation

31

THANK YOU

32