BALANCE SCORECARD

AND STRATEGY FOR

WAL-MART
GUIDED BY PREPARED BY

Ms.Charmi Shah
MIRAL PATEL -IU1955550054
INTRODUCTION OF WAL-MART
 Wal-Mart, an American multinational retail corporation that runs chains of large department and
warehouse stores

 Sam Walton- Founder & Mike duke- current CEO

 It started with a single store in Rogers, Arkansas in 1962 and has grown to what is now the
world's largest and arguably, the most emulated retailer.

 Today, Wal-Mart operates over 11,500 stores in 28 countries around the world generating $482.2
billions (2015) with 1.3 millions employees

 The average profit per hour is $1.8 million 35 million people shop at Wal-Mart everyday, as much
as population of Canada

 90% Americans live within 15min of a Wal-Mart

 World's largest public corporation by revenue.

 Largest private employer in the world.

MISSION & VISION

“If we work together, we’ll lower the cost of living for everyone…we’ll give the
world“We save people
an opportunity what it’sso
to see money likethey can
to save andlive
havebetter."
a better life.”
PERCEPTION OF BALANCE SCORE CARD WAL-MART
THE FINANCIAL PERSPECTIVE

The information available is the annual report and the financial

statements. In addition, news reports of marketing strategy, internal
operations, strategy, and management systems are also accessible.
Objectives Measures Target  Initiatives

Increase Revenue/total Increase revenues;

Increase revenues/to Revenue/tot al assets
assets by 8% during make a more thorough
tal assets. percent.
the next year. use of assets.

Increase Increase employee

Increase revenues/e Revenue/ revenue/employee by 5 efficiency through
mployee.  employee % during next two training and
years.  technology.

Increase return on Reduce operating costs,

Increase return on Return on investment by 2% and achieve economies
investment.  investment..  every year for three of scale through bulk
years. purchases.
The three objectives are Increase revenues/total assets ; Increase
revenues/employee and Increase return on investment.

The strategy of Wal-Mart is cost leadership; increasing revenues/total assets

is a strong indicator of cost reduction. Further, increasing revenues/employee
will also help maintain its cost leadership.

 Finally, Increase return on investment will be possible only if Wal-Mart

controls its costs. Each of the financial objectives is related to the strategy of
Wal-Mart.
 THE CUSTOMER SERVICE PERSPECTIVE

objectives Measures Target Initiatives

Increase average Increase customer Provide a wider

Average customer
customer size of size by 5% every year variety of products
size.
Wal-Mart. for next five years. to customers. 

Increase customer The prices at Wal -

Increase customer
Customer rating. rating by 10% in one Mart should be the
rating of Wal - Mart.
years’ time. lowest in the market.

Reduce the number of Improve quality

Reduce number of Customer customer complaints control of products
customer complaints. Complaints. received by 4% every stocked and improve
year for three years.  customer service.
The three objectives are increasing average customer size of Wal-Mart,
increasing customer rating of Wal-Mart, and reducing the number of customer
complaints.

 The Mission is to help save money so that they can live better. If Wal-Mart
helps customers save money, the customers will buy more from Wal-Mart..

 If Wal-Mart helps customers live better, they will give an improved rating to
Wal-Mart. If the customer save money and live better, then there will be fewer
complaints against Wal-Mart
 THE LEARNING AND GROWTH PERSPECTIVE

Objectives Measures  Target Initiatives

Increase training Average training Increase training hours Hire outside trainers.
per employee by 5% Managers should
hours per hours per each year for the next increase their time spent
employee. employee.  three years.  for training.

Increase employee
Reduce employee
Reduce employee Employee turnover rate by 3% each
participation in
turnover rate. turnover rate.  decision making. Also,
year for next thee years. 
increase job rotation. 

Increase empowerment Give more decision

Increase use of Empowerment index by 5% every year making authority to
employee’s view index. for at least three years.  employees.
The three objectives are Increase training hours per employee at Wal-Mart;
Reduce employee turnover rate at Wal-Mart, and Increase use of employee’s
view.

The strategy of Wal-Mart is cost leadership; reducing employee turnover rate

will lead to cost reduction.

 Further, Increasing training hours per employee will make employees more
efficient and so will lead to cost reduction and better prices to customers.

Finally, Increase use of employee’s view will provide greater initiative from
employees to reduce costs.

Empowered employees will be motivated employees and will help Wal-Mart

control its costs.
WALMART BUSINESS STRATEGY

Mission “to provide a wide variety of high quality, branded and

unbranded products at the lowest possible price” WALMART'S
AGGRESSIVE PRICING (Cost leadership)

Efforts to procure products at the lowest prices possible from

manufacturers

Wal-mart products are usually priced 20% lower than those of its
competitors
THANK YOU