Wal-Mart - 2000
Wal-Mart - 2000Vision StatementTo become the worldwide leader in
retailing
Mission Statement Components
1. Customers2. Products or services3. Markets4. Technology5.
Concern for survival, profitability, growth6. Philosophy7.
Self-concept8. Concern for public image9. Concern for
employeesMission StatementOur fist responsibility is to provide all
consumers (1) the best products and services with guaranteed
satisfaction under one roof. Wal-mart provides a wide array of
products like toys, electronics, groceries, jewelry, ladies, men,
and childrens apparel, and hard goods (2) at reasonable prices. We
will continue to offer scholarships to deserving high-school
graduates (8) in hopes of providing students with a well-deserved
education. Consumers have been conveniently provided not only with
the use of on-line shopping (4) to show without ever leaving home,
but also with the concept of one-stop shopping. The Wal-mart team
is devoted to everything that Wal-mart has accomplished as a
universal competitor (3). We are dedicated in recruiting rewarding,
and retaining employees of good moral standing (9) by providing
benefits for excellent performance, providing clean environments to
work in, and by providing equal-opportunity for all individuals
(7). We will continue to offer the highest quality products at the
lowest price (6) to strive to be the best in the retail industry
(5).
OpportunitiesConsumers want ease of shoppingInternet shopping
growingDollar value increasingSimilar shopping patterns
worldwideRetail sales expected to increaseEnvironment conscious
consumersElderly population growingAsian market virtually untapped
by retailEuropean Market untapped by retailThreatsRegulation of
Wal-Mart pharmaciesSmall towns do not want entry of Wal-MartBad
media exposure for Kathie Lee BrandVariety of competition
nationally, regionally and locallySubstitute products more easily
because of intense competition
Competitive Profile Matrix
David: pag. 112, tabla 3-10Weight: factores que influyen en el
xito de cada empresa entre ms peso ms importanteRating: 1:
debilidad ppal; 2;debilidad menor; 3: fortaleza menor; 4: fortaleza
ppalEl resultado final: fortalezas relativas de las empresas la ms
fuerte: Wal Mart
External Factor Evaluation (EFE) Matrix
David: pag 111, tabla 3-9Weight: peso relativoRating: 4:
respuesta excelente; 3: respuesta por encima del promedio; 2:
respuesta de nivel promedio; 1: respuesta deficienteWeighted Score:
debera estar en el promedio que es 2.5 en este caso est por
debajo
StrengthsCustomer orientedSAMS Club customers able to buy in
bulkSupercenters offer one stop shoppingSatisfaction guaranteed
programs promoting customer goodwillBuy from local merchants when
possibleStock ownership and profit-sharing with employeesLeads
industry in information technologyOngoing development of its
employeesStrong community involvement
WeaknessesNo formal mission statementMembership only for SAMS
ClubKeep poor performing employees on handOld fashioned store
policiesFew women and minorities in top management
Internal factor evaluation Model (IFE) Matrix
David: pag 151, tabla 4-7Weight: factores que influyen en el
xito de cada empresa entre ms peso ms importanteRating: para
fortalezas: 3: fortaleza menor; 4 fortaleza mayorRating: para
debilidades: 1: debilidad mayor; 2;debilidad menorTOWS Analysis
TOWS Analysis continued
SPACE Matrix
Dimensiones internas:Fortaleza financiera yVentaja
competitivaDimensiones externas:Estabilidad ambiental yFortaleza
industria
Segn los calculos (David pg 204) con base en los factores de EFE
e EFIDeterminan en esta matriz si la estrategia de la empresa
debeSer de tipo CONSERVADORA, AGRESIVA, DEFENSIVA O
COMPETITIVAFortaleza FinancieraFortaleza de la IndustriaEstabilidad
AmbientalVentaja CompetitivaSPACE Matrix
Conservadora: permanecer cerca de sus capacidades y no afrontar
riesgos:Tipos de estrategias: penetracion y dllo de mdos y
productos, y diversificacin concntricaDefensiva: se debe centrar en
disminuir sus debilidades internas y evitar amanazas externas;
tipos de estrategias: recorte de gastos, liquidacin y
diversificacin concntricaAgrasiva: aprovechar fortalezas para
aprovechar oportunidades externas, superrar debilidades internas y
evitar amenazas;Tipos de estrategias: penetracin y dllo de mdos y
productos, integracin hacia adelante y atrs, diversifcaciones en
conglomerado o concentrica,Competitiva: uso de estrategias
competitivas como integracion hacia adelante o atrs, pentracion
demdo y dllo de mdos y productos y alianzas estrategicasFortaleza
FinancieraFortaleza de la IndustriaEstabilidad AmbientalVentaja
CompetitivaGrand Strategy Matrix
The Internal-External(IE) Matrix
Conservar y mantenerCrecer y construirCosechar
oEnajenarQuantitative Strategic Planning Model [QSPM]
David:pg 217. tabla 6-6Esta matriz permite evaluar y comparar
DIF ESTRATEGIAS ENTRE SI:Weight: el mismo dado en EFE e EFIAS:
Puntajes de grado de atraccin: afecta este factor la seleccin de
las estrategias?: si la Respuesta es positiva entonces la
estrategia debe compararse en relacin a ese factor; grado de
atraccin: 1 sin atractivo, 2 algo atractivo, 3 mas o menos
atractiv, 4 muy atractivo; GUION O NADA: la respuesta es
NEGATIVATAS: Puntaje total de grado de atraccin: EL MAYOR PUNTAJE
DAR LA MEJOR ESTRATEGIA
QSPM continued
Wal-Mart K-Mart JC Penny
Critical Success FactorsWeightRatingWeighted ScoreRatingWeighted
ScoreRatingWeighted Score
Market Share
Price
Competitiveness
Financial Position
Product Quality
Consumer Loyalty0.20
0.30
0.10
0.20
0.203
4
4
2
20.60
1.20
0.40
0.40
0.402
2
2
2
20.40
0.60
0.20
0.40
0.402
1
2
3
20.40
0.30
0.20
0.60
0.40
Total1.00 3.00 2.00 1.90
Key External FactorsWeightRatingWeighted Score
Opportunities
Consumers want ease of shopping0.1250040.50
Internet shopping growing0.1750020.35
Dollar value increasing0.0125020.03
Similar shopping patterns worldwide0.0062530.02
Retail sales expected to increase0.0062520.01
Environment conscious consumers0.0125030.04
Elderly population growing0.0500030.15
Asian market virtually untapped by retail0.0125010.01
European Market untapped by retail0.1000020.20
Threats
Regulation of Wal-Mart pharmacies0.1020.20
Small towns do not want entry of Wal-Mart0.0530.15
Bad media exposure for Kathie Lee Brand0.0530.15
Variety of competition nationally, regionally and
locally0.0510.05
Substitute products more easily because of intense
competition0.1020.20
TOTAL1.00
2.30
Key Internal FactorsWeightRatingWeighted
Score
Strengths
Customer oriented0.25041.00
SAMS Club customers able to buy in bulk0.10030.30
Supercenters offer one stop shopping0.10040.40
Satisfaction guaranteed programs promoting customer
goodwill0.02530.08
Buy from local merchants when possible0.02530.08
Stock ownership and profit-sharing with employees0.02540.10
Leads industry in information technology0.02540.10
Ongoing development of its employees0.10040.40
Strong community involvement0.02530.08
Weaknesses
No formal mission statement0.01220.02
Membership only for SAMS Club0.10010.10
Keep poor performing employees on hand0.10010.10
Old fashioned store policies0.01320.03
Few women and minorities in top management0.10010.10
TOTAL1.00
2.88
StrengthsWeaknesses
1. Customer oriented
2. SAMs Club consumers able to buy in bulk
3. Supercenters offer one stop shopping
4. Satisfaction guaranteed programs promoting customer
goodwill
5. Buy from local merchants when possible
6. Stock ownership and profit-sharing with employees
7. Leads industry in information technology
8. Ongoing development of its employees
9. Strong community involvement1. No formal mission
statement
2. Membership only for SAMS Club
3. Keep poor performing employees on hand
4. Old fashioned store policies
5. Few women and minorities in top management
OpportunitiesS-O StrategiesW-O Strategies
1. Consumers wan ease of shopping
2. Internet shopping growing
3. Dollar value increasing
4. Similar shopping patterns worldwide
5. Retail sales expected to increase
6. Environment conscious consumers
7. Elderly population growing
8. Asian Market virtually untapped by retail
9. European Market untapped by retail 1. Advertise more for
shopping on-line (S8, O2)
2. Expand internationally because of similar shopping patterns
(S3, O4, O8)
1. Improve employment techniques to hire and keep the best
performing employees (W3, W5, O6)
ThreatsS-T StrategiesW-T Strategies
1. Regulation of Wal-Mart pharmacies
2. Small towns do not want entry of Wal-Mart
3. Bad media exposure for Kathie Lee Brand
4. Variety of competition nationally, regionally and locally
5. Substitute products more easily because of intense
competition1. Buy from local merchants to promote unity in the
community (S5, T4)
2. Build more Supercenters for the increased demand for one stop
shopping (S3, T4)
1. Allow consumers to buy in smaller bulk without having
membership to SAMS Club (W2, T5)
Internal strategic position
Financial strength
+5+1 best to +6 worst
Y axis: 5 + (-2) = 3
Environmental stability
-2-6 worst to 1 best
External strategic position
Competitive advantage
-2-6 unstable to 1 stable
X axis: 6 + (-2) = 4
Industry strength
+6+1 best to +6 worst
Conservative
FS
Aggressive
CA
IS
Defensive
ES
Competitive
Internal strategic position
Financial strength
+5+1 best to +6 worst
Y axis: 5 + (-2) = 3
Environmental stability
-2-6 worst to 1 best
External strategic position
Competitive advantage
-2-6 unstable to 1 stable
X axis: 6 + (-2) = 4
Industry strength
+6+1 best to +6 worst
Conservative
FS
Aggressive
CA
IS
Defensive
ES
Competitive
RAPID MARKET GROWTH
Quadrant II
Quadrant I
Wal-Mart
WEAK
COMPETITIVE
STRONG
POSITION
COMPETITIVE
POSITION
Quadrant III
Quadrant IV
SLOW MARKET GROWTH
2. Market penetration
3. Product development
4. Forward integration
5. Backward integration
6. Horizontal integration
7. Concentric diversification
The IFE Total Weighted Score
StrongAverageWeak
3.0 to 4.02.0 to 2.991.0 to 1.99
HighIIIIII
3.0 to 3.99
MediumIVVVI
The EFE Total Weighted Score2.0 to 2.99Wal-Mart
LowVIIVIIIIX
1.0 to 1.99
GROW AND BUILD
Strategic Alternatives
Key Internal Factors
WeightBuild additional Supercenters nationwide and
worldwideImprove SAMS Club operations
StrengthsASTASASTAS
Customer oriented0.25------------
SAMSS club consumers able to buy in bulk0.101.000.104.000.40
Supercenters offer one stop shopping0.104.000.401.000.10
Customer goodwill0.03------------
Buy from local merchants when possible0.03------------
Stock ownership and profit sharing with
employees0.03------------
Leads industry in information technology0.032.000.053.000.08
Ongoing development of its employees0.102.000.201.000.10
Strong community involvement0.03------------
Weaknesses
No formal mission statement0.01------------
Membership only for SAMS Club0.101.000.102.000.20
Keep poor performing employees on hand0.101.000.102.000.20
Old fashioned store policies0.011.000.012.000.02
Few women and minorities in top
management0.101.000.102.000.20
SUBTOTAL1.00
1.06
1.30
Key External Factors WeightBuild additional Supercenters
nationwide and worldwideImprove SAMS Club operations
OpportunitiesASTASASTAS
Consumers want ease of shopping0.134.000.503.000.38
Internet shopping growing0.183.000.534.000.70
Dollar value increasing0.013.000.042.000.03
Similar shopping patterns worldwide0.014.000.033.000.02
Retail sales expected to increase0.013.000.022.000.01
Environmental conscious consumers0.01------------
Elderly population growing0.05------------
Asian Market virtually untapped by
retail0.014.000.053.000.04
European Market untapped by retail0.104.000.403.000.30
Threats
Regulation of Wal-Mart pharmacies0.102.000.201.000.10
Small towns do not want entry of
Wal-Mart0.153.000.452.000.30
Bad media exposure for Kathie Lee Brand0.08------------
Variety of competition nationally, regionally and
locally0.153.000.452.000.30
Substitute products more easily because of intense
competition0.03------------
SUBTOTAL1.00
2.67
2.17
SUM TOTAL ATTRACTIVENESS SCORE
3.72
3.47
